Circular potential across global value chains: WCEF leaders speak

By Melissa MacEwen

At the World Circular Economy Forum (WCEF) in May 2025 I convened an accelerator session with senior voices from ABB Motion, Association of Southeast Asian Nations (ASEAN), Chatham House, the International Finance Corporation (IFC), Ingka Group (IKEA), Nomura Holdings (Nomura), and the World Business Council for Sustainable Development (WBCSD).

We were there to answer a single, critical question:  

How can we unlock circularity across global value chains, drawing on PwC’s research in Asia Pacific?

PwC’s latest data-driven modelling for Asia Pacific framed the discussion quantifying what is at stake, and the energised debate that followed mapped out six inter-linked pathways – economics, policy, industry innovation, finance, cross-sector collaboration and company-level action. The message that emerged is clear: circularity is moving from an environmental discussion to a resilience need and economic opportunity. 

The model shows how much extending the useful life of materials across Asia Pacific could deliver in just one year: 

• US$340 billion uplift to GDP  

• 15 million net new jobs 

• 1.7 gigatonnes fewer emissions (-7.2 %) – even before factoring in the renewable-energy transition 

Translation: Circularity now sits at the centre of economic, climate and resilience agendas. Below is a synthesis of our insights from the discussion and show where leaders must act next.   

1. Policy is moving from the environment desk to economic decision rooms 

Increasingly, regulators are repositioning circularity as a growth driver rather than an environmental add-on. The agenda is moving from Environmental Ministries to Trade and Finance Ministries.  

Policymakers in ASEAN are currently crafting provisions within trade agreements to allow for the easier movement of remanufactured goods. This momentum needs to continue, as: 

“Today’s trade rules and price signals still reward primary material inputs” warned Dr. Patrick Schröder, Senior Research Fellow, Environment and Society Centre – Chatham House, The Royal Institute of International Affairs of Chatham House. He argued for circular design standards, resource taxes and modernised trade clauses incorporating circularity. 

Common metrics will be the glue that holds emerging policies together:  

“The Global Circularity Protocol for Business will give policy makers a common language and help companies in target-setting, measuring, reporting and disclosing progress on resource efficiency and circularity across companies and regions, with the aim of unlocking further innovation and financing”, explained Filipe Camaño Garcia – Lead, Global Circularity Protocol – WBCSD. He was referring to the harmonised framework that WBCSD, members and partners are developing.

2. Industry views circularity as growth, not cannibalisation  

Circular business models are being seen as value capture and creation mechanisms, rather than cannibalisation – the fear that a new product or service will eat into sales of a company’s existing offerings.  

Local-to-local supply chains for heavy industrial products can capture value, while global value chains still wrestle with divergent design standards and patchwork take-back rules.  

Consumer appetite is equally clear, despite nuances in finding the right pricing and delivery strategies. 

Making second life options as frictionless as possible and truly understanding what works for the consumer is key. Companies are piloting buy-backs, peer-to-peer resale and spare-part programmes – and collaboration across suppliers, recyclers and even peers is critical to reach scale. 

3. Finance is adjusting to support circular models

Capital is starting to flow into circular ventures, but the financial system is still primarily built for linear business models – leading to challenges in accessing mainstream funding. 

The IFC’s Harmonized Circular Economy Finance Guidelines¹ aim to close that gap. Private capital is experimenting too: 

“Nomura established a Sustainable Innovation Investment scheme this year, and the circular economy is one of our target areas.” explained Yukari Saiki, Vice President of Nomura’s Sustainable Innovation and Investment Group. 

Decarbonising the agricultural sector is seen as a major opportunity for the application of circular approaches:  

Scaling capital will require coordinated moves by both public and private sectors – and hinges on policymakers setting clear incentives so investors can update risk models and confidently back circular businesses.

4. Four key areas where collaboration can unlock progress

5. What organisations can do now

• Map the value at stake: Quantify value pool (revenue upside, cost efficiency) and carbon impacts for your own supply chain to build the internal business case. 

• Design for the second life first: Embed durability, modular repair and traceable materials in every new product brief. 

• Co-invest or partner in enabling infrastructure: Recycling capacity, reverse logistics and digital product passports can all benefit from shared capital.  

• Engage with policy early: Advocate for harmonised standards and extended-producer-responsibility schemes that reward circularity. 

• Build the finance narrative: Track avoided emissions or dematerialisation alongside Internal Rate of Return (IRR) to attract sustainability-linked capital. 

• Communicate with stakeholders: To gather data required for mandatory regulatory reporting and reporting required by upstream stakeholders.

The takeaway 

Circularity is moving from an environmental concern – to a resilience imperative and a sizeable economic opportunity.  

Policy, industry innovation, finance, cross-sector collaboration and company-level action are aligning, but progress still requires coordinated effort to accelerate.

Organisations that treat it as core strategy – redesigning products, rewiring supply chains and reshaping policy – stand to capture outsized economic and climate returns as the transition accelerates. Those who put circularity at the heart of strategy today will lead the markets of tomorrow. 

^{¹IFC, Harmonized Circular Economy Finance Guidelines, May 15, 2025}

^{²European Parliament, Revision of the Ecodesign Directive, 2022}

With thanks to the panellists: 

Salomé Iglesia Pérez – Group Circularity Lead and; Head of Portfolio Management, ABB Motion Services Division 

H.E. Satvinder Singh – Deputy Secretary-General, Association of Southeast Asian Nations (ASEAN Secretariat) 
 
Dr. Patrick Schröder – Senior Research Fellow, Environment and Society Centre – Chatham House, The Royal Institute of International Affairs of Chatham House

Huishan Lian – Circular Economy Finance Lead for China, IFC World Bank Group

Connor Hill – Global Director for Circular and Sustainable Living, Ingka Group (IKEA)

Yukari Saiki – Vice President, Sustainable Innovation Group, Nomura Holdings 

Filipe Camaño Garcia – Lead, Global Circularity Protocol, World Business Council for Sustainable Development (WBCSD) 

If you would like to discuss how sustainable resource use and circular business models could benefit your organisation, please contact the authors.