Fraunhofer Cluster of Excellence Circular Plastics Economy CCPEThe Circular Economy Needs a Social Dimension
Circular economy is widely seen as a pathway to more sustainable production and consumption. But a recent report by Bertelsmann Stiftung and Yunus Environment Hub highlights a crucial missing piece: social innovation.
The study examines 274 circular startups in Germany and finds that 39 % integrate both environmental and social goals. Their business models address local repair, inclusive design, education, and community empowerment – expanding the scope of circularity beyond technology and materials.
At the same time, the report points out that most funding and policy tools still focus on technical innovation alone. It calls for stronger support structures, social impact metrics, and public procurement practices that reflect the full value of circular social businesses.
Fraunhofer CCPE supports this systemic perspective: A truly circular transformation must include the social dimension – not as an add-on, but as a core component of sustainable innovation.
Read the full report (May 2025): A Systemic Circular Economy Transition in Germany (PDF)
Source: https://www.bertelsmann-stiftung.de/en/publications/publication/did/a-systemic-circular-economy-transition-in-germany-en