Summary
- Shifting to a circular economy in Canada could slash 1.6M tonnes of carbon emissions annually and tap into a Canadian value-retention market already worth $56B.
- Circularity and waste reduction are driving change, with 97% of industry leaders adopting circular economy principles to drive profitability and shield operations from global market volatility.
- Proven Innovation:
- Sixone Labs: Reducing operational costs and providing scalable pathways for sustainability by recovering high-value polyester from complex textile waste.
- Infinite Carbon: Reducing emissions while restoring ecological function by converting forestry residuals into carbon materials through a $3.3 million provincial grant and Indigenous partnership.
- Circularity is no longer a niche “green” goal—it is a robust framework for long-term profitability, waste reduction, and resource independence.
Transitioning to a circular economy offers Canada a massive opportunity to build resilient supply chains and drive significant cost savings.
In 2060, the world will need a staggering 167 gigatonnes of primary resources to maintain its key industries and operations—almost double what we used in 2017. As populations grow and industries expand, raw material shortages and global disruptions are becoming real risks.
A linear economy that extracts, uses, and discards materials carries major economic and environmental costs. With this linear model, many products are disposed of long before their components’ value is fully realized. In Canada, 73% of everything we consume ends up in landfills or incinerators.
However, hidden in these numbers is a remarkable opportunity. If we reused, repaired, and remanufactured more of what we already have, Canada could cut 1.6 million tonnes of carbon emissions every year, unlocking a CAD $6.1 trillion economic opportunity by 2030.
Good for the Planet—and the Bottom Line
Businesses are already facing rising resource costs, unstable supply chains, and pressure to reduce their environmental impact. Renewable energy alone isn’t enough—45% of global emissions come from product and food manufacturing.
The good news? A new path is emerging. The circular economy offers a practical and economically compelling solution.
Circularity follows nature’s logic: materials should cycle continuously. With an emphasis on upstream product design, we can stop waste before it is even created. Its three core principles are:
Eliminate waste and pollution
Keep products and materials in use
Regenerate natural systems
This isn’t just an environmental idea—it’s a strategic business move. In 2019, Canada’s value retention market (reuse, repair, and refurbishment) generated approximately $56 billion. A Bain and World Economic Forum survey found that 97% of manufacturing leaders implementing circular solutions do so for profitability and competitive advantage. Circularity is increasingly being driven by market forces, not mandates.
Transitioning to a circular economy can help Canada build a more sustainable, resilient, and competitive future. Circular business models can:
- Unlock new revenue streams
- Lower operational costs
- Shorten supply chains
- Reduce emissions
- Stimulate innovation and job creation
- Reduce dependence on global resource markets
- Protect the environment and reduce biodiversity loss
This positions circularity not as a niche sustainability concept, but as a major pillar of Canada’s future industrial economy. Many Foresight portfolio companies are leading the circular mission:
Businesses Rewriting the Script
The circular economy is already taking shape across industries, often in ways that feel remarkably intuitive. Foresight portfolio companies are benefiting from circular business models.
Sixone Labs
Sixone Labs recovers high-quality polyester from complex, blended textiles, reducing waste and keeping this material in circulation.
Textiles alone generate over 120 million tonnes of discarded material each year, leaving behind finished garments full of dyes, finishes, and blended fibres. Sixone Labs has taken on the challenge of recycling these complex textiles.
Adopting a circular approach has allowed the company to resonate deeply with organizations committed to transforming the textile industry, leading to partnerships with reverse logistics providers, apparel companies, and fibre and filament producers. This creates a reliable supply chain that aligns material recovery with market demand, while operational efficiencies reduce costs compared to conventional recycling.
Today’s supply of recycled polyester is almost entirely derived from plastic bottles, not textiles. Sixone's innovative textile-to-textile recycling addresses this gap. They have proved to be a credible, mission-aligned partner providing scalable pathways for sustainability targets across the industry.
Circularity for us means building systems that work on the waste the world actually produces, not just the small fraction that fits current recycling models.
Chris Wai, CEO, Sixone Labs
Infinite Carbon
Infinite Carbon prevents forestry materials from being burned or left to decompose by transforming them into long-lived carbon for use in industrial materials like steel and concrete, as well as soil and filtration. This process effectively reduces emissions while restoring vital ecological function.
By partnering directly with mills to source wood residuals—including bark, tops, limbs, and non-millable logs—Infinite Carbon secures a consistent, locally sourced feedstock. This circular approach drives cost competitiveness while providing customers with shorter lead times, shielded from global market volatility and backed by rigorous quality control.
Circularity empowers the company to retain economic value within the region by transforming existing resources into essential industrial materials. This robust model has secured a $3.3 million grant from the Ontario Ministry of Natural Resources and Forestry and driven strategic engagements across the steel, concrete, and agricultural sectors. Furthermore, the model’s localized focus has paved the way for meaningful Indigenous ownership and long-term economic alignment.
Circularity isn’t an add-on for us, it is the business model. It creates economic, environmental and community benefits simultaneously.
Daniel Ronald, CEO, Infinite Carbon
By reimagining waste as a resource, these innovators are avoiding supply chain shocks, reducing raw material costs, and capturing the growing market of climate-conscious consumers. They are proving that the circular economy isn't a “nice-to-have” sustainability goal—it is a robust framework for long-term profitability and resilience.
Choosing a Resilient Future
The shift toward circularity is one of the most significant economic and environmental opportunities of our time. For Canada, it’s a chance to build industries that are more competitive, more resilient, and more aligned with the needs of a changing world. Businesses still face barriers such as upfront costs, capability gaps, and limited access to reused and recycled materials, and addressing these challenges is essential to scale circular solutions.
Companies leading this transition aren’t just cutting waste—they’re redefining how long-lasting value is created. Those investing early in reliable circular materials will be well positioned for success in a resource-constrained future.
A more regenerative and profitable economy is possible—and it’s already underway. The next chapter belongs to the businesses bold enough to shape it.
