How France’s Circular Economy laws are encouraging business innovation and sustainability

The current industrial crisis in France, marked by rising costs, supply chain disruptions, and pressures to decarbonize, is threatening a number of key actors in a once dynamic and prosperous sector. The latest announcements by Michelin and Auchan, which are compelled to close a number of their sites following substantial economic losses, raises the question about sustainable initiatives that need to come to the fore rapidly to enhance these companies’ resource efficiency, whilst protecting thousands of employees who are reliant on these firms as the backbone to their communities. Is French industry taking a bold enough step into sustainable initiatives and circular approaches? I highlight here potential strategies that can redress certain and illustrate with examples of French companies who have taken the leap of faith towards circularity and sustainable innovation.

Building resource efficiency and reducing production costs at Schneider Electric

Circular strategies focus on reducing waste and reusing resources, which can lower the demand for raw materials and decrease costs. This is crucial for French industries facing high material and energy costs, allowing companies to optimize use and reduce expenses. Schneider Electric, a global leader in energy management, is a pioneer in resource efficiency. It implements a closed-loop system for its electrical components, focusing on designing for recyclability, using recycled materials, and minimizing waste. The company also offers take-back programs and remanufactures products, reducing raw material demand and costs while achieving environmental benefits

How Carbios have localized supply chains

By emphasizing remanufacturing, repair, and recycling, circular economy approaches reduce dependency on global supply chains, which have been disrupted recently. France could create local loops for resources, enhancing resilience to global market shocks while fostering job creation in refurbishment and recycling sectors. Carbios is a biotechnology company that has developed an innovative enzymatic recycling technology for plastics, especially PET (polyethylene terephthalate). Carbios’s technology enables infinite recycling of plastic waste within local loops, reducing dependency on imported virgin plastic materials and supporting local supply chain resilience. This innovation allows France to tackle plastic waste while retaining valuable materials within its economy.

• Renault group focus on decarbonization goals: Many circular strategies reduce emissions by cutting down on raw material extraction and manufacturing. This can help French industries to align with stringent EU and national decarbonization goals, by lowering the carbon footprint of manufacturing while also meeting environmental regulations and potentially avoiding emissions penalties. Renault has been a leader in automotive circularity over recent years, notably through its Re-Factory in Flins (78), which focuses on reconditioning, remanufacturing, and recycling vehicles and parts. Renault’s operations at the Re-Factory extend the life of vehicles and components, significantly reducing the carbon footprint of its products. This approach is in line with the EU’s decarbonization goals, as it cuts emissions associated with new manufacturing.
• Veolia innovate their new business models: Circular models like product-as-a-service, take-back programs, and extended producer responsibility (EPR) can drive innovation and provide competitive advantages. By adopting these models, French companies can tap into new revenue streams and reach consumers focused on sustainability, thereby fostering economic resilience and adaptation in a changing market. Veolia, a global environmental services company, supports circular economy innovation by offering water, waste, and energy management services. Veolia collaborates with manufacturers to create closed-loop systems, such as recovering waste materials for reuse and recycling water in industrial processes. One example is its partnership with Nestlé to optimize water use in its production facilities, aligning with the company’s focus on sustainable resource management.

How La Camif support local employment and green jobs

Circular practices like repair, recycling, and remanufacturing can generate new jobs, especially in regions with a historical industrial presence. These green jobs are essential for transitioning workers into sustainable industries, making the economy more adaptable, while also supporting France's employment rates. La Camif, a French e-commerce company specializing in furniture and household items, prioritizes circular economy principles by sourcing materials locally, offering repair services, and designing products for durability and end-of-life recycling. Camif also actively promotes local manufacturing, supporting jobs in sustainable production and contributing to regional employment.

Government Support and Policy Alignment at Decathlon

The French government has been promoting circular economy principles through incentives, grants, and stricter regulations on waste (eg Anti-waste Law in 2020). Industries that embrace circular economy practices can thus gain access to public support and investment, leveraging these funds to strengthen their businesses and integrate sustainable practices faster. Decathlon, the French sporting goods giant, has committed to several circular initiatives, including product rental, repair, and resale of returned items. In partnership with French policies on waste reduction and circular economy, Decathlon’s model reduces waste (no unnecessary packaging on goods and bagless purchases) and promotes reuse. The company also operates workshops for repairing sporting goods, extending product lifespans and aligning with France’s circular economy goals.

These companies showcase how France’s industries can leverage circular economy practices to become more sustainable and resilient. By directly addressing resource scarcity, supply chain volatility, and emissions reduction they set an example for other businesses and help strengthen the national economy in line, build a more competitive, responsible offering with environmental objectives that could put France very much back on the map of the world’s industrial stage.