The Circularity Index 2026, published by Indeed Innovation, evaluates how companies listed in Germany’s DAX40 are integrating circular economy principles into their strategies, targets, and business models. While most companies recognize the importance of circularity, the report reveals a clear gap between stated ambition and measurable action. It highlights where organizations are making progress, where opportunities are being missed, and how innovation and intellectual property can play a key role in driving the transition.
The analysis, based on publicly available sustainability and annual reports, assessed 22 indicators across five categories, including material use, design for circularity, value retention, and industry collaboration.
Circularity Recognized — But Rarely Measured
The report identifies a significant implementation gap:
- 47.5% of DAX40 companies have no quantitative circularity targets, focusing instead on traditional sustainability metrics.
- Companies tend to measure areas with established methodologies — such as energy and resource efficiency — while avoiding commitments related to product design, value retention, and business model transformation.
- Only 41 measurable goals were identified overall, with almost half concentrated in energy and water indicators.
This pattern shows a preference for incremental optimization rather than systemic change.
Value Retention Remains a Blind Spot
High-value circular strategies — keeping products and materials in use longer — are still largely absent:
- Only four measurable goals address the full 10R framework across all companies.
- Strategies such as repair, remanufacture, or repurpose are rarely translated into concrete targets.
- Recycling dominates reported activity, even though it represents the lowest-value retention option in the circular hierarchy.
The findings suggest that circular economy is often treated as an extension of waste management rather than a redesign of value creation.
Sectoral Differences Highlight Untapped Opportunities
The study shows that circular pathways differ by industry, depending on product lifespan and material intensity. Durable-goods sectors demonstrate more engagement with repair and refurbishment models, while consumables and short-life products rely mainly on reduction and recycling strategies.
Infrastructure-related industries, managing long-life assets, hold major potential for lifetime extension and material recovery but have yet to translate this into measurable commitments.
At the same time, pioneering organizations show that preserving product and material value can open new markets, create service-based revenue streams, and improve resilience to crises and price fluctuations.
Innovation and Intellectual Property as Enablers of Circularity
Transitioning from linear to circular systems requires more than operational improvements — it demands innovation in product architecture, materials, tracking technologies, and lifecycle services. These developments rely heavily on intellectual property management, including patents, design protection, and data-driven solutions that enable collaboration while safeguarding investment.
As companies move toward modular design, take-back systems, and digital material tracking, IP becomes a strategic tool to scale circular solutions, support cross-industry partnerships, and secure competitive advantage in emerging circular markets.
“The Circularity Index 2026 confirms that the conversation has moved beyond awareness. The challenge now is implementation — embedding circular principles into innovation, design, and business models. Intellectual property will play a crucial role in this transition, enabling companies to develop, protect, and scale new circular solutions while fostering collaboration across value chains. Circularity is therefore not only an environmental objective, but a driver of industrial innovation and long-term competitiveness.”
For a full overview of the findings, insights, and data, you can read the complete Circularity Index 2026 here
