Another approach for businesses to the transition towards a circular economy is the reduction of their exposure to “linear risks”, i.e. the exposure to the effects of linear business practices, a concept introduced by Circle Economy, PGGM, KPMG, EBRD, WBCSD, “Linear Risks” (2018).

Examples for linear risks are scarcity of primary resources and price volatility, supply chain failures due to scarcity of resources or lack of common standards, limited opportunities to expand to new markets due to IP issues or changing legislation, disruptive new business models impacting sales, requirements for extended producer responsibility, etc.