Article

Rethinking Value Creation with Dr. Johannes F. Kirchhoff

What political measures should Germany’s new federal government take to strengthen the competitiveness of German companies through circular value creation?

Circular value creation begins at the product design stage and involves every actor along the value chain, from manufacturers placing products on the market to companies engaged in remanufacturing and material recovery. The circular economy is also fundamentally about resource management, making it a key pillar of industrial and economic policy. This should be reflected within the federal government as well.

Advanced processing technologies are particularly important for closing material loops. Policymakers should maintain technology neutrality and support a wide range of approaches, including thermal, mechanical, and chemical processes. Bans on specific technologies should be avoided. At the same time, the criteria that determine when a material is still considered waste should be revised. Existing waste regulations often create unnecessary barriers for recoverable, non-problematic material streams. Where appropriate, these materials should be allowed to exit the waste regime so they can be reintroduced into the economy more efficiently.

What changes in mindset and corporate culture are needed to make the circular economy a permanent part of business models?

The linear management of materials belongs to the past. The circulation of the materials used in a product must already be considered and incorporated during the product development phase.

This means taking responsibility not only for bringing products to market, but also for collecting them, disassembling them, and working with suppliers to turn recovered materials back into usable raw materials. One promising model is “product as a service”. This model generates revenue from spare parts, maintenance, and repairs during the use phase, while also securing access to valuable raw materials after the product has reached the end of its life. Sustainable product offerings designed in this way create competitive advantages.

If you were an investor, which technologies or solutions in Germany would you invest in today to benefit from the circular economy over the long term?

I would invest in companies whose product concepts are based on providing products to users as a service for a fee and that have been developed from the outset with reverse logistics, circular materials, and the related processing technologies in mind.