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Ellen MacArthur Foundation Urges Deeper Circularity for Bio-Materials
14 Jul
Summary
- Circular economy policies often overlook bio-based materials' full potential.
- Most bio-based material policies focus on resource substitution.
- The foundation recommends regenerative sourcing and novel business models.

The Ellen MacArthur Foundation's report, "Circular by Nature: A Policy Agenda for Bio-based Materials in a Circular Economy," criticizes current circular economy policies for failing to fully leverage bio-based materials. As of April 2026, over 100 countries have adopted circular economy roadmaps, yet analysis shows these frameworks largely treat bio-based materials solely as replacements for linear resources.
The foundation stresses that these policies are often silent on critical upstream issues such as land-use impact, biodiversity, and nutrient cycles. Furthermore, certification schemes tend to focus narrowly on industrial compostability rather than holistic environmental benefits or necessary processing infrastructure.
The report recommends a more integrated circular approach. This includes regenerative sourcing, maintaining materials in circulation, deriving value from by-products, and fostering novel business models that decouple revenue from raw material extraction. Gucci's initiative with Nativa, focused on improving soil quality and biodiversity over 115,000 hectares, is cited as an example of business action.
The foundation outlines five key pillars for policy action to encourage a more robust circular economy for bio-based materials. This comprehensive strategy aims to move beyond simple substitution towards systems that restore and regenerate natural resources.