Creating more Social Impact in the Circular Economy

Why Australia’s circular economy should measure its impact on people as well as the planet.

Published on the 21 September 2026 by Dr Linh Nguyen, CSI UNSW Lecturer

Two workers load wooden furniture onto a Bower Reuse & Repair Centre truck for reuse

Mentions

When we discuss the circular economy, the focus is often on waste and diverting more resources away from landfill. But what happens to the items that live a second life? And does their impact extend beyond just sustainability?

As part of the Social Entrepreneurship Practicum course, I have come across an increasing number of social enterprises that are expanding their focus beyond the circular economy model to include more social impact.

A clear example is The Bower’s House to Home program that furnishes accommodation for people rebuilding their lives after homelessness, domestic and family violence, displacement, refugee settlement or crisis. This program uses donated furniture and household items that might have otherwise been thrown away and repurposes them to be used in emergency situations where people can benefit.

For me, this captures a bigger opportunity for Australia’s circular economy beyond waste reduction. It shows how the circular economy could be redesigned to include people and social impact as well.

Measuring the Circular Economy

Australia’s circular economy conversation, and many of the metrics used to compare progress internationally, remain focused on materials, typified by the ‘circularity rate’ (Australia’s Circular Economy Framework 2024). However, the NSW Government’s Opportunities in the Circular Economy and the CSIRO’s circular economy research both highlight the importance of innovation and new business models.

I think a stronger circular economy can also ask additional questions.

Who benefits from the resources kept in circulation?

What social value can also be created?

And how can circular systems support people facing disadvantage or crisis?

These questions matter because the transition to a more sustainable economy should not be measured solely by environmental outcomes but also by whether its benefits are shared more broadly across society.

How to integrate social impact into the circular economy

Through teaching our Social Entrepreneurship Practicum course at UNSW (where students get to work with enterprises), I have had the opportunity to collaborate with many social enterprises that are at the forefront of integrating social impact and waste reduction.

For example:

OzHarvest Ventures

Turns surplus produce into circular products such as the Conscious Drink and Life-Changing LemonAid. This reduces food waste while generating revenue for food relief. It also strengthens local and Indigenous supply chains and assists OzHarvest’s broad mission of helping people in need and addressing food insecurity.

Two glass candle jars with white wax and twin wicks sit on a table, with a wooden lid beside one jar.

The CandleXchange's Return & Swap program

Candle containers can't be recycled, so CandleXchange keeps them in circulation. Their Return & Swap Program offers 30% off a new candle for every returned container. Their UpCandle Program refills used containers from any brand and donates them to domestic violence survivors.

Reverse Garbage

Redirects thousands of kilos of commercial and industrial waste to schools and organisations for creativity and learning. It supports social impact and community participation through skill development and volunteer programs.

Revolve ReCYCLING

Restores and sells old bikes at an affordable price, while donating bikes to remote Indigenous communities, refugee children, and young people in disadvantaged regions of Australia.

Joy of Giving

Keeps thousands of pre-loved children's resources, such as toys and books, in circulation by extending their life while improving access to quality resources for children and families, including refugees, families affected by domestic violence, and remote Indigenous communities.

Circle Paints

Gives surplus paint a second life, reducing waste while making high-quality paint affordable and accessible to people on tight budgets, including schools, families, and community groups.

These organisations do more than keep resources in circulation; they create pathways for participation and community well-being, reminding us that the value of circularity is not only about extending the life of products but also about improving the lives of people and the community.

What should Australia’s circular economy look like in the future?

Australia’s Circular Economy Framework sets out an ambition to double Australia’s circularity by 2035 with three key targets: reducing our per capita material footprint by 10%, increasing material productivity by 30% and safely recovering 80% of our resources. While important, these targets focus largely on materials and waste. The 2025 Productivity Commission inquiry goes further by recognising the social benefits of the circular economy, but it does not go as far as measuring its impact.

The social enterprises we collaborated with through the Social Entrepreneurship Practicum demonstrate how environmental, economic and social value can be created together.

If we design the circular economy around people as well as resources, the same activities that reduce waste can also build employment skills, create jobs, improve access to resources, and empower disadvantaged communities.

For the circular economy to work for both people and the planet, social impact should be evaluated as one of its key outcomes. By 2035, Australia should be ambitious and aim not only to double its circularity rate but also to measure progress towards more social prosperity.

_{Reverse Garbage CEO, Kirsten Junor, speaks to CSI UNSW students in a lecture theatre, with slides about the not-for-profit organisation displayed on large screens. © UNSW 2026}

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