Why the Circular Economy Needs Better Defaults, Not More Awareness

We’ve been talking about the circular economy for decades. The frameworks, the roadmaps, the theory — they’re all there. And yet, the global circularity rate is still falling. Why? Because awareness doesn’t automatically lead to action.

Most people do care. They’ll recycle when it’s easy, they’ll repair when it’s simple, and they’ll return products if it feels worthwhile. The problem isn’t intent — it’s the default options the system gives them.

The Awareness Trap
We’ve relied for too long on awareness campaigns to change behaviour. But when returning an old appliance means navigating three different websites and finding a drop-off location you didn’t know existed, convenience wins every time.

In retail, the default options still favour new purchases over repair, landfill over reuse, and silence over engagement. The result? Circularity remains an aspiration rather than a habit.

What “Better Defaults” Look Like
Better defaults are about making the right thing the easy thing. For customers, that could mean:

• Returns with rewards: Customers scan a QR code, drop the product, and instantly receive loyalty points or discounts.

• Repair as a standard offer: Booking a repair is as visible and frictionless as buying a new product.

• Automated data capture: The moment a product is returned, the brand has verified data for reporting and engagement.

Why This Works
Behavioural science tells us defaults matter more than persuasion. If returning a product is built into the brand experience — visible, rewarding, and easy — people don’t need extra motivation. They just do it.

A Real-World Example
Through our pilots, we’ve seen customer participation rates spike when brands integrate returns into their loyalty programs. Instead of a passive bin in the corner, the return process becomes part of the brand experience, delivering verified ESG impact and new sales opportunities.

Closing Thought
Awareness is still valuable, but it’s not enough. The circular economy will only scale when the easiest option is also the most sustainable. At Utilitarian, that’s exactly the system we’re building.