Spring is the time for new growth to sprout from seeds!
Last year we made a new strategy for Ethica, and now we are starting to see the first results coming to fruition.
After thorough business environment outlook work, we identified two key insights to shape our strategic direction: 1) In the domestic market the overall economic environment remains difficult and slows down companies’ investments, although green transition is increasingly important topic and circular economy is rising among top priorities in many businesses’ CSRD materiality analysis. 2) In the global market, many regions speed up in increasing awareness of Circular Design, driven by the EU Ecodesign regulation – not only affecting the EU internal market, but also our important trade partners.
As the outcome of the process, we defined the following strategic goals: 1) Establish and deepen the strategic collaborations with our key customers 2) Strengthen Ethica’s presence in selected new markets 3) Digitalize and scale our circular business development services. Our overall mission remains the same: “We inspire and guide entire industries towards regenerative circular future.”
Expanding internationally despite the turbulence
We (like most people) did not quite see the extent of the geopolitical turmoil coming and hitting international relations and global economy. Still, we are confident that the timing was right for Ethica to start taking more systematic steps towards international markets.
While the economic uncertainty has hit new records, many regions, countries and companies are starting to really see the potential of circular economy in increasing self-sufficiency and resiliency of their value chains. When the competition for scarce natural resources starts speeding up, this further raises the awareness and need to manage our resources wisely.
In connection with our strategy work we also crystallized our international aspirations, which led us to explore new opportunities in central Europe, Türkiye and India. Istanbul has already become the second home for Ethica, and we are just starting our first projects in Türkiye and Central Asia. We believe that smart cross-regional partnerships bring the best results for businesses and our collective global economy.
While investing heavily in the first steps of our international growth, Finland and the Nordics remain our important home market. Working across the different regions also allows us to connect our Nordic clients with fast-growing markets and potential customers interested in the Nordic know-how and green solutions.
Current landscape – strong drivers for circular economy
How does the business environment look now? Despite the persistent uncertainties, there are strong drivers for circular economy. Forward-looking companies are increasingly interested in ensuring their resilience and competitive advantage in the future.
The European commission just published the EU Ecodesign for Sustainable Products Working Plan 2025-2030, and the amount of finite resources on earth will not increase. The need for change is urgent, and we expect to see a massive scaling up of circular resource flows and business models in the next few years.
Circular solutions for 2025 and beyond
The Ecodesign for Sustainable Products Regulation (ESPR) serves as the EU’s primary legal framework for establishing Ecodesign standards and will drive growth in the market. Looking ahead to 2030, a clear roadmap has been defined, prioritizing specific products for enhanced Ecodesign.
We at Ethica are well positioned to help our clients reach their circular economy-related goals. The focus will be on increasing the use of recycled content in new products, promoting product reparability, re-usability and recyclability, as well as building closed loop operations and take-back systems. Get in touch if you need support with any of these topics, it is our mission to help you.
These are exciting times, and we are thrilled to play an active role in this historic transition!
Paula Fontell
Managing Director
Ville Grönlund
Head of International Markets
Paula Vastela
Head of Consulting
