What is the circular economy and why it matters today

The circular economy is a model of production and consumption based on sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products to extend their lifecycle. The goal? To reduce waste, optimize resource use, and maximize the value of materials, promoting a more sustainable, efficient, and resilient system.

Since 2020, with the EU Circular Economy Action Plan, the European Union has laid the foundation for a profound shift aimed at making all products sustainable by 2050. Key focus areas include:

• Waste reduction and recycling targets exceeding 70% for certain materials.

• New standards for sustainable products, including packaging and electronics.

• Development of the secondary raw materials market.

• Support for industrial innovation with a circular approach.

Italy is also moving in this direction through the National Transition Plan 4.0 and PNRR funding, focusing on:

• Industrial reconversion towards sustainable models.

• Infrastructure for resource recovery and reuse.

• Technologies for energy efficiency and recycling.

   

The strategic role of Utilities in the circular economy

In the Utilities sector, the circular economy is a strategic lever to create value, meet regulatory objectives, and promote new sustainable business models.

With over €2.2 billion in investments, utilities confirm their central role in the green transition. According to the Sustainability Report by Fondazione Utilitas and Utilitalia (November 2024), investments in the circular economy exceed €530 million (up from €514 million the previous year), with significant results:

• 96% recycling rate for sorted waste.

• 92% recovery of sewage sludge.

• Over 36 million cubic meters of biomethane produced.

Digital technologies enabling circularity

Digital technologies (IoT, artificial intelligence, blockchain) are essential enablers to monitor flows, optimize processes, and vertically integrate data.
In particular, sector integration (energy, water, waste) enables synergies that enhance both efficiency and resilience of services.

Neta by Engineering: software for the circular economy

The Neta software solutions by Engineering support the adoption of circular economy principles across:

• Energy

• Water

• District heating

• Waste

Through the automation and digital management of core processes – Customer Relationship, Meter-to-Cash, Billing, Payments, and Accounting – Neta platforms contribute to:

• Reducing operational costs

• Improving efficiency

• Increasing environmental sustainability

Investing in advanced digital tools is now a strategic choice to facilitate the transition to more circular models and enhance the competitiveness of businesses.