An overhead photo of two smallholder carrot farmers carrying a bag of carrots

New Brief Released: Exploring the Intersection of Circularity and Informality

Last year, we shared the news of a new collaboration to harness collective intelligence and contribute to paving the way for a more inclusive and sustainable world.

Now, we're pleased to announce the release of ‘Circularity and Informality: Redefining Narratives’ — a knowledge product resulting from a partnership between Ashoka, IKEA Social Entrepreneurship, and the United Nations Development Programme (UNDP) Accelerator Labs Network, with support from Circle Economy. 

This white paper is designed to enhance understanding of the informal sector’s role within the circular economy — a group of actors that are often overlooked. Additionally, it aims to foster dialogue on how to empower informal workers and their collaborators, particularly social entrepreneurs, in advancing circular practices. It is based on the insights we recorded from a series of learning circles — generative conversations that involve genuine inquiry and sharing, leading to expanded understanding and shared meaning. They brought together IKEA co-workers, social entrepreneurs, Ashoka Fellows, UNDP Labbers, and other stakeholders.

As the circular economy develops globally, the circles’ participants underscored the need to use it as a force to foster positive social change, including safeguarding and empowering informal workers. The participants also acknowledged the tensions and dilemmas that arise as we scale circular solutions in traditionally informal settings. 

The white paper’s key findings include:  

1. ‘Informality’ is a label imposed on workers, who regard their work as simply a way of life and means of livelihood rather than part of an ‘informal’ economy. 

2. The stigma attached to informal labour can mean the significant economic and circular contributions these workers make are not properly recognised. It is important to respect the significance and identity of these workers.

3. Informal settings are rich with grassroots circular economy knowledge and ingenuity but often overshadowed by dominant views shaped by technology and theoretical frameworks. 

4. Formalising informal employment in the circular economy can empower workers but it can also worsen their situation if not approached carefully. Therefore, there is an urgent need for nuanced and context-specific approaches when considering the formalisation or integration of the informal sector.

The partners view the white paper as a contribution to the rich discussions about informality in the circular economy and the dynamics within ecosystems of actors that need to be better understood as circular solutions are scaled. We invite all interested parties to engage actively in discussions on this topic. In addition to sparking conversations, our findings intend to inspire concrete actions to drive real change. 

An infographic showing the roles of actors in integrating informal workers into circular value chains

Read more about the partners and contributors

About Ashoka

Ashoka is a global network of over 3800 social entrepreneurs in more than 95 countries,  working towards an “Everyone a Changemaker” world. They identify and support social entrepreneurs who drive transformative solutions to societal and environmental issues, fostering a more inclusive and sustainable future.

About IKEA Social Entrepreneurship

IKEA Social Entrepreneurship is committed to creating a positive impact for people, society, and the planet through innovative solutions and partnerships. By supporting social entrepreneurs, they aim to address social and environmental challenges and drive positive change.

About UNDP Accelerator Labs

The United Nations Development Programme (UNDP) Accelerator Labs is the world’s largest and fastest learning network on complex sustainable development challenges, containing 90 Labs and covering 114 countries worldwide. 

About Circle Economy 

Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower industries, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive. To avoid climate breakdown, our goal is to double global circularity by 2032.