<p>Integrating environmental metrics, such as Life Cycle Assessment (LCA), alongside social inclusion strategies within the circular economy, is one of the primary ongoing challenges in developing research projects centered around social impacts. In this context, this study aims to harmonize the principles of the circular economy, prioritizing social inclusion, through the proposed development of three productive projects: crafting furniture, creating children's toys, and constructing pet shelters (pet houses). These projects involve the utilization of construction and demolition wood waste (CDWW) and the subsequent training of individuals who are incarcerated, presenting an alternative for their reintegration into society (knowledge democratizing). This approach takes into account considerations of bioeconomy and sustainability. Additionally, a life cycle assessment (LCA) was conducted to quantify the environmental benefits of CDWW reuse, particularly in terms of greenhouse gas emissions, resource consumption, and potential environmental impacts of the studied materials. By employing a mixed-method methodology, this study has resulted in a strategy that establishes connections between the university, private enterprises, and the government intending to achieve both social and environmental objectives. Through the initiative, 440 individuals from vulnerable communities benefited from the use of <i>5m</i>^<i>3</i> of CDWW. The results emphasize the concept that repurposing waste materials not only aids in mitigating environmental concerns but also addresses social issues through collaborative endeavors between institutions and the adoption of alternative materials within a circular economy framework. The results indicate of the life cycle assessment indicate that recycled wood contributes to significant reductions in greenhouse gas emissions and embodied energy. Additionally, relevant environmental benefits were observed across multiple impact categories when compared to conventional wood use. This reinforces the potential of CDWW as a sustainable alternative that contributes to carbon sequestration, reduces reliance on virgin resources, and extends material lifespan. Moreover, the proposed applications promote responsible waste management, encourage the emergence of green business opportunities, and offer innovative pathways for the circular use of construction and demolition materials.</p>