<p>Universities generate significant quantities of paper waste and represent controlled institutional settings where circular economy interventions can be operationalized. This study evaluates a university-anchored, closed-loop waste paper recycling system that integrates environmental performance, economic viability, and women’s empowerment within a single institutional framework. Using an integrated material flow analysis and life cycle assessment (MFA–LCA) approach, combined with enterprise cost analysis and a mixed-methods social impact assessment, a 17-month case study was conducted at a residential university campus in India. Results show that the recycling pathway achieved a net greenhouse gas (GHG) reduction of 85% compared to conventional landfilling, functioning as a net carbon sink primarily due to avoided virgin paper production and high material recovery (86.2%). The recycling enterprise, supported by institutional infrastructure and procurement commitments, achieved cost recovery with a 13.3% operating surplus, generating stable average monthly incomes of INR 3,344 for participating rural women. Social assessment revealed statistically significant improvements across economic empowerment, skills and confidence, decision-making autonomy, and social participation, with large effect sizes (Cohen’s d = 1.37– 2.36). The findings demonstrate that when a university acts as an anchor institution by providing infrastructure and procurement support for environmental mitigation and socio-economic empowerment, these outcomes can be mutually achieved as the outcomes of circular practice. These findings demonstrate that universities can serve as effective catalysts for implementing the circular economy, creating replicable models that simultaneously deliver quantifiable climate benefits, economic sustainability, and inclusive rural development, all aligned with national sustainability objectives.</p>