Anthropogenic activities such as industrialization, urbanization, deforestation, excessive resource consumption and irresponsible waste management have severely disrupted ecosystems. The linear economic model is unsustainable, as it fails to consider environmental and social aspects of economic development. Excessive exploitation, beyond nature’s regeneration capacity combined with environmental pollution beyond its’ carrying capacity has negatively impacted fragile ecosystems causing severe ecological disruptions. For instance, reservoir encroachment has led to flash floods and drought, while deforestation has resulted in increased human-animal conflicts and the spread of zoonotic diseases. All these factors have contributed to environmental degradation, affecting the planet’s livability, accelerating species extinction, and intensifying climate-related disasters. Addressing these challenges requires the adoption of sustainable and responsible practices that prioritize environmental health. This chapter explores the causes and impacts of environmental degradation across various industrial sectors, highlighting the limitations of the linear economic model. It introduces the Circular Economy (CE) as a viable solution and outlines pathways for a circular transition through sustainable practices across the supply chain—from resource extraction to waste management. Additionally, the chapter examines how environmental degradation influences policy, business strategies, corporate responsibility, and consumer awareness, emphasizing the urgent need for CE adoption and the responses from governments and businesses. Ultimately, it serves as a guide for policymakers, business leaders, and environmental advocates to align their efforts with the Sustainable Development Goals (SDGs).