Abstract

Design Thinking (DT) is a valuable design innovation approach, but its application in addressing sustainability challenges within the Circular Economy (CE) paradigm requires a revision from a circular innovation perspective. This article explores the convergence, limitations, and potential of DT and CE, emphasizing the need for a more comprehensive circular and systemic evolution of DT. Frameworks, objectives, and strategies for achieving sustainable design goals through DT are discussed, with an emphasis on integrating DT with the Framework for Strategic Sustainable Development (FSSD) to enhance systemic perspectives and sustainability considerations. The integration of DT with Sustainability-Oriented Innovation (SOI) is also highlighted, emphasizing a systemic thinking approach. Case studies demonstrate the application of DT principles in Circular Design ideation and development, showcasing tools that promote a systemic thinking approach to address sustainability challenges effectively. This article introduces the ongoing CD-TOOLS project, which includes a training program and digital platform supporting Lithuanian entrepreneurs and design professionals in creating circular product-service solutions. The project’s contributions to addressing the identified limitations and promoting sustainable design practices are discussed.