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Thoughtfully selecting furniture that’s both safe for us and the planet — like sustainable, non-toxic sofas — is a key component of a journey towards a holistically healthy home.

But the fact is that there is a lot to look for when it comes to the hunt for a non-toxic and/or eco-friendly sofa. Below are a few of the things to watch out for!

Note that this article includes affiliate links. As always, we only feature brands that meet high standards for sustainability that we love — and that we think you’ll love too!

What Makes a Sustainable and/or Non-Toxic Sofa?

Unsurprisingly, the same toxic chemicals that are unhealthy for us are just as terrible for the environment. After all we are part of — and interconnected with — the rest of the planet and natural world. Here’s what to look out for when shopping for a non-toxic sofa or sustainable couch:

Non-toxic sofas will be free of flame retardant treatments.

Flame retardants are toxic chemicals — once required by law — that were and continue to be used to treat polyurethane foam in sofas and other furniture. Now, many companies are shifting away from using flame retardants. Toxic-Free Future has more information on toxic flame retardants.)

Sustainable sofas are made with responsibly-sourced and safely treated wood.

Wood is a renewable material, but it’s still important to ensure that the wood was harvested from responsibly-managed forests and is not contributing to deforestation. Deforestation is is a major contributor to climate change and biodiversity loss. While not perfect, the Forest Stewardship Council (FSC) certification is the most widely recognized certification for sustainable forestry management.

What about plywood? Pressed wood, like plywood, is typically made with formaldehyde, a chemical that has been linked to cancer risk in studies and listed as a known or probable carcinogen by multiple health groups.

Solid wood furniture is not always financially accessible, though (or realistic if you’re on the move often — it can be heavy!!) so look for formaldehyde-free plywoods if you have to go that route.

Finally, look for low- or zero-VOC (VOC stands for volatile organic compounds) finishes on the wood.

Eco-friendly couches have upholstery made with organic, recycled, and natural fabrics.

Many companies make their sofas with harsh chemical-laden fabrics such as chrome-tanned leather and polyester. Even “natural” cotton is not always toxin-free, when heavily treated with synthetic pesticides. Plus many natural materials are treated with harmful dyes (such as azo dyes, which can impact human health) and finishes.

When possible look for organic cotton, linen, or hemp fabric that is not treated with toxic chemicals. The best label to look out for is GOTS (Global Organic Textile Standard) certification. If you want a leather couch, look for vegetable-tanned leather, as the chrome (short for chromium) tanning process uses extremely toxic chemicals.

These fabrics are not widely available for sofas though, so you might also consider sofas made with recycled synthetic materials. Not ideal, but we can only purchase from what is available and what is within our budget and do the best we can.

Non-toxic couches haveh natural and/or non-toxic foam.

Most foams are petroleum-based (poly-foam), which is as unsustainable as it sounds! Look for natural fillers such as organic cotton, responsibly-sourced wool, and GOLS-certified organic latex where possible. If not feasible, look for the CertiPUR-US® seal, a certification that tests for a host of toxic chemicals like formaldehyde, toxic flame retardants, heavy metals, among many others.

What About Secondhand Sofas?

Investing in sustainably-made furniture can be quite expensive, but shopping used is a great way to find eco-friendly sofas and other furnishings for far less.

A sofa on the secondhand market is most likely not non-toxic. But since the most off-gassing happens when furniture is new, your exposure to VOCs will be reduced compared to what it would have been if you bought that same piece of furniture new.

What are some places to find sustainable sofas secondhand?

Checking out your local furniture resale shops, consignment stores, and any nearby estate sales or garage sales is a great place to start. (I have found some *amazing* pieces at estate sales!)

Prefer shopping online? Check out Facebook Marketplace, Craigslist or OfferUp for local pick-up options.

And if you’re in the US you’ve likely seen people leave their unwanted furniture out on their curb. This is called “stooping” and yup, it’s totally free. Of course you’ll want to do a thorough inspection of the sofa and you may have to be prepared to do some reupholstering since you never know exactly why someone left the sofa out. The condition might be less than desirable, but it’s free! So you may be willing to invest in some repair costs.

For more curated secondhand and vintage sofa options, check out:

Eco-Friendly and Non-Toxic Sofa Brands

If you’re in the market to purchase a new eco-friendly sofa, check out these sustainable and/or non toxic sofa companies!

Each brand uses a different set of materials and has slightly different standards, priorities, and values. This guide is a starting point. I encourage you to also do your own research to find which brand would be best for you. Especially because some sofas were chosen for their sustainability credentials, some for their non-toxic credentials, and some for both.

Best Eco-Friendly Sofa: Savvy Rest

Savvy Rest makes their sustainable organic sofa with some of the best materials available for non-toxic couches. The brand uses Cradle-to-Cradle certified Natural Talalay latex foam and GOTS-certified organic hemp or organic cotton upholstery. The brand’s eco-friendly couches are made with organic wool batting, jute webbing, natural coir, and zero-VOC finishes for their eco-friendly couches.

Price Range: $3,799 – $4,099

Use code CONSCIOUSSTYLE20 for 20% off!

Shipping: Free White Glove delivery in continental U.S. Contact for quotes outside 48 contiguous states.

Best Non-Toxic Sofas: Medley

Free of harmful chemicals like fire retardants, and formaldehyde, Medley makes non-toxic sofas you can kick back in with peace of mind.

What materials does Medley use? For their non-toxic sofa cushions, you can choose from either CertiPUR-US® certified foam or organic natural latex. Their upholstery options are made up of Oeko-Tex certified fabrics and they use FSC-certified wood. Medley also uses water-based, VOC-free glue. This sustainable sofa brand has truly covered every detail.

Price Range: $1,545 – $5,000+ (check out Medley’s returned pieces for discounted options)

Shipping: Ships out of the U.S. Contact Medley for a quote for shipping to other countries.

Beige sustainable sofa and blue eco-friendly sofa from Medley

Best Affordable: Sabai

Beyond using sustainable and non-toxic materials like FSC-certified wood, CertiPUR-US® certified foam, and recycled fiber filling, this B-Corp certified furniture brand has programs to extend the life of their eco-friendly couches.

In Sabai’s Repair Don’t Replace program the company sells various parts you can switch out. With their Revive Program, you can send back your Sabai pieces for consignment.

Price Range: $1,095 – $1,395

Shipping: Ships within the U.S. (shipping is carbon offset and packaging is 100% recycled)

Navy blue sustainable couch from Sabai

Best Heirloom Quality: Cisco Home @ Urban Natural

A leader in the eco-friendly furniture space, Cisco Home has been handcrafting sustainable sofas in California for decades and was a founding member of the Sustainable Furniture Council.

Select “Inside Green” on the product page and your sofa (or sectional) will be made from FSC-certified wood, organic latex, and other natural materials like jute, hemp, organic cotton, and wool.

Price Range: $2600+ for sofa | $7600+ for sectional

Shipping: Ships within contiguous U.S.; white glove delivery available with fee

Beige organic sofa in living room

Best for Futons: The Futon Shop

The Futon Shop has an impressive set of organic sofas non-toxic sectionals made from natural safe materials with the option to upgrade to organic materials like GOLS-certified organic latex and GOTS-certified organic wool.

Their sustainable couches and non-toxic sofa beds, all made in San Francisco, have frames made from responsibly-sourced kiln-dried wood and are available in fabrics like hemp and organic cotton.

Price Range: $1,500 – $5,395

Shipping: Ships within the continental U.S.

Natural organic sofa from The Futon Shop

Best for Sectionals: Burrow

Burrow offers modular eco-friendly sofas to reassemble and reconfigure with ease — meaning their pieces can stay with you for a lifetime, even through moves and family additions.

The brand’s thoughtful design goes beyond convenience, Burrow’s comfy couches are made with CertiPUR-US® certified cushions and sustainably-sourced wood.

Price Range: $795 – $3,995

Shipping: Free shipping; ships within the continental U.S.

Gray modular non-toxic sofa from Burrow

Luxury Organic Sofas: EcoBalanza

Dedicated to creating “the ultimate organic sofa”, EcoBalanza really has considered every single component. The Seattle-based boutique uses FSC-certified hardwood, GOLS-certified organic latex, certified non-toxic fabrics, natural kapuk fiber cushions, and organic cotton or responsibly-sourced wool batting. Read more about the materials they use for their non-toxic sofas here.

Price Range: $3,000 – $4,300; Couture Collection starts at $6,800

Ordering & Shipping: Sofas are made to order. Learn more here.

Blue organic sofa and gray organic sofa from EcoBalanza

Luxury Non-Toxic Sofas: PURE Upholstery

Made using non-toxic organic and natural ingredients, PURE Upholstery’s sustainable couches are free from toxic materials and ingredients, like chemical flame retardants.

PURE Upholstery crafts their eco-friendly couches with certified organic or non-toxic natural fabrics, GOLS-Certified Organic Latex, FSC-certified solid wood, recycled steel springs, certified organic wool, and a natural wood finish. (More on their materials here!)

Price Range: $1,675 – $5,595

Shipping: Ships within the U.S.; more details + lead time here

non-toxic sectional and eco-friendly couch from PURE Upholstery

For Sustainable Outdoor Sofas: Loll Designs

If you’re looking for an outdoor sustainable sofa, then Loll Designs is the brand to know.

Loll Designs makes their furniture in Duluth, Minnesota using recycled HDPE (which stands for high-density polyethylene), mostly from recycled milk jugs, as well as USA-made aluminum inserts. The cushions are Sunbrella acrylic (which is virgin plastic) though you could instead opt for their cushion-free sofa.

That said, outdoor sofas are the toughest to find natural or non-toxic, unless you want to go cushion-free, then you can find seating that is all-wood.

Price Range: $1,395 – $2,995

Shipping: Ships to U.S. and internationally through their shipping partner Stackry

blue and white sustainable outdoor sofa made from recycled materials

More Guides for Your Sustainable Living Room

Ethical Home Decor Brands to Curate a Beautiful, Conscious Space

Furnish Your Home Sustainably with these Eco Furniture Brands

The Most Gorgeous Fair Trade Artisanal Rugs

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9 Best Sustainable and Non-Toxic Sofas for Restful Relaxation (2025)

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10 Best Sustainable Rugs For a Healthier Home — and Planet

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The right sustainable rug can completely transform a space. A plant-based fiber rug like jute or sisal can create a grounding warmth, while a thick responsibly-sourced wool rug adds a sense of luxury. An artisan handcrafted rug infuses character and authentic culture where a vintage one can add layers of history and soul.

Furniture is functional and can be beautiful, but adding an exceptional rug is what brings it all together. A rug is at the center — at the heart — of your living room or bedroom or dining room. In other words: a rug is how you start to turn those four walls into a home.

That said, unfortunately most rugs today are mass-produced from synthetic fibers like polyester (read: plastic), finished with toxic chemicals, and made in unethical labor conditions.

Thankfully, there is a better way. Let’s talk sustainable rugs.

What is a “Sustainable Rug”, Exactly?

I like to include an in-depth explanation on “sustainable” in our guides because there’s no standard definition of the term when it comes to fashion or home goods. So here’s how we define “sustainable rugs” at Conscious Life & Style.

Natural Materials:

We’re looking for natural fibers like jute, seagrass, sisal, hemp, cotton (less common) or ethically-sourced wool. Recycled natural fibers are a great bonus, as is organic. The most reputable organic certification for fibers currently on the market is Global Organic Textile Standard (GOTS).

We’re steering clear of synthetic rugs, including recycled polyester in this guide, because they risk releasing microplastics into our homes and environment.

Also natural fibers that aren’t treated with or blended with synthetics are generally biodegradable at the end of their life.

“Recyclability” when it comes to textiles is largely a misnomer. We have far more textile waste than we do textile recycling infrastructure capacity. Plus many types of fabrics still can’t be recycled properly — if at all — today.

Dyes & Chemical Usage

Another source of impact is the dyes and other finishes used on the rugs. Many of these dyes and finishes are synthetic.

One better option is a “low impact dye” — this generally refers to a synthetic dye that doesn’t contain common toxic chemicals (like heavy metals) and has a higher absorption rate, which requires less water. Natural dyes on the other hand are non-synthetic colorants derived from plants, minerals, or sometimes even insects.

There are also additional chemicals these companies may add to rugs like PFAS (forever chemicals) for stain or water resistance or flame retardants. So if you see claims like “stain resistant” or “easy care” you probably want to do some additional digging to ensure those textiles weren’t treated with toxic chemicals.

One certification to look for is OEKO-TEX® STANDARD 100, which is a label for textiles that have been tested against common harmful substances.

Ethical Production Practices:

Unfortunately forced and child labor is still happening in the carpet and rug industries. So transparency is key. Two certifications to look for are GoodWeave (assurance against child, forced, and bonded labor) and Fair Trade Certified™. Certifications are certainly not an end all be all, so I’m also looking for transparency from the brand — who makes their products? How are they made? What is their relationship to those makers, artisan cooperatives, or facilities? Are they working in safe conditions? Are they paid fairly? A living wage?

Another element here is craftsmanship. Many of these rug-making techniques have been around centuries, but are at risk of dying out with the rise of mass-produced rug makers. Is the brand showing a commitment to sustaining heritage techniques and generations-old craftsmanship?

You might also like to look for local production, though local doesn’t automatically mean ethical. I still like to look for transparency here, as exposés have found there are still sweatshops in the US, too.

Durability & Longevity:

This one is the most challenging. Not only is it difficult to assess the durability of a rug before you’ve purchased it (even most reviewers only comment on their initial experience), but durability is also significantly impacted by how we care for that rug. Do you wash it often? Do you have pets? Kids? Are you putting the rug in a high-traffic area? Is it getting wet often (like in a kitchen or bathroom)?

That said, I’m looking for attention to craftsmanship from a brand, and attention to detail. There are also certain elements to look out for. For example:

  • Thicker and denser rugs generally hold up better than looser or low-density tufted rugs.
  • Reinforced edges prevent fraying and strong backings prevent the rug curling at the edges.
  • Hand-knotted rugs are labor intensive (and may be pricier) but can last decades or even centuries.

Top Picks for Sustainable Rugs

Ok so that was a lot! But no stress — I’ve done the hours of heavy lifting and digging for you to curate this guide to brands with sustainable rugs. So let’s dive in.

Note that Conscious Life & Style is reader supported and this guide includes affiliate links, which means if you make a purchase via some of these links, I may earn a commission. As always all brands meet are rigorous sustainability criteria.

Secondhand First!

Part of our philosophy at Conscious Life & Style is to look secondhand first. So before we dive into the brands, here are some places to find vintage and pre-loved rugs first:

1. The Citizenry

Red artisan wool rug
Neutral beige ethically made rug in living room

Best for: Living rooms and bedrooms

Every rug from The Citizenry tells a story of master craftsmanship and ethical production. Hand-knotted and hand-loomed by artisan partners across the globe from Morocco to Peru each piece blends modern minimalist design with time-tested techniques passed down through generations. The Citizenry’s collection features everything from plush, textured wool designs to natural jute pieces, and the retailer guarantees 100% fair trade standards on every product, partnering directly with artisan communities to ensure living wages and sustainable livelihoods while celebrating rich weaving traditions.

Materials: Wool, Jute
Price Range: From $399
Shipping: Ships to all US States and Canada

2. Lorena Canals

Red and green cotton rugs laying on floor
Wool side runner reg in bedroom

Best for: Living rooms and bedrooms

Lorena Canals revolutionized the rug industry with machine-washable cotton and wool rugs that don’t compromise on beauty or sustainability. Handcrafted in the brand’s own factory in India since 1998, each piece uses natural or recycled fibers, non-toxic azo-free dyes certified by GOTS and OEKO-TEX standards, and a water-efficient cone-dyeing method that conserves 75% of water compared to traditional processes. The aesthetic ranges from playful geometric patterns and kitchen tile motifs to minimalist neutral textures in their Woolable collection. With customizable options and designs that celebrate the natural colors of undyed wool, these rugs pair practical washability with artisan craftsmanship, all while supporting the brand’s Sakûla Project school for children in northern India.

Materials: Cotton, Wool
Price Range: From $145
Shipping: Global | Outside of US and Canada? Use this website to order instead.

3. Avocado

Colorful wool sustainable rug from Avocado
Linear non-toxic wool rug from Avocado

Best for: Living rooms and bedrooms

From 100% wool rugs hand-loomed by artisans in the Guatemalan highlands to natural hemp rugs woven by individual weavers in India, Avocado’s rugs add coziness and craft to any space. There are also several different aesthetic options, from colorful geometric shapes that add a dose of joy to your living room to a neutral beige with a luxe deep pile that could suit any space in your home.

Materials: Wool, Hemp
Price Point: From $455
Shipping: Ships via FedEx freight to US States and Territories

4. Schoolhouse

Colorful natural rug in playroom
Animal print natural rug in living room

Best for: Bedrooms, living rooms, and dining rooms

Schoolhouse brings American design sensibility to handcrafted rugs woven in India using natural materials. Their collection spans hand-knotted wool pieces with vivid, whimsical patterns like the Sundrop design to reversible flatweave plaid styles perfect for layering. Natural-dyed wool yarn creates rich, enduring colors—from burnt orange and chartreuse to soft neutrals—while jute-chenille blends offer versatility underfoot without the typical scratchiness. With 80% of their assortment domestic and FSC-certified materials across their product lines, Schoolhouse prioritizes reducing carbon emissions through consolidated shipping and minimal plastic packaging.

Materials: Wool, Jute, Cotton, Recycled PET (note: PET is plastic, so this isn’t our top recommendation)
Price Range: From $79
Shipping: Ships to all US States and Canada

5. Nestig

Dinosaur organic non-toxic rug for nurseries
Rainbow organic rug for nurseries

Best for: Nurseries and playrooms

Nestig transforms nursery floors with whimsical, machine-washable rugs that parents actually want to clean. Hand-loomed in Brazil by local artisans with over 20 years of experience, each piece uses 100% GOTS-certified organic cotton grown locally and dyed with non-toxic pigments. The designs range from playful vehicles (dump trucks, airplanes, sailboats) and animals (dinosaurs, bears) to sophisticated geometric patterns and world maps. Nestig operates on a “just enough” business model that minimizes warehouse inventory and carbon footprint, partnering exclusively with sustainable, family-owned businesses. Every rug arrives as a truly one-of-a-kind piece with natural variations that come from artisan craftsmanship.

Materials: Organic Cotton
Price Range: From $399
Shipping: Ships to US, Canada, and the UK

6. Salem Hello

Black and white sustainable hallway rug
Red sustainable artisan wool rug

Best for: Living rooms, bedrooms, and statement spaces

Salam Hello bridges the gap between Moroccan artisan tradition and contemporary homes with transparency at its core. Each handwoven rug is crafted by Amazigh women in Morocco’s Atlas Mountains, preserving techniques passed through generations while ensuring fair wages and artisan recognition. The collection includes ready-to-ship vintage and new pieces alongside made-to-order designs where you choose size, color, and pattern. From neutral flatweaves and textured hand-knots to bold geometric designs rich in traditional symbolism, every rug carries protective meaning woven into its fibers. With collaborations like their Izra collection with General Assembly and the Atlas Form line, Salam Hello offers refined modern interpretations alongside authentic traditional styles.

Materials: Wool
Price: From $625
Shipping: Ships Worldwide

7. Organic Weave

Polka dot organic cotton rug in bedroom
Printed natural organic wool rug in living room

Best for: Living rooms, bedrooms, and kids’ rooms

Organic Weave was born after founder Linda witnessed child labor at the rug manufacturers in India her family’s rug business was sourcing from. When Linda became the buyer at her family’s company, she started sourcing exclusively from the only supplier that was committed to not employing children.

Today, Organic Weave is GoodWeave certified — a certification providing additional assurance there isn’t child labor in the supply chain. And as the name suggests, the sustainable rug company also uses organic materials: 100% organic wool for high-traffic areas like living rooms and 100% organic cotton for lower traffic areas like bedrooms. Their handmade, artisan crafted rugs are Global Organic Textile Standard Certified too.

Materials: Organic Cotton, Organic Wool
Price Range: From $1,789
Shipping: Ships Worldwide

8. CICIL

Sustainable natural brown abstract shaped rug
Sustainable natural fiber rug in curved shapes

Best for: Living rooms, bedrooms, hallways, and dining rooms

Founded by two former Patagonia textile experts in North Carolina, Cicil brings radical transparency to rug-making with a supply chain that travels less than 1,000 miles from wool to floor. Their braided and shuttle weave rugs use 70% undyed wool sourced directly from small family farms across upstate New York, Pennsylvania, and Vermont, combined with 30% jute for durability. With shapes ranging from linear and oval to curvy and arch designs, each piece celebrates natural wool tones—from deep grays to warm beiges—without any synthetic dyes or finishes. Made in the Carolinas using traditional techniques on vintage looms, Cicil’s approach is intentionally “anti-innovation,” focusing instead on time-tested methods that create rugs built to biodegrade gracefully after a lifetime of use.

Materials: Wool, Jute
Price Point: From $459
Shipping: Ships within the US (all orders ship free)

9. Urban Natural

Wool artisan made sustainable rug in living room
Natural fiber rug in living room

Best for: Living rooms and bedrooms

Urban Natural is your online destination for finding responsibly-made, exceptionally crafted home goods from sustainably-minded makers. Brands on Urban Natural include Loloi, a well-respected GoodWeave certified rug brand with rugs ethically hand-woven in Varanasi, India; and Jaipur Living, a company dedicated to preserving time-honored handcrafted art and rug weaving traditions, partnering with 40,000 artisans across hundreds of rural communities throughout India.

Other sustainable rug options on Urban Natural include 100% linen rugs from Libeco, which holds the Masters of Linen® quality label; and 100% wool rugs made in the USA from Earth Weave, the first US carpet manufacturer with a completely natural product line.

Materials: Wool, Jute, Sisal, Cotton, Silk, and Linen (Note: there are a couple of “performance” rugs made with polyester)
Price Range: Starts at $179
Shipping: Ships within the US

10. LOOMY

Pastel colored geometric non-toxic rug
Printed natural non-toxic rug in bedroom

Best for: Living rooms, bedrooms, and dining rooms

LOOMY proves that sustainable doesn’t mean sacrificing style with a curated collection of contemporary rugs made entirely by hand from indigenous artisan weaving communities worldwide. Their natural fiber collection includes wool, jute, cotton, hemp, and sisal rugs alongside performance options crafted from recycled P.E.T. plastic diverted from oceans and landfills. From shaggy textures and bold geometric patterns to minimalist flatweaves, every design is exclusively created in-house and made without mechanical assistance, using traditional spinning, natural dye baths under the sun, and generations-old loom techniques. The brand’s transparency extends to sharing exactly who made each rug, how many hours it took, and the sustainable materials used.

Materials: Wool, Jute, Cotton, Hemp, Sisal, Recycled P.E.T.
Price Range: From $278
Shipping: Ships to all US States and Canada

Honorable Mentions: More Sustainable Rug Options

Here are some additional companies with sustainable rugs to check out! These didn’t make the “top 10” list based on our criteria, but you might have different priorities. So if you’re not finding what you’re looking for above, I recommend taking a look at this list too.

Hook and Loom: if you’re looking for a non-toxic organic rug, Hook and Loom has undyed organic cotton and natural wool rugs made without added chemicals. Their website doesn’t have the most modern user experience, which can make shopping a bit more cumbersome, but the brand has thousands of positive reviews.

Sabai: Sabai’s all-natural textured rugs are crafted from jute and wool in North Carolina by skilled rug makers. They are one of the few companies to manufacture their rugs in the US. That said, the rug does appear to be on the thinner side considering the price point.

West Elm: this large furniture retailer has some more sustainably-sourced rugs as well as options made in Fair Trade Certified™ facilities, though you have to do some double-checking as not all of their options are more eco-minded or ethically made.

Yaya & Co: this brand has some high sustainability standards like 100% organic certified materials and production in a Fair Trade Certified family-owned factory! Their designs are quite colorful and fun too, which isn’t always easy to find with organic materials. Their selection is more limited compared to the other brands and retailers, which is the only reason they didn’t make it onto the top 10 list.

Revival: this brand has a stunning selection of aesthetics and styles, including some high quality picks like hand-knotted wool rugs made by skilled artisans. The transparency of Revival isn’t quite at the standard of other picks like The Citizenry, but this is still an exceptional pick.

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Sustainability In Your Ear: Turning Waste Into New Products And Packaging With Overlay Capital’s Elizabeth Blankenship-Singh

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What we call waste is really just misallocated feedstock—raw materials waiting to be cycled back into the next generation of products and packaging. According to research by the World Economic Forum and United Nations Development Programme, the circular economy could unlock $4.5 trillion in new global value by 2030, and investors are racing to capture part of that opportunity. Meet Elizabeth Blankenship-Singh, Director of Innovation at Overlay Capital, an Atlanta-based alternative investment firm whose Waste and Materials Fund is backing both early-stage materials innovators and later-stage recycling operations with established infrastructure. Overlay’s strategy involves investing in innovation and implementation simultaneously—in both startups and established companies—to accelerate progress across multiple layers of the circular economy. It offers a window into where smart money sees the materials transition heading.
Elizabeth Blankenship-Singh, Director of Innovation at Overlay Capital, is our guest on Sustainability In Your Ear.
Elizabeth explains that sortation is the biggest bottleneck at the materials recycling facilities (MRFs) your garbage and recycling are sent to after curbside collection. The U.S. is simultaneously the world’s leading exporter of scrap aluminum and the number one importer of finished aluminum, because we’ve lacked domestic sorting capacity. Overlay has invested in companies like AMP Robotics, which recently closed a 20-year contract with SPSA, a southeastern Virginia municipal authority, to sort all recyclables from four to five cities using AI-driven systems. When you fix sortation, she says, you trigger a domino effect: recycling rates climb, landfill life extends, and margins improve as higher-purity materials command premium prices.
Overlay’s portfolio also includes next-generation materials companies united by a common thesis: they must be better, faster, cheaper, and more sustainable than what they replace. Cruz Foam converts chitin from shrimp shells into compostable packaging foam. Simplifyber uses cellulose to create biodegradable soft goods through 3D molding, bypassing traditional textile manufacturing entirely. Terra CO2 just closed a $124 million Series B to scale low-carbon cement technology that could cut into concrete’s 8% share of annual global CO2 emissions. Each uses abundant, waste-derived feedstocks and has achieved or is on a clear path to price parity with incumbents.
You can learn more about Overlay Capital at overlaycapital.com.

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Earth911 Inspiration: Life Is An Endless Equation

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As humanity grows in its understanding of the complexity of living systems, we will encounter many opportunities to restore nature. Taoist author Deng Ming-Dao wrote in his daily meditations, 365 Tao, that “Life is one endless equation of darkness, brilliance, fragrance, color, sound, and sensation.”

Imagine the joys of nature, live them fiercely and gently in your daily life, and the world can grow anew.

Earth911 inspirations. Post them, share your desire to help people think of the planet first, every day. Click the poster to get a larger image.

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