<p>Circular Economy (CE) is trending in research, policy making and business but despite all the fuss, CE is not meeting its expectations as secondary use of materials has stagnated and even declined. Theoretical models of circularity are difficult to put into practice as CE transition is hindered by various economic, cultural and technological barriers. One critical yet understudied dimension is the ethical underpinnings of the CE transition. Further, the limited number of papers about this matter consider ethics from a human-centric perspective. In this opinion paper I argue that the combination of anthropocentrism and utilitarianism– distinctive to neoclassical economics, is narrowing the scope of CE to merely managing material resources for present and future human needs. Within this paradigm, the environment stays subordinate to the short-term human interests, worsening the environmental degradation and climate crisis. I argue that a shift towards ecocentrism, as suggested by several studies, is not alone viable path for environmentally sustainable CE, if utilitarianism continues to dominate as a core ethical principle. To broaden the ethical horizon of CE transition I explore how alternative ethical approaches, deontology and virtue ethics would change the perception of CE. Together with ecocentrism, these approaches move beyond the narrow framing of CE as resource management and support a development of a strongly sustainable Circular Economy.</p>