Environmental concerns have been on the rise for some time now, some warranting more attention than others, and the proposal for a circular economy has been well received by governments, practitioners, and academics alike as it brings about significant opportunities and positive impacts across industries, sectors, and lives.
Rampant consumerism has catastrophic effects, including the depletion of natural resources and the introduction of noxious materials into the environment, so we must overcome impulse purchasing and regain control of our wallets and landfills.
Ultimately, the economy needs to make structural changes so that its growth is more equitable, naturally reducing imbalances.
The circular economy is a simplified version of reality that allows us to eliminate waste and promote sustainability via upcycling and the efficient use of natural resources. It requires massive investment and moving away from production and manufacturing towards the later stages of the value chain, notably the 3Rs (reduce, reuse, and recycle).
The Organization for Economic Cooperation and Development (OECD) identifies several mechanisms that contribute to the circular economy, namely:
- Closing resource loops: The amount of waste going to the landfill can be limited by replacing existing virgin materials with secondary raw materials (recycled materials). These by-products undergo recovery treatment to be used.
- Slowing resource loops: The aim is to slow down the speed of consumption and the demand for raw materials by extending products’ life span with a more durable design. Modular elements can be easily replaced or upgraded.
- Narrowing resource loops: Fewer resources enter the production loop by substituting unsustainable materials with greener alternatives. One solution would be to switch to renewable energy. Narrowing can be implemented within a linear business model, too.
The Circular Economy Is An Exciting Opportunity For Sustainable Business Growth
Even though great strides have been made in terms of resource efficiency, our system hinges on consumption instead of the regenerative use of raw materials, which leads to considerable losses along the value chain.
The circular economy can generate tangible benefits as far as the revenue generated and money saved are concerned, contributing to the development of innovation, growth, and creation of new jobs. Sweden, renowned for its progressive environmental policies, has developed a circular economy action plan in agreement with the EU’s policies and its own initiative.
Several locations in Sweden are known for their circular programs that support the economy and encourage businesses to follow the sustainability path. States are encouraged to adopt programs and initiatives that go beyond current regulations while preserving a circular mindset.
Transitioning to a more circular economy entails systemic change, and though it’s long been construed as an environmental concept, it’s ultimately an economic issue that requires cooperation and collaboration across business, policy, and academia. The circular economy is good for business, so find ways to take part in the climate revolution. Here are its surprising benefits:
- By optimizing resource management, you can reduce the cost of manufacturing
- An ever-increasing number of regulations place emphasis on the circular economy
- You can minimize your impact (greenhouse gas emissions, pollution, waste)
- Businesses that adopt a circular approach see their market positions strengthen
- You can foster a culture of stakeholder engagement within your organization
There Are Plenty Of Ways To Implement The Circular Economy In Your Business
Given that culture is a source of stability for your employees, it’s recommended to avoid implementing change too rapidly or in response to negative events (e.g., an environmental crisis caused by your company’s operations). Small steps increase the worth of the effort and encourage others to commit to change.
Even smaller and medium-sized enterprises can become more sustainable and make a difference, but it’s necessary to have a plant to make it work. If the circular economy is the final destination, there are different ways to get there, such as:
Design Out Waste And Pollution
Urbanization, industrialization, population growth, and economic development contribute to the rise in waste and its increasing complexity and perilousness. The need for environmentally friendly packaging, manufacturing, and goods has never been greater.
Reducing waste is a responsibility of every business, so do everything you reasonably can to prevent, reuse, recycle, and recover waste. Investing in a waste baler or compactor helps increase recycling efficiency and reduce auxiliary greenhouse gas emissions – you limit your carbon footprint and pollution from things like plastic waste.
The machine not only reduces the mass, it also lessens transportation costs and keeps the surroundings clean.
Ensure Products Never Become Waste
Design your products to be used for more and longer by combining material choices and applying different techniques like stitching, coating, and laminating, to name a few. Emotional durability is of the essence, and it can be contingent upon factors such as timelessness, history, rarity, and meaning.
We have too much stuff and too much consumer detachment. Most importantly, ensure your products have a modular design, that is, they’re easy to assemble and reassemble, a significant determinant of satisfaction as it gives customers better value for their money.
Rocket scientists have said yes to design for repair, but just because they’re doing it doesn’t mean it’s not difficult.
Decrease Your Reliance On Fossil Fuels
Coal, crude oil, and natural gas emit harmful air pollutants long before they’re burned, which means that people are exposed daily to those substances that are believed to cause cancer or other serious health effects (e.g., birth defects). Aside from the environmental and social costs, the price of fossil fuels is increasing because they are obtained from limited sources.
The best thing you can do is to switch to renewable energy sources like solar and wind energy to meet your Corporate Social Responsibility (CSR) targets and improve your business branding to drive success. Avoid the lure of greenwashing.
Conclusion
All in all, the world is changing. Many corporations already have or are taking action to shift to a circular economy model, which has an immense influence on consumer purchasing decisions, so you have a one-of-a-kind opportunity to improve and optimize business processes.
Indeed, the circular economy deals with climate change and other global challenges, yet it doesn’t just bring environmental benefits. Circularity makes you more competitive in the market.
Article and permission to publish here provided by Mary Hall. Originally written for Supply Chain Game Changer and published on September 13, 2024.
Cover image provided by pixabay.com.