The Circular Economy De-Mystified: Part 2

The Circular Economy De-Mystified: Part 2

The circular economy - after identifying what it is and why it is important in Part 1, it is time to get to the nitty gritty and discuss who should be implementing this and how.

Whilst the circular economy might initially seem more relevant to sectors such as food and fashion, its application is not limited to specific products or supply chains. It is an opportunity for all industries and governments to create a significant impact.

Governments and policy makers do undoubtedly have a critical influence in ensuring the circular economy is accessible and wide reaching. However, progress is being made. One of the key pillars of the Europeans Green Deal is the Circular Economy Action Plan which sets out 54 actions for transitioning Europe’s economy from a linear to circular model. In June 2020, the UK government’s Circular Economy package also introduced a legislative framework for reducing waste and establishing waste management and recycling opportunities across the UK. As policy begins to increasingly recognise and support the implementation of circular initiatives, there is no reason for your organisation not to jump on board (or perhaps on the metaphorical wheel!)

Deciding how your organisation can transition to a circular economy model will require an understanding of your product/service’s full lifecycle, collaboration with your stakeholders and innovation. Rental, repair services, take-back schemes, refurbishments, and waste sorting are just some of the potential options. If you want to begin considering how your organisation can move towards more circular processes the below points are a great place to start:

Raw Materials

What materials are used to make your product/provide your service? Are these non-renewable resources, or resources that harm the environment through their creation? If so, maybe you can look at using natural or recycled materials.

Production & Manufacturing

How is your product made or service provided? Consider how much energy or water you use and how much waste is generated from this production process. Perhaps you can implement ways to reuse your water, repurpose your waste or transition to renewable forms of energy.

Secondary Raw Materials

Do you use any third-party parts in your product/service? Consider the lifecycle of items such as packaging, shop fittings, tools, logistical services and whether these can become more circular.

Consumption & Use

How is your product or service consumed and what can your business do to help extend how long it is used for?

Waste

Once your service/product is no longer in use, what is leftover and what happens to it? If you produce any by-product or waste, consider how you can reuse and repurpose this, or encourage your end-user to do so.

Community & Society

What can your business do to support society? By getting involved in the community and encouraging jobs, educational support, charity actions and environmental protection, your business can contribute to the environmental, social and economic growth of your community and encourage continuous development.

Moving to a circular business model is no easy task. It requires a reframing of production, consumption and business patterns as we know them, in order to save our businesses, communities and planet. But change is coming, and if there is one thing the pandemic has taught us, it is that we must act upon risk immediately before it’s too late.