The idea of circular economy has been around for quite some time but I've only came to learn about it recently through an article "How circular economy could end take make waste business" by Coro Strandberg.
Circular economy model (source: http://cbsr.ca/transformationalcompany/wp-content/uploads/2015/11/10-closed-loop.pdf)
Essentially the idea of circular economy is a closed loop model where business focuses on longevity, renewability, reuse, repair, upgrade, refurbishment, capacity sharing and dematerialisation. Oppose to linear model that is typically 'take-waste-waste' system. Our industrial economy is at a tipping point in which the linear model no longer viable for a number of reasons. First, the growth in population and urbanisation dramatically increase the scarcity of non-renewable materials such as metals, minerals and fossils fuels. In addition, the decline in regenerative capacity of renewables such as land, forest and water forces us to rethink our production methods and consumption systems.
One of the key element of circular economy is that the products produce is restorative by design. It aims to keep the products, components and materials at their highest utility and value at all times. This is important to our environment as it reduce the need for extractions and processing of new resource which can decrease the pressure of our environment.
Appart from environmental benefits there are some of the key benefits and opportunity from circular economy approach which includes:
- Build value-added customer relationship
- Create a platform for innovation and new revenue generation
- Minimize the impact of raw material price
- build brand and reputation
I believe that this a great approach which more companies should adopt. For example, businesses such as Colgate L'Oreal and Nespresso has partnered with TerraCycle which encourages recycling of their packaging.
Reference
https://www.greenbiz.com/article/how-circular-economy-could-end-take-make-waste-businesses
http://cbsr.ca/transformationalcompany/wp-content/uploads/2015/11/10-closed-loop.pdf
https://www.greenbiz.com/article/how-circular-economy-plays-out-packaging
No comments:
Post a Comment