The circular economy: an opportunity for financial growth

The Environmental Impact of a Circular Economy Model

The environmental impact of a circular economy model is significant. It reduces waste, minimizes resource consumption and pollution. The basis for this model is fairly intuitive: the less you extract, the less you need to dispose of or recycle. In fact, it’s estimated that 80% of all materials used in products end up as waste within six months of use.
Then there’s the case for minimising resource consumption: by using resources more efficiently and reducing unnecessary processes (like certain stages of packaging), we can reduce our dependence on finite natural resources like while also avoiding unnecessary environmental damage caused by mining operations or deforestation for raw materials. This reduces pollution overall: when products are made with fewer materials–and those materials used are reused rather than discarded fewer emissions are generated during their production process.

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The Financial Benefits of a Circular Economy Model

Significant financial benefits within this model can be achieved through increased efficiency and reduced waste disposal costs, as well as new jobs in research & development fields such as biotechnology and advanced materials science.
A second major benefit is an increase in productivity due to better resource management practices being implemented throughout all stages of production from design through manufacturing and distribution–as well as improved quality control at every step along the way.

Examples of Companies Who Have Embraced the Circular Economy Model

One illustrious example of circularity-oriented restructuring of a production system is embodied by Nestle. In an effort to achieve their goal of having none of their packaging end up in landfills or as litter, the world’s largest food and beverage company, plans to reduce their use of virgin plastic by one-third by 2025. They are optimistic about the harmonisation exercise that is starting in the European Union, which aims to simplify participation for consumers and compliance for businesses.
The same can be said for Renault: the French auto giant, is also at the forefront of making circularity its main business strategy. At their Refactory plant just outside of Paris, they are refurbishing old cars to look like new and remanufacturing over 1600 different car pieces. They are also launching a start-up hub dedicated to the circular economy to share knowledge and innovation between Renault and the startups.
The Ellen MacArthur Foundation is a London-based charity that is committed to promoting and developing the circular economy. Joe Iles, the Design Programme Lead at the foundation, argues that circularity needs to be in the first line of every design brief. He believes that when we engage in design, the first line on the design brief should be “Does this creation, does this service fit within a circular economy?”

Conclusion

Moving to a circular economy model can be beneficial in many ways. For example, it will help reduce the amount of waste we produce and allow us to use resources more efficiently while also reducing our reliance on nonrenewable resources. It will also create jobs for people who want them and provide opportunities for entrepreneurs looking to start new businesses or expand existing ones.

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