Circular economy: how can businesses benefit?

Protecting the environment, reducing carbon footprints, reusing and recycling is high on the agenda in everyone’s lives at the moment, with climate change and increased energy costs at the forefront. 

Much has been said in recent years about how we need to adapt our lifestyles to ensure the future of the planet, and nowhere is this more important than with businesses who deal with manufacturing or logistics or imports and exports, or pretty much anything else, actually.

Reducing waste and pollution, using items and materials for as long as possible and enhancing renewable sources are all important elements of the circular economy and will be considered here in more detail, discussing how businesses can adopt this approach and benefit from it in several different ways; making it a habit rather than a concerted effort.

What is the circular economy?

There are three aspects to a circular economy, all of which focus on an unbroken ring of resourcing. Visually, if you think of a circle, you see a never-ending ongoing line that repeats back on itself – and that is exactly how the circular economy works.

If waste and pollution are not created, then the earth’s natural systems are not negatively impacted and both it and overall health are improved. By reusing and recycling materials the cycle is kept going and there is no need to buy anything new – or at least, not for a longer time. Increased durability of products and components means they will naturally last longer and won’t need to be discarded as regularly. Choosing to fix rather than throw away is at the heart of how the circular economy operates. 

For businesses, this avenue isn’t just relevant to tangible inanimate objects. Training staff to move with the times and not replacing them with skilled workers from outside the ‘circle’ shows loyalty which is often rewarded with productivity. Low turnovers of staff is also a useful way of ensuring the cogs of industry still carry on without inevitable reductions in yield as new staff require induction into the organization.

How has it been successful?

The first Circular Economy Action Plan was put into place by the EU in 2015. Since then, it has become the leading force behind the European Green deal and was reinforced as a concept in 2020.

Three European cities, in particular, have been proactive in adopting the circular economy – Prato in Italy, The Hague in the Netherlands and Oslo in Norway have all seen the benefits to both them and the rest of the world. Prague in the Czech Republic is also following suit rapidly.

Prato has been a hive of the textile industry for many years and has been reusing second-hand materials in its production since the 19th Century, reducing the need for dyeing and the harmful effects that can have on the environment, as well as reducing its own manufacturing costs. In addition, the wastewater produced in the city as a whole is cleaned and reused before returning to the environment to be drawn again. Construction and demolition waste has been limited, with recycling of building materials heavily encouraged, and old dilapidated urban buildings are being renovated rather than torn down in an effort to regenerate the area and boost the economic recovery.

An initiative called Made in Moerwijk in The Hague has seen community involvement increase as they tackle waste management, water and energy consumption through social cohesion and collaboration. The project has seen a growth in start-ups and small businesses that have played a part in repurposing objects and creating jobs all as a result of collaborative working in giving new life to old things.

Oslo has made it its mission to be emission-free. Sustainability has been fed into a strategy across all its municipal organizations, business and population, making it a natural way of life for everyone. The company that runs the city’s trams and subways are using the knowledge and support from the circular initiative endorsed to ensure 100% recyclability of everything it purchases, which is proving financially profitable for the business as well as environmentally so all-round.

Future effects of a circular economy

The European Parliament states: ‘Moving towards a more circular economy could deliver benefits such as reducing pressure on the environment, improving the security of the supply of raw materials, increasing competitiveness, stimulating innovation, boosting economic growth (an additional 0.5% of gross domestic product) and creating jobs (700,000 jobs in the EU alone by 2030). Consumers will also be provided with more durable and innovative products that will increase the quality of life and save them money in the long term.’

Employing these measures can also save businesses money, with specifically-curated commercial waste management, recycling and waste prevention, eco-design and reusing materials, products and other resources all being less expensive alternatives to buying new, as well as being better for the environment overall and reducing harmful greenhouse gasses released in manufacturing processes.

Final thoughts

Adopting a circular economy proposal only works if everyone is fully behind it and works together, feeding off one another’s thoughts, ideas and methods and supporting accordingly. No man – or business – is an island, and a circular economy is only as good as the organizations which make up its band, keeping it strong and indestructible and as long-lasting as the materials it is using and producing.

- The author, Sophie Bishop is a freelance journalist. Sophie aims to spread awareness through her writing around issues to do with healthcare, well-being and sustainability and is looking to connect with an engaged audience.  

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