A business approach: real progress or token gestures?

Although over recent years many businesses have shifted their thinking to align more with circular economy principles, the level of effort and commitment still varies greatly.

Where would you position your business?

• Progressive companies: leading the way

  Some businesses have fully embraced the circular model and have significantly adopted the principle into their everyday business operations.

  • Retail and fashion: Brands are introducing take-back schemes and recycling initiatives to reduce waste.
  • Manufacturing: Companies are designing products for easier repair, reuse, and recycling.
  • Technology: Firms like Apple are investing in material recovery systems to reuse precious metals from old devices.

  Not only do these efforts adopt circular practices, but they deliver tangible benefits too - from cost savings to brand loyalty.

• The Laggers: minimal effort or greenwashing?

  Unfortunately, there are some businesses that significantly fall behind in their attempts to embrace the circular economy, or worse still, don’t place any effort on it at all! Some also risk greenwashing by marketing themselves as sustainable while continuing unsustainable practices.

The challenges businesses face

Granted, the shift to a circular economy doesn’t come without obstacles. Businesses do face challenges when trying to make the shift, and, for some, it simply boils down to lack of education.

• Cost setbacks: Re-evaluating production processes and product designs, along with creating new systems, can require significant investment.
• Gaps in knowledge: Many companies simply lack understanding of how to implement circular practices effectively, and therefore remain operating in the traditional linear system.
• Infrastructure: Some areas face a lack of local recycling facilities, which can make circular practices harder to implement, especially for small businesses.

What more can businesses do?

Firstly, businesses need to dive below surface-level efforts. To make a real impact, they need to completely re-evaluate how they operate their business, make real changes, and commit to an ongoing sustainability plan. While this may sound daunting at first, becoming more sustainable can actually have significant benefits for businesses, while also reducing costs.

Here’s what to do:

1. Design for longevity and reuse: Create products that are durable, as well as repairable and easy to recycle.
2. Collaborate across supply chains: Choose suppliers and manufacturers who are on the same page in terms of adapting to a circular economy.
3. Adopt new business models: This is a broad one and depends on what type of industry you operate in. But leasing, renting, or sharing products instead of selling them outright can keep materials in use for longer.
4. Invest in tech: Explore new technologies for recycling, upcycling, and preserving materials – it’s a great cost saver!
5. Educate your customers: Help customers understand and participate in circular initiatives, such as take-back schemes.

Why it matters for businesses

Supporting the circular economy isn’t just a plus for the planet, it’s a chance to future-proof your business. With rising costs of raw materials and stricter regulations, operating in a circular economy offers businesses a chance to prepare for the future – implement now and stay ahead of the game!

While there are notable examples of businesses championing the circular economy, many others have yet to take meaningful action. The road to a truly circular economy requires bold commitments, systemic changes, and collaboration across industries.