What is “closing the loop” in waste management and how do businesses do it?
Thursday 1st May 2025
After decades of relentless consumption, societies around the world are beginning to grasp the idea that many of the world’s resources are finite and not to be exploited carelessly.
But what do buzz-terms like “closing the loop” and “circular economy” actually mean in a business context? And is it realistic to expect that organisations from across industry will be able to implement meaningful changes?
Let’s discuss.
What does “closing the loop” actually mean?
Essentially, the term closing the loop means creating a circular system in which products, packaging and materials have a longer lifespan and are managed effectively through their entire lifecycle – with the aim of reducing overconsumption.
In many instances, materials that are thrown away after a single use could actually be reused, recycled or repurposed in order to minimise waste and maximise value. In this way, it is thought that the constant production of new items from raw materials can be reduced and contributions to landfill dramatically cut.
This is a key principle of what is now known as the circular economy and it’s fast becoming more than a nice to have – it’s becoming a requirement and an expectation within the business community.
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Why closing the loop matters
In decades gone by the economy has been described as “linear” – taking raw materials from the earth, turning them into goods that are then later disposed of and replaced with yet more goods. However, closing the loop encourages us all to bend that line and avoid the vast contributions to landfill.
As an example, the built environment sector currently accounts for the extraction of 100 billion tonnes of raw materials each year and these buildings account for roughly 40% of the Earth’s energy generated carbon emissions.
But by moving towards a circular economy and looking to reuse, recycle and repurpose on a much larger scale, the sector can not only reduce the harmful effects of extraction and disposal but also the environmental implications of transportation and manufacture.
In the UK, the Government’s Net Zero Strategy and 2021 Environmental Act pledge to drive a reduction in residual waste by half per person by 2042.
The core benefits of shifting from a linear to a circular model for UK businesses are:
- Environmental impact: reducing the amount of waste sent to landfill and lowering the demand for virgin resources
- Cost efficiency: cutting waste means slashing disposal costs and creating savings driven by reuse
- Sustainability compliance: helping to meet ESG targets and prepare for regulations like EPR.
- Business resilience: building more secure and reliable value chains reduces exposure to shortages in raw materials
As is often now stated, closing the loop benefits organisations’ triple bottom line: people, profit and planet
Putting a plan in place for closing the loop
Of course, committing to a more circular approach and actually achieving it are two very different things. If your business is looking for practical and achievable steps to close the loop, here are a few ideas for starters:
- Start designing for reuse and recycling – making simple switches in products or packaging can make a big difference. Using single material packaging that can be processed easily and opting for biodegradable or returnable materials where possible is a great starting point.
- Reincorporate waste into operations – whether it’s offcuts, surplus materials or unused items, organisations can often find new ways to keep materials in circulation. Examples might be:
- Using recycled cardboard for shipping
- Using reclaimed wood in construction
- Composting food waste or using for energy
- Repurposing foam offcuts as insulation
- Educate staff and create a circular culture – take the time to ensure that everyone understands the importance of reducing contamination and sorting waste correctly. Embedding it in daily activity makes it a process and not a chore. Confusion over what can and can’t be recycled is a common issue for many businesses, so take the time to address this with employees from the outset
- Collaborate across your value chain – work with suppliers and customers to adopt closed-loop principles. It could be sourcing materials from recycled sources or returning packaging for reuse.
In addition, make use of your waste management partner and let them help you to put in place a more efficient waste strategy that reduces contributions to landfill.
