5 ways your business will benefit from the circular economy
, by Admin Account, 4 min reading time
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, by Admin Account, 4 min reading time
The circular economy is the way of the future for businesses around the world.
Aiming to reimagine the way we use and reuse goods, the circular economy increases product value by extending its lifecycle. Instead of following the standard linear model of take-make-waste, the circular economy prevents the over-generation of waste by following a reduce-reuse-recycle model.
While the idea of overhauling your current processes may seem daunting, joining the circular economy offers exciting business opportunities as well as a host of benefits for participating businesses.
Even better, not only will your business benefit from making the transition. By leaving the linear economy behind, you’ll also directly reduce the environmental impact of mining, resource extraction, refining and manufacturing.
Accenture reveals that the circular economy could generate USD$4.5 trillion of additional economic output by 2030. This is a result of greater competition as economic growth continues to decouple from natural resource consumption.
Likewise, a McKinsey report demonstrates that moving to a circular economy could boost resource productivity in Europe by 3% by 2030. This would generate cost savings of €600 billion a year as well as €1.8 trillion more in other economic benefits.
Closer to home, KPMG research shows that moving to the circular economy in the food, transport and built environment sectors would represent a potential economic benefit of AUD$23 billion in present value GDP by 2025.
Given the economic benefits of moving to a circular economy, it’s no surprise that cost savings top the list of business benefits. By giving products new life you’ll save on waste management fees while limiting what you buy new will also reduce procurement costs. Being more proactive in reusing, repurposing and recycling items will also add value to your supply chain, boosting your bottom line and lifting the value of your company.
Depending on your industry and your market, there’s a chance that ESG regulations are starting to bite. Participating in a circular economy goes a long way to meeting these growing compliance obligations. Besides providing solid proof of your commitment to environmental, social and governance responsibilities, embracing the circular economy makes it much easier to prove your ESG credentials to more demanding consumers and investors.
Moving to the circular economy will help secure your supply chain. With global disruption still a reality in many markets, getting access to a reliable supply of materials and products has been difficult. Transitioning to a new model and partnering with local sustainable upstream and downstream suppliers provides more supply certainty. It also helps you create stronger relationships with like-minded businesses.
Changing up your economic model is a great opportunity to explore new avenues of revenue. With the upheaval of the last few years, market disruption and new consumer behaviours may have seen your business lose ground. Embracing the opportunities of the circular economy gives you the opportunity to expand your product or service offerings, safe in the knowledge you’re operating in a growing market with a bright future.
Examining your existing approaches and processes will also give your business a much-needed innovation boost. By leading the way in new thinking, you’ll encourage more staff to share their ideas and take a chance at new ways to approach old problems. Exploring new materials, fresh manufacturing approaches and other hallmarks of sustainable operations will also help your business see things differently and be able to jump on new opportunities.
With so many potential benefits, there’s really no reason to wait. If your business is unsure how to make a successful move to a circular economy, the team at Circonomy is ready to help.
Circonomy brings together retailers, designers, craftspeople and resource recovery organisations to give new life to still-useful things. We empower individuals and businesses to reduce, reuse, recycle and repurpose, helping people see the value, potential and beauty in second-life goods.
Talk to Circonomy about how we can support your move to the circular economy so you can reap all these benefits for your business.