Introduction
In 2019, Americans disposed of 6.92 million tons of electronic waste, recycling only 15% (World Economic Forum). Much of this waste comes from businesses, so what is the solution to a rapidly growing waste source?
The shift from take-make-dispose to circular thinking is quickly gaining traction. Businesses are adopting circular economy models to meet the growing concerns of climate change among their founders, employees, and consumers. Circular thinking seems to be an obvious choice for many businesses, as it offers increased economic benefits through a growing customer base and reduced costs of materials.
What Is A Circular Economy?
A circular economy is when materials or products stay in use for as long as possible, through reuse, refurbishment, repair, and recycling. For businesses, this model is the same–creating or using products that can stay in circulation without drawing on the extraction of natural resources. The circular economy model has three main principles: redesign our waste, keep materials in use, and regenerate natural systems. Such models cut costs for both businesses and their customers, while also reducing greenhouse gas emissions.
The core concept of the circular economy model is keeping resources in circulation. Rather than using a product once and disposing of it, the circular model proposes the reuse, refurbishment, or repair of the whole product or its materials. Finally, after the product has gone through these processes, it can be recycled.
Linear Economy Vs Circular Economy
An easy way to digest a circular economy is to compare it to a linear economy, which we currently live in. In a linear economy, products move in a line, from point A to point B. People use products or materials, and then they become waste. The steps are as follows: make, take, use, waste. The problem is, we don’t have enough materials to sustain this linear mode of consuming.
On the other hand, in a circular economy, products and materials move in a circle, with no clear end. Circular economies expand on the linear model: consumers take, make, and use, but then repair, return, recycle, before the product or material re-enters the initial cycle. The structure of linear economies, with the endpoint being waste, indicates that a large amount of waste is generated. Circular economies, conversely, limit waste as they continue to circulate products and materials. Ultimately, such items are recycled and continue to limit waste.
Resource efficiency metrics quantify how resources are used while minimizing waste and maximizing productivity. Circular economies both minimize waste and maximize productivity, efficiently and consciously using resources, while linear economies fail to do the same.
Inherently, buying more materials costs businesses more money. So within a linear model, producers continue to buy materials, which over time have become more costly as resources are limited. While circular economies save businesses money, as resources are reused, refurbished, repaired, or recycled. Simultaneously, customers will pay less as producers save money in making the product.
Key Circular Economy Principles
Implementing a circular economy could generate $1 trillion annually (World Economic Forum). There are 5 key principles that drive a circular economy:
- Design for longevity
An ideal product for a circular economy is a product that is thoughtfully designed, sourcing raw materials that will last. A strong product can withstand a long life on its own, and through any of the next steps, can remain in circulation even after its initial life span. All Seating is an example of design for longevity. They design and manufacture chairs with care and durable materials, leading to a long life cycle. They offer a recycling program when the products reach the end of their life.
- Maintain and repair
Once a product has undergone normal wear and tear, maintenance and repair can extend its life, allowing it to serve its original intended purpose. An example is LLBean’s design to make products last longer and withstand outdoor elements. While this is their goal, products will inevitably wear out. So while creating products for longevity, they also offer repair and service options to increase the life span of products, such as the Bean Boot repair program.
- Reuse and redistribute
Reusing and redistributing can include a slight repurposing of a product, but the product remains valuable and useful. Rent the Runway has a reuse and redistribution model: as customers rent designer clothes for a set period, allowing the clothing to be reused continuously by other customers.
- Refurbish and remanufacture
Refurbishing and remanufacturing extend the product's life by putting it through the manufacturing process again, albeit at a lower level of production, with a focus on refurbishing the used product. Apple provides a model for the refurbishment and remanufacturing of its products. Apple’s trade-in deals encourage customers to return their phones for a discounted price for a new product. They either repair and resell the products or remanufacture products with the used materials from the turned-in product.
- Recycle as the final option
Finally, once a product has been reused, repaired, or refurbished, it can enter the recycling system. Here, it can become material for the reproduction of new products. HP collects used ink cartridges to disassemble and recycle them into new products. Their model reduces waste and conserves valuable resources. They make it easy for their customers, offering free drop-off, pick-up, or mail-in solutions.
Circular Economy Examples In Business
Circular economies can exist in many different businesses and business models. An example of a circular economy in the manufacturing sector is Apple's trade-ins. Apple organizes trade-ins–upgrading an older phone for newer technology–for economic and environmental reasons. When a consumer trades in, they keep the technology in the cycle, offering it a new life in exchange for a discounted new phone. The traded-in technology is resold for a lower price to other consumers, and this cycle continues.
"When a consumer trades in, they keep the technology in the cycle, offering it a new life in exchange for a discounted new phone."
In office and facility management, circular economy practices can be implemented through prioritizing reused and recycled materials in furnishings. For example, creating a waste management system that is made from recycled materials, like the Manchester Standard 3-stream e-Cycler. Look for vendors who provide sustainably made furniture, and those who have implemented programs to take back products at their end-of-life.
Another way facility management can prioritize a circular economy is through repairing items as opposed to disposing of and replacing them. Lastly, facilities and offices can lean into creating closed-loop systems, like reclaiming water for irrigation.
One retailer and distributor, Samsung, is succeeding in using a circular model in its packaging. Samsung instituted an Upcycle Package Program where, when a product is ordered, their customer can select how they will repurpose the box afterwards. Options range from cat houses to bookshelves to six-pack beer carriers. The packages include dotted lines and instructions to build the desired product.
Other retailers, like Patagonia and IKEA, have buy-back programs for used goods. Such programs keep products in circulation by giving customers credit and reselling products, limiting the amount of waste.
Within the service industry, businesses can focus on using products that can be reused, such as reusable cups. Or items that can remain in the cycle through repurposing, for example, with nutrient recycling of compostable products.
In the hospitality sector, Airbnb is an example of circular economy practices. Airbnb centers on using what is already there, leasing someone’s room or space when they are not there.
Implementing A Circular Economy In Your Organization
Within your own organization, a waste audit and assessment is a good way to start implementing a circular economy. A waste audit will tell you exactly how much, where, who, and what types of waste your business or those in it are producing.
Once you have assessed the results of your waste audit, proper collection systems can be put in place to combat specific problems. Whether that is through a Spectrum Three-Stream Station Sign Frame Kit or a Black Tie Kaleidoscope Three-Stream Combo Recycling Station system, having clearly labelled and centralized waste bins is a big step in collecting successfully.
Employees can be engaged in various ways, like through incentivization and challenges or clear sorting bins. Sharing audit and assessment results with employees is important, as everyone should be on the same page and have similar goals to implement a circular economy.
Once such practices have been implemented, circular economy success can be measured in resource efficiency, waste management, recycled materials, and value created. Tracking material consumption can show how much material inputs have been reduced, and conversely, how much the use of recycled materials has increased. Waste can also be tracked, with the goal of minimizing waste and maximizing waste diversion. Success can also be measured monetarily, with an increase in revenue and a decrease in costs and spending.
The Role Of Waste Management
As circular economies rely on recycled materials, to be reused, repurposed, or repaired, it is important to note that this is much easier when recycling is separated at the source, so in an office or a home, rather than at a large-scale recycling facility.
To allow for successful separation at the source, collection systems with three-stream designs can be most effective, like with the Evolve Three-Stream Multicolor Cube Recycling Station. This system creates a clear separation between recyclable items, limiting the contamination between items, which can be harmful to the success of recycling an item in a circular economy.
Material recovery is essential in a circular economy, as it attempts to keep materials in circulation for as long as possible, which again, can be made easier through separated recycling.
Closing the loop internally requires a business to keep products and materials in circulation within its own operations for as long as possible. The example of Patagonia’s Worn Wear program is applicable in this context. A clothing item is bought by a consumer from Patagonia, they wear that item for a few years, then they sell the item back to Patagonia Worn Wear for credit, and they can buy a used product while their item reenters the same market. So the loop opens and closes with Patagonia, and the product remains internal. Since the Worn Wear section of the site launched in 2017, through 2021, they’ve kept 130,000 products in circulation through their repair and resale process.
Circular Economy And Sustainability Goals
Environmental, social, and governance initiatives and objectives are used to understand business plans and impacts. ESG objectives can offer commitments to stakeholders and investors, and encourage their continued funding of the business. ESG is now a competitive advantage in the business industry as it helps you meet regulatory requirements and gain the trust of stakeholders and investors.
ESG goals are essential in establishing a company's vision and strategy for meeting sustainability benchmarks, including reducing greenhouse gas emissions, investing in sustainable energy, increasing diversity, and ensuring transparency of financial reporting. To implement ESG into your business:
- Conduct a baseline assessment
- Set goals with the SMART framework
- Collect data to measure progress
- Define performance indicators for each goal
- Announce ESG goals
ESG goals go hand in hand with circular business models. By keeping materials and products in a closed loop, a circular economy can reduce businesses' carbon footprint through the reduction of waste and efficient production and use of products.
Circular economies help businesses meet sustainability goals and standards by prioritizing the minimization of waste through recycling, reuse, refurbishment, and repair. Laws or regulations that limit the waste production from companies or green certifications are met when companies opt for reusing and recycling.
As mentioned earlier, companies and businesses are increasingly shifting to circular models, guided both by economic prospects and their reputation. Customers and employees care about climate change, and they therefore care about the choices they are making, whether it be with a choice of employers or producers. Brand reputations can be bolstered by implementing sustainable practices through circular economies, increasing their consumer base and profits, while decreasing their spending on the cost of new materials.
"Circular economies save money, make money, reduce waste, and increase efficiency by reusing, refurbishing, repairing, and recycling materials and products that are already in circulation."
Conclusion
Circular economies are simply logical. Why use a limited material or product once and then dispose of it? Circular economies save money, make money, reduce waste, and increase efficiency by reusing, refurbishing, repairing, and recycling materials and products that are already in circulation.
To implement a circular economy in your business, assessment and auditing are excellent starting points. Once you understand your waste breakdown, you can set goals to shift towards a circular economy. Then, considering what products you use or produce within your business space, you can organize waste management systems with Recycle Away, opt for recycled materials, and reuse materials you already have on hand.
Our resources, while seemingly ample, are not unlimited. To create a more sustainable and efficient world, starting with one business at a time, we must all move toward more circular lifestyles and circular practices within the workplace.
Case Studies
