Circularity in Action: Embracing a Closed-Loop Mindset
A flock of bald eagles ensuring the use of any remaining part of a recent kill - Credit: Author
Topics like resource depletion and environmental degradation are no longer just jargon in an environmentalist’s reading list, we hear and read about them daily. As a result, the concept of circular economy or circularity gained a lot of traction and experienced unprecedented growth and progress in the last few years, offering a path in business and economy that will lead to a sustainable and regenerative future.
For any business that wants to be taken seriously, embracing a closed-loop mindset is no longer a choice but a necessity. More of us as consumers, and in return businesses strive to decouple economic growth from the old, tried, and expired linear take-make-waste model.
When we sit back and enjoy nature it provides a profound example of circularity in action. A basic example is the cycle of decomposition, where organic matter breaks down and returns nutrients to the soil, nourishing new life and perpetuating the cycle of growth and renewal. This seamless loop, where waste becomes a valuable resource, is our guiding light to adopt the inherent wisdom of nature's design.
Several key topics garnered significant attention and are crucial to driving the transition to a circular economy.
Business Model Transformation
Transitioning from a linear to a circular economy requires a fundamental shift in business models. Companies are exploring innovative approaches such as product-as-a-service, sharing platforms, and take-back programs to retain ownership of materials and facilitate closed-loop cycles.
Philips transformed its business model from product sales to an integrated service by providing "light as a service" and healthcare equipment leasing options, retaining product ownership to enable circularity through maintenance, reuse, and material recovery at scale. Signify- their light-as-a-service arm provides an end-to-end solution to their business customers for everything related to lighting ensuring the longest possible life for the product, reuse, and true product recycling.
Product Design for Circularity
Rethinking product design from the outset is essential for enabling circularity. Principles like modularity, durability, and ease of disassembly and repair are key to extending product lifespans and facilitating material recovery and reuse.
While there are a few examples of products being redesigned for a circular economy, one of my favorites is The Circle House in Denmark. They’ve created houses where 90% of the material can be easily disassembled for reuse or recycling! While not everything is 100% yet, it is very clearly possible.
Material Innovation
Developing sustainable and circular materials is a critical component of the closed-loop mindset. From biodegradable plastics to recycled construction materials, innovative solutions are paving the way for a future where waste is designed out of the system.
Food packaging is one key area of focus for brilliant minds working on creating a circular economy. Solutions range from using seaweed instead of plastic for single-use items to creating highly capturable and recyclable materials. Companies like Sway Packaging, for instance, have stepped into the market, making a big difference in reducing food packaging waste by providing naturally compostable alternatives made from seaweed.
Monitoring and Measuring
Accurate data and metrics are essential for tracking progress, identifying areas for improvement, and quantifying the environmental and economic benefits of circular practices. The 2023 Circularity Gap Report published by the Circle Economy Foundation found that only 7.1% of all materials are in the circular economy. While this number is still very low the fact that we have a number and that it is more than 1% is a win to the environment, the economy and the world. Just a short few years ago we didn’t have anything to measure.
Clearly there is a lot of work to do to catch up and companies need to take the sense of urgency and measure their own progress on a quarterly and annual basis.
Policy and Regulation
Governments and policymakers play a crucial role in creating an enabling environment for circularity. Initiatives like extended producer responsibility, eco-design regulations, and incentives for circular practices are essential for driving systemic change.
As we navigate the complexities of the circular transition, it is important to recognize that circularity is not a one-size-fits-all solution. Different regions and sectors require tailored approaches that take into account local contexts, resources, and socioeconomic factors.
Embracing a closed-loop mindset is a journey that requires collaboration, innovation, and a fundamental shift in how we perceive and interact with resources. By learning from nature's wisdom and combining the power of technology and human ingenuity, we can create a future without waste where resources are perpetually cycled and economic growth is in harmony with environmental regeneration.
We can see from what we have achieved in the past few years that this is within our reach in every sector.
