Do we give back to mother nature as much as we take from her?
This is worth pondering upon because the lack of sustainability has impacted many lives. Humans continue to exploit their natural resources without understanding that the adverse effects will circulate and hit us only.
This calls for the need to include circularity in every business model to ensure sustainable growth and development. The benefits of this shift compared to the linear economy are highlighted in this article.
Principle of Circular Economy
A circular economy is a streamlined approach to eliminate the linear economy from our system slowly. Unlike the principle of use and dump, the circular economy focuses on paving the way for the concept of reuse, renew, and recycle.
The main principle of circularity as per UNEP data
- Retain natural processes in every industry
- Keep bringing back the raw materials into the cycle
- Minimize the waste and opt for recycling
This is not as easy as it seems, but the benefits will let you know why it is high time to switch to circularity.
Benefits of Switching to Circular Economy
Imagine a world where there is no wastage and every material is recycled into something useful. This is what the circular economy is trying to achieve, and here are some well-researched reasons for switching to circularity.
Economic benefits are apparent because eliminating a linear economy creates more channels to generate revenues. It has a ripple effect that can collectively improve the GDP of the respective nation.
With better channels to generate revenue from already existing materials, the cost of raw materials for the new process is cut down. When a new process starts, there is an opportunity to employ someone in need, which improves the organization’s human resources.
The abundance of staffing brings abundant creativity, and it keeps the chain of new processes going.
Environmental Conscious Effort
Every sector is doing something to cut down its carbon footprint, and a circular economy is a giant leap toward it. The oil and gas industry can essentially eliminate the emission of pollutants into the environment by adopting circularity.
The linear economy model leads to the exhaustion of primary material, and the circular economy is trying to eliminate that for natural resources. Ultimately, this will provide a better environment, healthier soils, and nutritious crops.
When businesses shift to a circular economy, they will have more options to benefit from the renew and recycle process. A significant margin will reduce the cost of manufacturing raw materials, and profits will increase simultaneously.
The supply chain for raw materials remains active because fewer virgin materials will be used. In case of any unexpected scenarios like a pandemic, disaster, or economic breakdown, the supply chain will remain intact.
This will ultimately attract more customers because of the cause behind the circular economy. New services and products will lead the market, encouraging people to opt for a conscious lifestyle.
There are plenty of industries adopting this concept, and it will be fun to explore it in the next section.
Industries involved in a circular economy
Changing the business model is not an overnight task, but businesses are still trying to achieve that with the best efforts. Some domains that can immediately switch to a circular economy are mentioned below.
- Food and Beverages (For packaging and shipping materials)
- Waste management (To fuel the recycling and renew processes)
- Manufacturing Industry (For adopting regeneration strategies)
- Textile Industry (For eliminating fabric waste)
The good days are nearing the concept of circularity trending in this generation.
Our economy will shift to a circular system after crossing many hurdles. The change will be slow, but it is still a positive indication that something is changing for the good.
The current challenge is to embed it into the system and find scaling strategies.