Circular Economy

Circular Economy (Circularity or CE) is a revolutionary way of rethinking how we produce, consume, and dispose of goods. Traditionally, we have followed what is known as a 'linear economy', which follows a “take-make-dispose” approach. But in a circular economy, we emphasize sustainability by designing how to procure raw materials, how to consume the products, and how to utilize them after the end of the lifecycle. We aim to keep the resources in use as long as possible.

Why Does It Matter?

The impacts of the linear economy that we now have are dramatic and extensive. Since the 1970s, resource extraction has tripled and it is projected to grow by another 70% by 2050. This large-scale extraction of raw materials, manufacturing, and consumption has led to environmental degradation, resource scarcity, and climate change. However, only 8.6% of today's global economy is circular.

Adopting a circular economy globally has the potential to reduce emissions by 22.8 billion tons, equivalent to 39% of the total global emissions recorded in 2019.

What is it?

At its core, the circular economy creates a closed-loop system that minimizes resource extraction, reduces waste, and fosters regenerative practices. It operates on three main principles:

• Eliminate waste and pollution

• Keep products and materials in use as much as we can, thereby extending the lifecycle

• Regenerate nature and leave room for nature to replenish and thrive

Illustration of the circular economy concept

Circular Economy in Action

There are multiple instances of circular economy in real life, even by well-known brands. The Ellen Macarthur Foundation has listed a bunch of real-life case studies about circular economy success stories from around the world. The furniture giant, IKEA has embraced circularity by designing furniture that can be disassembled and recycled, offering repair kits for popular products, and establishing a buy-back program to refurbish and resell used furniture. Similarly, Philips has shifted to providing Lighting as a Service (LaaS), allowing businesses to lease lighting solutions instead of purchasing them outright. This ensures that materials are reused and components are recycled at the end of their lifecycle.

We can see multiple examples around us such as tech companies like Apple leading the way in sustainability by incorporating recycled materials, such as using recycled aluminum. Similarly, fashion brands like Adidas are embracing circularity, with Adidas producing shoes from ocean plastic. The automotive industry is also adopting sustainable practices, as companies like BMW use recycled plastics for interior components and Volvo incorporates recycled steel in their vehicles.

Conclusion

In conclusion, the circular economy offers a transformative path toward sustainability, where industries and individuals play crucial roles. By adopting circular practices, companies in various sectors are reducing waste and conserving resources. At the same time, consumers can also make a significant impact by choosing products designed for longevity, reusing items, and recycling responsibly. This collective effort fosters a more sustainable and resilient economy, where every action, big or small, contributes to a future where resources are used efficiently and waste is minimized. The shift to a circular economy is a shared responsibility, empowering industries and individuals alike to build a sustainable future for generations to come.