Modern industries typically embrace a linear economic model, characterized by a familiar pattern of take, make, and dispose. But in a world of quickly diminishing resources, to say nothing of serious waste management concerns, this linear pattern is looking more and more unsustainable.
For this reason,a number of businesses have embraced the circular economic model. The circular economy is less like a straight line and more like an endless loop; in a true circular economy, there’s no waste, because everything is recycled or reused. Basically, a circular economy is designed to cut waste from the production cycle completely.
At WasteXperts, we have championed the circular economy more than once, noting both the environmental benefits as well as the social benefits. We’ve also provided some specific ways in which businesses can embrace the circular economic model.
Today, we turn our attention to a different question: What’s the business case for the circular economy?
While the circular economic model undoubtedly offers promise for the environment, it also must satisfy the needs of businesses, which have to remain profitable and cost-efficient. One of the virtues of the circular economy is that it’s good for the environment, but good for corporate profitability, as well.
How is this the case? Proponents of the circular economy are quick to point out that resource efficiency isn’t just a matter of environmental stewardship. It’s also a verifiable cost-saving measure. Imagine that your company invests $1 million in raw materials, but 30 percent of those raw materials are ultimately discarded. That represents a significant budgetary waste; a production cycle that eliminates that waste completely entails a much smarter use of resources.
The business case for the circular economy isn’t confined to resource efficiency. There’s also the matter of brand reputation. More and more consumers are aware of the looming threat of climate change, and interested in supporting businesses that take their ecological impact seriously. Embracing a circular economy can reduce a company’s carbon footprint, engendering significant goodwill from their customer base.
The circular economy can also motivate positive changes in product development. Because the circular economy is focused on waste reduction, product longevity is prized. Products that are durable and long-lasting are naturally going to appeal to the end user; here again, embracing the circular economy can improve brand standing and provide a real competitive advantage.
Compared with the linear model, the circular economy represents a better way… not just in terms of environmental sustainability, but also in terms of basic, bottom-line business concerns. We’d love to tell you more about what it means to embrace the circular model. Contact WasteXperts whenever you’d like to chat.
