Embracing Circular Economy to Protect Our Planet

It is no secret that climate change and pollution are the biggest threats to our very existence. As we celebrate Earth Day, it is time to revisit our relationship with our planet and change our consumption habits. Rather than mining more natural resources towards depletion, we need to focus on sourcing from “above the earth,” that is, use what we've already created.?

In this blog, we explore the concept of circular economy as a viable alternative to our current linear model and look into practical steps to achieve sustainability.

The Problem with Linear Economy?

A linear economy is one where finite resources are continuously extracted to make products that are used (typically not to their full potential) and then discarded. It is also referred to as “take-make-dispose” economy. Over the decades, this model has led to unprecedented harm to the environment. Not only has it led to scarcity of natural resources but also deteriorated forests and habitats. The result is clearly visible—climate change, air pollution, scarcity of water, and massive waste accumulation.?

To understand the extent of waste we create on the planet, the European Union alone produces more than 2.5 billion tones of waste a year. It has been seen that wealthier states tend to produce more waste capita. Further, countries across the world produce ~350 million metric tons of plastic waste annually.

This calls for an urgent need for sustainable solutions by transforming the way we consume and dispose of resources.

Understanding the Circular Economy?

A circular economy is one that keeps resources in use for as long as possible, by extracting maximum value from them before recovering and regenerating materials at the end of their lifecycle. It is based on the four pillars of reduce, reuse, recycle, and regenerate.?

An example of a circular economy in the fashion industry includes designing long-lasting clothes, encouraging reselling of used clothes, and repairing and recycling clothing into new garments. Electrical devices can also be manufactured in a way that they are easier to repair and reuse rather than discarding them.??

A?circular economy could unlock $4.5 trillion of value by 2030, according to a report.?

Benefits of Adopting a Circular Economy

There are plenty of benefits of embracing a circular economy.?

Environmentally, it can help conserve forests, lower wastage, preserve natural resources, and promote biodiversity. Economically, it can lower costs, create new jobs, and enhance competitiveness and innovation. Socially, it can improve the quality of life for future generations.?

Moreover, a circular economy can significantly help reduce the total annual greenhouse gas emissions. Overall, this approach can improve economic growth and create more than 700,000 jobs in the EU alone by 2030.?

Successful initiatives like Denmark's recycling programs and the Netherlands' circular agriculture strategy show how successful the circular economy model can be.

Earth Day Call to Action - Steps to Adopt a Circular Economy

Now that we’ve established the many benefits of shifting to a circular economy, here are some concrete steps. And what better occasion than World Earth Day to make a new start!

• At the individual level, practising mindful consumption comes first in the process. Reduce, repair, reuse, and recycle items as much as possible.?
• Next, businesses can use circular design principles like making products easy to repair or recycle. Corporations can offer take-back programs and collaborate with other companies to create closed-loop systems.?
• Governments can devise supportive policies, invest in research and development, and promote education regarding the circular economy model.?
• Both organizations and individuals can get actively involved in raising awareness in order to drive change.
• Governments and companies can promote disruptive and innovative models that work towards collecting, segregating, and recycling waste such as plastic and e-waste.

Circular Economy Action Plan?

Circular economy is a development priority of the European Union and is part of the EU industrial strategy. The EU adopted the new circular economy action plan (CEAP) in March 2020 towards its sustainability efforts.

The new action plan announced initiatives around product design, circular economy processes, sustainable consumption, and waste prevention. This includes focusing on sectors that use most resources and where the potential for circularity is high like electronics and ICT, batteries and vehicles, packaging, plastics, textiles, construction and buildings, food, water and nutrients.

Microsoft Circular Centres

Meanwhile, in context with its zero-waste sustainability efforts, Microsoft is also taking steps to shift to a more circular approach under the Circular Centers program. This program aims to enable the reuse and recycling of services and hardware within Microsoft’s data centers.

This approach follows “a plan for every part" principle where before an asset is even introduced to Microsoft's supply chain, each part or component already has an optimized disposition plan when that asset is ready to be decommissioned, thus maximizing the value recovery and sustainability outcomes.?

The pilot project was launched in Amsterdam. Over the past year, this Circular Center has achieved 83% reuse and 17% recycle of critical parts while contributing to the reduction of carbon emissions by 145,000 metric tons CO2 equivalent.?

Over the next 18 months, most Microsoft cloud decommissioned assets will be processed and repurposed by deploying additional Circular Centers in the US, EMEA and APAC. Microsoft also intends to extend this model to its cloud-computing assets and is well on track to achieve 90% reuse by 2025, with projected annual savings of ~$100 million dollars.

Earth Day reminds us once again of our responsibility towards planet Earth! Let’s commit to embracing the circular economy to ensure a sustainable future. Organizations, individuals, and governments can all play a vital role by making conscious choices. The time to act is now! Let's come together to protect and preserve the only home we have.?