Closing the loop: The circular economy's potential in logistics

Are you feeling like you’re going around in circles?

Well if you're not then you definitely should be!

The circular economy is a business opportunity that has been dubbed “the opportunity of our time.” Unfortunately, the UK currently only uses 7.5% circular, meaning that over 90% of the materials we consume come from virgin sources, and 80% of these materials are extracted from abroad. If our global levels of circularity don't improve and we continue consuming at our current rate, by 2050, the WEF predicts that we will require 2.3 planets! (Germany would require 3 and our friends across the pond would require 5!)

As part of our COP27 the UK has also committed to achieving zero greenhouse gas emissions by 2050. A lot still to do then.

However, this could also be an opportunity for decision-makers, as the current Circularity Gap has a significant untapped potential. By adopting circular strategies, decision-makers can contribute to global sustainability efforts and drive innovation and economic growth.

So, where can we make a difference in logistics?

• A circular economy can help reduce waste and emissions, as it reduces material use and redesigns products and services to be less resource-intensive. Any waste that is produced can be recaptured for new materials and products. Reducing the need for virgin materials and better using resources also has the potential to reduce greenhouse gas emissions by 43%.
• A circular economy supply chain closes or slows resource loops, minimizes raw material extraction, and optimises materials, resources, and processes. It also encourages the prioritisation of more durable products or extending their lifespan through reuse, repair, and remanufacture. Circular supply chains could reduce our total material footprint by 28% by 2032.
• Furthermore, circular strategies could generate an additional 35 billion USD in value in consumer goods by 2030 from reduced costs. A circular economy limits waste, reducing a business’s waste management expenses. Products designed to be lighter and packaged more efficiently can also lower transport costs. This not only benefits the environment but also the bottom line, making the circular economy an attractive proposition for businesses.

Circularity has the potential to make a significant impact on a global scale. The circular economy could generate an extra 4.5 trillion USD in global economic activity by 2030, primarily through job creation and innovation. This shift towards circularity could lead to a net increase of 7-8 million jobs by 2030, particularly in repair, rent, remanufacturing, and recycling. While 71 million jobs may disappear in the coming years, the circular economy will create 78 million jobs. This means that despite the changes, there will be opportunities for workers to transition into new roles. However, 49 million workers will find vacancies in other industries in the same occupation and in the same country. The rest will need to consider upskilling and reskilling to tap into new opportunities brought about by circularity.

At Seven Senders , we’re working hard with our partners to digitise all areas of our business and offer the most suitable solutions to all our customers and prospects.

Interested to see how we can help your business? Get in touch with me.

#Sustainibility #Circularity #CrossBorder #Logistics #SevenSenders

Sources:

https://www.circularity-gap.world/united-kingdom

https://www.weforum.org/agenda/2022/05/why-the-circular-economy-is-the-business-opportunity-of-our-time/#:~:text=Looking%20at%20today's%20consumption%20levels,levels%3B%20Germany%20would%20need%20three

https://www.circularity-gap.world/united-kingdom

https://www.circularity-gap.world/2023

https://www.accenture.com/us-en/industries/consumer-goods-and-services-index#

https://www.accenture.com/nl-en/blogs/insights/the-power-of-circular-venture-buildingshows

https://www.ilo.org/sector/Resources/publications/WCMS_881337/lang--en/index.htm