Making circularity a shared effort: How to implement circular practices in European businesses

Achieving circularity is not a task that can be achieved in isolation. The more companies, regulators, and stakeholders collectively work actively towards circular economy, the easier it will be to drive meaningful change at scale.??

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The imperative to address construction and demolition waste, which accounts for more than one-third of all waste in the EU, has never been more pressing. Embracing and demanding circularity is essential to transforming the waste challenge into an opportunity. This is also why we at ROCKWOOL do not talk about waste, but instead about ‘material.’ However, achieving efficient resource-use is not a task that can be undertaken in isolation. It demands a collaborative effort from diverse stakeholders, including companies and regulators, to drive change.?

Legislation and favourable policies?

One of the key steps towards implementing circularity in the business context is establishing conducive legislation. Favourable regulations play a central role in incentivising companies to embed circular practices into their businesses. This includes banning landfilling of recyclable products, and establishing measures that encourage closed-loop recycling and support the design and production of circular products.

Furthermore, it is essential that durability and recyclability are included as fundamental characteristics of sustainable products.

By aligning legal frameworks with circularity objectives, governments can create an environment where circular practices become not just an option, but a necessity.?

Embracing the circular economy?

Circularity is a two-fold endeavour. While the focus has often been on making products and materials circular, it is equally crucial to integrate the ‘economy’ aspect.

Companies need to see the positive business case for adopting circular practices to innovate and change their business models.

Therefore, governments should re-evaluate e.g., landfill prices, because if these are low, it can discourage companies from seeking or developing sustainable solutions. On the contrary, progressively increasing landfill costs can provide the necessary impetus for businesses to transition towards circular models.?

Takeback schemes and collaboration?

To further the cause of circularity, establishing robust takeback schemes is imperative. At ROCKWOOL, we take back used stone wool material to our factories or for external recycling. ROCKWOOL's Rockcycle? program, implemented in 19 countries already with a goal to expand to minimum 30 countries by 2030, shows that manufacturing companies can effectively implement such initiatives. However, the success of these schemes hinges on strong partnerships with waste management companies to make the service as accessible as possible for the customers and ensure that the material coming back is ‘clean’, that is, not mixed with other waste streams. Collaboration across the value chain is therefore often key to enabling successful takeback schemes.?

Clear definitions in EU legislation?

Finally, establishing precise definitions for concepts such as: durability, recyclability, and recycled content is vital. For instance, a narrow definition of recycled content that excludes by-products (e.g., slags from the steel industry) may discourage companies from using this type of non-virgin material. Addressing this issue requires collaborative efforts to establish accepted definitions, which, in turn, is important as it affects companies’ license to operate and guarantees a level playing field.?

Making circularity work?

Together, stakeholders across the value chain including manufacturers, waste management companies, regulators, and others can contribute to accelerating the transition to a genuinely circular economy. The stakes are high for our collective wellbeing and that of the environment we all share. In our view, going circular is not an optional luxury but an urgent necessity.??

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To learn more about how we implement circular practices at ROCKWOOL, visit us here: https://rockwool.link/4zHJZq

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