Making the Linear Circular
The concept of the circular economy represents a novel approach to lifestyle and commerce, applicable to both individual consumers and corporate entities. The devised model rests on three cardinal principles, viz. the reduction of waste and pollution, the maintenance of the products and materials in circulation at their maximum potential value, and the facilitation of natural regeneration.
Although these ideas are not novel, they have garnered increased momentum over the past decade and have played a crucial role in addressing the worldwide predicaments of climate change and biodiversity depletion.
From a Linear to a Circular Economy?
The linear economy represents a conventional economic model that adheres to the basic conceptual framework of extracting resources, producing goods or services, and finally, discarding them, commonly referred to as the 'Take, Make, Waste' economic approach.
This methodology is dependent on a continuous provision of organic resources to be employed in commodities that are intended for a limited lifespan and can eventually be substituted by a more modern version. There is a significant lack of attention being paid to the disposal mechanism, the method employed for disposal and the ensuing depletion of resources.
Over the recent decades, the pattern of consumer conduct has modified in a manner to embrace practices of recycling and reuse. Through the practice of recycling and reusing items, we are contributing to the preservation of our planet's natural resources, safeguarding intricate ecosystems, and mitigating the release of greenhouse gases. However, recycling embraces a downstream methodology wherein endeavors to curtail waste commence towards the termination of a commodity's life cycle.
The notion of resource utilization and waste minimization is imbued throughout the complete product lifecycle in a circular system. The emphasis on mitigating environmental impact is crucial throughout all phases, ranging from product conception and production to the retrieval of valuable resources for repurposing novel products.
Key Elements and Examples of Circular Business Models?
Elements of the circular economy across activities include:??
Substantial savings are possible at a company level, as an increasing number of reference cases demonstrate. Many companies as diverse as Ricoh, Philips, H&M, Trina Solar, and Vodafone are using different forms of circular arbitrage, and are able to capture more value over time.
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Ricoh — Resource recirculation in the inner loop:
In 1994, Ricoh, a reputed provider of managed document services, office solutions, production printing, and IT services, established the Comet Circle? as a driving force for mitigating ecological footprint. It exemplifies the ideology that each constituent of a product, including but not limited to copiers and printers, ought to be conceived and fabricated in a manner that lends itself to recycling or repurposing. The organization established the GreenLine trademark as a definite manifestation of its dedication to resource management, highlighting the importance of internal recycling processes.
Philips — Lighting as a service:
Philips possesses a proven history in the realm of lamps' gathering and reprocessing. For instance, within the boundaries of the European Union, Philips possesses a share in 22 associations that are responsible for both collecting and servicing substances that are capable of harboring mercury. These entities accumulate a staggering 40% of all such lamps brought forth onto the marketplace, which are subsequently recycled in an efficient manner and have a recycling rate that exceeds the 95% benchmark. Philips has recently broadened their purview by offering lighting as a service, which serves to amplify their already extensive collection of lighting equipment. Philips asserts that by retaining ownership of the lighting equipment, they can extend their reach to a larger customer base, as it obviates the need for customers to incur exorbitant upfront costs. Furthermore, this approach guarantees strong oversight of the sound environmental management of end-of-life lighting equipment by Philips. Our offering presents a novel method for clients to attain their sustainability objectives through an amalgamation of top-tier illumination capabilities, enhanced energy efficiency, and a minimized usage of materials.
A different outlook
The main difference is that the linear economy has a focus on products while a circular economy has a focus on services.
A circular economy uses resources that are of biodegradable nature, which then enables the product to be either reused or returned to nature. The Linear model of production is eco-efficient because it supplies the market, while the circular model is eco-effective.?
In a linear economy, the life of a finished product terminates after its utilization by the consumer, whereas in the circular economy, the life of the finished product continues as a fundamental resource throughout the production cycle. The business model of the linear economy centers on products, while that of the circular economy emphasizes services.
Numerous ecologists and economists who prioritize ecological sustainability regard the circular economy as a crucial paradigm of the 21st century. In addition to showing consideration towards the environment, the entire process is characterized by a strong commitment to ethical and sustainable practices. However, several impediments need to be overcome prior to the execution of this system, among which the absence of an adequate legal framework or a defined roadmap for its economic integration is a significant hurdle.
The absence of it can give rise to numerous queries and concerns during the enforcement of a circular economy. Ineffectively managed procedures can potentially amplify the costs of products and hinder efficient waste management.
Greenscape is based in India and has been leading the urban mining revolution in the country since 2007.