Get guidance on circular business models and find five tips for making your business more circular.
The global economy has traditionally followed a 'take, make, use, discard' approach to natural resources. As the world shifts towards a circular economy, find out why adopting circular business practices could help you gain a real market advantage.
A growing number of companies and governments around the world are acknowledging that 'business as usual' is no longer sustainable. Rising demands on natural resources pose an ever-increasing threat not only to economic growth but to environmental and geopolitical stability.
Several factors are driving this change:
For the world's economies to keep surviving and thriving, resource use must be separated from economic growth.
The circular economy model provides a viable, scalable and more sustainable alternative. It enables economic development within the Earth’s natural resource limits.
It's based on three key principles:
Global savings of €1.8 trillion by 2030 are potentially available to businesses that adopt more circular ways of working.
Only 9% of the 92.8 billion tonnes of minerals, fossil fuels, metals and biomass that enter the global economy are reused every year. A circular economy shifts the focus towards a much more efficient reuse of our resources.
The circular economy has become a key policy priority in several leading economies.
In 2018, the European Union and China signed a Memorandum of Understanding on Circular Economy Co-operation. This is helping to pave the way for a global shift towards a more circular economic system that works for businesses, people and the environment.
Making Things Last (2018) is Scotland’s circular strategy. It sets out a clear vision and priorities for moving towards a circular economy.
Learn more about this strategy on the Scottish Government website opens in a new window
Scotland's policy leadership has gained international recognition, including the World Economic Forum’s prestigious Award for Circular Economy Governments, Cities and Regions.
More recently, the Scottish Government has set a series of ambitious new targets to drive circularity across the economy.
Businesses increasingly recognise the benefits of a circular economy.
Many see it as a strategic opportunity to boost competitiveness. It can help your company gain a real market advantage with ever-more environmentally savvy customers and consumers.
Other advantages in applying circular practices include:
There are five key circular business models that your business can start using today:
1. Circular supplies: Use fully renewable, recyclable or biodegradable inputs to replace single-life inputs
2. Resource recovery: Recover useful resources or energy from products or byproducts that you would throw away
3. Product life extension: Extend the working lifecycle of products and components by repairing, upgrading or reselling them
4. Sharing platform: Make more use of products and components through shared use, access or ownership
5. Product as a Service (also known as Servitisation): Offer access to your product while remaining the owner, allowing you to use resources more efficiently
Alone or in combination, these models can help you drive resource productivity improvements in innovative ways. This will allow you to reduce costs and drive revenue while boosting value and differentiation.
Finding the right way to adopt new models depends on understanding which models are most suitable for your business. You should also think about how you can use them to protect your existing value proposition, capture additional value or change the way you deliver value to your customers.
Before you begin, it's worth considering each of the following five tips. This will help you prepare for any changes in the way you provide value to your customers.
It's crucial to find out where your key risks and opportunities lie. You should:
It's important to make sure your circular practices are effective across your whole value chain. You can:
To ensure your circular model is as agile and scalable as possible, it's crucial to:
Successful adoption of circular practices will require new skills within your organisation. You should:
A practical timeline will make the transition more straightforward and effective. You can:
Whether you’re just starting your journey to environmental sustainability, or you already have a project in mind, our experts can help.
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