How to embrace the circular mindset?
The “CEO Guide to the Circular Economy,” released June 2017, was published by The World Business Council for Sustainable Development’s (WBCSD).
Developed in cooperation with Accenture and signed by 14 CEOs from companies including Unilever, Danone and Tata, the publication aims to give CEOs and business leaders the tools they need to implement circular economy principles.
The Guide outlines five business models and three disruptive technologies companies can explore and implement in order to seize the USD$ 4.5 trillion opportunity the circular economy represents.
It highlights that the circular economy:
- Represents a new perspective on market, customer, and natural resource relationships.
- Utilizes innovative business models and disruptive technologies to shift away from the linear economic model.
- Addresses climate change and land/water use challenges.
- Offers a $4.5 trillion business opportunity by future-proofing businesses.
Core principles of the circular mindset
Adopting the circular mindset involves implementing principles of durability, renewability, reuse, repair, replacement, upgrades, refurbishment, and reducing material use.
Five business models to implement the circular economy
- Circular Supplies: Utilize renewable energy and bio-based or fully recyclable inputs.
- Resource Recovery: Extract useful resources from materials, by-products, or waste.
- Product Life-Extension: Prolong product lifecycles through repair, upgrading, reselling, innovation, and design.
- Sharing Platform: Connect users to share access and ownership, increasing product utilization.
- Product as a Service: Offer paid access to products, maintaining resource productivity and ownership benefits.
Three disruptive technologies to enable the circular economy
- Digital Technologies: IoT, big data, blockchain, and RFID for tracking resources and monitoring waste.
- Physical Technologies: 3D printing, robotics, energy storage, modular design, and nanotechnology to reduce production and environmental impact.
- Biological Technologies: Bio-energy, biocatalysis, hydroponics, and aeroponics to transition away from fossil-based energy sources.
