Before the circular economy, business models and consumers relied on what we call a “throw-away” economy. Companies encouraged consumers to trade in one item for a new one, upgrading to a better model or version with more bells and whistles.
This caused an extraordinary amount of waste and strain on natural resources. Organizations like the World Economic Forum; the United Nations and the United Nations Economic Commission for Europe (UNECE); and the Ellen Macarthur Foundation stated that operational behaviors and strategies must change. So, many industries and companies listened and started focusing on circular business models. Discover how our mission aligns with the circular economy.
According to the UNECE, the circular economy is an inclusive economic model that aims to minimize pollution and waste, extend product life cycles, and share physical and natural assets.
This economic model also focuses on encouraging a more competitive environment and developing many types of new jobs designed to equalize wealth distribution.
Another way to understand what a circular economy means is to compare its initiatives to the popular, contrasting economic model known as a linear economy.
To understand the linear model, think of a line where every organization consumes resources and raw materials but never goes back to replenish or replace what was used. This system has closed loops with finite resources and production processes that contribute to greenhouse gas emissions.
In contrast, a circular economy is an open system that works to restore and replenish what has been used. This economic model moves from a reliance on fossil fuels and focuses on reducing environmental impacts. It focuses on renewable resources and raw materials conservation so that future generations can enjoy the same biodiversity, balanced ecosystem, and sustainable life quality.
The principles of the circular economy include three primary initiatives that focus on the planet’s well-being, the overall ecosystem, society, and human beings. The three main circular economy principles are:
In this principle, companies and organizations rethink their supply chain to avoid waste and pollution as much as possible. The earlier this product design goal can be achieved in the product development process, the greater the likelihood that waste and pollution can be avoided across land, air, and water.
Examples include designing edible or biodegradable packaging. Doing so means that waste can be stopped before it is even created, getting everyone closer to the ideal of zero waste.
The core objective of this circular economy principle is to optimize what products have already been made rather than throwing them away. To achieve resource efficiency and keep products in use for the longest possible time, these products could be recycled, upcycled, repaired, and/or remanufactured. For example, consumers might be encouraged to exchange products that aren’t working for them rather than throwing them away.
This principle offers two options that extend the value chain of products. The first is to focus on the technical cycle of a product, which relates to a product’s functionality, and the second is to work with the biological cycle, which focuses on the aspects of a product that can be broken down and returned to the soil, water, or air.
Stakeholders can help products in use. For example, organizations can encourage consumers to separate their waste and use recycling and composting bins. Organizations can provide incentives to participate by offering a convenient way to donate or collect used technology.
Additionally, product developers can think about how to make something that can be kept in use for the longest time while also helping to make something that won’t eventually end up in landfills.
The use of renewable energy supports natural processes. This principle seeks to provide ways for regeneration in nature rather than use the linear economy’s focus of extraction.
A regenerative model involves:
Focusing on regenerating natural systems is also tied to the other principles. For example, keeping more products in use will mean sourcing fewer raw materials from nature. In turn, there will be less waste and pollution, which allows nature to thrive.
The benefits of the circular economy include:
Many sectors and industries that previously added to pollution and waste within the linear economy are now working hard to participate in the circular economy.
By moving away from the mass consumption mindset, organizations that follow circular economy principles are focused on a value chain (product lifespan) that emphasizes resource efficiency.
Food packaging, plastic bottles, and other non-biodegradable waste has been a major challenge when it comes to achieving circular economy principles. However, more food producers are looking at ways of changing how they manufacture and package their food to minimize plastic waste. This includes using biodegradable packaging, recycled materials, and nature-based technology that reduces spoilage.
Mass-produced clothing has ended up in landfills, creating mountains of garbage that are hard to break down. Clothing companies and fashion brands are adapting their processes for the circular economy by encouraging upcycling and purchasing used clothes as well as creating clothes from sustainably produced fabrics.
More energy companies are migrating away from fossil fuels and providing other renewable sources of energy. This includes an economic system defined by more wind and solar farms for commercial use along with government incentives so that consumers switch to electric or hybrid vehicles and solar panels for their homes.
Perhaps one of the largest contributors to toxic waste creation has been reliance on electronic devices, including cell phones.
Companies have not helped with their regular announcements of new phone models and leasing programs, compelling more people to trade in and up to the latest devices. That means there are thousands of phones and devices discarded as e-waste, with toxic by-products and non-biodegradable components.
However, there are companies now focused on device refurbishment to help keep products in use for as long as possible. With a process for repairing and cleaning these devices for continued use, more people see that they can reuse cell phones rather than buy new ones.
From organizations and entrepreneurs to consumers, we are all stakeholders in the circular economy. Founded on the principles of reducing waste and pollution through redesigning products and processes, keeping existing products in use, and regenerating natural systems, we can all help to sustain the planet, its ecosystems, and its natural resources.
Not only will we be able to leave a better environment for future generations, but we can also benefit as businesses, communities, and individuals through cleaner air, water, and soil. It’s exciting to see so many industries and sectors, including food, fashion, power, and device refurbishment offering a best practices approach to adopting the circular economy.
Find out how RecirQ can help make it easy for you to contribute to less e-waste and a sustainable future for all. Contact us now to learn more about RecirQ’s wholesale phone and device refurbishment inventory.