Sustainable Business Strategies: Resource Efficiency, Waste Reduction, and Product Longevity
- The circular economy describes a a world where waste is minimized, resources are used efficiently, and products last longer.
- This model challenges the traditional "take-make-dispose" approach.
Circular economy
An economic system aimed at eliminating waste and the continual use of resources through principles like recycling, reusing, and repairing.
Circular Supply Models: Using Renewable Resources
- Circular supply models focus on using renewable and sustainable resources in production.
- This approach reduces dependency on finite resources and minimizes environmental impact.
A clothing company using organic cotton and recycled polyester ensures its products are biodegradable or recyclable, reducing waste.
When evaluating circular supply models, consider the entire lifecycle of the product, from sourcing to disposal.
Resource Recovery Models: Turning Waste into Value
- Resource recovery models focus on recycling and repurposing waste materials, transforming what was once considered waste into valuable resources.
- This approach not only reduces waste but also lowers production costs.
A technology company collects used electronics, extracts valuable metals like gold and copper, and uses them in new products.
Resource recovery requires efficient systems for collecting, sorting, and processing materials.
Product Life Extension Models: Making Products Last Longer
- Product life extension models aim to extend the lifespan of products through repairs, upgrades, or remanufacturing.
- This approach reduces the need for new resources and minimizes waste.
A smartphone manufacturer offers repair services and software updates, allowing customers to use their devices for longer periods.
- Encourage customers to repair or upgrade products rather than replacing them.
- This builds brand loyalty and reduces waste.
Sharing Models: Maximizing Resource Use
- Sharing models focus on shared ownership or leasing, allowing multiple users to access a product or service.
- This approach maximizes resource use and reduces the need for individual ownership.
Platforms like Uber and Airbnb enable people to share cars and homes, reducing the demand for new vehicles and construction.
Sharing models rely on trust and technology to connect users and providers efficiently.
Product Service System Models: Selling Services, Not Products
- Product service system models provide services instead of selling physical products.
- This approach encourages businesses to focus on performance rather than ownership.
A company leases office equipment like printers and copiers, charging clients based on usage rather than selling the machines outright.
This model incentivizes businesses to create durable and efficient products, as their revenue depends on long-term performance.
Benefits of Circular Economy Models
1. Environmental Impact
- Reduced Waste: By recycling and reusing materials, businesses minimize landfill contributions.
- Lower Carbon Emissions: Efficient resource use and extended product lifespans reduce energy consumption.
2. Economic Advantages
- Cost Savings: Resource recovery and product life extension lower production and disposal costs.
- New Revenue Streams: Sharing models and product service systems create innovative business opportunities.
3. Social Benefits
- Job Creation: Circular economy models often require new skills and services, leading to employment opportunities.
- Consumer Trust: Sustainable practices build brand loyalty and attract environmentally conscious customers.
To what extent does sustainability depend on shared knowledge (scientific data) versus personal knowledge (consumer values and behaviours)?
- Explain one way a resource recovery model can both reduce waste and lower costs for a business.
- Give one environmental, one economic, and one social benefit of adopting circular economy strategies.
