Why Circular economy?

We all know that change is imperative – but challenging. While many businesses are actively embracing sustainability and implementing numerous sustainability actions, the pressure to do more is increasing from all angles. In particular, legislative requirements are set to increase, coming from a very necessary sense of urgency.

Our current linear economy not only depletes our natural capital but also poses a significant threat to the delicate balance of our planet. In 2023, nature was exploited 1.7 times faster than its capacity to regenerate, and six out of nine planetary boundaries have already been crossed. The "take-make-dispose" model of the linear economy is inherently wasteful – the more we grow, the more resources we extract and dispose of. It is essential that we break free from this connection. 

EMBRACING THE CIRCULAR ECONOMY 

The circular economy represents the most viable framework to optimize business value while decoupling economic value creation from resource consumption. In a circular economy, waste is minimized, and resources are preserved at their highest value through cycles of loops. This innovative and regenerative economic system aims to minimize waste, maximize resource efficiency, and extend the lifespan of products and materials. Unlike the traditional linear economy, the circular economy promotes a change.

Within the circular economy, a new business ecosystem emerges – a series of interconnected loops in two cycles: the regenerative biological cycle and the restorative technical cycle. Especially the technical cycle offers significant untapped value potential due to its wide range of ways businesses to apply circular economy principles to enable recycling, refurbishing, remanufacturing, reusing, and repairing products. The impact potential increases as we move closer to the core of these loops.