The circular economy is a term used to describe an alternative way of thinking and living, both for consumers and businesses. It is a model based on 3 key principles:
Each principle encourages us to:
These ideas are not new but have gained more traction in the last 10 years or so thanks to the Ellen MacArthur Foundation, a charity creating evidence-based research on the benefits of a circular economy, and how it can contribute to solving global challenges like climate change and biodiversity loss.
“The Circular Economy is an economic system that delivers better outcomes for people and the environment” – Ellen MacArthur Foundation (2022)
The linear economy is a traditional economic model that follows the simple pattern of taking resources, making products, and then disposing of them – better known as the ‘Take, Make, Waste’ economy.
This approach relies on a constant supply of natural resources for use in items designed for relatively short product life and to be discarded and replaced by a newer model. Little or no consequence is attached to disposal, the disposal method, and the resources lost in that process.
In the last few decades, consumer behaviour has evolved to incorporate recycling and reuse practices. By recycling and reusing products, we are helping to conserve our natural resources, protect our ecosystems, and reduce greenhouse gas emissions. However, recycling adopts a downstream approach where efforts to reduce waste begin at the end of a product’s life cycle.
In a circular system, the concept of resource consumption and waste prevention is considered throughout the entire lifecycle of a product. The focus on reducing environmental impact is key in all stages, from product design and manufacture to extracting valuable resources for reuse in new products.
“It’s the consequences of decisions made at the design stage that determine around 80% of environmental impacts” – Ellen MacArthur Foundation (2022)
The circular economy creates multiple economic, social, and environmental advantages, including:
By way of example, the Reuse Network works with charitable organisations dedicated to reuse. The network diverts millions of household items from landfill and reduces carbon emissions. The charities pass on essential furniture, equipment, and other items to those in need.
The Reuse Network shared some impressive results in their 2021 Social Impact Report (page 5).
Elements of the circular economy manifest in various activities, including:
These elements can be found in businesses and organisations which have adopted a circular approach. Here are some examples:
The circular elements of waste prevention, servitisation, and industrial symbiosis are implemented in Toast Ale’s operations.
Unused bread from businesses that make sandwiches replaces up to a third of the barley needed in the Toast Ale brewing process. Grain that has been through the process is also passed on to local farms to be used as animal feed. These items, which might otherwise be thrown away, have a useful life elsewhere.
Although Toast Ale makes beer, they don’t own a brewery. That service is provided to them by another brewer. It is the service of brewing that they need rather than a brewery itself. This is an example of servitisation. Sharing production infrastructure avoids the adverse environmental impact of multiple individual plants as well as offering economic benefits.
The Toast Ale method of using waste or surplus material from one process as raw material in another is also a nice example of industrial symbiosis.
The circular elements of waste prevention, repair, refurbishment, and reuse are evident in The Edinburgh Remakery.
The Edinburgh Remakery receives donations of all sorts of electronic items. It is an award-winning environmental social enterprise that gives training in repair skills to those in their community.
It repairs and refurbishes 80% of equipment which is sold at affordable prices. They also donate a proportion to vulnerable groups and other charities to help those in need.
The process of repair and refurbishment prolongs the useful life of the equipment and prevents wasting products that might otherwise be thrown away.
According to The Global E-Waste Monitor 2020, 1.6 million tonnes of e-waste (waste electronic equipment) were generated in the UK in 2019, equating to approximately 23.9kg of waste per person. It is estimated that the figure will rise to 24.5kg per person in the UK by 2024, making the UK the biggest e-waste producer in Europe.
Recent years have seen a boom in the number of businesses making clothing available for hire. Renting an item to wear a few times, at a much-reduced cost, before returning it and allowing someone else to benefit from it makes much more sense economically and environmentally than an outright purchase.
“The contribution from the fashion industry to greenhouse gas emissions is estimated to be as high as 10% and around 300,000 tonnes a year of clothes end up in landfills.” WRAP (2017)
Clothes swapping is also a great solution to these problems. Wearing clothes for as long as possible reduces not only the monetary cost per wear but also the carbon cost per wear.
Organisations that adopt reuse and sharing models come in various shapes and sizes. They are an important part of the circular economy as the act of selling or donating keeps products in circulation for longer.
Warp It is a platform for office furniture, equipment, and other resources for those looking to find, give away, lend, or borrow. The website templates make it easy to use. Rates depend on the size of your business, with reduced rates for charities and not for profits.
Already popular with schools and universities, this is also a good tool for large organisations with multiple offices. While intranets and advertising boards can work, platforms like Warp It can be set up to operate exclusively within the company (if preferred), avoiding the need to create and maintain an internal platform.
Freecycle and similar platforms: In their own words, Freecycle is a ‘nonprofit movement of people who are giving and getting stuff for free in their own Towns. It’s all about reuse and keeping good stuff out of landfills.’
Freecycle is probably the best known and most established platform of this type in the UK. Similar examples exist on platforms such as Facebook where public groups are created to give away or buy used items.
Charity shops: many worthwhile causes can benefit while selling pre-loved items at a fraction of the original cost.
Common interest sharing or rental: there are many examples of this, including the commercial and educational sectors, as well as for individuals.
Sale of second-hand items: businesses and individuals use platforms such as eBay for selling and buying second-hand items.
Simple Steps: Choosing reusable water bottles and coffee cups. Choosing the refill option in supermarkets.
Next Step: Consider how we source items such as furniture, laptops, mobile phones, other electrical equipment, and clothes. It’s not always necessary to buy everything new – there are good options for buying second-hand or renting. If you decide it must be new, buy well for longevity and repairability. Choose items that can be refurbished, resold, and ultimately disassembled for parts for reuse.
Bigger projects: Buildings and infrastructure in the UK contribute approximately 25% to total UK greenhouse gas emissions. If associated vehicle emissions are included, this figure rises to 42%.
This is an area where there are great opportunities for both residential and commercial projects. The potential for emission savings in this sector by adopting more circular economy practices has been estimated in the Advancing Circular Construction 2020 Case Study.
While these projects are still on the drawing board, the option for refurbishment rather than demolition and rebuild should be considered.
Amid the current climate crisis, it is critical that we incorporate circularity into our everyday practices to future-proof our planet. Many organisations have already shifted from a linear to a circular business model, creating innovative ways of balancing profit and purpose.
Looking to shift to a circular business model? Listen to our recent podcast The Circular Economy: How to Incorporate Circularity into Your Business