Simple steps toward circularity

A one-way economy: Take – make - waste

It has never been easier to procure new products and materials. Humans have consumed over 500 billion tonnes of materials, almost all during the 20th century [1], used and disposed of them, leading to similar volumes of waste and pollution. "Take-make-waste."

The alternative is circular. According to the Ellen MacArthur Foundation [2], a ‘circular economy’ keeps materials in circulation via maintenance, reuse, refurbishment, remanufacturing, recycling, and composting. No longer ‘take-make-waste’: one person’s waste becomes another’s raw materials.

This not only reduces waste and pollution but also addresses climate change and biodiversity loss, with material use and handling currently accounting for 70% of global greenhouse gas emissions [4]. Circular models therefore can significantly lower environmental impacts by mitigating climate change and preserving vital ecosystems [5]. Furthermore, there are increasing regulations and calls to actions such as Extended Producer Responsibility (EPR) and the Corporate Sustainability Reporting Directive (CSRD) which is driving circularity up the commercial agenda internationally.

How can businesses respond? Where to start with circularity?

Many companies are adopting circular business models with – for example – IKEA [6] aiming to be fully circular by 2030. In FY23, IKEA advanced its efforts by increasing recycled plastics in products, improving spare parts availability, and leading European standardisation for furniture circularity. Since releasing a Circular Product Design Guide in 2019, IKEA has assessed around 9,500 products against it to embed circular thinking across its value chain.

How can others follow in their footsteps?

The first crucial step is to start with waste. By understanding your current waste and resource usage, you can uncover significant opportunities to capture the value of waste, cut disposal costs and reduce carbon emissions. Analysing your baseline operations helps identify areas where resources can be managed more efficiently – where they are lost in processes or inappropriate storage for example, and waste can be reduced. Detailed recording of baseline operations also enables you to set realistic, data-driven sustainability targets and make informed decisions. Continually tracking this data allows for benchmarking across months, quarters, and years, helping monitor progress and evaluate the success of new initiatives.

One example is SLR’s circularity of resources assessment (CORE) work package designed to critically review business operations, identifying opportunities to reduce and valorise waste; via on-site or remote investigations and interviews, and comprehensive reporting of findings and recommendations, leading to a suite of transparent and intuitive metrics to measure the circularity of your operations at the point of evaluation. Additionally, the assessment provides an opportunity matrix to help prioritise actions, identifying those that require immediate attention or additional resources and thought.

After mapping your baseline operations and targeting the low hanging fruit, the intermediate step towards circularity is to consider sustainable upstream and downstream supply chains. Although businesses have less control over their supply chains and associated emissions, several actions can improve circularity.

By prioritising sustainable procurement, businesses can ensure the materials and services they source have minimal environmental impact and support ethical labour practices. Engaging with suppliers to adopt greener practices and innovate sustainable solutions further enhances the circularity of the supply chain. Additionally, forming working groups with similar businesses can amplify these efforts, signalling the importance of sustainability to the wider supply chain and driving industry-wide change. This collective approach not only strengthens individual business practices but also fosters a more resilient and environmentally responsible supply network, creating real momentum for market transformation.

The biggest step towards circularity is understanding the environmental impact of your goods or services over their entire lifetime. A lifecycle assessment (LCA) identifies the 'hot spots' where interventions can eliminate or reduce negative impacts, improving your environmental credentials. This can be further enhanced with a comparative life cycle assessment, enabling a business to make substantiated claims about the benefits of their products compared to others on the market, including third-party verification. This allows your business to confidently and independently assert its environmental benefits over competitors [7].

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References

[1] https://reports.circularity-gap.world/cgr-global-2024-37b5f198/CGR+Global+2024+-+Report.pdf

[2] https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

[3] https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

[4] https://climatepromise.undp.org/news-and-stories/what-is-circular-economy-and-how-it-helps-fight-climatechange#:~:text=A%20circular%20economy%20is%20essential,greenhouse%20gas%20(GHG)%20emissions

[5] https://reports.circularity-gap.world/cgr-global-2024-37b5f198/CGR+Global+2024+-+Report.pdf

[6]https://www.ikea.com/global/en/images/IKEA_SUSTAINABILITY_Report_FY_23_20240125_1b190c008f.pdf

[7] https://www.slrconsulting.com/insights/delivering-net-zero-healthcare/