{"id":12491,"date":"2018-06-05T11:00:04","date_gmt":"2018-06-05T19:00:04","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2018\/06\/05\/news-6260\/"},"modified":"2018-06-05T11:00:04","modified_gmt":"2018-06-05T19:00:04","slug":"news-6260","status":"publish","type":"post","link":"http:\/\/www.palada.net\/index.php\/2018\/06\/05\/news-6260\/","title":{"rendered":"Circular Business Models Avoid Risks and Stimulate Innovative Decision-Making"},"content":{"rendered":"

Credit to Author: Amy Haddon| Date: Tue, 05 Jun 2018 00:00:41 +0000<\/strong><\/p>\n

The world needs less waste.\u00a0 Every year, we generate over 2 billion pounds of it<\/a>.\u00a0 Incredibly, 99% of what we buy is thrown away within 6 months.\u00a0 Most of this ends up in a landfill where it must be managed<\/a> and where it pollutes land, water, and the atmosphere.\u00a0 Globally, many countries export or even trade waste, and some of the most toxic ends up in developing countries<\/a>.<\/p>\n

Our current take-make-dispose consumption model is not sustainable.\u00a0 With it, we are choking our oceans, harming our people, and continuing an endless cycle of the search for new virgin materials with which to produce new products.<\/p>\n

But there is a way out: the circular economy<\/strong>.<\/p>\n

What is a circular economy?<\/em><\/h2>\n

The take-make-dispose consumption model is sometimes called cradle-to-grave.\u00a0 In this model, an object\u2019s obsolescence is presupposed. The goods may be made with low quality ingredients, which saves costs, but then requires disposal or replacement in a relatively short period of time.\u00a0 Or, the goods may be planned and marketed in such a way that there is continuous and new demand for goods.\u00a0 Or, the goods produced may be single-use, with no means of reuse or recycling.\u00a0 Many of these goods are costly to repair, or may not be capable of being repaired at all.\u00a0 At the end of their life, there is no option but to discard them.<\/p>\n

The circular model, on the other hand, is sometimes called cradle-to-cradle.\u00a0 This model is fundamentally different from the take-make-dispose model.\u00a0 In the circular model, consideration is given to products from their very inception regarding conservation of raw materials and effective end-of-life processes.\u00a0 This innovative view takes inspiration from the natural world in the form of biomimicry, and is giving birth to many \u201cas a service\u201d economic designs.<\/p>\n

As awareness about the problem of waste has grown, its gotten a lot of attention.\u00a0 Many companies\u2014as the primary generators of waste\u2014are being called to task by watchdogs such as Greenpeace, and by consumers, who show a buying preference for sustainable products, and who are even willing to pay more for green goods<\/a>.<\/p>\n

\"\"<\/a> <\/p>\n

The result of circular business practices is relief for our environmental and human systems.\u00a0 But sustainability isn\u2019t <\/em>just about doing the right thing.\u00a0 The Ellen MacArthur Foundation\u2014started by the renowned British sailor and solo yachtswoman\u2014estimates that moving to a circular model represents a $1 trillion economic opportunity<\/strong>.\u00a0 50 global companies, including Walmart, Microsoft, IKEA, Coca-Cola, and Schneider Electric, have joined the Foundation\u2019s CE100<\/a>, committing to work pre-competitively with others to develop innovative means to deploy circular business practices.<\/p>\n

Circularity spurs innovation<\/em><\/h2>\n

To capitalize on the massive economic opportunity created by circularity, companies are using cradle-to-cradle thinking to impact their short- and long-term strategies, and to balance risks.<\/p>\n

One of these risks is resource scarcity.\u00a0 The World Business Council for Sustainable Development predicts the total demand for resources in 2050 will reach 130 billion tons annually, a dramatic increase from the 50-billion-ton level used in 2014, and an overuse of the Earth\u2019s total capacity by more than 400%.\u00a0 Further, the US Green Building Council has found that we are consuming resources 50% faster than they can be replaced.<\/p>\n

In this resource-constrained environment, companies must begin thinking about how to pivot their business strategy to a closed-loop ecosystem<\/a>.\u00a0 Where can virgin natural materials consumption be reduced or eliminated? And how can existing products be repaired, refurbished, or remanufactured?<\/p>\n

Areas for companies to consider include:<\/p>\n