Dr Belinda Wade: The future of sustainability for your business: How your business can adopt a circular economy

Poised on the cusp of 2020, the next decade offers an opportunity for optimism and renewal – a new strategy, new habits, new trends, a fresh approach. However, we need to ask ourselves whether we keep operating as usual; producing, consuming, wasting, releasing ever onwards in the linear trajectory or embrace the emerging trend for circularity?

Have you ever considered how many circular things there are in our world? From the sun, the moon and the eyes that give sight, beach balls, wheels, even donuts; we are surrounded by and are attracted to circular objects. However, we find ourselves operating our lives and companies in a linear fashion.

We are currently consuming the earth’s resources faster than they can be replenished. As consumers we are buying everyday items, using them for a limited time before disposing of them. This turnover demonstrates a troubling normality of waste generation and environmental destruction.

Is this cannibalisation of our ecosystem necessary or could our economy be altered to minimise waste and damage to the environment? A growing number of businesses including furniture giant Ikea are already examining how a circular perspective can transform their operations for the better, whilst opening up new markets and saving costs.

The concept of the circular economy is simple, by designing for sustainability we dispose of the concept of waste, retain the value of resource in our systems and minimise our impact on the natural environment. Waste becomes a valuable and forms a resource for another company.

What does a circular economy mean for our society, business and us all?

1. Circular sustaining societies

Viewing a society as one integrated system is a vital first step in identifying opportunities through mapping resource and waste streams understanding potential interactions. Amsterdam is currently undertaking a circular economy evaluation and estimates within their Circular Amsterdam Report presented a potential €150 million benefit to the city per year, and 1,900 new jobs.

2. Designing circular businesses

Carpet company Interface is a prime example of the potential to apply circular principles to both the product development and business model. Recently meeting their Mission Zero targets ahead of 2020, they are working towards negative emissions meaning that products would store more carbon than is emitted.

3. Individual circular benefits

The Ellen MacArthur Foundation have outlined the benefits of circular economy to us as individuals, including increasing disposable income, bettering health, tailored products and services and reduced obsolescence of products.

Here are my five key circular economy take away messages for your business:

1. Know the resources used and waste created by your business, its source and the cost to purchase or dispose of it.
2. Examine how your products or services are used by your customers and what happens at the end of the product’s useful life. Recycling is good but reusing for reintegration as a resource is better. Look for opportunities for your business to lead in the movement to circularity.
3. We are all part of a system, so it is important to know your neighbours (and customers). Which companies are operating near you and who is in your value chain? Could some of your waste streams form a resource for them and vice versa?
4. Develop business plans using scenario planning and evaluate how your current strategy fits within a circular society. Planning five to ten-years ahead needs to start now with pilot projects and smaller initiatives to cultivate the mindset of change.
5. Embrace innovative thinking, remembering that an idea is just the first step which then needs to be examined for robustness in terms of potential value, capability, systems and stakeholders required.

By Dr Belinda Wade

ABOUT DR BELINDA WADE

Dr Belinda Wade is a Lecturer in Sustainability within the Business School of the University of Queensland. Following from her extensive experience in the corporate sector working in energy trading and portfolio management Belinda completed doctoral studies in Business Management. Within her current role Belinda lecturers Master’s level courses on sustainability and innovation also co-leading the school’s Business Sustainability Initiative research area. Belinda’s current research largely focuses on organisational strategic decarbonisation and adaptation. Belinda’s research has been presented at major international conferences, in academic journals, practitioner publications and as a columnist for Entrepreneur Magazine.