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Circular Economy for Business

Circular economy maximizes resource efficiency and minimizes waste to benefit the environment, society, and businesses. Collaboration is essential for achieving circular economy, as individual efforts are not enough.

Circular ImageCircular Image

Ellen MacArthur Foundation's research shows that improving energy efficiency and using renewable energy can only solve 55% of global greenhouse gas emissions. The remaining 45% requires a complete transformation of product production and usage through a circular economy. To achieve a complete transformation of product production and usage, businesses must find entry points from the value chain.

Source: Completing the picture: How the circular economy tackles climate change (2019)

Pie Chart
About Scope 3 Emissions

Let natural resources flow through
various stages of the
value chain without end.

Natural resources give life to everything on our planet, including products made by the manufacturing industry. Specifically in the manufacturing industry, the practice of circular economy involves the continuous circulation of resources in three forms: materials, products, and waste. As carbon emissions become more costly, designing circular products can become a competitive advantage, while monetizing waste also bring in significant new revenue.

Circular ImageCircular Image

Natural resources give life to everything on our planet, including products made by the manufacturing industry. Specifically in the manufacturing industry, the practice of circular economy involves the continuous circulation of resources in three forms: materials, products, and waste. As carbon emissions become more costly, designing circular products can become a competitive advantage, while monetizing waste also bring in significant new revenue.

Building a collaborative ecosystem
for circular economy

Circular economy is a broad concept that involves multiple stakeholders, linking different roles and goals in the economy and society. To effectively work towards a circular economy, the first step is to determine your goals and action plans based on the analysis of stakeholders' levels of interest:

Pyramid

The value chain is where
a business can leverage its circular impact.

Enterprises face unique challenges and opportunities based on their position and advantages. All activities of the enterprise occur on the value chain from raw material procurement to after-sales service. Circular economy principles can be applied throughout the value chain. Optimizing and coordinating every stage across the value chain can reduce costs, improve efficiency, and enhance competitiveness.

Pyramid
Pyramid

Make circular economy a reality.

Let's take the example of a final product's value chain, which can be divided into three phases and seven stages:

Use less

During the build phase, the goal is to achieve the same output using fewer resources.

  • Lifecycle perspective

    Consideration of circularity throughout the lifecycle, covering stages such as resource acquisition, design, production, logistics, use, reuse, remanufacturing, and recycling, together with related environmental, social, and economic impacts.

  • Modular design

    Modular design that allows for easy disassembly and replacement of components can enhance a product’s repairability, upgradability, and recyclability.

  • Circular sourcing

    Circular sourcing considers resource acquisition from a lifecycle perspective, prioritizing renewable, recovered, or recycled resources to replace virgin materials.

  • Circular procurement

    Circular procurement systematically integrates circular economy principles into procurement strategies, policies, and processes, encompassing procurement guidelines, specifications, supplier assessments, and contractual changes.

  • Industrial, regional or urban symbiosis

    Symbiosis describes systems enabling circular resource flows by facilitating resource exchange or sharing (e.g., energy, water, by-products) among different organizations.

  • Process optimization

    Process optimization involves enhancing resource efficiency, reducing resource and energy consumption, eliminating waste, and minimizing harmful emissions across production, supply chains, and construction processes.

  • Energy recovery

    Energy recovery transforms non-recyclable resources into usable energy (heat or electricity) through specialized treatments, often representing the final stage of resource use.

Use smarter

In the use phase, resources are used more efficiently by adjusting or changing the business model.

  • Performance-based approaches

    Performance-based models maintain product ownership with providers while customers access functionality through leasing, subscription, or pay-per-use.

  • Sharing to intensify use

    Sharing products or services increases usage intensity, reduces overall product demand, and lowers resource consumption.

  • Maintenance and repair

    Maintenance and repair involve preventive or predictive maintenance and repairing damaged products to restore original functionality, thus extending product lifetimes.

  • Reuse

    Reusing products or components that are still functional but no longer needed can reduce resource consumption and enhance the value of existing products. These items maintain the same functionality across multiple use cycles, effectively saving both internal and external costs.

  • Repurpose

    By repurposing products or components for entirely new uses, maximum resource efficiency is achieved. This approach primarily gives new life to discarded or idle product parts by reintegrating them into new products with different functions.

  • Remanufacturing

    Remanufacturing restores used products or components to a like-new condition through specialized industrial processes, providing warranties comparable to new products.

  • Refurbishing

    Refurbishing involves limited repairs and updates to restore products to their original or near-original functionality, extending their usable life.

Use better

During the loop phase, ensure that misplaced resources are directed to the correct location.

  • Reuse

    Reusing products or components that are still functional but no longer needed can reduce resource consumption and enhance the value of existing products. These items maintain the same functionality across multiple use cycles, effectively saving both internal and external costs.

  • Material recovery

    Material recovery extracts valuable materials from resources previously considered waste, reintegrating them into the value chain.

  • Industrial, regional or urban symbiosis

    Symbiosis describes systems enabling circular resource flows by facilitating resource exchange or sharing (e.g., energy, water, by-products) among different organizations.

  • Energy recovery

    Energy recovery transforms non-recyclable resources into usable energy (heat or electricity) through specialized treatments, often representing the final stage of resource use.

Take a quick scan and receive a tailor-made
“Circular Potential Report” for your organization.

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