What is a circular economy?
Circular economy is a systemic model of sustainable development that is waste free, resilient by design. By following circular strategies and circular principles, companies can ensure the highest level of economic and societal value at all times while protecting and restoring natural ecosystems.
Rooted into innovative industrial design approaches, such as biomimicry, ecodesign and Cradle to Cradle, circular economy is gaining momentum in the mainstream because of its high potential in tackling climate challenges and accelerating the transition towards a net zero emissions economy.
In order to achieve those goals, the main circular economy strategies are: keeping waste out of landfills by designing closed loops that ensure material flows recirculation, ensuring the highest resource efficiency at all times and regenerating natural resources by maximising the use of biomaterials and renewable energy upstream and downstream the whole value chain.
The European Union made the circular economy one of the pillars of the 2020 Green Deal by publishing the Circular Economy Action Plan (CEAP), which outlines a 35 actions roadmap in order to incentivize companies and institutions to design and implement circular economy projects. The actions included in the CEAP are in line with the design requirements of the Ecolabel scheme and the main European funding schemes such as InvestEU or LIFE EU.
What are the benefits of the circular economy for businesses?
The main circular economy benefits for companies are:
- Revenue streams and profits from the capitalization of waste streams and a more profitable EoL (End of Life) strategy;
- Designing innovative and sustainable circular business models such as product as a service and, leasing that can allow new markets access, new product and service development based on existing resources and a more competitive positioning and resilience;
- Implement a reverse supply chain to extend materials, products and services life cycle, retaining control of more users information as a valuable input for circular design and reduce exposure to volatility supply chain prices by maximising resource efficiency on the long run.
Another major leverage for shifting towards circular economy practices is access to green finance and a better sustainability performance driving business growth into ESG driven markets.
A circular economy roadmap with NUVA
NUVA offers a tailored circular economy advisory service that aims to enable companies transition towards circularity and supporting organisations with effective solutions to identify the best circular economy opportunities embedded in the existing business model.
