he Ellen MacArthur Foundation has been spearheading the evolution of the Circular Economy in Europe. Today, many large global companies are beginning to embrace the principles of the Circular Economy as a resource efficient model that generates economic progress and improves innovation, while doing “more with less” compared to our current traditional incremental “wasteful” economy mindset. Why are companies attracted to these new business and economic principles? What makes these principles work and why? In this article we will look at the 3 guiding principles and how companies, organizations, and even cities, are developing new strategies around the Circular Economy to address systemic sustainability issues and establish transformational change. From a European perspective, did you know?
These are European statistics, but I wonder if a US comparison in mobility, food, and the built environment systems would look any different? Waste is still a major issue everywhere, and will be for some time. The real question is what companies and organizations are leading the charge with disruptive innovation in their industry sector to combat these issues? What industries and markets have the biggest opportunities?
Let’s start with the 3 guiding principles of the Circular Economy that cover suppliers, manufacturers, customers, consumers, and service providers.
Disruptive innovation connected with the Circular Economy is already ongoing globally, and those companies connected with the supply chain in specific industry sectors are already beginning to feel the effects. The Circular Economy model has developed a platform to follow and combat these issues called the RESOLVE framework – Regenerate, Share, Optimize, Loop, Virtualize, and Exchange. By using the RESOLVE framework there are significant economic and business opportunities for aligned industry sectors. What industries and market segments have the greatest potential for positive change?
Overall, the RESOLVE framework allows many industries, market segments, and suppliers to follow and pursue the Circular Economy for both competitive and growth positioning. Significant opportunities are in the food, construction, and mobility sectors, as these industries make up a significant amount of everyday household budgets.
In the next article, action steps will be discussed on how businesses can become engaged with the Circular Economy.
All the best on your sustainability journey!