What does circular economy mean and how could you apply this for your own business?

It is an expression that you hear quite often at the moment, on the news, on
political agendas and maybe even during your coffee break: Circular Economy.
An innovative and for many probably a new way of working, which offers a lot
of new opportunities for businesses. But what does such an economy and circular businesses
actually mean? That is why we want to give you a short introduction and explanation on this
sustainable way of doing business.

What is a circular economy?

At this moment we are mostly faced with a linear economy, with small additions from a
recycling economy. There actually is a third variety which is the circular economy.

• Linear economy
• Recycling economy
• Circular economy

The linear economy is based on an economy in which products are produced, used and
thrown away. The life cycle of these product can be seen as one straight line, with a
beginning and an end. This is more or less the same for a recycling economy, but the cycle
is extended. The product or raw material is being brought back into the economy by
recycling it, but will be thrown away in the end.

With a circular economy, there is no straight line with a beginning or an end. The life cycle of
the used raw materials will not end as soon as the life cycle of the actual product ends. The
product will be processed in such a way, that the raw materials will be given back to nature
or will be reused infinitely. This creates a closed loop, which does not create any more
demand for raw materials and makes “waste” a non-existent expression.

How does a circular economy work?

No all products are made from exclusively natural materials, that is why we distinguish two
types of cycles. The organic one, in which the raw materials are given back to nature. And a
technical cycle, in which every single part of the product is made to be recycled without any
loss of quality. 

How can you apply this to your own business?

Yes, it is easier said than done: no more waste. In most cases it sounds like a fantasy world
which will never become reality, especially with the current consumption behaviour in our
society. Luckily there are many ways and many small changes to make a start with this in your
own business. After that, it will become easier to make new changes every time and to find
partners to join you. 

• Take a critical look at the materials you use day to day. Is there any packaging or are
  there any parts that could be made from a natural resource? A good example is the
  Dutch company UDEA, a distributor for organic food and non-food products. They
  decided to use big pieces of cloth to cover their roll container and now save enormous
  amounts on shrink film, which they used before. This saves raw material (oil/plastic),
  it saves CO2 and also creates a new business model, where a lot of money can be saved.

• Invest in researching the life cycle of your products and the waste process after this
  cycle ends. How long does the product last and what happens when it is discarded or
  broken? There might be a lot of parts that can be reused or recycled into new parts for
  different products. This does not only saves waste, but also creates lower production
  costs. The company Ahrend offers their customers to pick up the old office furniture and
  use the materials for new products.

• Contact your suppliers, producers and distributors. What ideas do they have when it
  comes to sustainability? Collaborating throughout the whole chain is very important to
  make a circular economy work and it also makes it a lot easier. Maybe they have the
  solution for that one problem you have been facing or maybe you can help them changing
  their processes. Taking advantage of your network has never been so easy, so why
  wouldn’t you?
  
  

Take the first steps to a circular economy and get in touch!

Are you ready to take the first steps towards a change within your business and start with
implementing a circular economy? Take a look at the following website www.circulairondernemen.nl
(also available in English) for tips, inspiration, events and to get in touch with other businesses that
want the same thing as you:

A new way of doing business, more sustainable and with little to no more waste.