Top 5 Circular Economy Strategies for Businesses
Businesses have historically used natural resources in a massive amount, not caring about its implications. Such activities have led to natural resource depletion, global warming, and climate change. To stop this, economists conceived a concept called the circular economy.
A company of any size, from any industry, can use the circular economy to reduce its environmental impact. In this blog, we are discussing the top 5 circular economy strategies for businesses that are easy to implement and effective in achieving sustainable growth.
5 Best Circular Economy Strategies
1. Redesign the Corporate Structure
The most crucial strategy an organization can deploy to achieve circular growth is redesigning its corporate structure to support the circular economy. The new structure should be able to do the following:
- Diagnose the current obstacles in the way of the circular economy
- Estimate the costs and returns if the company improves its circularity
- Set both small-term and long-term achievable goals that align with the business
- Monitor all the KPIs related to the company’s circularity
2. Improve Symbiosis with the Industry
Improving symbiosis with other stakeholder entities in your industry is one of the proven circular economy strategies. After all, the core of the circular economy is turning waste from one operation into a valuable product for another operation.
A few good examples of symbiosis in the circular economy are:
- Using waste automobile tires for civil engineering uses
- Using organic waste to produce biogas or organic fertilizers
- Reusing non-toxic wastewater for another project after water retreatment
3. Building Sustainable Products
Negligent product design leads to a majority of the environmental impact caused by industrial products. Inversely, adjusting only a few features of a product can make it more eco-friendly. Product designers can improve make their design circular by considering the following points:
- Renting or leasing a product instead of selling it
- Creating a product in such a manner that it can be disassembled
- Using raw materials that are biodegradable to reduce a product’s environmental impact even if it is not reused or recycled
4. Incentivizing Customers
Customers can help businesses in closing their circular gap if incentives are put in the right place. One of the oldest circular economy strategies is creating economic incentives for customers if they recycle or reuse the product.
A good example of incentivizing customers is beer companies offering discounts to customers who return empty beer bottles to supermarkets. This way, the same vehicle that brought fresh beers to the supermarket can collect the old bottles and return them to the company.
5. Using Tech to Improve Circularity
Innovative technology can prove to be a great enabler of the circular economy. New-age technologies such as cloud supply chain ERP systems, telematics, and 3D printers can close the circularity gap for companies from different industries.
Take the specific example of cloud supply chain ERP systems. They can track operations, including water consumption, energy use, and so on. So, instead of manually calculating an operation’s carbon footprint, you can use cloud supply chain ERP systems to collect all the data and calculate the carbon footprint automatically.
To Sum Up
Adopting a circular economy is an effective way to attain sustainable growth. But there are other methods too that can help organizations reduce their carbon footprint and grow eco-friendly.
You can collaborate with a reputed electrical brand to reduce your organization’s carbon footprint. Such a brand can help you achieve your goals faster and with lesser effort.