Circular economy seems like a big concept but for consumers, it’s about resuming with old behaviors when it comes to using goods: it’s about choosing more durable goods, it’s about buying second-hand and it’s about thinking creatively about ways to reuse goods once they reach the end of their first shelf-life. It means choosing to buy the milk in the glass bottle, instead of the plastic one, and then, bringing the bottle back to the store when the milk is finished…
As consumers, we’ve been used to the single-serving economy (also called the linear economy or the “take-make-waste” economy): you use something once, throw it away and forget about it, then you buy it new when you need it again. The plastic water bottle is the epitome of the linear economy. It may be super practical but it has a long lasting – and terrible – consequence.
For businesses, the single-use economy was the story of selling more, and more, and more. It created concepts like planned obsolescence, it is causing the depletion of resources and a huge contamination problem that also translates into a health problem.
Reverting to the good old concept of Circular Economy requires a conscious effort for businesses from the start. Businesses must reflect on how they can design more durable goods, how they can design (a) goods that do not pollute when they are discarded, (b) goods that can have a second shelf life where they can be reused for a different purpose or (c) goods that can be refurbished (or remanufactured)… they have to think about their supply chain, their discard chain and the holistic product lifecycle. After use, will the product be reused, recycled, refurbished or discarded in a way that will not harm the planet?
Lastly, businesses also need to think about new business models. The equation is no longer about selling more single-use items. It’s also about thriving even when selling fewer products AND making these products more durable and less contaminants. It’s a challenging puzzle especially when the stock market growth relies on growth projections which usually rely on growing cash flow requiring price growth, sales growth and cost reduction, all without taking into account the cost on the environment.
The Circular Economy requires a rethinking of behaviors, rethinking product design through the supply cycle-lifecycle lens, and rethinking of business models.
Remember, the only thing that is not single-serving here is planet earth. You can’t use it and discard it. Once planet Earth is depleted of its resources, there is nowhere to discard it or replace it. Basically, we and our kids will be trashed with it.
I believe we can do something about it by thinking “Circular Economy”. For us, and for our kids.