The definition of a business circular economy in Besteconstuition begins with the consideration of the current economic system, opposing what is known as taking, using, and throwing away. It is a model that resembles cyclical behavior in nature and that aims to take advantage of resources through various eco-friendly strategies.
The so-called business circular economy is shown as a paradigm shift where practices such as renting, repairing, recycling, renovating, and reusing prevail. This is accompanied by measures that reduce production to the minimum permitted levels and, when it is necessary to use a product, take its elements that cannot be part of the environment for reuse.
In addition, this economic system promotes the manufacture of goods with the greatest amount of biodegradable materials and the lowest energy cost. This practice seeks that the products, once their purpose is fulfilled, can return to nature with the least possible environmental impact. In addition, this complements the intention of reducing the amount of waste to its minimum expression.
The Flow of the Business Circular Economy Supports Green Employment
The rational use of natural resources, sustainable development, and the closure of the life cycle, something unfeasible under current economic conditions. Its implementation also aims to eliminate abusive practices, such as planned obsolescence and intensive extraction or exploitation that have had devastating effects on different ecosystems.
Principles of the business circular economy–
To understand better what the circular economy consists of, we have to look closely at the principles that govern it.
Zero waste or zero waste.
Within the philosophy of use and reuse, articles classified as disposable are reintroduced at the beginning of the value chain for the same production or a new one, renewing the cycle. This reuse seeks to extend its useful life, the use of its properties for similar inputs, or its transformation into other useful goods.
To keep assets within the system for as long as possible, companies must favor eco-design. Thus production takes into account, from the idea of creation, the possible environmental effects. If the product includes batteries, metal parts, or electronic components, it requires responsible reuse or recycling design.
Repair of supplies.
Given the preference of throwing over repair, there is a need to change this way of thinking. The planned obsolescence, from which the most important companies in the world profit, must give way to the second life of damaged products. What is new should give preference to what is second-hand or recycled.
Use of renewable energies.
The consumption of fossil fuels is destined to end sooner or later, requiring other alternative energy sources. In nature, various renewable methods prevail that do not have as destructive an impact as conventional ones. This change will be driven by business circular economy companies and the new provisions of the European Union in the coming years and besteconstuition in Singapore
The economy of functionality.
Within this new paradigm of consumption, the quality and durability of the products are connected with their maximum utility. For this reason, business circular economy projects are intended to privilege use over possession. The promotion of sustainable development requires the sale of eco-friendly services and not simply disposable goods with a great impact on the environment.
As in natural environments, the business circular economy pursues a comprehensive approach in which each part is connected to the other. When there is a problem within the system, everything related to it is affected. For this reason, it promotes practices that can benefit both the consumption chains and the environment associated with the manufacture of goods.
How Does it Work?
The founding of the business circular economy in the 1980s and its subsequent popularization by the Ellen MacArthur Foundation (2012) reveals the forms of this strategy. In principle, it tries to emulate the flow of energy and matter present in ecosystems, which have minimal energy costs and optimal reuse of waste.
In fact, everything that becomes part of natural cycles is reintegrated to renew the food chain and other fundamental processes. As an economic premise, it seeks that the manufacture of products in the EU and other countries consumes the least amount of energy. At the same time, they should include easy-to-disassemble parts for recycling or reuse, allowing them to be returned to the original production system.
For the use of resources, the inputs are classified as biodegradable and technical. These raw materials fulfill a specific cycle, which we can summarize as follows:
Many sectors use organic materials to generate mass consumer goods through their production, transformation, distribution, and disposal. The volume of waste from cities and urbanized areas can be used more efficiently through the flow of the business circular economy.
As an example, sewage and waste can be transformed to generate value, while restoring environmental balance through the following practices:
- The use of composting for its transformation into compost.
- The implementation of anaerobic digestion, which repairs the soil layers and produces biogas.
- The extraction of biochemical inputs in biorefineries, which can be useful in the production of other products or in obtaining energy.
- The application of materials and elements in cascade to conserve the inputs in the system for a longer time. This method is guided by hierarchical use: reuse, repair, recycle, value, and more.
The Technical Cycle
As part of sustainable development, this method seeks to reduce the exploitation of natural resources and at the same time reduce energy consumption. To reduce the ecological footprint, C02 emissions and generate less amount of waste, it is important to extend the useful life of mass consumer products.
- Second use or reuse. This is intended to reuse the input for the purpose for which it was created or to make changes or improvements to extend its durability.
- Restoration. Similar to the idea of refurbishing, the repair of the fundamental components that represent their greatest value is applied to achieve an almost original product.
- Remanufacturing. Through this practice, companies take advantage of the recovered parts to create other inputs that may be useful.
- Recycling. It is the most common and consists of using industrial waste as raw material to manufacture goods for the population or other companies.