The concept of the circular economy is about decoupling growth from resource consumption – and maximizing the positive environmental, economic and social effects. It’s about designing products so that they are easier to reuse or recycle, like Timberland’s Earthkeeper shoes. It’s about making sure that every product ingredient is biodegradable or fully recyclable, like the chemicals company that has replaced fossil-fuel feedstocks in their production methods. It’s about maximizing useful product life by repairing or remanufacturing, like Caterpillar’s parts-refurbishing programme. The circular economy is about new business models that have shifted from selling products to selling services, such as the tyre company that offers a per-km tyre-leasing service. It is about eliminating waste from production, and making sure any waste is recovered as a valuable resource, whether it’s heat, slurry, nutrients, organic material, metal, salt – whatever. It’s about engaging your customers throughout the life cycle of the product, instead of the few minutes during which they make a purchase; and, ultimately, it’s about gaining competitive advantage.
Posted on: Fri, 24 Oct 2014 06:22:56 +0000