The 2021 Circularity Gap Report emphasizes the need for our economy to close the gap in order to prevent irreversible damage to our environment. We need to double our current 8.6% in order to hit that target goal.
Hitting that target means the joint effort from everyone - governments, businesses, and communities.
As a business, the incentives for shifting to a circular economy aren't just limited to helping our evnrionment. Although that is the ultimate goal and purpose of it, the circular economy also proves to be a huge benefit to businesses internally, too.
Closing the circularity gap in your company means you are able to extract as much value as possible from your own business. Otherwise, that leaves space for someone else to come in and benefit from your lost value.
The main value gap comes between your product/service being used and being thrown out. Rather than treating it as waste, bringing that resource back into your own resource chain is how you can close the loop.
3 ways to implement circular strategies for your business:
1. Your material value chain
If you haven't mapped our your business' material value chain, it's highly worth doing so. Without having this, it's difficult to see where the gaps and opportunities are.
The waste produced is often left out of these value chains, but is also a key part to include in order to better understand how you can close the loop.
2. Circular Design
A huge part of closing the loop comes from the design front. Innovating your business' product, service, or strategies will need an innovation in design as well. Whether it's redesigning your supply chain or your actual product, design is a major part of the system that you definitely shoulnd't look past.
3. The R's
The R's of the circular economy are the principles that help materials be optimized and stay in the loop for as long as possible.
What are the R's? Reuse, rethink, reduce, refurbish, recycle, repair, remanufactured, refureand recover. (find an explanation of them here)
If you can find a way to use one of the methods for your business, you will be closer to closing the circularity gap and extracting more value.