PROBLEM SETTING

TOWARDS A MORE CIRCULAR ECONOMY

Circular economy – Since the industrial revolution, our economy has predominately been characterised by a linear approach of growth and resource consumption following a “take – make – use – dispose” pattern. Producers extract resources, use them to manufacture a product, and sell this product to a customer who in turn discards it as waste when it no longer serves its purpose. Mankind however became aware that this linear approach upon which traditional business models are built exhausts global resources and causes environmental concerns. The “circular economy” – with key elements such as resource-efficiency and life-cycle thinking (“closing the loop”) – provides an alternative framework and is one of the most promising ways of making our (linear) economy more sustainable. This is achieved by making more sustainable purchasing decisions and keeping materials and products in the value chain for as long as possible instead of replacing them.

2. Circular economy strategies and circular business models – In a circular economy, various strategies and business models across many sectors are used to keep materials and products in the economy for as long as possible.11 These strategies include long-lasting design, sharing access or ownership, maintenance and repair, reuse, refurbishing, remanufacturing and recycling, etc.