Circular Economy and Sustainable Business Models (PDF)

Circular Economy and October 10th 2024 Sustainable Business Models 2 We can change models...  Linear approach: “Cradle to grave approach” “Take, make, waste”...

Circular Economy and October 10th 2024 Sustainable Business Models 2 We can change models...  Linear approach: “Cradle to grave approach” “Take, make, waste” Finite Finite Regenerative capacity of the Earth is every year lower.  Linear Economy - The linear economy is a term for the current economic growth model, where “linear” refers to the cradle-to-grave flow of most natural resources (also described as “take-make- waste”). - This linear flow is the consequence of historically cheap and abundant resource supplies leading companies and nations to focus on supplying customers an ever-increasing throughput of goods. In the linear model, environmental impact is largely unaccounted for and incentives to minimize waste during use and product end-of-life are weak. Little attention is paid to ensuring discarded goods are put into new use or back into a production process as raw material. - As it’s known today, it refers to the decoupling of economic growth from the extraction and consumption of constrained natural resources, i.e., scarce resources with negative footprints, like fossil fuels or hard-to-recycle metals and minerals, where dependency creates a competitive disadvantage over time. The Circular economy paradigm Technical Cycle (nonrenewable) Circular Economy Butterfly Biological Cycle (renewable) Waste is resource Everything that is discarded has already been paid for. Three principles of the CE 9 A different resource hierarchy 10  Circular Economy = INNOVATION! Eco-design and new materials Eco-efficiency Integration among New business industries models Circular Advantage