What Is The Circular Economy?
A SUSTAINABLE APPROACH TO BUSINESS
Guest author: Erin Wheeler, Circular Economy Officer, York and North Yorkshire Local Enterprise Partnership (LEP)
As the effects of climate change become clearer, many businesses are seeking ways to become more sustainable, and find a balance that is both good for business and good for the planet. However, it can be difficult to know where to start or how best to do this. The circular economy offers a simple model that can be adapted across sectors and supply chains to help businesses flourish whilst reducing their impact on the environment.
What Is The Circular Economy?
We currently live in a linear economy, in which we take resources, make products from them, and then dispose of them after only a short period of usage. This both uses huge amounts of raw resources and generates a high amount of waste, which is simply unsustainable.
The circular economy is a way of working that promotes using only what we need, stopping waste and making the most of all our resources, including people, products, services, systems and our planet. A circular economy promotes the re-use of products and resources; in a circular economy, when we make a product, it should be long-lasting, and when it does break down, it should be repairable or able to be reformed into new products. This helps retain their value and ensure we don’t waste anything, which reduces both our reliance on raw materials and the impact on the planet.
Why Does It Work For Businesses?
The circular economy offers an accessible way for businesses to engage in sustainability measures - regardless of their business model - and can also help them cut costs and attract new customers. At York and North Yorkshire LEP, we’ve divided the benefits down into six categories.
Products with purpose – consumers are increasingly wanting products that last. By using a sustainable approach to product design, you consider the whole lifecycle of the item, ensuring it retains its value, thus reducing reliance on raw materials.
Reduce waste costs – disposing of waste is becoming more difficult and costly each year; the circular economy can help you find ways to reduce, eliminate, and re-use waste, either by yourself or by collaborating with other companies, helping you make significant savings.
Increase efficiency and productivity – we can reduce our need for new resources by using existing resources more efficiently, which is a cornerstone of the circular economy. By choosing to repair or refurbish equipment, share space and materials, and collaborate, you can save time, money and the planet.
Be a standout brand – branding yourself as a sustainable company can help you stand out in an increasingly crowded marketplace and give you an edge over your competitors. And that’s not all; Millennials and Gen Z consumers are keen to buy from companies that can prove their sustainability credentials, and crucially, are willing to spend more money to do it, so you could get a loyal customer base for years to come.
Build business resilience – by sourcing materials locally, reducing waste, and cutting carbon, your business will be in a far better place in the event of supply chain shocks or changing policy. By getting ahead of the curve and actively participating in sustainability measures, you can future proof your business for years to come.
Save energy – one of the best ways to be more sustainable is to lower your energy consumption; by taking small steps like switching to LED lighting or using renewable energy, you can hugely reduce your carbon emissions and save on your electricity bill.
Further Information
The circular economy is a fantastic way for any business to engage with sustainability and offers a way of trading that is equally good for you, your customers, and the environment. To get started with your sustainability journey, visit the LEP website, where you can find the Circular Yorkshire campaign, which has guides around each of the above benefits, and resources to help you bring the circular economy into your own business. You can also get in touch with the Growth Hub directly for more dedicated support.
Circular Yorkshire is a campaign created by the York & North Yorkshire LEP to bring together partners from across Yorkshire to accelerate our region’s transformation towards a circular economy. Through this, we can create a greener, fairer, stronger economy that benefits business and the environment for all people now and in the future.
This blog is part of a series to celebrate becoming England’s first carbon-negative gin and explores some key areas of sustainability. Other blogs in the series: