Circular economy best practices can boost the bottom line

FOCUSING on responsible water and energy consumption has helped many businesses reduce their environmental footprint. However, responsible waste practices are also impactful and deserve just as much attention as businesses strive for sustainability excellence.

To rethink resource use and waste management, companies are taking on circular economy (aka circularity) practices, which have climate action benefits because of reduced raw material extraction or processing, less need for transport, and decreased disposals in landfills. The Ellen MacArthur Foundation (EMF) explains that a circular economy is one where we stop waste from being produced in the first place. In essence, it’s about better managing resources, “how we make and use products, and what we do with the materials afterwards”.

Unfortunately, the 2023 Circularity Gap Report suggests the global economy is only 7.2 per cent circular, leaving a massive “circularity gap”. While dire, this gap presents an incredible opportunity for businesses: becoming part of the circular economy allows them to contribute meaningfully to value chain climate action targets while simultaneously improving their bottom line via cost-saving resource and waste management.