Circular economy is a concept that focuses on reducing waste and maximizing resource efficiency. It is an economic model that aims to create a sustainable system where resources are recycled and reused instead of being discarded. This concept can help businesses reduce their environmental impact while also increasing their profits.
Creating a circular economy requires businesses to rethink their production processes and how they use resources. Companies must find ways to reuse materials, reduce waste, and increase resource efficiency. They must also look for ways to collaborate with other businesses in order to create closed-loop systems that produce no waste or pollution.
Additionally, businesses should focus on creating products and services that are designed for reuse or recycling, as well as investing in renewable energy sources such as solar and wind power. The concept of circular economy was first introduced in 1997 by the U.S. economist Joseph Stiglitz and British economist Nicholas Stern in a report for the Commission on Growth and Development at the Organization for Economic Cooperation and Development (OECD).
The report provided an outline of how to create a circular economy, including four key pillars:- Reducing waste by enshrining design for disassembly into new products, so parts used can easily be replaced or repaired when they wear out. Promoting resource efficiency through product design that minimizes resource use while maximizing performance.