Linear model
Take, make, and dispose
The current linear growth model is based on the concept of “take, make, and dispose” and on the intensive consumption of natural resources.
What Is the Circular Economy?
The circular economy can generally be defined as an economic concept closely linked to sustainability, which seeks to harness and optimize the use of resources, material flows, and waste in order to create efficiency.
Companies that implement circular business models demonstrate a strong commitment to sustainable development by adopting or creating business models based on renewability, reuse, repair, upgrading, shared use, and dematerialization. Rather than focusing solely on cost reduction, companies begin to rethink their products and services, as well as the value propositions they offer to their customers.
- Share
- Reuse
- Refurbish
- Repair
- Lease
- Recycle
Linear Economy vs. Circular Economy
The circular economy aims to produce goods and services while reducing the consumption and waste of raw materials, water, and energy sources. It offers opportunities to create well-being, economic growth, and employment, while at the same time reducing environmental pressures.
Circular model
Share, reuse, refurbish, repair, lease, and recycle
To maximize the value of materials for as long as possible.
In Europe alone, it has been estimated that…
90%
of the raw materials used in manufacturing become waste before products even leave the factory.
80%
of manufactured products are discarded within the first six months of use.
Why the Circular Economy?
The circular economy has emerged as a new social, political, economic, and business paradigm capable of overcoming the limitations associated with the linear model.
This circular system extends the lifecycle of products, generating broad benefits:
- Reducing pressure on the environment
- Securing the supply of raw materials
- Enhancing competitiveness
- Driving innovation and economic growth
“Should the global population reach 9.6 billion by 2050, the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles.”
Principles of the Circular Economy
With the circular economy, the goal is to reintegrate, regenerate, and optimize the use of materials, components, and products, while recovering waste either through recycling or by giving it a second life. The circular model is based on a set of principles that address many of the challenges faced by today’s economy regarding resource use and the current economic system.
Preserve
Preserve and enhance natural capital by managing finite stocks and balancing renewable resource flows.
Optimize
Optimize resource yields by extending the lifecycle of products, components, and materials in both technical and biological cycles.
Promote
Promote system effectiveness by revealing and designing out negative externalities.