Achieving success

Achieving

Beyond a mere buzzword, the circular economy is gaining momentum in calls to action for industry in all sectors and among consumers.

By Nick Mannie*

s far back as the Industrial

ARevolution, industry and consumers followed a linear model. We must stop the ‘take, make and dispose’ model and shift towards a restorative model. The continued use and abuse of natural materials and ecosystems is placing pressure on the sustainability of the supply of these raw materials. Disparity in social and economic status, unfair practices and incentives for product development and deregulated markets are leading towards financial inequalities among consumers and regional economies.

To ensure sustainability of both society and the environment, drastic measures will need to be taken in terms of the use and preservation of existing raw materials. Through the Paris Agreement and the introduction of the UN’s Sustainable Development Goals (SDGs), there has been a commitment to tackle climate change and initiate action to redress past mismanagement of the environment. In addition, the mindset and the approach towards managing the transition towards a circular economy will have to measure for effectiveness.

Just how we measure the success of the circular economy is dependent on a few key areas:

1

Policy

Government/authorities formulating guidelines and policies to regulate circular economy through: • raw material use and consumption • waste disposal • define targets for reuse, recycling and repurposing of products and materials • embodiment of circular economy in various laws • integration of circular economy into existing and proposed law changes • encouraging innovation in design of products • measuring the progress towards a circular economy.

2

Collaboration and partnerships

Entering into strategic partnerships and collaboration paves the way for resilience and success in creating a circular economy. Members in the value chain – which include manufacturers, retailers and authorities – will need to assess how deeply rooted they are in the linear economy. The transition requires collaboration throughout the value chain at the highest level and includes: • a commitment by all partners towardsinvesting in innovation, processes, value creating products and life cycle assessments • extended producer responsibility • schemes that can be developed to reduce waste • 3R (reduce, reuse, recycle) approach through collaboration.

3

Staying ahead of the curve

Companies and governments need to acknowledge that the current linear approach will be forced to change for the benefit of society and the environment. New opportunities exist to build resilient economies and create jobs, as well as for industrial development and innovation: • changing in phased approaches in the use of raw materials with alternative sustainable materials are a good starting point • changing design and manufacturing processes will encourage a shift in thinking among process design team • improving distribution flows and the use of products • collaborating with industry to create new ideas around product development with great sustainable edge • critical thinking of how the manufacturer closes the loop on a product, maximises use, recycles the product/materials and repurposes the product – the creation of additional life cycles is

important in extending the useful life of a product or components • using big data and analytics, the internet of things and AI to make decisions on product use and furthering the life of a product or components – for instance in tracking material flows, product route to market, supply chain processes and maintenance of products or the system • the introduction of technology as an enabler in the circular approach, integrate technology, process and data to make more effective decisions and build product solutions around the circular economy • adapting to new business models that will steer towards a circular economy and be the new norm of doing business • pivoting towards engaging all companies in the product value chain to ‘design out waste’ • co-creation of products will enhance the relationship with the end user and manufacturer – inputs such as product experiences, preferences, reviews and assessment of prototypes will help improve acceptance of the product into the market • the sustainability journey and the traceability of the product materials will be an indicator to the consumer of the commitment towards a circular economy.

4

Burning platforms for circular economy

Some focus areas identified that need urgent intervention to pivot towards a circular economy include: • oceans plastic – the plethora of plastic into the ocean has created a significant challenge of its own, which requires drastic actions by all role players to reduce the impact and use of plastics • fashion – new business models need to be explored that maximise the use of clothes so that inputs into the manufacture of clothes are better managed • packaging and chemical use – the use of chemicals in the manufacturing process is a key point of impact for the environment and oceans; the recycling of chemicalbased packaging and packaging in general needs to be accelerated to its reduce environmental impact.

The success of implementing a circular economy model is not confined to these points above but requires a wider approach through a detailed assessment of the processes, suppliers, materials and the consumer requirements. Businesses need to adopt new models and strategies that will enable them to change from within the organisation and build resilience. *Nick Mannie is a specialist advisor at Mannie Inc. – mwmannie@mweb.co.za.