Circular Economy - Thematic Intelligence

Circular Economy - Thematic Intelligence

Summary

The circular economy seeks to eliminate waste and pollution, keep products and materials in use, and regenerate natural systems. Its importance is fueled by the challenges of limiting climate change, combating biodiversity loss, and preserving scarce resources. It is replacing the traditional linear economy, which typically follows a take, make, use, and dispose path and has less regard for the resources used and the environmental consequences.

Key Highlights

The World Resources Institute estimates that more than 90% of all materials that are extracted and used leave the economy; only 8.6% are recycled. The circular economy is a fundamentally different approach to designing, producing, and using products. It decouples economic progress from the consumption of Earth's finite resources.

New business models will be required to transition companies toward the circular economy. For example, companies must take a whole-system perspective on resource use that considers closed supply chains. Business models must also shift from maximizing profits through product sales to developing sustainable business models throughout a product’s lifecycle.

As the focus on conserving materials and reducing waste increases, circular businesses will start to disrupt their linear counterparts due to greater efficiency, long-term sustainability, and regulatory compliance. The most successful businesses of the future will be circular, as they will demonstrate greater long-term financial stability and win stakeholder support. Circular practices will therefore ensure business success while helping the planet.

Scope

• The circular economy is a fundamentally different approach to how products are designed, produced, and used, in which economic progress is decoupled from the consumption of Earth's finite resources. The global economy must shift from a linear model to a circular one to tackle resource scarcity and climate change. This report provides an overview of the circular economy, tracks its rise to prominence, and evaluates the potential for further progress. It also includes GlobalData's circular economy framework, which demonstrates how a product’s lifecycle is circular through the production cycle and the service cycle. Finally, it identifies the technologies enabling the circular economy, including 3D printing, advanced materials, artificial intelligence, batteries, blockchain, climate tech, collaboration tools, electric vehicles, the Internet of Things, robotics, and smart cities.

• As humankind grapples with the challenges of living sustainably and limiting climate change, the importance of the circular economy is clear. This report will help you understand what the circular economy is, why it is important, and how it could impact your business.