The circular economy is a regenerative system that aims to keep resources in use for as long as possible, extracting the maximum value from them while incurring the least waste. Some examples of successful circular economy models include: 1. Reuse and recycling programs such as IKEA's furniture recycling program and Patagonia's Worn Wear program. 2. The sharing economy, where underutilized assets are shared among people, such as Airbnb and Zipcar. 3. Product as a Service (PaaS), where companies like Xerox and Philips offer their products as a service rather than selling them outright. 4. Industrial symbiosis, where industries work together to create a sustainable ecosystem by exchanging waste materials and resources, such as Kalundborg Symbiosis and Chalmers Hamn. These models demonstrate how businesses can operate sustainably by designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.
Successful Circular Economy Models
The circular economy is a regenerative system that aims to keep resources in use for as long as possible, extracting the maximum value from them while incurring the least waste. Here are some examples of successful circular economy models:
1. Reuse and Recycling
IKEA
- Furniture Recycling Programme: Customers can return their used IKEA furniture which is then recycled or donated.
- Sustainable Materials: Use of renewable and recycled materials in product design.
Patagonia
- Worn Wear Programme: Encourages customers to buy used clothing, repair old ones, or recycle them back to the company.
- Traceable Down: All their down products are traced back to the source ensuring ethical sourcing.
Interface
- Mission Zero: Aims to eliminate any negative impact the company may have on the environment by 2020.
- Evergreen Services: Offers services like floor cleaning and maintenance rather than selling new carpet tiles.
2. Sharing Economy
Airbnb
- Underutilized Assets: Allows people to rent out their unused spaces, promoting efficient use of resources.
- Community Building: Encourages local experiences and cultural exchange.
Zipcar
- Car Sharing: Reduces the number of cars needed by providing shared vehicles.
- Environmental Impact: Helps reduce carbon emissions and traffic congestion.
3. Product as a Service (PaaS)
Xerox
- Printer Leasing: Instead of selling printers, Xerox offers them as a service, including maintenance and upgrades.
- Toner Recycling: Used cartridges are returned, remanufactured, and reused.
Philips Lighting as a Service (LaaS)
- Lighting Systems: Offers lighting systems as a service, including maintenance and upgrades.
- Energy Efficiency: Focuses on reducing energy consumption in buildings.
4. Industrial Symbiosis
Kalundborg Symbiosis
- Waste Heat Exchange: A power plant sells its surplus heat to a nearby factory and houses.
- Water Exchange: Water is recycled between industries, reducing overall water usage.
Chalmers Hamn
- Resource Exchange: Industries share waste materials, with one industry's waste becoming another's raw material.
- Collaborative Effort: Businesses work together to create a sustainable ecosystem.
These models demonstrate how businesses can operate sustainably by designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.