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CE and Sustainability

1. A circular economy describes an economic system that aims to reduce waste and promote the continual use of resources by replacing the 'end-of-life' concept with reusing, repairing, recycling, and recovering materials at all levels of production and consumption. Sustainability is an underlying principle of some circular economy approaches. 2. Major global companies and policymakers are increasingly supporting the circular economy due to its significant financial, social, and environmental benefits, such as slowing resource use and closing resource loops through repair, remanufacturing, and recycling. Business models based on circular economy principles can help drive its growth by embedding these principles throughout value chains. 3. Remanufacturing and reconditioning involve

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40 views2 pages

CE and Sustainability

1. A circular economy describes an economic system that aims to reduce waste and promote the continual use of resources by replacing the 'end-of-life' concept with reusing, repairing, recycling, and recovering materials at all levels of production and consumption. Sustainability is an underlying principle of some circular economy approaches. 2. Major global companies and policymakers are increasingly supporting the circular economy due to its significant financial, social, and environmental benefits, such as slowing resource use and closing resource loops through repair, remanufacturing, and recycling. Business models based on circular economy principles can help drive its growth by embedding these principles throughout value chains. 3. Remanufacturing and reconditioning involve

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ASHUTOSH MISHRA
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© © All Rights Reserved
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1.

Circular economy and Sustainability


A circular economy describes an economic system that is based on business models which
replace the 'end-of-life' concept with reducing, alternately reusing, recycling and recovering
materials in the production/distribution and consumption processes, thus operating at the micro
level (products, companies, companies, consumers), meso level (eco-industrial parks) and macro
level (city, region, nation and beyond), with the aim to accomplish sustainable development,
which implies creating environmental quality, economic prosperity and social equity, to the
benefit of current and future generations (Kirchherr et al., 2017).
The relationship between CE and sustainability is ambiguous however sustainability is
underlined in the description of some of the CE principles as sustainable management of
resources and sustainable mode of operation (Geissdoerfer et al., 2017; Pauliuk, 2018).
Sustainability defines the development that meets the needs of the present without compromising
the ability of future generations to meet their own needs (Martínez-Jurado and Moyano-Fuentes,
2014).
2. Role of circular economy
Due to huge financial, social and environmental benefits major global companies e.g., Google,
Unilever, Renault, and policymakers attending the World Economic Forum (Linder and
Williander, 2017). The environmental strategies including slowing, closing, and narrowing
resource loops along with repair, remanufacturing, and recycling (Bocken et al., 2016).
Business models based on CE principles ensure the growth of CE in practice because such
principles are embedded into their value propositions throughout their value chains (Manninen
et al., 2018). Applications of CE are strictly oriented towards in transition businesses from linear
to a CE, also instigate to search options for current technologies or create alternative practices,
for existing linear systems (take-make-use-dispose philosophy).
A circular economy is one that is restorative by design, and which aims to keep products,
components and materials at their highest utility and value, at all the times (Lewandowski, 2016).
Remanufacturing and reconditioning involve the putting back of a part or a product in as close
to its original state and characteristics as much as possible (Ellen MacArthur Foundation and
Granta Design, 2015).
For the automotive remanufacturing market alone, the figures will reach 139.8 million US-
dollars by 2020, globally as well as Asia-pacific market growing with CAGR of 25.2%.
According to the CLEPA (European Association of Automotive Suppliers), the remanufacturing
market in Europe is estimated 30 billions Euros. Goodyear, Michelin, Rolls-Royce, MTU
(Motoren-und Turbinen-Union) aero Engines, Boeing, IBM, Kodak, Volkswagen, Robert Bosch
Tool, Black and Decker etc. count among the prominent names in the remanufacturing world.
These corporations practice product remanufacturing as an integral part and have implemented
remanufacturing worldwide successfully.
References
Bocken, N.M.P., de Pauw, I., Bakker, C., van der Grinten, B., 2016. Product design and business model strategies
for a circular economy. Journal of Industrial and Production Engineering 33, 308–320.

Ellen MacArthur Foundation and Granta Design, 2015. Circularity Indicators: An Approach to Measuring
Circularity - project overview, Ellen MacArthur Foundation.

Geissdoerfer, M., Savaget, P., Bocken, N.M.P., Hultink, E.J., 2017. The Circular Economy – A new sustainability
paradigm? Journal of Cleaner Production 143, 757–768.

Kirchherr, J., Reike, D., Hekkert, M., 2017. Conceptualizing the circular economy: An analysis of 114 definitions.
Resources, Conservation and Recycling 127, 221–232.

Lewandowski, M., 2016. Designing the business models for circular economy-towards the conceptual framework.
Sustainability (Switzerland) 8, 1–28.

Linder, M., Williander, M., 2017. Circular Business Model Innovation: Inherent Uncertainties. Business Strategy
and the Environment 26, 182–196.

Manninen, K., Koskela, S., Antikainen, R., Bocken, N., Dahlbo, H., Aminoff, A., 2018. Do circular economy
business models capture intended environmental value propositions? Journal of Cleaner Production 171, 413–422.

Martínez-Jurado, P.J., Moyano-Fuentes, J., 2014. Lean management, supply chain management and sustainability:
A literature review. Journal of Cleaner Production 85, 134–150.

Pauliuk, S., 2018. Critical appraisal of the circular economy standard BS 8001:2017 and a dashboard of quantitative
system indicators for its implementation in organizations. Resources, Conservation and Recycling 129, 81–92.

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