Circularity strategy: How to become a sustainable business

More than ever before, customers want to buy from brands that prioritize people and the planet as much as profits. Doing so builds the foundation for a more sustainable business—and in turn, a more sustainable future for everyone. 

But first, a foundation needs to be built, brick by brick. Companies must start by embracing circularity. That means using operating principles to reduce, reuse, recycle, and reclaim materials in order to minimize waste and speed adoption of sustainable business processes.

There are three steps companies of all sizes and industries can take to join the circular economy and drive long-term business success:

1. Work to eliminate waste and pollution
2. Develop a reclaim-and-reuse business model
3. Adopt holistic principles to deliver positive environmental impact

Circularity in business: No more waste

Right now, 91% of material resources are lost into landfills or leaked into the environment after they’re consumed.

Gartner predicts that circular, waste-free economies will replace linear economies by 2029. That means going from a traditional system of using raw material for production of products that are thrown away after use to a circular model of reuse.

Shifting from a linear economy to a circular one will not only transform the way your organization makes and delivers your products and services, but will also influence (and help change) how your customers use them.

As governments around the world establish new regulations for environmental protection, organizations will need to take greater responsibility for their products and services in order to keep up. 

One example of an organization leading the way in working to eliminate waste and pollution is Unilever. The consumer goods company has set goals of achieving net-zero carbon emissions across its value chain by 2039 and halving the use of plastics in its packaging.

Reclaim and reuse for greener business

The key to sustaining circularity is finding economic value in reclaiming and reusing products. 

One way to do this is to lease products instead of selling them. For example, someone could rent a dress for a wedding and return it after use instead of buying a new one they may never wear again.

Another strategy is to design your product(s) to be recycled. This will require your organization focus on supply chain traceability, transparency about sustainable sourcing and production, waste recovery throughout the product lifecycle, and keeping materials in use longer. Businesses can no longer separate the sourcing and disposal of materials.

Your organization may also need to partner with other organizations that have the technological expertise — or that may be best able — to reuse the reclaimed materials.

Do good: Take a holistic approach to circularity

According to a World Economic Forum report, organizations that put nature first will generate more than $10 trillion a year in business opportunities. That is, companies that prioritize practices that not only protect, but regenerate nature will come out on top—ethically and financially. 

Reforestation initiatives, wetland restoration, rehabilitating coastal areas, and introducing natural elements (e.g., plants and trees) into urban environments are all ways organizations can deliver positive environmental impacts.

Companies must also look for ways to support the communities they serve. Anglian Water, an England-based water company that focuses on drinking water as well as recycled wastewater,  has dedicated itself to improving the human elements of sustainability.

In addition to its goals of creating a flourishing natural environment and reducing the company’s carbon footprint, Anglian is taking action to foster a more equitable and inclusive workplace culture where everyone can thrive. 

It’s time to go beyond doing “less bad” to adopt approaches to do “more good.” Our future depends on it.