The 7 Pillars Of A Circular Economy (image/pixabay)
As the threat of climate change looms over mankind, the importance of the circular economy has grown more than ever. Over the last few years, both businesses and governments across the world have incorporated new business models such as leasing, collaborations across supply chains, or using waste as a resource.
However, there remains a huge doubt over what the circular economy is, primarily because the end goal (what a circular world actually looks like) remains unclear. Measuring progress in such a situation becomes difficult. To achieve a specific set of targets, experts have come up with seven pillars or characteristics to describe the end goal of the circular economy.
Read Also: What Is Circular Economy And Why Is It Inevitable?
1. Materials
The process of cycling comprises recovering natural resources from waste and reintroducing them into the production cycle for reuse. Keeping the materials in use for as long as possible ensures the minimum loss of quality or value. As a result, it also reduces the need to extract more resources from the environment, along with avoiding waste and degradation.
2. Renewable Resources
Energy generated from the sun (solar), wind, and earth (geothermal) sources is called renewable energy. Since it lowers greenhouse gas emissions, the negative impact on the environment is minimal. Sources of renewable energy are infinite, but accessing and affording them can be difficult. In a circular economy, all energy used for purposes such as material transport, processing, and more comes from renewable sources to reduce dependence on finite, non-renewable materials like fossil fuels.
3. Water
In a circular economy, water is cycled for indefinite reuse. Managed as a shared resource, efficient use of water resources through conservation, wastewater treatment, and rainwater harvesting, for instance, ensures that water is cycled in closed-loop systems and minimises pollution to protect this vital resource.
4. Biodiversity
A circular economy emphasises promoting the protection and restoration of ecosystems and biodiversity by reducing pollution, preserving natural habitats, and fostering sustainable land-use practices.
5. Society and Culture
To efficiently implement a circular economy, the needs of a society need to be taken into account. Under such an economy, firms usually refer to management models that reflect the needs of their stakeholders and their social and cultural values. Supporting societal wellbeing by creating fair and inclusive communities that emphasise shared value, collaboration, and cultural sustainability is essential.
6. Health and wellbeing
In a circular economy, economic activities never threaten human health and wellbeing. Measures are taken to reduce exposure to toxic and hazardous materials, which are kept in highly controlled cycles. It ensures the health and wellbeing of individuals and communities by encouraging healthier lifestyles through sustainable environments.
Read Also: UNECE, OECD Guidelines For Measuring Circular Economy
7. Value Creation
Resources and energy are not infinitely available. Beyond the financial aspect, these resources also have environmental impact and societal value. Using such resources in an efficient manner so that business models can widen their value generation can have a positive impact on individual stakeholders as well as the collective society.
