All you need to know about circular economy

In Spain, the manufacturing process of goods and services is based on a linear model where production is designed to be used and thrown away. This approach seeks economic profit without taking into account the environmental footprint and its consequences.
The planet’s resources are limited, so it is vital to act to transform the linear economy into a circular economy.

What is the circular economy?

The circular economy is a production system based on reuse, repair and recycling. In practice, it means taking advantage of resources, giving them a second life and returning them to the market in a new form, thus minimising the environmental cost.
In other words, using resources responsibly, extending their useful life, to protect the environment and fight against global warming and climate change.

Benefits of moving to a circular economy:

• Protects the environment: It slows down the use of natural resources, limiting the loss of biodiversity.
• Favours resource independence: Risks associated with the supply of raw materials, such as price volatility or the availability of and dependence on imports, are minimised.
• Promotes employment: Stimulates the development of a more competitive economic model, which boosts innovation, economic growth and, therefore, employment.
• It benefits the local economy: It attracts investment and facilitates access to new sources of financing. It is a business opportunity that helps to generate synergies, allowing new lines of business to be generated.
• It minimises costs and accelerates business growth through improved economic performance. In addition, it improves the company’s reputation and the satisfaction of consumer groups.

How can a circular model be implemented in the company?

The organisation needs to commit to the integration of a circular model along the entire value chain. To do this, the first step is to collect data to understand the company’s situation. Set specific and measurable targets with time limits. Establish indicators to measure progress. And finally, communicate the actions taken by the company to involve all stakeholders.
Some examples of actions that can be implemented:

• Reuse and second use: Extend the useful life of products by reintroducing them into the market. Focus on long-lasting products and limit disposable products.
• Recycling: In the event that they cannot be reused, they should be recycled to give new value to their materials.
• Repair: Products should be designed in such a way that they can be repaired once they stop working.
• Energy efficiency: Some ways of using energy efficient light bulbs, good insulation of the workplace, use of thermostats, promotion of public transport…

The circular economy is the business model that all companies should focus on in the coming years to reduce their impact on the environment and achieve better performance. We invite you to take the first step with us, by calculating your carbon footprint. Join the change!