10 INDUSTRY DECARBONIZATION AND CIRCULAR ECONOMY CLOSING THE LOOP


The ‘circular economy’ (CE) is an economic model built on keeping precious fi nite resources in circulation as long as possible through improved design and re-use at the end of a product lifecycle. BSI Head of Environment, Social & Governance, David Fatscher explains


D


espite the dominant global economic model continuing to operate as though there is an unlimited supply of materials and energy, it is clear that the world’s resources are fi nite.


“The linear ‘take, make and dispose’ model is no longer viable and if we are to manage our economies sustainably a new, radical approach has to be taken,” said David Fatscher, BSI Head of Environment, Social & Governance. Forward-thinking businesses are now embracing a more circular mode of operation in which


valuable resources are maintained for as long as possible and – where possible – re-used. Circular business models require that products are designed to last longer and made easier to repair and refurbish. It


also means a product is


designed with component parts made ready to recycle when it fi nally reaches the end of its natural lifespan.


David Fatscher


Service models with high potential include product


maintenance and take-back schemes as well as rent/lease and peer-to-peer sharing models. “The potential contribution that adopting more circular modes of operation could make towards achieving the UN Sustainable Development Goals is massive,” said David. Recent research by the Ellen MacArthur Foundation*, global thought leaders on the circular economy, shows how such strategies can help address the impact of climate change. In fact, some of the biggest contributors to climate change will benefi t most from adopting CE principles.


BS 8001 - A PRACTICAL FRAMEWORK CLICK TO READ


The EMF report illustrates how designing out waste, keeping materials in use, and regenerating farmland can reduce greenhouse gas emissions by 9.3 billion tonnes, equivalent to eliminating current emissions from all forms of transport


globally.


It also estimates that applying the same circular economy principles to the use of key industrial materials could reduce global CO2 emissions by 40%, or 3.7 billion tonnes in 2050. “CE thinking is a challenge for businesses,


requiring them to scrutinize how they manage their Being open and


honest about circular barriers and benefi ts


Transparency


Principles of the circular economy


Keeping materials at their highest value and fucntion


Value optimisation Collaboration


Securing system-wide benefi ts by cooperating with others


Source: BS 8001 publication


resources in the light of the environmental impact of production and consumption patterns,” said David. “On the plus side, it brings huge benefi ts, cutting costs and waste and making a company more resource effi cient.” For the wider economy, it also has the potential


to create new economic and employment opportunities. According to a report from Wrap (the Waste and Resources Action Programme), expansion in circular economic activity has the potential to create 1.2 to 3 million jobs by 2030 in Europe alone, click here.


Circular economics directly addresses the challenges of the UN Sustainable Development Goals — managing climate and environmental pressures while unlocking new economic opportunities. This includes promoting economic growth and jobs (SDG 8), clean water and sanitation (SDG 6), affordable and clean energy (SDG 7), and more sustainable patterns of consumption and production (SDG 12). *Completing the Picture: How the Circular


Economy Tackles Climate Change’ September 2019


Stewardship Innovation


PRINCIPLES OF THE CIRCULAR ECONOMY


Understanding the system- wide impacts of your activity


Systems thinking


Rethinking resource management as a lens for value creation


Taking responsibility for the ripple-effect impacts resulting from your decisions and activities


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