Circular Economy strategy and Operations
The Circular Economy is an alternative to the predominant linear ‘’Take. Make-Use and dispose’’ economy model of production and consumption which relies on large quantities of easy accessible materials and energy. This linear development model increases the businesses exposure to risk due to higher resource prices, supply chain disruptions and unaccounted environmental costs.
We are rapidly facing a point at which the linear economic model is no longer viable: when, due to rising global affluence, the availability of many non-renewables (including metals, minerals, and fossil fuel) cannot keep up with demand, the regenerative capacity of renewables (such as land, forests, water) becomes strained to its limits, and the planetary boundaries become threatened as never before.
The new normal, in the records level of business environment Volatility, the Unpredictability, the multiplex of factors for Complexity and the sufficiency of Ambiguity, will in the next two decades translate into trillion-dollar losses for companies and countries whose growth remains tied to the use of linear economic model.
Loop Sight Company provides a framework for businesses to become fulled players in a successful closed loop business system that moves well beyond eco-efficient, incremental step changes and impact measurement.
The fundamentals of a circular economy are to
- Design an Innovative Business Model for an optimum value creation in the Circular Economy
- Build robust operations systems defined not only for service / product delivery but also asset regeneration
- Create stronger and more integrated relationships with suppliers and customers
- Abolish the notion of waste – while maintaining brand integrity and enhancing reputation, equating to greater profitability
- Shift towards renewable energy
- Aggressively eliminate toxicity