Sustainability goals are moving up on the priority list of many large organizations. Unfortunately, doing better for our planet and society in itself is rarely the primary trigger to innovate. Until we reach that stage, organizations need more reasons to get motivated to act.
Aside from estimates that the circular economy is a $4.5 trillion-dollar opportunity waiting to be seized, here are 6 other reasons why you might pursue the circular economy:
- SAVE COSTS/BOOST PROFIT MARGINS
By re-covering or re-using resources, companies can save a significant amount of budget.
- GAIN ACCESS TO A NEW MARKET
The group of consumers who take the negative sustainability impact into account when buying a product is growing. If you want to attract this consumer segment, you will have to do far better. Some basic window-dressing and “green” marketing campaigns will not be enough.
- PROACTIVE COMPLIANCE
In many regions, sustainability goals are embedded in new regulatory frameworks. For many industries, this direction is inevitable. Even if you have a runway to implement these upcoming regulations, it will be smart to build up the experience and resources to comply before your competitors do.
- ATTRACT TALENT
The younger generations have been raised with a sense of urgency to act, and many talented people are looking for careers where they can do meaningful work. If you want to gain access to this workforce, you will need to be open about your efforts to minimize your negative impact. The earlier you act, the better.
- BUILD A COMPETITIVE ADVANTAGE
Every single industry will, sooner or later, make significant investments to limit the negative impact of doing business. Production techniques need to be redesigned, distribution channels will need to evolve, waste management needs to level up. But where will all these businesses go for solutions? Most organizations will not start from scratch. If you build up knowledge and IP today, you can surely monetize this in the near future. The first ones to build this network have lasting competitive advantage over new entrants.
- BUILD RESILIENCY TO MARKET SHOCKS FROM A PREDICTABLE FLOW OF USED GOODS
Market volatility of commodities creates uncertainty for businesses, driven by large macroeconomic variations: everything from the price of oil to the price of the stock market. If your business model is depending on a market price for commodities like plastics or gold, you may benefit from switching to circular operations. Circular operations give you more predictability overflow of products to and from your customers.