From Disposable to Sustainable

Resource management will be a key issue of this century. A new equation is gaining ground: the one of circularity. The main idea is to circulate the resources in loop to preserve them. This approach, where production and consumption patterns are rethought, completely revisits our relation to natural capital. It is time to deprogram the obsolescence of resources.

Remember that every day, human activity produces more than 10 billion kilos (approximately 22 billion pounds) of waste. These piles are the signature of a disposable society and of a frantic race to production, which was until now a promise for growth. They are the emergent and material part of much more negative externalities induced by a linear production model: resource depletion, GHG emissions, biodiversity loss, etc. The circular alternative therefore goes well beyond the strict management of waste. It aims at proposing a new virtuous systemic approach. The circular economy establishes the principle of decoupling between value creation and consumption of non-renewable raw materials. The aim is to act upstream on production and consumption patterns in order to avoid the production of negative externalities, notably waste. Recycling is only a last resort.

Promise of eternity for products!

The goal of the circular economy is to preserve the value and utility of products and their components by increasing their overall efficiency throughout the life cycle. Ultimately, the aim is to abandon a “cradle-to-grave” linear logic to be part of a “cradle-to-cradle” that consists in eliminating the notion of waste by reusing the materials of the products in a closed cycle. The ultimate goal: 100% recycled, 0% thrown away. 

Inspiring from the living

The closed cycle approach is inspired by natural systems, which generate no waste. Thus, the circular economy, borrowed from biomimicry, declines two virtuous loops: the biological loop (the resources are regenerated in the natural cycle of the ecosystems) and the technological loop (the resources are here recovered or restored by human intervention). This model, which takes an example of natural flows, is an important tool of resilience insofar as it follows the same principles. As Inspire Institute points out, there are three factors that allow cyclical functioning of highly resilient natural ecosystems: “The constituents of living organisms are circulating and recycled in closed loops. Living systems use an unlimited energy source ... / ... as well as local resources”. (Inspire Institute, 2013)

Make a way for “system thinking”

Like natural systems, the circular perspective works globally and holistically and proposes alternatives at each stage of a product’s life cycle. According to ADEME (French agency for environment and energy management), this new model covers three main aspects and seven dimensions. The first is to modify the supply of economic actors through sustainable supply, eco-design, industrial and territorial ecology, or the economy of functionality. It is then the demand and behavior of consumers that are targeted through responsible consumption and lengthening of the duration of use. Finally, recycling takes place at the ultimate stage.

New business models around creating positive value loops

Companies that commit to this process have to rethink their business models. Internally, or by pooling their resources with other actors in their territory, they first focus on extending material flows through re-use or recycling.

They are also now focusing on new offers, where sold goods are replaced by product-as-a-service. The leasing model concerns more and more products, from the floor covering to the scooter and including the solar panels. Consumers become users, in a scheme where usage prevails over property. In this economy of functionality, innovative organizations strive to design sustainable products to satisfy more users for as long as possible. This optimizes the profitability of the resources that remain within the company.

An example of the dematerialization that manufacturer’s offer, 3D printing looks promising and is also in line with these innovative non-linear models. It would eventually allow the consumer to manufacture from home and with recyclable materials.

Finally, hyper-reparability breaks into the products’ strategies. This is particularly the case for SEB, the world leader in small appliances , which engages its customers and heavily invests in an ambitious plan for 100% repairable products. This policy implies significant changes throughout the value chain, from eco-design to the problem of storing spare parts for discontinued products. The manufacturer wants to recover the consumer’s trust and meet his/her expectations in terms of environmental protection but also concerning increased purchasing power.

A trend is emerging where sustainability is at the heart of these new models. We thus witness the anti-model of the programmed obsolescence and the emergence of the “profuser”, that profound user who works to maintain the value of a physical good.

A dynamic at work

As focal point of the of the Third Industrial Revolution strategic study in Luxembourg, the circular economy is on the rise. The idea is to make the Grand Duchy “the first circular nation”. The first commitment has already been made by the Government Council. At the Luxembourg Sustainability Forum last November, it was announced they would promote the circular economy through public procurement. “A public procurement action plan must be put in place in the meantime to increase the number of acquisitions of products and services with respect to the principles of the circular economy”, states the study. Economic zones, buildings and public works are particularly targeted by the report. They are a key point in the deployment of this approach. 

More and more economic actors are looking into this new model whose potential is bright in economic, social and environmental terms. For companies, it supposes an in-depth rethinking of their existing operations. 

In Luxembourg and elsewhere, initiatives are multiplying and converging towards a new ecosystem of responsible actors. A major issue here is the amplification of the phenomenon. It is indeed an essential key to its success because a critical size must be quickly reached. As the Ellen MacArthur Foundation reminds us, “for the model to work, it must rely on a network of interconnected companies forming an infrastructure”.

And the loop will be closed...

To be read also in the dossier " Circular Economy: Closing Loops": 

• A Real Economic, Environmental and Social Opportunity
• Walter Stahel: The origin of “cradle-to-cradle”
• Initiatives that are going well in Luxembourg