Category: Circular Economy

Understanding the circular economy needs you to have a grounding in physics, biology, economics supply chain and several other disciplines.

To help you apply circular economy thinking in your work we have developed a series of guides, presentations, videos and workshops that gives you the essentials without having to study these disciplines.

For example:

A GUIDE TO THE ESSENTIALS OF THE CIRCULAR ECONOMY

First presented at the Caux Foundation conference on Trust and Integrity in the Global Economy (TIGE), a 40-minute overview of the absolute essentials explains:

• Two main cycles – and the absolutely essential crossover points that should always be monitored.
• Three  elements of the circular economy, their cycles, their essential differences and why understanding them will help you grasp circularity.
  
• Four spheres, their interaction points essential to pinpoint in all supply chain and economic activity.

Read more here.

We can envisage a balance sheet from which it is possible to glean the current state of the firm’s investment in circularity. A worked example is given below. Note that by  circular infrastructure we mean infrastructure that:

• runs (or can run) on renewable energy
• uses recycled materials and recycles materials

As the example above shows, the infrastructure is 67% circular. In terms of loans the 77% invested in circularity gives a degree of transparency for investors. For example, if investors think that regulations will become stricter in future, then the investment is sound.

Extended Profit and Loss Statement

An extended profit and loss statement can also be created as shown below.

From this you can derive measures like % of sales of circular products, cost of circular technology, circular vs non-circular expenses and trends over time. This again creates transparency for the capability of the firm to operate in an environmental way.

At a Stockholm seminar on the 18^th January held by the Baltic Works Commission,  scientists, government officials and NGOs came together to discuss the dying briny depths on their doorstep: the Baltic Sea. The general consensus is one of emergency where technology provides an as yet unproven ray of hope. This is only if the countries surrounding the Baltic are ready for bold investments, policy changes  and some bold pilot studies. If nothing is done, the nutrients contained in the dead sea floor could flow into the water body and – worst case – cause the whole sea to turn in to a dead algal soup. Continue reading “The Baltic: a dying sea on the doorstep of industrial giants”

The idea seems logical: when a product or material enters the economy it should stay there – if it comes from below the ground. If it comes from nature it can return at a rate the eco-system can absorb it. The problem is, we are living in a society that has been weaving a complicated web of laws, rules and, taxes and fees since money was created. At the moment it just doesn’t pay. Ushering in the circular economy means making sure it pays by dismantling a few parts of this framework and replacing others. But where to start? Are there existing points of control that can be adapted to stimulate circularity? This article identifies a few essentials. Continue reading “A circular economy needs a framework of rules and financial incentives to work”