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I think most reading this will by now “Get” the criticality of making good use of resources and energy to produce the every day products we all use.  A number of landmark reports over the years present compelling statistics of the need to change how we find, produce and use Stuff.

Momentum is gathering.  The move from linear economies (where we find, make, use, dispose) to circular economies (find, make, use, re-cover, re-make etc) can be seen and for businesses there are compelling business opportunities.

The Ellen MacArthur Foundation has published it’s review on the challenges and opportunities of the Circular Economy.   Here are some key numbers,

  • Adopting a circular economy could be worth as much as USD 700 billion in consumer goods material savings alone.
  • Household food waste: An income stream of $1.5 billion could be generated annually in the UK alone for municipalities and investors by collecting household food waste and processing it to generate biogas and return nutrients to agricultural soils.
  • Textiles: Revenue of USD 1,975 per tonne of clothing could be generated in the UK if [collected, remade, and] sold at current prices, comfortably outweighing the cost of USD 680 required to collect and sort each tonne
  • Packaging: A cost reduction of 20 per cent per hectolitre of beer sold to consumers would be possible across all markets by shifting from disposable to reusable glass bottles, which would lower the cost of packaging, processing, and distribution.

THE CALL TO ACTION

Forward thinking business-leaders will see the opportunities for product and process redesign, new business models, and waste reduction that makes for a more resilient financial return.  In 2011, one third of profit warnings of the FTSE350 businesses where because of raw material input price shocks. This is a sure way to grow business…

Please contact System Growth Consulting to see how we can start to move your business towards a more profitable and resilient position.

References

http://www.ellenmacarthurfoundation.org/business/reports/ce2013

http://www.mckinseyquarterly.com/Manufacturing_resource__productivity_2982

Rob Munro

So, what do you think ?

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