[Economics] The circular economy model in companies: the key points

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It is essential to design a plan to carry out these objectives, where it seeks to encompass the vision of the circular model throughout the supply chain, points out Jorge Chahin.

It is essential that the organization be analyzed based on the flows of materials and energy. Where does everything we consume come from and where does it go?, points out Jorge Chahin. (LanaStock/Getty Images/iStockphoto)
(Expansion) - a very important issue is that of caring for the environment, given that each time the planet deteriorates more due to the abuse and wear and tear that human beings cause, which leads to generating alterations that deteriorate not only other living beings but also oneself.

 

It is known that the world po[CENSORED]tion is increasing every day, and that by 2050 there will be more than 10,000 million people in the world consuming and demanding all the resources generated by the Earth, this will mean that at some point there will be no resources enough to supply the high demand. For this reason, companies, especially SMEs, which are constantly growing worldwide, must manage their resources in the long term.

Given this perspective, a concept that is becoming very important is that of implementing the circular economy model, however, very little explanation is given regarding the subject, which is why it is important to understand that this model is an attractive alternative that is based on in the functioning of natural and fossil systems.

 

The circular economy is a system for harnessing resources whose pillar is the use of the seven “Rs”: redesign, reduce, reuse, repair, renew, recover and recycle. It is a model that goes beyond recycling and aims to go to the root of the problem to offer viable solutions, and completely change the way the consumption system works.

However, to date, approximately 9% of the world economy is circular, which implies a great return that the waste of one company can turn out to be the resources of others and work to reuse.

For this reason, I share the following points for companies to start designing their business strategy so that they can implement the circular economy model, since this implies not only obtaining economic benefits, but also ensuring the quality of life of generations future.

1. Analysis and detection of opportunities: It must be important for companies to identify the risks associated with a linear economy model, and find the opportunities and strengths of implementing a circular economy model for the specific sector of the organization.

In addition, it is essential that they analyze the organization based on the flows of materials and energy. Where does everything we consume come from and where does it go?

 

2. Set objectives: Once you are clear about what you can take advantage of and what collaborations can help you do so, you must set some objectives taking into account technical and economic feasibility.

 

3. Design of a tailored plan: It is essential to design a plan to carry out these objectives, where it seeks to encompass the vision of the circular model throughout the supply and production chain, including suppliers. This plan can range from innovation in products and services, to the formulation of new business models.

 

4. Critical path: You must design a roadmap with responsibilities and deadlines to accomplish the different tasks that your plan requires.

5. Measurement: In monitoring the progress towards the transition to the circular model, you will have to review the actions to see if they are being fulfilled and are approaching or moving away from the stated objectives, so first implement the strategy on a small scale and make a follow-up to scale it as much as possible, in order to ensure its effectiveness and increase business ambition and action.

6. Communication: You will have to carry out an external communication of the actions linked to sustainability that you are doing, since this will be key, and will generate a positive change in the perception that others have of the company, and can attract both potential partners who share this vision, as well as clients who value environmental commitment.

 

It is possible that all these actions are carried out, as long as they have a good leader, who guides and teaches, and as in everything, there are risks and opportunities, but if the linear model continues, the environmental impact will be increased, which that will lead to resource scarcity; For this reason, it is important to promote the circular economy, which will undoubtedly generate important advantages for your business.

Editor's note: Jorge Chahin is currently president of the Organization for the Circular Economy (OFEC). Its mission is to promote the circular economy model in Mexico and Central America through awareness campaigns among the po[CENSORED]tion and political actors about the responsible use of plastic, as well as its multiple benefits and advantages. Follow him on Twitter. The opinions published in this column belong exclusively to the author.

 

Link: https://expansion.mx/opinion/2022/04/06/modelo-economia-circular-empresas-puntos-clave