A joint study by McKinsey and NielsenIQ reveals that 78% of consumers in the US say that living a sustainable lifestyle is important to them. But turning that desire into action is often easier said than done. Limited access to sustainable products or a lack of awareness regarding sustainable options can prevent opportunities for a sustainable lifestyle.

According to Jeff Rodgers, Chief Marketing Officer of Indra Energy, a company that allows everyday customers to take part in renewable energy through renewable energy certificates, all organizations can do more to put sustainability first by embracing the circular economy.

What Is the Circular Economy?

“The circular economy is a system that keeps products and materials in use for as long as possible,” Rodgers explains. “Essentially, the idea is that businesses look for ways to minimize waste through strategies like maintenance, recycling, refurbishment or designing for increased durability. By designing with sustainability in mind from the outset, businesses can help reduce waste and excess consumption, which has a direct impact on the environment.”

The Ellen MacArthur Foundation further elaborates on this by breaking down the circular economy into three guiding principles: eliminating pollution and waste, regenerating nature and keeping materials in use.

These principles of sustainability are ultimately driven by those who manufacture consumer products. Business decisions regarding energy sources, materials and product design all directly influence whether a product can achieve these goals and have a more circular lifecycle.

The full circular economy ultimately requires buy-in from those involved at every level. This includes materials suppliers, parts and product manufacturers, service providers and end customers. As those involved in earlier stages of production begin implementing sustainable actions, this can carry over to those farther down the chain of production and consumption. 

While it is ultimately up to the end consumer regarding how they will use the product and whether they will choose to repair or recycle it, clear communication and circular economy practices from manufacturers and sellers can help spur positive change.

Benefits of a Circular Economy

The most immediately apparent benefits of the circular economy are focused on the environment. Efforts to re-use, repair or recycle existing products help conserve natural resources, limiting the need to extract finite resources from the earth. 

Keeping the existing products and materials in use also helps minimize waste and emissions. As products are recycled or kept in use for longer periods, they are kept out of landfills. And recycling can reduce the carbon emissions associated with the manufacture of new products. When paired with the use of renewable energy, these traits of the circular economy can have an outsized impact on the environment.

However, Rodgers is quick to note that the circular economy’s benefits extend well beyond the environment itself.

“When businesses provide consumers with more durable products, consumers will be able to save money in the long run. They won’t have to keep replacing items that break down or stop working, which can also improve their quality of life. At the same time, this model stimulates innovation among companies as they look for new ways to improve their products and materials. This innovation can lead to financial growth for the companies as well, as they unlock new markets through more versatile circular economy products.”

Implementing the Circular Economy

Implementing the circular economy model is likely to be a gradual process, as full sustainability requires businesses to adjust a variety of practices at each stage of production.

“Implementing the circular economy is a multi-faceted process,” Rodgers notes. “It requires that businesses begin designing their products with sustainability in mind — emphasizing factors like recyclability, repairability and durability to maximize usability. Of course, they should also try to make use of recycled materials themselves, and use renewable energy in their manufacturing processes. Some businesses may also be able to share resources with others to further reduce wasteful production.”

Such adjustments certainly require a change to existing business practices, which is why Rodgers recommends that leaders set actionable short-term and long-term goals for implementing the circular economy. 

“For example, you might start with the simplest changes first, like switching to have your energy supplied from renewables or through renewable energy certificates. Then, you can start assessing potential changes to your product design or materials selection processes. You don’t have to do everything all at once. Gradual improvement will help you build a lasting culture of sustainability.”

A similar mindset is also necessary for reaping the potential benefits of switching to a circular economy model. Businesses should look at these moves as a long-term investment. While there may be some upfront costs associated with the changes, efforts to reduce energy and materials use while delivering higher-quality products to customers may prove essential to a business’s long-term prospects.

A True Sustainability-First Model

As Rodgers explains, adopting a circular economy mindset is an important part of the overall sustainability picture. “Just like with how we are becoming increasingly innovative at providing renewable energy, the circular economy can help unleash creativity in how we make everyday products and materials more sustainable. All of these efforts are part of the same overall puzzle for enabling a more sustainable lifestyle. As businesses put sustainability first, it will become easier for their customers to do the same.”

The ultimate goal of the circular economy is to help restore ecosystems and their natural resources. By changing the way we produce and consume products, sustainability can become second nature and the rule, rather than the exception.