For long term business success, go circular

The Circular Economy is set to change the way we all do business. Progressive businesses are already onto it.

In a circular economy the lifecycles of all materials will be maximised, optimised and continued indefinitely through continuous reuse. This isn’t just a vision of a better future, it is emerging right now. 

The Sustainable Business Network (SBN) is working to install a circular economy approach right across New Zealand. It is starting by applying these principles to office building and refurbishment. But it applies to everything: from the cars we drive to the cup from our commuting coffee. 

James Griffin, SBN’s national network manager and transformation leader, is leading the project. 

“We need to make a rapid transition to a circular economy from our current ‘take, make, waste’ approach,” he says. “It’s really the only viable and scalable way we can achieve meaningful sustainable development. 

“We want to maintain current lifestyles. We want to cater for increasing affluence in developing countries. To do that we need to rethink the way we produce, supply and dispose of products.” 

Adopting this approach takes material sourcing, design, use, and end-of-life solutions to a whole new level. The aim is not to postpone waste, it is to completely eliminate the very idea. 

This is achieved by taking a holistic, systems-based approach. 

For example, plastic bags becoming a ‘fleece’ jersey might sound great. But what about when you are finished with the jersey? Does it get recycled into another bag, another jersey, or end up in landfill? In the meantime it sheds tiny bits of plastic thread that pollute our land and sea. 

Technical products like vehicles and computing devices provide huge opportunities for improvement. The way most of them are currently made makes it difficult and costly to extract any value from them when they are disposed of. So they all-too-often end up in landfill. 

A circular approach keeps non-natural materials contained within their own discreet industrial loops. In this system plastics and metals aren’t allowed to shed material into the landscape and water. They aren’t combined with other materials in ways that make them uneconomic to separate and recycle. 

Similarly, natural, compostable or biodegradable materials aren’t bound together with non-natural materials. This allows them to be placed back in an appropriate place in the world’s ecosystems. 

Helpful initiatives

SBN recognises the challenge the circular economy presents to most businesses. So it has created a number of initiatives to help. SBN’s freely available Circular Economy Model Office Guide (http://sustainable.org.nz/the-circular-economy-model-office-guide/) details how these principles can be applied to commercial buildings. It includes current New Zealand options for material selection, reuse, repurposing and recycling. 

SBN is now working with business partners to create circular economy model offices and commercial spaces. They will become showcases of how this works. 

James says: “It’s not a pass or fail thing. The ultimate aim is to see it applied across the board. But the starting point is for businesses to understand the concept and apply it where they can.” 

For example, take the humble disposable coffee cup. It’s a prime example of how a circular economy approach can be applied in the real world. 

We might think these are just paper cups with a plastic lid. If they were they could be easily separated and recycled. But the paper bit is lined and bound with polyethylene to stop the cups leaking or going soggy. This means they can’t be recycled in New Zealand. Nearly all of them end up in landfill. Five disposable coffees a week can produce about 14kg of waste a year. 

Pioneers like Ecoware and Innocent packaging are using plant-based bio-plastics for the coating and lids instead. This makes the whole cup suitable for commercial composting facilities. 

The next challenge is to get them returned, sorted, and to the right facilities. 

Paul Evans from waste industry body WasteMINZ explains the challenges.

“Most things can be recycled in theory,” he says. “But ultimately it comes down to whether they are economically viable to recycle and if infrastructure is available in the specific region.”

Ecoware’s cups were recently tested by the Packaging Forum. The study found 14 commercial composting sites around the country ready and willing to take them. There are nearly 100 other facilities around the country that could be suitable. And more of those are accepting the compostable cups all the time.

In Auckland Innocent Packaging has partnered with We Compost and Envirofert to take the cups and lids. In Wellington the company is working with Kai to Compost. 

Innocent is also exploring opportunities in Napier and Kaikoura. It is trialing work with the Living Earth compost company. 

And this is not just for the niche operators. Z Energy sells 4.5 million takeaway coffees a year. It has made the switch to compostable cups. You can return your cup for composting at participating stations. 

Reusable cups are another option. Australian reusable cup manufacturer Keep Cup claims a reusable cup requires half the carbon emissions and energy of disposables. But other studies suggest you must use a reusable cup for years, otherwise the simpler disposable may be less damaging. 

Circular suits all

Taking on this challenge for every product is what the circular economy is all about. Progressive businesses are already doing this. 

Big names like Google, Nike and Ikea are onto it. You can get commercial carpet from Inerface that takes a circular approach. Fuji Xerox and Ricoh have long established circular thinking in the way they provide printing, document management and other IT solutions.

You are going to be seeing this everywhere. 

So, in what ways could your business apply this thinking now to drive your success into the future?    

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Andy Kenworthy is a writer and communications strategist specialising in global well-being. He is currently SBN’s communications and campaigns co-ordinator.