This is a long overdue post and one that is the backbone of my work and acting as the beating heart of PLÜSH. So let’s dive in right away.

What is a circular economy?

If this would be a dictionary, it would probably answer that question with something similar to this: “A circular economy is an economic system, aimed at eliminating waste and pollution, keeping products and materials in use, and regenerating natural systems.” (Ellen MacArthur Foundation)

But wait, what is our status quo?

We are currently living in a world economy that is built on a linear system, established during the industrial revolution. Recap - this period of human kind started in the second half of the 18th century. Every production follows the ethos of take-make-waste.

This industry standard has resulted in natural resources already being stretched beyond the limits. To produce goods we create waste and potentially add toxic chemicals to the production process (looking at the fashion industry in particular). And even within the production, waste is already created. Once the product has reached the end of it’s life, it becomes waste and will most likely end up in landfills.

Overproduction is one of the reasons that are leading to the current state of overconsumption, which means using natural resources 50% faster then it takes time for nature to replace them.

Projections by the OECD (Organization for Economic Cooperation and Development) are showing that if we are continuing this method of take-make-waste, we will require two planets worth of natural resources by 2030 to fill that demand. That is in 7 years, at the time of writing this article. This is scary. Following this example, another twenty years later (2050) we will require to have three planets worth of natural resources to fulfill the worlds demand.

Of course those are scenarios that are acting as mirrors of the future to emphasize what will go wrong if the world continues to act in the way it does for too long now. But it also leaves a bad taste in my mouth, as if we are in the opening scene of a science fiction movie where the asteroid is flying with high speed towards earth but the eyes are kept shut to continue to enjoy the comfort of the bubble life.

And that’s why the linear economy is called cradle to grave. So what has been done to change that?

What have we tried?

That’s where the recycling economy comes in place. Instead of directly disposing the products as waste, parts of them will get recycled.

Though recycling comes with it’s own limitations, mostly the material will leave the process in lowered quality than the initial material quality, until it still ultimately will end up in landfills.

Next time that you want to upgrade your phone and don’t know what to do with your old one, keep the following example in mind. Considering selling your old iPhone on marketplace or any similar platform will expand it's lifecycle, and the reuse by somebody else reflects a value transfer of about 48% of it’s original value. This is a noticeable amount. On the contrary, that same iPhone being handed over to the recycling process is loosing it’s value below 1% of the original value.

Another aspect that is playing a significant role is that not all materials were produced with the design purpose of being recycled at some point in their life in the first place.

It is a postponing approach and not a solution to the inevitable.

How does a circular economy and sustainability come into play?

In 2015, the United Nation member states have signed the Sustainable Development Goals called SDGs which is a “shared blueprint for peace and prosperity for people and the planet, now and into the future.” (UN) The SDGs are a collective of 17 initiatives that are the north star to build a better world by 2030, and contain goals like #1 No Poverty, #6 Clean Water and Sanitation, #12 Responsible Consumption and Production.

Governments and industries are adhered to realize the SDGs to the largest extend possible. To sense check: a single company probably will never be able to full-fill all 17 SDGs, but for a company to identify the ones that are realistic to be achieved is already a major step, follow by adapting and changing the ways of working accordingly.

And to place profit to be a means to an end rather than the end-goal is probably going to be the biggest mind shift. Instead, a companies main pillars for business goals and success have to shift to be centred around People, Planet and Profit. The 3 Ps are building the base for sustainable businesses. With that mindset, it won’t be possible to ignore over-exploitation of natural resources, hidden environmental and social costs that are nor reflected in market prices and accelerated resource depletion. It is inviting a new way of economy, the circular economy.

A circular economy is a disruptive, economic model that is build with a restorative and regenerative design in mind. The mindset of circularity follows the infinite model of take-make-use-reuse-reuse-reuse etc. It is based around the thought of using a specific product for as long as possible and extract as much value from the product as possible and then reuse that product, component or material to produce new things. This cradle to cradle approach is placed around the 8 Rs:

Rethink, Repair, Reuse, Reduce, Recycle, Recover, Repurpose, Remanufacture

The Ellen MacArthur Foundation created a very detailed and thorough visual to illustrate all the steps and interdependences and is split in the biological cycle and technological cycle.

By applying this mindset, all players of the world economy will benefit from a reduced dependence from natural resources, nature will be granted a break and a chance to recover and reproduce. Also, waste will be eliminated in a way that reminds me of Macklemores Thrift Shop song - “One man's trash, that's another man's come up”.

This entire transition requires the joint effort and collaboration of governances from all countries. This is not a single country solution or movement. It is global. A circular economy is an impactful solution for a sustainable and conscious living.

I appreciate you for taking the time and reading this special piece and as always let me know your thoughts!