The allure of reducing their environmental impact, minimising operational waste, and maximising the efficiency of costly resources is undoubtedly appealing to CEOs.
29 Jun 2024 | 1478 Views | By Nishant Arya, Vice Chairman, JBM Group
We need to curb waste in order to enhance our profitability and business sustainability especially in current times when all kinds of pressures are hitting businesses; be it margin, cost, supply-chain, inflation pressures etc.
It's evident why an increasing number of manufacturing companies are embracing what's commonly referred to ...
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We need to curb waste in order to enhance our profitability and business sustainability especially in current times when all kinds of pressures are hitting businesses; be it margin, cost, supply-chain, inflation pressures etc.
It's evident why an increasing number of manufacturing companies are embracing what's commonly referred to as the circular economy. This approach involves businesses developing supply chains that reclaim or recycle the resources utilised in producing their goods. The allure of reducing their environmental impact, minimising operational waste, and maximising the efficiency of costly resources is undoubtedly appealing to CEOs.
Circularity is not a new concept in India; it has always been a part of the Indian way of life. Indian society has traditionally prioritised resourcefulness and waste reduction, and this is reflected in age-old practices and cultural values. However, with the rapid economic growth experienced by the nation, the challenges of swift urbanisation and industrialisation have escalated. As a result, per capita consumption of resources, particularly non-renewables, has increased. This has led to the widespread and prevalent adoption of the take-make-dispose model in the country today.
The concept of the circular economy has gained significant traction in recent years as the world grapples with mounting environmental challenges. Unlike the traditional linear economy that follows a 'take-make-dispose' model, the circular economy is based on three key principles: designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. These principles guide businesses and policymakers in rethinking traditional production and consumption patterns, promoting resource efficiency, and minimising environmental impact.
Designing Out Waste and Pollution:
This approach prioritises the prevention of waste and pollution from the outset, rather than dealing with them after they occur. It therefore involves integrating environmental considerations into the design and production processes of products, services, and systems throughout their lifecycle. This can involve using renewable or biodegradable materials, adopting modular or repairable designs, and reducing the use of harmful chemicals. By prioritising eco-friendly design, businesses can create products that are more sustainable and easier to recycle or repurpose.
Keeping Products and Materials in Use:
The circular economy seeks to extend the lifespan of products and materials by promoting reuse, repair, and remanufacturing. This involves creating durable products that can be easily repaired and upgraded, establishing take-back and recycling programs, and incentivising consumers to return products at the end of their use. By keeping products and materials in use for as long as possible, businesses can reduce the need for new resources and minimise waste generation.
Regenerating Natural Systems
The circular economy recognises the importance of preserving and regenerating natural systems, such as forests, oceans, and ecosystems. This involves adopting sustainable land and resource management practices, restoring degraded ecosystems, and promoting biodiversity conservation. By prioritising environmental stewardship, businesses can contribute to the preservation and regeneration of natural systems, ensuring their long-term viability.
It is well said that everything we use comes out of earth and that is why it is often referred to as ‘mother earth’ as a nurturing and life-giving entity, akin to a mother. This concept is deeply rooted in our culture and spiritual beliefs, where the Earth is considered a source of life, sustenance, and interconnectedness.
One of the key benefits of the circular economy is its potential to reduce the environmental impact of production and consumption. By minimising waste, pollution, and resource consumption, the circular economy can lead to lower carbon emissions, improved air and water quality, and reduced pressure on natural resources.
In addition to environmental benefits, the circular economy can also help companies achieve significant cost savings by optimising resource utilisation, reducing waste disposal expenses, and extending product lifespan. Implementing circular practices streamlines operations and bolsters financial stability.
Furthermore, the circular economy fosters innovation by encouraging the development of new products, services, and business models. This can create new opportunities for businesses, entrepreneurs, and workers, driving economic growth and job creation.
It’s important to note that circular economy has the potential to enhance the resilience of businesses and communities. By diversifying supply chains, reducing dependency on finite resources, and promoting local production, the circular economy can help mitigate risks associated with resource scarcity, supply chain disruptions, and environmental degradation.
Finally, the circular economy can have positive social impacts by promoting equitable access to resources, supporting local economies, and improving living standards. This can contribute to inclusive and sustainable development, benefiting communities and society as a whole.
I truly feel that as the world faces unprecedented environmental challenges, the circular economy offers a promising path forward. By embracing the principles of waste reduction, resource efficiency, and environmental stewardship, businesses can drive sustainability and innovation, while contributing to a more resilient and equitable future. As we continue to navigate the complexities of a global economy, the circular economy provides a compelling vision for a more sustainable and prosperous world.
Nishant Arya is the Vice Chairman of JBM Group. Views expressed are his own.