The benefits of a circular economy
With enthusiastic endorsement from a host of celebrities, including Dame Ellen MacArthur and Brad Pitt, and the backing of world leaders, corporations and academic institutions, the idea of a regenerative, circular economy has garnered ever more global attention.
It is not hard to see why the concept of a circular economy – where materials and energy from products are recovered and put back into the system instead of simply being disposed of – has such appeal. Not only is our current, wasteful linear economic system of production and consumption bad for the planet, it is also bad for business, with the increasing depletion of resources driving up the price of commodities. So, the move to a more regenerative, circular economy could generate noticeable savings for businesses.
When addressing the 2014 World Economic Forum, Sir Ian Cheshire, Group Chief Executive of Kingfisher said: “The circular economy is an opportunity industry can’t afford to miss. It can drive our next generation of innovation and business growth, cushion our business from price volatility, provide us with competitive advantage, and help us build better relationships with customers and suppliers.”
Making the dream a reality – collaboration
Recognising that developing a more circular economy in the South West would provide new possibilities for creating employment, and improving quality of life, alongside the necessary environmental gains, staff from the University of Exeter have formed a Circular Economy Team to plan how the University can work with businesses and help make the dream become a reality.
The team comprises staff from the University’s Business School, as well as from the Centre for Alternative Materials and Remanufacturing Technologies (CALMARE), also based at the University, as well as external consultants and local businesses.
Julie Whittaker, Senior Lecturer in the Organisation of Markets at the Business School, became interested in the Circular Economy after recognising that it suggested a way to address both resource constraints and the planet’s waste problem, while also furthering the potential for a more harmonious relationship between business and society.
Julie said: “The Circular Economy is about proposing a move away from the take-make-waste linear pattern towards a more restorative process, where goods are designed and marketed with reuse in mind. Building a circular economy requires creativity and collaboration in how we design, manufacture and distribute goods and services. It entails new business models, product reinvention rather than product improvement, and new ways of relating to customers.”
The Circular Economy was the topic at the most recent Business Leaders’ Forum, hosted by the Business School. At the event, James Walker, Head of Innovation, Net Positive at Kingfisher, outlined the principles of a circular economy and described the steps that a large multinational retailer had begun to take in the restoration process. Meanwhile, the second speaker, Mark Hodgson, a sustainability consultant based in Devon, talked about commercialising circular business models with companies in the South West. In addition, the Circular Economy Team asked businesses and other interested parties at the event whether they would be interested in joining a Circular Economy Business Forum and meeting up to discuss ways forward.
CALMARE is a £1.8m centre funded by the European Regional Development Fund (ERDF), University of Exeter and industry partners. Its connections with SMEs in the region means that the centre can provide links between companies and the Business School and identifycollaborative opportunities for businesses to work together.Paul McCutchion, Commercial Manager of CALMARE, said: “Effective implementation of a circular economy involves good collaboration and that is exactly why CALMARE has linked up with the Business School, other experts and industry to ensure a joined up approach and to provide a complete solution. The University is working across all its sectors to look at the implications and opportunities a circular economy offers, as well as developing methodologies and potential solutions.”
He added: “At the heart of the work CALMARE carries out is sustainability and helping companies use materials in a more sustainable manner. It is a strong advocate of the Circular Economy and can work with companies in a variety of ways to either apply the theory investigate the opportunities it offers.
“Currently, the team is able to provide an initial amount of free support (through state aid funding) to eligible companies in a variety of areas.”
These areas range from investigating new opportunities for reusing alternative materials that are more sustainable, to advising on new routes to market for waste materials to reduce landfill and find alternative uses.
Future plans for the Circular Economy team include workshops and events, ongoing innovation clubs, individual feasibility studies and a workshop for artists about turning waste into art, followed by an exhibition of work by those taking part.
Julie Whittaker said: “We are very pleased that the Business School and CALMARE are able to work on collaborative projects together to investigate circular economy opportunities for individual businesses. While we can advise on implementing business models, utilising product innovation methodologies or educate businesses more generally about circular economy initiatives, CALMARE adds the technical expertise required for research, carries out development work required and advises as to how best to implement the technical aspects of the solutions.”