Value Creation Through a Circular Economy

The circular economy represents a new way of thinking about resource use and sustainability, focused on minimizing waste along the consumption–production value chain. As the global population continues to grow, and as critical natural resources become constrained in various ways, we — as citizens of the earth — will need to structure economic systems to optimally use these resources. Moving from a linear economy based on “take-make-waste” systems to a circular economy where every resource is looped into multiple and regenerative uses can be the way forward. Adopting circular economy principles can create significant value for companies and communities by taking a long-term perspective; investing a little money and resources today can lead to enormous savings in the future as resource constraints lead to price volatility and critical outages. Getting to a circular economy will not be easy or costly: it will require significant planning, design, and innovation to create regenerative products and processes. But it will be worth it, as the value that it creates — whether in terms of financial value or social value — can be substantial.