Going for Circular Economy Recognition?
Words such as sustainability, environment, and energy-conscious business practices, are no longer keywords. Rather, these are terms that organisations across the globe have embraced wholeheartedly. In an era where climate change is getting real and affecting our lives, understanding the role of circular economy and its impact is crucial not just for the economy but businesses and end-consumers as well.
Circular economy offers unimaginable value proposition to organisations in deriving value from their manufacturing processes and becoming environmentally conscious. Regenerative and restorative processes enables retention of resources and extraction of maximum value. The circular economy is therefore designed to minimise waste, reduce environmental impact, and foster sustainable development.
According to a 2023 circularity gap report, participating in environment-conscious, ethical and circular economy practices itself could fulfil humanity’s needs. The report, however, finds barely 7.2% of the global economy following a circular pattern. Besides rationalizing and reducing procurement costs, regenerative processes are also in line with consumer demand. For example, the packaging with Apple's products is not only environmentally-conscious but has also struck an emotional appeal with its consumers. The new packaging has been emulated by peers and thereby a new practice in the industry. Sustainability, ethical, and environmental-safe manufacturing practices, have been a conscious consumer-choice according to studies by Nielsen (78%) and McKinsey (60%) conducted in 2020.
For the enterprise though, participating in a circular economy may be more than an after-thought - a compliance norm, in fact. That is given how regulators across the world have increasingly focused on institutionalising ESG compliances and even setting carbon utilisation norms. To regulators and policymakers, green transformation and circular economy practices offer significant economic opportunities. Investments in clean energy, sustainable infrastructure, and eco-friendly technologies can create new industries and jobs, driving economic growth while also fostering environmental stewardship. Shifting towards a greener and more circular model enhances resilience to environmental and economic shocks. Diversification of energy sources, for instance, can reduce vulnerability to fossil fuel price fluctuations, while circular approaches help mitigate the risks associated with resource scarcity and price volatility. Both green transformation and the circular economy aim to create more inclusive and equitable societies. Furthermore, by promoting ethical and fair business practices, these approaches can contribute to social welfare and reduce inequalities.
The road to a green and circular economy augurs well not only from the addition of jobs and economic opportunities but also expansion avenues for the corporate. A textile manufacturer, for instance, could unlock additional value by identifying resources to regenerate, recover, and thereby provide to the circular economy. For reference, 8.5% of global textile waste gets accumulated in India every year. The media, films & fashion and hospitality sector can infuse newer realities by leveraging circular economy and same opportunity is introduced by Krÿstähl’s GreenX™®.
However, converting waste into value may be easier said than done. Such transformative efforts demand a more cohesive approach from internal stakeholders which may be unviable in the absence of expert analysis provided by the sector and practicing experts.
Certifying an organisation with Re-Circulate™® Label has benefits beyond compliance and process-fault-finding. Such a certification assures circularity status of the company /organisation, thereby yielding a positive ESG report. Besides ensuring quality of a circular product, such labels help organisations provide for a cleaner environment. Krÿstähl’s Re-Circulate™® program for hospitals, launched along with hospitals like Pranaam Group of Hospital and more, is in progress and supporting the hospitals for its green, circular transition.
Notably, it enables organisations to export circular products with ease. With the benefits the concept promises, the transformation to the organisation is as profound as the realisation that the earth is round.
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