Environmental challenges are growing, as well as the need for innovative solutions to keep our global economy prospering under these conditions. A concept that is not necessarily new nor complex, but growing in popularity nonetheless is the one of a circular economy. The traditional linear economic models follow the pattern of taking and extracting materials, making our products, and disposing of them as waste. According to the Circular Economy Gap Report 2023, only 7.2% of materials are cycled back and reused into our economy (CGR 2023). The circular economy aims to eliminate this trend above and promote sustainability by maximizing resource efficiency and reducing waste. As current students and young professionals, understanding this concept, its importance, and how we can interact with it is of a priority to get one step ahead of the game for ourselves, but also as our due diligence to our planet and promoting corporate social responsibility. Let’s explore some of the principles of circular economies, their significance, and how we can already actively promote circular business models.

What is a Circular Economy?

A circular economy creates systems that make the most of resources while minimizing waste to avoid products having a finite life cycle. It focuses on extending the life of products through recycling, reusing, and upcycling. Examples of these concepts can be creating high-quality clothing from organic materials to ensure the pieces can last longer and be repaired, or in construction using recycled and repurposed materials instead of extracting new natural resources. There are three principles for this concept:

1. Longevity: Products should be created to have extended lifespans. Designs should make them durable, repairable, and recyclable. This reduces the need for product replacement and therefore, decreases waste.
2. Resource efficiency: Resources should be used to their maximum through practices such as recycling and upcycling. Materials should not be disposed of after one use and businesses should try and recover the materials to reintegrate them in new production cycles. The demand for new raw materials should be decreased.
3. Waste minimization: Any waste should be seen as a potential resource. Minimizing waste through efficiency in the production process leads to more sustainable and eco-friendly business models.

Why Should We Care about Circular Economies and Circular Business Models?

It cannot be denied that environmental issues such as climate change and the depletion of our resources are growing issues. Whether you are an individual who values sustainability and eco-friendliness or not, the economy, businesses, and all industries will be affected one way or the other by environmental effects. This will in turn affect our quality of life, the success of businesses, and potentially the job market. So even if your thumb isn’t as green as others, acknowledging the benefits of circular economies can be major for being proactive at securing a better future in general for you and those around you. Business students are empowered with the skills related to critical thinking and strategizing for success. Using our strengths towards bringing circular business models into many of our environments can help plant the seeds toward bigger change. Think about how circular economies will protect our natural resources and provide solutions to the issue of the depletion of resources, leading businesses to continue and provide essential products. Reflect on how we can enhance economic resilience by creating a more stable and secure supply of materials, avoiding supply chain disruptions. Imagine the possibilities related to innovation, on how new technologies can emerge to find new ways to reuse old materials and return our natural resources to the land. It should be noted that companies that prioritize sustainability and their corporate social responsibility are seen as more attractive and competitive. Last but not least, environmental standards will evolve with growing pressures for governments to implement regulations that encourage sustainable practices. Implementing circular business models can help companies prepare in advance and be a leader in their industry, instead of scrambling to adapt when the day comes. All in all, taking an early interest in these concepts is crucial to be best prepared to enter our evolving markets and to both demonstrate our competencies in these matters and educate others on why an organization should value its importance as well.

How can business students promote the circular business model?

There are certainly many ways to integrate these concepts into our everyday thinking, into our decision-making process, and our values and priorities as business students. Here are some simple ways and starting points to promote circular business models from the get-go!

1. Educate yourself: Invest time in learning about circular economies, their principles, how they can be implemented, and what challenges their implementation may pose. Stay informed as well about regulations and policies that affect businesses in terms of sustainable practices. This knowledge will keep you empowered to make informed decisions and better advocate for circular practices in future careers.
2. Engage in related initiatives: Seek out industry-specific initiatives to understand how a circular business model can be applied in your fields. Find conferences, associations, or clubs promoting sustainable business practices to engage in conversations and network with like-minded people. Check out if there are any clubs already on campus that have these missions, or collaborate with NGOs to start your impact today. Doing so will encourage knowledge sharing, growing a professional community, valuable learning experiences, and opportunities to make an impact.
3. Incorporate it into your job hunt: Seek out internships with companies that are already embracing the circular business model. This allows early experience in this domain and can allow the opportunity to contribute your ideas. Ask relevant questions about a company's circular business model in interviews or when networking. This might let your potential employers know that you can be a great asset at implementing this concept in their practices, or can even ignite change by making them reflect upon the idea further if not done so already.
4. Work the topic into classes, projects, and other deliverables: Be an advocate for sustainability in lecture discussion, influencing the curriculum of your programs and bringing up its relevance among professors and fellow students. Incorporate the circular business plan into your coursework and business projects. Consider it during case studies, company analysis, or another deliverable where you may suggest its use as a competitive advantage. Ask questions about product longevity, how waste can be minimized, and how resources can be used more efficiently, in turn contributing to the education of future sustainable business leaders. If you are into case competitions, keep an eye out for competitions focused on circular economy innovations, or incorporate the concept into future pitches to impress the judges and demonstrate your eye for innovation and long-term thinking
5. Learn about emerging technologies: Many innovative technologies and technical skills will contribute to future solutions that will play crucial roles in advancing circular economies. These look like topics such as blockchain, artificial intelligence, and the Internet of Things. These can be used to create more transparent systems to enhance traceability and optimize resource use. Learn about these tools and consider picking up related skills, which can make you a key asset in implementing a business’s circular business plan, or empower you to create your innovation that will help sustainable causes.

Implementing sustainable solutions is not a plan for the future, but is something that should be taking motion today. The idea of a circular economy can be revolutionary in advancing many environmental causes and setting ourselves up for future successes. Students today have the power to play a role in driving this transformation. By understanding these concepts, recognizing their importance, and implementing them into our actions today, we can see more circular business models being implemented shortly. Choosing to do these things goes beyond our professional growth however, it has the power to make a great impact on our planet and to improve the lives of billions around the world

Sources:

• CGR 2023. Circularity Gap Reporting Initiative - Home. (n.d.). https://www.circularity-gap.world/2023
• What is circular economy and why does it matter? UNDP Climate Promise. (2022, November 16).https://climatepromise.undp.org/news-and-stories/what-is-circular-economy-and-how-it-helps-fight-climate-change