Many companies, and manufacturers in particular, are applying the sustainability concept of “circularity” to their operations and product design. By working to achieve circularity, companies can increase operational efficiency, protect their reputation, and stay ahead of regulations. In this article, I’ll cover the basics of circularity and share examples of corporate successes.

What is circularity?

As The Ellen MacArthur Foundation has defined it: “...in our current economy, we take materials from the Earth, make products from them, and eventually throw them away as waste – the process is linear. In a circular economy, by contrast, we stop waste being produced in the first place.” In other words, circularity is an aspirational end-state and companies can work toward it by applying the Ellen MacArthur Foundation’s three principles:

Eliminate. Eliminate waste and pollution both during the production process and once a product has reached the end of its lifecycle.
Circulate. Circulate products and materials (at their highest value) so they remain in use, either in whole or as their components, for the longest time possible
Regenerate. Regenerate nature. Meaning: the company’s actions will do more than prevent harm, but will help ecosystems flourish.

These principles can also be summarized in one phrase that I am borrowing from the Girl Scout law: “Use resources wisely.”

The Circular Economy: A multiplayer game.

Like all sustainability-focused conceptual frameworks, circularity requires:

Creativity – Companies need to design their own approaches and develop a circularity strategy that makes sense for their industry, size, customer base, and operating regions.

Collaboration – Circularity is carried out via business-to-business collaborations, the issuance of standards developed by independent nonprofits, and governments to provide infrastructure, waste management services, and consumer education.

Commitment – Circularity requires continuous improvement, with companies committed to periodic re-assessments of their operations and products – to better understand environmental impacts and set more protective goals.

Tactical To-Dos for Corporate Circularity

Many companies are already applying circularity to their business practices, including in three common ways:

Update Your Procurement Policies. Manufacturers must source low-impact materials to create a shift to low-carbon operations, organic agriculture, and certified sustainable forestry. Some of these materials can be natural fiber-based products or recycled content packaging.
Map Your Material and Waste Flows. By better understanding the outputs of your processes, you can identify wasteful activities and work to eliminate landfill waste in manufacturing operations and offices.
Re-Design Your Products and Packaging to be: Recyclable / Compostable. Reusable. Recoverable. And Safer. Products can be designed to be reused, recycled, or collected in take-back programs. Product innovations which shift to safer ingredients, components, and processing aids with a shorter decomposition time and can reduce pollution.

A Few Leaders in Circular Approaches

Rent the Runway – Helps shoppers avoid waste of fast-fashion by renting designer-style clothing; performs repairs on garments, and donates decommissioned products.
Kjaer Weis Makeup – Sells refillable cosmetics that are shipped in plastic-free packaging.
Dell Computers – Commits by 2030 to recycle or reuse an equivalent product for each product sold and that 50% of each product will be made from recycled or renewable material, which creates an end market for these materials.
SolarCycle – Collects retired photovoltaic solar panels from commercial solar farms across the US.
Upstream USA – A leading nonprofit, Upstream builds coalitions to help foodservice, beverage, and CPG brands to scale circular strategies including reuse and refill systems for services such as food delivery, events, and stadiums.

Why should my company apply circularity?

A circularity strategy can be an accelerator for other sustainability initiatives, such as your corporate carbon commitments. It can provide a clearer narrative for environmental initiatives to your communications teams, uncover cost savings – checking a box for operations and executives, and demonstrate a rigorous, 360 degrees approach that investors recognize as responsible business.

Developing a circularity strategy requires expertise. We can help.

Like sustainability in general, each company needs to apply circularity in a way that is practical and valuable so it dovetails with your business model, values, and priorities. There isn’t just one simple answer or blueprint. But by examining your processes and operations and determining where adjustments can realistically be made, you set the right foundation. And Uplift can help.

What is Circularity and How Will It Guide Your Business?