Have you seen the reusable cups sold in those popular coffee shop chains and perhaps incentivised with a discount when you present one when you order? This is an example of a circular economy. The single-use cup the shop would use by default has a linear lifecycle as it’s likely to become waste once you’ve finished with it, whereas the more heavy-duty version has a circular lifecycle as you’ll take it back the next time you visit the chain and re-use it. You’ll take full advantage of that discount and you’ll know you’re reducing landfill at the same time. Cue warm, fuzzy feeling.
A circular economy takes a commodity that would typically become waste after one use, and instead prolongs its lifecycle, retaining value and use for longer, postponing the refresh point when a replacement is needed. This is the alternative to the common linear economy, where resources are taken from the earth for manufacturing or energy, and ultimately end up as waste. A circular economy promotes re-use and recycling, extending the lifecycle of those materials and reducing the pressure to obtain more from natural sources.
Material reclamation is a huge opportunity within e-waste in particular. The UN estimates that around 7% of gold mined from the earth is laying within e-waste and that one tonne of e-waste contains 100 times more gold than one tonne of gold ore. Precious metals are ten times more abundant in printed circuit boards than in their natural ores, and some technology uses up to 60 different periodic elements. If those end up in a linear economy then they go straight to landfills and are lost.
Not only is the end-of-life of products putting a strain on the environment, but the creation does too. The linear economy puts a huge pressure on manufacturing and natural resources to keep production swift and flowing. Consumer demand increases manufacturing which in turn emits more CO2 and other greenhouse gases as a by-product, reduces natural resources, and ultimately increases waste. If we decreased the amount or frequency we bought new, manufacturing would also decrease. Those materials could instead be used towards creating more sustainable goods or technologies. For example, some of the materials used within smartphones are also used in renewable energy equipment. Less new smartphones = more renewable energy equipment.
Leasing and asset financing supports a circular economy because you’re only paying for a product while you have a want or need for it. Returning the product to be re-used by someone else means it’s not going to waste – it gets repaired and refurbished to a usable condition and given a new lease of life with the next user. Often the companies leasing the goods provide in-contract support and repairs to ensure the life of the device is as long as it could be. The perception of refurbished and second-hand technology has vastly improved in the last few years. Goods are provided to a much higher standard as the technology and processes have rapidly. The circular leasing model provides an alternative economic solution for those that may not be able to provide a full payment for brand new goods upfront.
Say goodbye to false economies. Investing in one long-lasting coffee cup that could last you a lifetime is more cost-effective than buying single-use cups for the rest of your life. The upfront cost of the reusable cup may be higher than the single-use, but over time you’d spend more on the single-use cups. Investing in goods that are made to last ensures you’re less likely to need a replacement and reduce your waste footprint. Unfortunately, much of our technology is not destined for a long life, with many smartphones only averaging 2-3 years before they need repairs. Longevity and durability have been pushed to the side over form and function.
Some manufacturers are hearing the call and integrating more sustainable components within their technology but there is still much work to be done to make a more substantial move to circularity.
A circular economy can be applied to more than technology. The coffee cup isn’t the only example of promoting a circular economy that’s become more integrated into society. What others can you think of?