Humanity is experiencing a severe environmental crisis. The predominant model of production and consumption, based on extraction and waste, has led to the depletion of natural resources and an alarming increase in pollution.
In response to this issue, the concept of a circular economy emerged a few years ago. This innovative approach aims to redesign production and consumption processes, focusing on maximising material use and reducing waste.
The circular economy proposes a paradigm shift in how we produce and consume, through a constant flow, a circular dynamic, where waste can be reused as resources to re-enter the economic system.
Sustainability and Efficiency
The circular economy offers multiple benefits. By reducing the extraction of natural resources and waste generation, greenhouse gas emissions and pollution decrease. This not only helps mitigate climate change and global warming but also improves the quality of water, air, and soil.
At the same time, it promotes the efficient and sustainable use of natural resources. By keeping materials in use for as long as possible through repair, refurbishment, and reuse, the pressure on non-renewable resources decreases.
It also drives job creation, as recycling or reusing goods requires labour, and stimulates economic growth by generating new business opportunities.
Moreover, companies that embrace the circular economy can reduce costs associated with raw material purchases and waste management. This allows them to reduce their dependence on imports, improve operational efficiency, and achieve higher profit margins.
Betting on the Future
Ambitious circular economy strategies are being implemented in various regions worldwide.
Since 2020, the US government has been promoting the Plastics Pact to reduce pollution caused by polymer materials that end up in the oceans, harming not only the environment but also food security, tourism, and maritime transport.
In France, to reduce the 700,000 tonnes of clothing wasted each year, the government will pay a bonus to citizens to encourage them to repair their clothes and shoes instead of throwing them away.
Osaki, a city in Japan, has implemented a recovery system that has enabled up to 80% of waste to be recycled through innovative food waste separation and composting techniques.
In the Americas, the Circular Economy Coalition for Latin America and the Caribbean was created in 2021, providing a forum where governments and businesses exchange experiences and agree on regional strategies.
There are many more examples. To a greater or lesser extent, there is growing awareness worldwide that embracing the circular economy not only helps protect the planet but also enables companies to be more efficient, profitable, and competitive.
Key Enabler
Technology is emerging as a fundamental weapon in companies' path towards a more circular economy, providing them with the tools they need to redesign their processes and minimise their impact on the planet.
With artificial intelligence, the internet of things, blockchain, data analytics, or robotics, companies achieve more efficient resource management throughout their lifecycle and significantly reduce waste in production processes.
In response to this growing demand for technology, the market offers companies tailor-made tools to facilitate their transition.
The Path is More Circularity
The circular economy is not just an environmental strategy but a way of life and an economic model that promises a sustainable future. By adopting practices that maximise the use of our resources, we minimise environmental impact and foster a culture of reuse and recycling.
This approach not only preserves the environment for future generations but also offers innovative economic opportunities. The circular economy is the path towards development that respects the limits of our planet and involves shared responsibility.
To achieve a successful large-scale transition to the circular economy, collaboration and commitment from all stakeholders are essential: governments, businesses, consumers, and civil society organisations.
Only through joint efforts and strategic alliances can the challenges be overcome, harnessing the potential of this promising regenerative model.
About United VARs
United VARs is a global alliance of SAP implementation partners and solution providers for the mid-market. With over 70 members in 100 countries, the alliance serves all types of SAP rollouts and integrations across the world. The organization provides businesses with local expertise ‘on the ground’ charged at local rates. All United VARs members work together as one team to provide a more personalized service than other global systems integrators can, and one that is better suited to mid-market budgets.
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