Dive Brief:
- The World Economic Forum reports that commodity prices rose more than 150% from 2002 to 2010. Due to this rise, if the market continues a linear economy — where products are made and then thrown away at the end of useful life — businesses will see an overall decline of critical material inputs, according to US Chamber of Commerce Foundation Environmental Program Director Jennifer Gerholdt.
- Gerholdt told Environmental Leader that an estimated $4.5 trillion in economic growth could be unlocked by 2030 if companies and society switches from a linear economy to a circular economy, in which materials are recycled and reused for further manufacturing. The circular model allows for "full traceability of materials and enables the business to keep hold of its resources," said Axion senior consultant Nichola Mundy.
- Companies like Google and Dell have partnered with the Ellen MacArthur Foundation on closed-loop initiatives. Dell's closed-loop recycled plastics supply chain has allowed the company to recycle 4.2 million pounds of plastics into new products.
Dive Insight:
The benefits of the circular, closed-loop economy have been studied across the world, citing profits, more job opportunities, and increased eco-friendly practices as positive outcomes. A WRAP report from September showed that the shift to a circular economy could create 3 million extra jobs in Europe by 2030.
The Closed Loop Fund believes in the circular economy so much that it plans to invest $100 million on U.S. recycling infrastructure in the next five years. The "impact investment fund" group has partnered with 10 corporate giants to provide zero-interest loans to cities and companies wishing to improve or build recycling facilities.
"Organizations that reposition their business model towards the circular economy can expect to enjoy greater stability and efficiency among their supply chains; cost savings from the reduction in waste and resource use; and reputational enhancement from increased brand awareness and loyalty," states the Ethical Corporation's 2015 Circular Economy report.
