Analysis of Circular Economy and Its Impact

Running head: ANALYSIS OF CIRCULAR ECONOMY AND ITS IMPACT
ANALYSIS OF CIRCULAR ECONOMY AND ITS IMPACT
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1ANALYSIS OF CIRCULAR ECONOMY AND ITS IMPACT
Table of Contents
Task 1..............................................................................................................2
Focus on the issues of resources faced by the six companies.....................2
Task 2..............................................................................................................4
Three fundamental approaches that can be applied....................................4
Task 3..............................................................................................................5
Value dimensions and corresponding question............................................5
References.......................................................................................................8

2ANALYSIS OF CIRCULAR ECONOMY AND ITS IMPACT
Task 1
Focus on the issues of resources faced by the six companies
Tier 1 – Burberry – Burberry has taken major steps in order to reduce
the impact of its clothing on the environment and becoming a part of circular
economy concept as well. The UK based fashion organization has developed
plans in order to develop the science-based targets. The company aims at
reducing the impact of clothing products by around 95% within the year
2022. The goals of the company have been aligned with 1.5 trajectory that
was a part of the Paris Agreement. The aim of Burberry was mainly based on
the reduction of Scope 3 emissions by around 30% within the year 2030
(Burberryplc.com 2019).Tier 1 – Gap Inc. – The environment based programs that have been
developed by Gap Inc. are considered to be a major part of the steps that
have been taken by the organization based on sustainability. Gap Inc. has
gained its position as one of the front-runners in apparel industry with
respect to improvement in the usage of products. Gap has collaborated with
Cotton Inc. in order to develop the environmental efforts and increase
awareness of consumers as well. The collaborations developed by Gap have
been able to provide support to the reduction of carbon footprint that is
formed by the clothing organization. Sustainable design has been able to
play a major role in the development of the products that are offered by Gap
to the customers (Gapincsustainability.com 2019).Tier 2 – Adidas – The sports apparel based organizations like Adidas
have become highly proactive ion sustainability based aspect in the last few
years. Adidas has started sustainable fibers in order to develop the products
that are offered to the customers. Environmental metrics have become a
major part of the financial reports that are issued by the organization. The
suppliers of the firm have also aimed at reduction of waste and paper

3ANALYSIS OF CIRCULAR ECONOMY AND ITS IMPACT
consumption per employee has been reduced by around 75%. Adidas has
also aimed at the reduction of the usage of energy in proper development of
its products. This is also a major step that the organization has taken
towards increasing the sustainability levels (Adidas-group.com 2019).Tier 2 – Primark – Primark an Irish fashion retailer that is owned by
Associated British Foods or ABF has received the position of biggest fashion
retail based organization in the last few years. After the collapse of Rana
Plaza in Bangladesh, the organization has signed the Accord on Fire and
Building Safety in the country. The company had also organized many
structural surveys in Bangladesh with the aim of assessing the structural
integrity of operations (Primark.com 2019). The Ethical Trade team
developed by the country also aimed at ensuring that usage of chemicals in
the production process is reduced and labor rights are maintained as well.
The Sustainable Cotton Programme is based on the operations of Primark in
collaboration with Cotton Connect and the Self-Employed Women Association
(SEWA) (Primark.com 2019).Tier 3 – Aditya Birla Group – The sustainability vision of Aditya Birla
Group had been developed by Mr. K.M. Birla in the year 2012 and Group
Sustainability Cell of the organization. The vision had been supported in a
huge manner by the goals that have been developed by the employees of
the organization. The major priority of the organization was based on the
three steps that are a part of ABG Sustainability model in order to adjust
performance based on demands in the market (Sustainability.adityabirla.com
2019). The first step that was named as the “Responsible Stewardship” that
is mainly focused on the ways by which the company manages the
operations with the help of a framework of the policies, management
standards and the technical standards as well. Second step is based on
external changes that have taken place in the environment and their impact
on the organization. Third step is termed as “Future Proofing” in which the