Extent of Circular Economy as a Solution to the Ecological Crisis

This essay provides an insight about the usefulness of circular economy for meeting up with the ecological crisis that the world is currently facing. It covers different examples and theories in relation to it and the how it has been adopted by the businesses. This will provide a new perspective in way the things were considered and carried out earlier and how innovation and creativity has brought changes to it and met with the environmental challenges.

Discuss the extent to which the
circular economy is a solution to
the ecological crisis?

TABLE OF CONTENTS
REFERENCES.........................................................................................................................10

Circular economy (CE) is basically the economic model which has been developed
with the purpose of maximising the usage of the raw material which has been extracted from
the natural environment. The main objective of this model is to bring sustainable
development which can be done by bringing disruptive changes in the manner the business
organization and the societies has been organized (Smol, Adam and Preisner, 2020). It is
working on various principle each having its own benefits. This essay provides an insight
about the usefulness of circular economy for meeting up with the ecological crisis that the
world is currently facing. It covers different examples and theories in relation to it and the
how it has been adopted by the businesses. This will provide a new perspective in way the
things were considered and carried out earlier and how innovation and creativity has brought
changes to it and met with the environmental challenges.
The most harmful element to the environment is the use of plastic consumption and
dealing with this issue is the biggest challenge of all the economies. In simple words, the
process of take, make and the dispose economy. People take it from the natural resources
being available, produce things or products and then dispose them in the landfills or
elsewhere after use. This business organization in which entities operates has led to creating a
vast environmental impact as a consequence (Moktadir and et.al, 2020). The mass
consumption, burning of the fossil fuels, developing the urban environment and the increased
ownership and usefulness of the cars has not only influenced the natural environment and the
world as a whole but also eroded the quality of life.
The circular economy is based on the belief that the it is result into achieving
sustainability without having any impact over the profitability of the business organization or
in terms of decreasing the number of items being available. The circular economy model is
based on the various types of theories, two of which is discussed underneath.
Cradle to Cradle design philosophy:
This cradle to cradle was delineated by McDonough & Braungart which suggests that
industry needs another standard which can undoubtedly addresses the issues as per over-use
and waste. This theory can be suggested as the structure and the production of the things in
such a manner, that at the completion of the items it can be reused, recycled and can be
reduced (Drabe and Herstatt, 2016). It is intended for changing the mechanical material
streams. It likewise targets upgrading the value and efficiency of the assets so as to have a
positive natural impact. Its reason is that there are 2 sorts of materials that can be improved

with the help of viable organizing, creation strategies and the gracefully chain, which are,
named as the natural and the specialized materials. The normal material is biodegradable and
can be returned to the earth after use yet the particular materials are somewhat tough material
which can be reprocessed. Aside from this, the major standards for such way of thinking is
the utilization of sustainable sources of energy. Along these lines, all the items become
manageable in light of the fact that nothing turns into a leftover and can be used once more.
The blue economy Theory:
This theory is also related to this concept which depends on the idea that tends to
address the sustainability and effectiveness in organizations. In this theory, innovation and
development is considered as its most significant piece (Desing and et.al, 2020). It gives
direction to the organizations in the direction of changing the practices. For instance, the
unused product of one item can be utilized as a contribution for some another product
procedure which will assists organizations in producing income.
The increasing environmental impact has resulted into the arising out of the question
of the human survival by 2050. Fortunately, there is a solution for dealing with such situation.
Application of circular economy is the only way out and is also the key to the sustainable
development leading to effectively facing the ecological crisis. This model will help in
ensuring that each biodegradable product can be reused, recycled or recast to the maximum
possible extent. It has the potential to minimize the greenhouse emission of gases, ensuring
optimum agricultural productivity and reducing the negative influence brought by the linear
model. It is based on certain principles which defines how the circular economy works. The
first principle is energy and resources are gold, it is based on the assumption that there is no
such things like waste. In this, product is being designed till last and is optimized and reuse it
that makes it easy to handle or renew them. The ultimate goal is to preserve and improve the
natural capacity by balancing the renewable sources of resource flows. Second principle is to
follow the nature’s cycles and designs. The consumption majorly happens in the biological
cycles in which the biologically-based materials are designed (Minunno and et.al, 2020).
These cycles are then regenerating the living things which includes soil or oceans which
assist in providing the renewable sources of energy. The technical cycles recover, reuse and
restore the products components and the materials with the help of various strategies like
remanufacture, reuse and so forth. Thus, it meets the purpose of circular economy by
optimizing the resource yields by making use of the items at the highest utility. The last

principle is associated with the fact that the energy which is required to exercise this cycle is
required to be renewable in nature with the objective of reducing the dependence on the
resources and rising the system resilience, thus, resulting into developing the out negative
externalities.
Benefits of the circular economy model
After the industrial resolution, humankind has been utilizing a straight model of
production and usage. The raw materials have been changed into products that are sometime
later sold, used and changed into waste that has been commonly unwittingly discarded and
directed. On the opposite, the roundabout economy is a mechanical model that is regenerative
by point and plan and intends to improve resources' presentation and fight the unsteadiness
that ecological change may bring to associations. It has benefits that are operational and key
and gets an immense potential for regard creation inside the traditionalist, business,
characteristic and social spheres (Lieder and Rashid, 2016). The circular economy will be
helpful in using the renewable sources of energy that will be beneficial for the businesses in
the long run as it is less polluting than the fossil fuels. With the approach of reusing or
dematerialization, the less material and the manufacturing procedures were required in order
to provide good and other functional items. In this model, residual part is also considered
valuable and thus, they are reused as much as possible so that it can be reused in the
manufacturing process. The preferred choices will be considered which mainly include
energy efficient, less harmful materials and processes will be selected.
Another important benefit is that it helps in ensuring that the essential element or the
nutrients have been returned back to the nature with the help of the processes such as
anaerobic or composting which softens the exploitation of the natural resources so that the
soil becomes healthier and the even more resilient. Soil degradation costs an expected US$40
billion every year around the world, and has certain types of hidden costs, for example, the
expansion of compost use, loss of biodiversity and loss of exceptional scenes – a circular
economy could end up being extremely valuable for both the soil and the economy as a
whole. It is fundamental to decouple money related and financial advancement from resource
usage. The extension in wages from the new roundabout activities, alongside a more
affordable assembling measure by getting things and materials more helpful and adequately
destroyed and reused, can fabricate GDP and thus consequently the economic growth.

On the seeing the benefits of the circular economy, many companies started working
on finding the innovative and collaborating ways of practices. In the year 2014, Dell came
out as the 1st electronic manufacturing company to make use of “UL Environment-certified,
closed-loop recycled plastics” in its computers. By doing this and the reusing the plastics
which is already being putted in use, Dell has been benefited in cutting down on its e-waste
which also resulted into saving resources and the reduction in the carbon emission with
around 11 per cent. Also, later on in the same year, Walmart along with other companies like
Coca-Cola, Keurig Green Mountain, Goldman Sachs and many more, all together launched
the closed loop fund which involves the investment of $100 million, 5-year venture for the
expansion of recycling structure in the towns all across the U.S. With this, corporations are
expecting the higher return in multi-dimensional along with the maximizing the efficiencies
along with decreasing the environmental footprint (Geissdoerfer and et.al, 2017). Another
useful example of the usage and benefits of the circular economy is in the month of June
adidas unveiled entered into the collaboration with the oceans group known as the Parley for
the Oceans. Through this, it developed the running shoes which is made up of the upcycled
ocean plastic. In the similar way, ECONYL – nylon yarn is being developed by reclaiming
the fishing net which is converted into anything and everything, ranging from the socks to the
wetsuits, carpets to the men’s apparels in the name of Kelly Slater.
The circular economy has also started the new trend and has made a shift to the sales
to service by changing the consumers to the users through the way of offering maintenance
and other services as value proposition. An example of this shift is, in the 2013, Philips
turned into a vital accomplice of the MacArthur Foundation and propelled a 2-year CE
venture intend to install the idea into its tasks, expanding on the Philips Healthcare repair
corporate and the reusing doings from its Lifestyle organizations. Philips says installing a CE
idea guarantees extra financial worth creation potential for its value chains (Bruel and et.al,
2019). More associations are arranging things to last (and ensuring that they do) while
encouraging purchasers to think about them: Swedish brand Nudie Jeans will fix worn-and-
torn jeans in vain; Holland's Mud Jeans leases, rather than sells, theirs – and reuses all pieces
of clothing into new ones at their completion of life; and not only do San Francisco-based
Timbuk2's sacks have a lifetime ensure, the association's Life Cycle program engages
customers to diminish, reuse, fix, and reuse or even rethink their packs around the completion
of its genuine valuable life.
Understanding the implication of circular economy with an example

Schneider Electric (SE) is a French organization which is working in the domain of
energy managing. It gives energy and other valuable solutions for the purpose of enhancing
the productivity and environmental well being. It has joined the world's driving innovations,
programming and administrations so as to give answers for homes, server farms,
organizations and businesses. It has the yearly income of over $10 bn and is headquartered in
the France.
The CE is the focal piece of everything of Schneider Electric which encourages it in
bringing down the expense of responsibility for clients, saves the regular and essential assets
for future and makes employments and new income for the organization. So as to accomplish
the most extreme estimation of products and the assets over the life expectancy, it has gone
past 3Rs and is utilizing 5Rs which incorporates fix, reuse, reuse, renovate and
remanufacture. On the basis of the characteristics of the CE, the performance of the
Schneider Electric can be evaluated.
Schneider Electric is focused on multiplying the amount of plastics reused by 2025
under both post industrial and consumer which will be estimated dependent on the 2017
pattern. Before the finish of 2019, it likewise focused to accomplish 22% of the 2025
objective. The associations have teamed up with its key suppliers with the interest to propose
other reused choices as a condition so as to remain the key provider of the association (2019
circular economy highlights. 2019). Schneider Electric has gone into partnership alongside
the value chain through expert leagues. Its significant goal is to distinguish post buyer
sourcing with the goal that important activity plan can be set up so as to empower circular
economy. The association is working with the CEN CENELEC with the end goal of
normalization of works and furthermore EN45557 which is the technique of evaluating the
extent of the reused content regarding the energy associated content. It has additionally made
the its own inside information storehouse with the reason for motivation and imparting best
practices on circular materials to regard to the plastic center items and bundling. It has
likewise given circular material playbook to its workers and the key offices, for example,
advertising, innovative work and procurement division. These groups are effectively utilizing
it with the push to move the correct way as per the 2025 objective set by it for multiplying the
reused plastic amount. It has likewise focused on building up a creative arrangement, for
example, small Circuit Breakers along with BASF's from compound reusing post buyer reuse
assets.

There are additional duties made by the affiliation which incorporates for transport
pressing it has pointed of using 100 per cent cardboard alongside pallets from reused and
guaranteed sources before the finish of the year 2020. The point or focus is that the cardboard
purchased by Schneider Electric for transportation motivation to be extended to 100% reused
materials and it has recently achieved 88% of the goal. It has similarly intended to get
extraordinary plastic that will be reused artificially for its electrical things. Plastic Energy has
gone into an agree to create the plants with the overall capacity to measure around 20 to 25
thousand tons of plastic for consistently. SE alongside iron mountain, which is top in the
storage and the data administrations, is an individual from RE100 activity with the duty to
utilize 100% sustainable sources of power by the end of the year 2050 (Schneider
Sustainability Impact. 2020). The association has likewise executed the Green Premium
program which guarantees to give and convey natural offer to its clients and it gives
transparency to its clients in regard to the content of the item materials. This program
additionally includes 360 degree ecological data which incorporates carbon impression
information. This program likewise conforms to pertinent guidelines, for example, REACH,
RoHS, Prop 65 and so on. Aside from this, it additionally offers end of life the executive’s
choice which supports in upgrading the recyclability.
SE has likewise been granted for CE Multinational. It has provided employment in
excess of 142,000 individuals around the world. It has widely utilizing recyclable materials in
its items and furthermore draws out the item life expectancy by utilizing the methodology of
renting and pay per use (Global-Commitment-2019-Progress-Report. 2019). SE has
actualized take-back option in its long supply chain procedure. The absolute circular
exercises attempted by it represents 12 per cent of its income which will assist it in sparing
100 thousand tons of regular and essential assets within the year ended 2018-2020.
Along these lines, it tends to be said that SE has been exceptionally dynamic in
actualizing CE in its framework and furthermore making important strides so as to consent
and stick to it. It has been set apart in the main 11 organizations who are driving approaches
to a circular economy. It has effectively followed all the 6 qualities which is laid by the
NPEGC. SE company has recognized the huge measure of speculation and endeavors
essential for pointing better ecological and financial outcome.
Studies have shown that the CE is the path to the growth of the economies just like
Schneider Electric many other organizations have taken active part in the sustainable

development and reducing the negative impact it has over the economy. A few new
businesses have risen that are beginning to give options in contrast to the current non-
biodegradable things to make the economy more circular in its nature. A startup name Tipa
which is an Israeli startup has made an adaptable bundling material with the specialized
properties of ordinary plastic, however 100 per cent compostable. Algopack, a French
organization, is transforming seaweed into furniture, without utilizing oil, pesticides or
manures or other chemical elements. Apart from the start ups the countries are also moving
towards the circular economy. China is the 1st of the economy for legislating on adopting the
CE in the year 2016.
Therefore, by looking at the concept, benefits and the usefulness it is having
highlights that currently, it is much more effective and reliable approach to be used by the
business organization in order to effectively meet up with the ecological crisis which is being
faced by the businesses and the societies as whole.
It can be concluded from the analysis that the circular economy is the major
contributor to the sustainable and environmental growth of the economies, businesses and the
humanity. It requires formulation and designing of the effective plans which in itself should
be sustainable enough and for the future. The model will completely change the way in which
the people and the society looks at the economic approach. There might be certain barriers in
the beginning but the various benefits of it overrule it and it offers along with the principles
and the theories it has based upon also makes its attracting and interesting thing for the
businesses to look for. Even the individuals can look for some ways in which they can make
use of this method after consuming the product. Any doubt about it whether it will be of any
advantage to the business or the environment can be easily reviewed by looking at the set of
examples given along the detailed steps being taken by Schneider Electric. Thus, circular
economy is the most effective way of meeting with the sustainable development objective
and facing the environmental problems in an effective manner leading to better and improved
outcomes.

REFERENCES
Books and Journals
Bruel, A. and et.al, 2019. Linking industrial ecology and ecological economics: A theoretical
and empirical foundation for the circular economy. Journal of Industrial
Ecology. 23(1). pp.12-21.
Desing, H. and et.al, 2020. A Circular Economy within the planetary boundaries: towards a
resource-based, systemic approach. Resources, Conservation and Recycling. 155.
p.104673.
Drabe, V. and Herstatt, C., 2016, July. Why and how companies implement circular economy
concepts–The case of cradle to cradle innovations. In R&D Management Conference
from Science to Society–Innovation and Value Creation (pp. 3-6).
Geissdoerfer, M. and et.al, 2017. The Circular Economy–A new sustainability
paradigm?. Journal of cleaner production. 143. pp.757-768.
Lieder, M. and Rashid, A., 2016. Towards circular economy implementation: a
comprehensive review in context of manufacturing industry. Journal of cleaner
production. 115. pp.36-51.
Minunno, R. and et.al, 2020. Exploring environmental benefits of reuse and recycle practices:
A circular economy case study of a modular building. Resources, Conservation and
Recycling. 160. p.104855.
Moktadir, M. A. and et.al, 2020. Critical success factors for a circular economy: Implications
for business strategy and the environment. Business Strategy and the Environment.
Smol, M., Adam, C. and Preisner, M., 2020. Circular economy model framework in the
European water and wastewater sector. Journal of Material Cycles and Waste
Management. pp.1-16.
Online
Schneider Sustainability Impact. 2020. [Online]. Available Through:<
https://sdreport.se.com/en/introduction-our-impact >.
Global-Commitment-2019-Progress-Report. 2019. [Online]. Available Through:<
https://www.newplasticseconomy.org/assets/doc/Global-Commitment-2019-
Progress-Report.pdf >.
2019 circular economy highlights. 2019. [Online]. Available through:<
https://sdreport.se.com/en/circular-economy-highlights >.