Circular economy in this new age? Yes please!

Nowadays everybody speaks about net-zero economy, cleaner energy, efficiency etc. Even if not professionals in the sector, it is undeniable that the path toward sustainability transition is the energy use. According to McKinsey analysis, about 63 percent of emissions reduction potential lies in more efficient and cleaner energy. The other 37 percent of reductions require alternative approaches related to circularity. This means that there is a real need in maintaining the useful value of products and resources for as long as possible. As a consequence, high emissions manufacturing will be reduced and sustainable business models will be enhanced. Moving toward a circular economy will increase the use of recycled materials, will reduce overproduction and will change consumer behaviour. The main concepts of circular economy are related to the way the resources are managed, the products are made and used and what is done with the materials afterwards.
“Building a strong foundation for the circular economy requires coordinated action. Shifting to a circular economic model will affect all sectors and policy domains”. McKinsey Center for Business and Environment, Special Edition, October 2016, Pg8

Several industries moving from linear to circular and sustainable business models, will enhance companies to differentiate from their peers. Apparently, the sustainability approach will provide a powerful mechanism for them. The transition to a net-zero economy requires investment on low-emission assets, factoring in materials, the supply chain, customer journey etc. Agility in adapting a strategic approach, identifying areas of potential and seize the opportunity to align with the demands o f the coming decade are the main tasks of the business world.
The environment will definitely benefit from a circular economy and at the same time, it will enhance competitiveness and resilience. The future indicates that there will be emissions cuts taken seriously from everyone and everywhere. The principal sources of emission cuts would be electric, shared and autonomous vehicles; a reduction in wastage of food; regenerative and healthy food chains; passive houses; urban planning and renewable energy.

Source/McKinsey