Circular Economy – applying an integrated approach to value creation
At a glance
The concept of circularity is not new. From earliest history, we see evidence of humans seeking only what they need, sharing resources, maintaining and reusing tools and leveraging waste as fuel. However, over time, through global uncertainties, economic upheavals and greater consumer consumption, we find ourselves within predominantly linear economies at significant detriment to capital efficiency and the sustainability of our planet.
Successfully moving away from linear thinking requires a fundamental shift in mindset. We need to reframe how we ascribe value and challenge ourselves from the outset through regenerative design and the application of systems thinking. This is how we harness the notion of interconnectedness and interdependencies to develop innovative and inspired solutions. Our teams’ integrated multi-disciplinary environmental, engineering, design and construction services are designed to support this approach.
Capturing the value in redirected resources
Central to the circular economy discourse is the concept of closed loops, where resources and materials circulate indefinitely while maintaining quality, albeit in different forms. Initially presented by Michael Braungart and William McDonough in 2002, the loops distinguish between two materials. They are the technical (synthetic materials that do not biodegrade) and the biological (biodegradable items such as food waste and natural materials). At the core of the concept is the redirection of resources, reducing waste and minimizing inefficiencies, which can often represent significant financial value.
According to Material Economics and the Ellen MacArthur Foundation, by applying the principles of “designing out waste, keeping materials in use and regenerating farmland… across five core sectors (steel, aluminum, cement, plastic and food), annual greenhouse gas emissions could be reduced by over 9 billion tons of CO2 by 2050, equivalent to eliminating all transport emissions globally.”
We regularly assist clients in developing priority long and short-term waste management actions and prepare strategic frameworks to guide future decisions across the public and private sectors. Our comprehensive range of waste management services, from planning and design to monitoring and project management, helps our clients deliver and operate essential waste management facilities. All while returning long-term benefits to communities and the environment.
Circularity – the only way forward
Currently, there is a staggering value maintained, yet often overlooked, within systems. In 2020, the Ellen MacArthur Foundation estimated that the circular economy has the potential to generate savings of $200 billion per year, reduce greenhouse gas emissions by 25%, and create 700,000 net additional jobs by 2040. In 2022, the World Economic Forum estimated that the circular economy could yield up to $4.5 trillion in economic benefits by 2030.
Circular economy now forms part of the global, multi-stakeholder discourse. Approaches to analyzing business models through a circular lens and unpacking value within sustainable economic models are increasing in maturity and finesse. Encouragingly, the closer one looks at many existing government policies, evidence of circularity is also in use, such as the US Environmental Protection Agency sustainable materials management approach.
While the systems, drivers and data supporting environment, social and governance (ESG) continue to face increasing scrutiny, investors represent a significant stakeholder at the table. The value of global ESG funds is estimated in the $trillions and continues to grow. As the Ellen MacArthur Foundation outlined, “the question is no longer whether climate change and other ESG issues matter to the financial services sector, but how it will address them. The circular economy is a crucial part of the answer to this question.”
Strengthened by the 2021 anti-greenwash European Sustainable Finance Disclosure Regulation (SFDR) and the recent downgrading of over 1,200 ESG funds by research firm Morningstar, individuals, organizations and governments are looking for more meaningful ways to align priorities and deliverables. Across collaborative global frameworks such as the Sustainable Development Goals, circularity’s prominence is also clear, indeed, the United Nations clearly states that the “circular economy may be the only sustainable economic model for the future”.
Being part of the change
Alongside waste, another critical resource requiring a sharp diversion from the linear economy is water. UNICEF estimated that in 2021 over 1.4 billion people will be “living in areas of high or extremely high-water vulnerability.” Water demand is growing at twice the population rate. With the United Nations estimating that global water demand will increase 55% by 2050, we must calibrate how we value and manage water.
We offer a broad range of services covering feasibility studies, planning, design, project management, construction and asset management services as well as operational optimization. Our people use selective research, perform pilot trials, fine-tune existing systems and transfer technologies from other industries to improve quality and manage asset costs.
Circularity offers us opportunities to address the design flaws in our linear systems and create fundamental changes that will lead to the future we would like to see. We are all responsible and can all be agents in the change. To achieve this change, we need to educate ourselves for tangible action, ask questions and avoid assumptions. The question is, how can each of us work together to make lasting change?