Abstract
The mission of this chapter is to reinforce the need of implementing circularity within any type of economy, especially within the supply chain industry, the reconstructive methods that can be used to design a regenerative pathway, and the change in accountability that has to take place. The final outcome of the chapter will be perfecting an applicable roadmap to distinctive business models. The chapter will also clarify the link needed to be developed between all involved stakeholders, and will look into how each performing actor has to model itself and its own thinking towards a cycle view of societal and business welfare. Each block of the newly created roadmaps represented a step in acquiring total circularity, a full cycle of renewal and regeneration of what used to be called “waste”. Is about the actions taken, the processing, logistics, procurements, consumption changes, and continuance. Each mile of the roadmap has to be considered and rethought in such a way that circularity is attained.
TopBackground
Everything starts by looking at the main goal of the circular economy, which is to move all operations from the usual necessity level to making circularity becoming a default option (Stahel, 2019). The circular economy concept has emerged from the need of finding solutions to the overuse of natural resources and from the imperative need of extending the liability over the point of sale. Economies have always struggled to make ends meet, to balance the speed of recovery of natural capital with the societal behavior changes and the constant desired financial outcome. It can be resumed to find an equilibrium between the quantitative and the qualitative world. One must keep in mind that a circular economy requires transparency, trust, and transition support. In any considered industry, attaining it involves a re-creation of functionality and a re-writing of economic pathways.
Designing a roadmap that can be followed in the attempt of moving towards this improved direction and ultimately to a well-implemented circularity, requires advanced solutions and a well-thought progression line. Can any economy start and perform without generating any waste? Can the cycle start and close within the same business model? These aspects will be analyzed, and the solutions will be used for creating the strategic roadmap that closes the circularity loop. To the usual components of “what”, “when” and “where”, this paper will add a re-designing of “how”. The roadmap component details will still maintain their importance, but the ultimate goal is to have an as low as possible environmental impact.
The authors are performing a qualitative analysis of Finland’s roadmap to circularity to distinguish its boundaries and applicability for certain countries and industry sectors. As good as it is underlined, the framework needs adjustments to fit the everchanging economies worldwide. But how can the flow of value be kept constant? How does the utility of components continue over the consumption point? Solutions offered by the circular economy involve concepts such as decoupling, promotion of service-life extensions, alternative biodegradable solutions, maximizing the sustainability of stocks (be human, natural, or financial), and so on. (Corona et. al, 2019)
Key Terms in this Chapter
Obsolescence: A process of becoming outdated, no longer needed, as newer and better versions are being launched.
Overconsumption: Extreme usage of resources up to the point where they exceeded the rate at which the resources are being replenished.
Stocks Sustainability: Capital allocation that enables financial returns without impacting the environment or societies.
Circularity Loop: Putting resources back into the economic cycle through R-activities (reuse, recycling, etc.) or D-activities (decomposing, de-combining products to their original components and putting them back into a creation at the same value as if new).
Circular Economy: A type of economy focused on reduction and prevention of waste, but also on the reduction of resource overconsumption.
Economic Decoupling: Disconnection of economic growth from the pressure put on the environment, allowing financial growth without impacting the natural surroundings.
Social and Business Welfare: A state of development that considers society’s well-being, while allowing financial growth for companies.
Resilience: Power of adaptation to swift changes in the environment.
Product Life Extension: A process of extending the utilization rate of a resource to the maximum possible.
Sustainability: Maintaining the level of resources at a constant level and improving their level for the next generations by approaching the impact that societies and businesses have on them.
Stakeholder: A party who has an interest in the subject or is impacted by the decisions of the subject.