Product design for zero waste is a key element of the circular economy's business model; “service-design-37” (CC BY 2.0) by tobiastoft

by Christine Yott on March 28, 2018

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What does the circular economy look like?
How does each part of the circular economy work?
How does the circular economy use the triple bottom line?
Image sources (in order of appearance)

What does the circular economy look like?

The circular economy uses a product's materials for as long as possible to achieve zero waste. This business model differs from the popular linear economy where consumers buy, use, and throw away products.

The linear economy looks like this:

diagram of linear economy showing straight line from extract to make to use to dispose

The circular economy looks like this:

diagram of circular economy showing closed loop of design to make to use to recycle

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How does each part of the circular economy work?

This article is the first in a new series on the circular economy. Here we discuss how the circular economy works. The video below provides a synopsis.

Design products for recycling and reuse

Product design is key to the circular economy's business model. Designers should create products that both last a long time and are reusable or recyclable. The Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) supports four circular design models.

Older woman jogging by the oceanDesigning for longevity. Consumers can use these products for as long as possible before disposal. These products must come apart easily for repair and upgrade.

Worker conducts maintenance on a machineDesigning for leasing/service. The provider keeps ownership of the product and oversees maintenance. This concept is like designing for longevity, but it would typically be for more expensive products.

Large disassembled machineDesigning for reuse in manufacture. Designers should create products that disassemble easily to allow reuse of parts in new products. Consumers must return items to the manufacturer for this design to work.

Box with packaging that is made for cardboardDesigning for material recovery. This design model applies to products meant for the consumer to toss out (such as packaging). Designers should make such products recyclable to help achieve zero waste.

Read more about these circular design models and the challenges with deploying them.

Extract natural resources

"Waste" materials in the circular economy's business model are remanufactured to be the main source of "raw" materials. Thus, products drastically reduce their use of natural resources. Product design goes into extracting as few natural resources as possible.

This change is important because the world used about 65 billion tonnes of raw material in 2010 alone. The world will grow its raw material use further to 82 billion tonnes in 2020.

Source — Ellen MacArthur Foundation report Towards the Circular Economy Volume I

Manufacture products in a sustainable way

Many factories use wasteful processes under the linear business model, as seen by the numbers below.

Manufacturing products for a circular economy means cutting back on resources such as materials, energy, and water. Some ways for manufacturing to move toward the circular economy include:

Bottle of hazardous chemicalsUsing less hazardous chemicals. Companies can help the environment and lower costs to remediate hazardous waste produced in the manufacturing process1.

Conveyor belt at a material recycling facilityOperating closed loop manufacturing. Companies can use recycled materials in their processes, which moves toward zero waste and saves money on material purchases1.

Water pouring out of an industrial factoryMinimizing, reusing, and selling water. Factories should first find ways to reduce water use. They can also evaluate ways to clean and put the water back into the system, and sell some types of sludge for other processes1.

Workers inspect chilling units at a factoryImproving chilling units to use less energy. This step saves energy and money because up to half of a plant's energy costs are from chilling units, which provide cool water for industrial processes3.

Sources

  1. California Manufacturing Technology Consulting Guide to Reducing Production Waste
  2. Ellen MacArthur Foundation report Towards the Circular Economy Volume 1
  3. ENER-G Combined Power list of ways to reduce energy use

Use consumer products for as long as possible

Repairing, repurposing, and donating are traditional ways to use a product for as long as possible. The circular economy pushes the concept further by recategorizing a consumer as a user. A consumer buys a product and is responsible for its repair. A user takes the product and the company manages its upkeep. Thus, durable products are leased or shared1.

The circular economy shifts the business model to services, as seen below2.

diagram showing how the linear economy transforms to the circular economy - consumer to user, product volume to product performance, product is disposable to product is durable, and company breaking relationships to company forming lasting consumer relationships

Sources

  1. World Economic Forum discussion on circular economy's changes to industry
  2. World Economic Forum discussion on circular economy's changes to business models

Recycle, reuse, or remanufacture consumer products at end of life

Recycling, reusing, or remanufacturing products would return their materials to the economy by1:

Product design connects strongly with each of these actions, particularly remanufacturing. For example, companies could reduce phone remanufacturing costs by half if designers made them easier to take apart2.

Sources

  1. All-Party Parliamentary Sustainable Resource Group report on remanufacturing
  2. Ellen MacArthur Foundation report Towards the Circular Economy Volume I

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How does the circular economy use the triple bottom line?

Sustainability's triple bottom line integrates social, environmental, and financial factors (also known as people, planet, and profit) to achieve a balance. Below we look at how the circular economy promotes each part of the triple bottom line. Learn more about the triple bottom line here.

People: creating jobs and giving savings to consumers

people at a table at a job fair
The circular economy creates new jobs; "Job Fair" (CC BY-NC-ND 2.0) by U.S. Army Garrison Red Cloud

The social benefits of the circular economy are:

Sources

  1. Engineering and Physical Sciences Research Council position statement on Manufacturing a Circular Economy
  2. Ellen MacArthur Foundation report Towards the Circular Economy Volume I
  3. Ellen MacArthur Foundation report Towards the Circular Economy Volume III
  4. The Telegraph article on the circular economy

Planet: achieving zero waste and saving natural resources

The world needs to start the shift from the linear to the circular economy because:

The environmental benefits of the circular economy are:

Pile of building waste from demolitionReplacement of a quarter of the natural resources used for construction by recycling construction and demolition waste1. Countries could also limit the amount of raw materials they import.

large boiler in a factoryUse of about 85% less energy through remanufacturing. Remanufacturing waste materials worldwide would save about the same amount of energy as is generated from five nuclear power plants.

smoke coming from a factoryPrevention of about 800,000 tonnes of carbon emissions annually instead of manufacturing from raw materials2. This reduction equals about 1% of emissions from cars.

Sources

  1. Engineering and Physical Sciences Research Council position statement on Manufacturing a Circular Economy
  2. All-Party Parliamentary Sustainable Resource Group report on remanufacturing

Profit: reducing costs and increasing revenue

Economic benefits of the circular economy include:

Sources

  1. Sustainable Brands article on the circular economy
  2. All-Party Parliamentary Sustainable Resource Group report on remanufacturing
  3. Ellen MacArthur Foundation report Towards the Circular Economy Volume I

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Image sources (in order of appearance)

  1. "Super-Fit Granny" (CC BY-SA 2.0) by Chris Hunkeler
  2. "Farecard Machine Maintenance" (CC BY-NC 2.0) by ep_jhu
  3. "-30-" (CC BY-NC-ND 2.0) by Nathan Walls
  4. "Efficient (and Recyclable) Packaging" (CC BY-NC 2.0) by Chris Campbell
  5. "Danger: poisonous stuff" (CC BY-SA 2.0) by Jenny Lee Silver
  6. "Factory Tour: Closed Loop Recycling" (CC BY-NC-ND 2.0) by Institute of Making
  7. "Water flowing at a waste water treatment facility" (CC BY-NC-ND 2.0) by World Bank Photo Collection
  8. "Pueblo Chemical Agent-Destruction Pilot Plant Chiller Pump" (CC BY 2.0) by PEO ACWA
  9. "Demolition waste" (CC BY-SA 2.0) by LHOON
  10. "Big Green Boiler Machine" (CC BY 2.0) by darkday
  11. "Air Pollution in the United States" (CC BY-NC-ND 2.0) by United Nations Photo

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