Despite an increased focus on the circular economy, only a small portion of the world’s materials are currently being recycled back into the economy. This means that more than 90 percent of the world’s material flows are not being recycled back into the economy. At the same time, pressure is mounting on companies and organizations to make the transition.
“Many businesses are still stuck in traditional linear models, but it’s essential to think outside the box,” says Maria Edling Hansson, sustainability developer at Dalarna Science Park.
Maria is a chemical engineer and has been working on environmental and sustainability issues for more than 20 years. In her role as a sustainability developer, she meets many entrepreneurs from different industries and she knows that switching to circular strategies is not easy.
- Not everything can change overnight, so the important thing is to start. Not only for the sake of the planet and future generations, but also to meet the requirements of the authorities and to match the needs of customers," says Maria, who here helps to clarify the concepts.
Nine questions on circularity - and the expert's answers
What is meant by a circular economy?
- The circular economy is inspired by nature and can best be described as a cycle. It is about eliminating waste and pollution, keeping products and materials in use, and returning biological resources to nature in a way that rebuilds ecosystems. In such a cycle, there is really no waste, just resources in the wrong place.
The opposite is a linear economy, where goods are used and thrown away when they are used up, which is the dominant system in the world today.
Is what is circular also sustainable?
– Sometimes, but not always. A material may be reusable, yet still not sustainable—such as asbestos, which is hazardous to handle. So we also need to phase out hazardous substances from society. And if it takes a lot of energy or long-distance transport to circulate something, the climate benefits may be reduced. That’s why it’s often necessary to conduct a life cycle assessment (LCA) or climate calculation to determine whether circularity actually provides climate benefits.
What characterizes a circular economy?
- Many factors. One of them is the quality of the items produced to ensure that they can be used often and for a long time, as well as goods and materials that can be repaired, reused and recycled. It is said that the design of a product determines 80% of how it can be circulated, so it is important to think about this from the start.
Is sharing things instead of owning them also part of a circular economy?
– Absolutely! Sharing instead of owning saves resources and means fewer items need to be produced, which saves both materials and energy. This used to be common in the past, when neighbors borrowed from one another to save both money and space. Today, for example, we share cars, tools, and clothes. Sharing services are growing in many industries, but they require efficient logistics and trust to be profitable.
How good are we at circularity in Sweden?
– We can do much better! On average, we recycle only about 3 percent of materials back into the economy at the end of their useful life. Trends show that the proportion of recycled materials remains low, both nationally and globally. At the global level, this proportion has actually decreased.
Why does the circular economy need to grow?
- In the big picture, it's about the fact that we only have one globe and that we in the West live far beyond our means. Quite simply, we need to be much better at managing the Earth's resources, not least for the sake of future generations.
What can a company gain from using circular strategies?
– In the long run, a great deal. On the one hand, it’s about staying one step ahead of regulations from government agencies and the EU; on the other, it’s about reducing material and energy costs. The EU’s increased requirements for traceability, sustainability reporting, and product design mean that more companies need to adopt a circular approach, even if they don’t consider themselves industrial companies. With circular strategies, a company also becomes more resilient in the face of tariffs, material shortages, rising raw material costs, and other external factors, while also having the opportunity to strengthen its brand. This can involve business models based on return systems (take-back), product-as-a-service, repair, spare parts, or second-hand goods. Those who are also really good at communicating what they do and why definitely have significant competitive advantages.
Can all types of businesses become more circular?
- Yes, I would say so. For a manufacturing business, it is usually easier to use circular strategies and business models than it is for a service company. On the other hand, a service company can develop new solutions or new skills that allow their customers to become more circular, and we have several examples of this here in Dalarna.
My organization wants to become more circular - how do we take the first step?
- Feel free to book a digital start-up meeting with us at Dalarna Science Park, it costs nothing and we work under confidentiality. The tip is not to wait for the right opportunity or until you have come further, but do it today. We have many tools for working with circularity in our development programs and we adapt the support based on your needs. There are different ways to take the issue forward with us, or through our networks.
