It’s 2018 and gone are the days when leading companies simply retired their products in a “eco-friendly” manner. Innovative corporations are beginning to think more critically about their product design and commercialization plans with regards to the raw materials used. Now, as part of the “circular economy”, they are applying cradle-to-cradle sourcing strategies to close off material cycles. A recent comprehensive summary in Greenbiz provides ample statistics supporting this push for innovation.
The circular economy is based on a business model that favors removing waste at every stage of production and sourcing renewable or recycled raw materials. It’s focused on restoring and regenerating materials, versus the traditional depletion or linear material trajectory. With this model comes stringent reviews that audit how products are made, the material inputs, as well as the end-of-life retirement plans. However, it ensures that product ownership remains with manufacturers throughout the material’s life cycle while remaining operationally efficient.
Gone are the days when leading companies simply retired their products in a “eco-friendly” manner.
The growing adoption of the tenets of the circular economy presents an exciting opportunity for companies. Innovators are now being challenged to move beyond self-professed sustainability goals in order to capture a leadership position and market advantage. Consumers want to see that brands are living their sustainability pledges at a higher level through a cradle-to-cradle approach to product design and commercialization.
With adherents at the highest levels of innovation, expect the circular economy to become increasingly more mainstream in the coming years. Tesla is just one innovator leading the push, having recently invested $2M in Redwood Materials, a new company focused on “advanced technology and process development for materials recycling, re-manufacturing, and reuse.” On a broader front, the recently-launched Platform for Accelerating the Circular Economy seeks to help scale existing and advance new circular economy projects. With a focus on bipartisan private-public partnerships enabled through hubs around the world, the Platform will address challenges related to and establish knowledge-sharing networks about the circular economy.
Innovators are now being challenged to move beyond self-professed sustainability goals in order to capture a leadership position and market advantage.
At Match Point Strategies, our passion is collaborating with our clients to accelerate business opportunities for unique products that drive the circular economy. Learn more about Match Point Strategies and our services here.