Pushing the Earth’s limits
The nine planetary boundaries (1) are thresholds within which humanity can survive and continue to develop and thrive in the future. Companies, societies, and we all as consumers are contributing to the crossing of these boundaries at an alarming pace. Our current way of living uses 60% more resources than the earth can provide (2). Approximately 50% of the global greenhouse gas (GHG) emissions come from the production of materials - the extraction and processing of natural resources (3).
Our actions have led to an unprecedented environmental crisis, and the effects on our climate and biodiversity can be witnessed in our everyday lives. At the same time, we are facing vast geopolitical (and democratic) insecurity, an energy crisis and are still recovering from the global pandemic that introduced us to wide supply chain disruptions.
When would we be forced to drive the change and innovations forward if not now?
To get something positive out of the current situation, we can consider this a unique opportunity to put our priorities in place. During the pandemic, we could witness extensive changes in behavior, an adaptation to a new normal, and impressive medical advancements. Let’s take the current global situation as a possibility to speed up the action towards a circular and low-carbon world. When would we be forced to drive the change and innovations forward if not now?
Circularity is a necessary means to a low-carbon world
We at Combient Pure have been happy to witness the accelerated pace of Combient companies committing to Science Based Targets during the past year. These companies are committing to the 1,5 C warming pathway and setting ambitious emission reduction goals for their operations. To meet these goals, core questions like which resources to use, how to transform the business models into more sustainable ones, how to create sustainable value for customers, the company, and society, and with whom to collaborate – need to be answered.
Circular economy is a significant lever for companies to meet their climate targets while preparing the company for the future. According to the Circularity Gap report (2022), circular economy can cut global greenhouse gas emissions by 39% (4).
According to the Circularity Gap report (2022), circular economy can cut global greenhouse gas emissions by 39%.
Circular economy offers an opportunity to break the traditional link between virgin material consumption, production volumes and business value. It is an opportunity to shift the business into models where materials and products retain their value and waste, as such, is not generated. To simplify, producing new materials and goods result in carbon emissions. The circular economy minimizes the need to produce new materials and products by reusing existing resources.
And the business potential?
For businesses, circular economy offers $4.5 trillion worth of economic opportunity by speeding up innovation, reducing waste and creating employment opportunities (5). For instance, Neste’s strategic decision to enter the renewable product business covered nearly 92% of Neste’s comparable operating profit in 2021, while the fossil oil products covered only about 5,3% (6).
For businesses, circular economy offers $4.5 trillion worth of economic opportunity by speeding up innovation, reducing waste and creating employment opportunities
To seize this business opportunity, long-term commitments and heavy investments are needed. We must consider the circular transformation as a marathon instead of a sprint, and keep the long-term vision clear throughout the journey.
Let’s do this together!
To make companies, their products and services circular, multiple members of the value chain need to be involved. We at Pure offer multi-company collaboration orchestration to accelerate the circular transition.
Whether your organization is still pondering where to start, or you have a precise topic to work with in mind, we can help you involve key value chain players and drive the change with you. Bye bye linear, welcome circular!
Creating impactful change and speeding up transformation is in the DNA of the Combient Group. We at Combient Pure drive transformation towards a low-carbon and circular future.
