Ward’s Words

The circular economy

Could the principles of the circular economy help your business? Sarah Ward, CEO of the Giftware Association, investigates how they are used in other industries

No doubt you have heard of the circular economy, but what exactly does this phrase mean?

It’s defined by the Ellen MacArthur Foundation as an economy ‘based on the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems’.

This is far more than just eliminating single-use plastic, avoiding ‘fast’ fashion that results in clothes going to landfill, and reducing your carbon footprint - circular principles bring new thinking to business models and customer behaviour.

Design principles

“Circular economy principles that aim to design out waste and pollution from processes, keep products and materials in use, and regenerate natural systems are being applied in diverse industries with positive results for both marketing Circular economy principles that and profits’’ aim to design out waste and pollution from processes, keep products and materials in use, and regenerate natural systems are being applied in diverse industries - with positive results for both marketing and profits.

The jewellery industry, for example, buys and recycles precious metals and stones

Leading by example

Other industries whose raw materials have been less valued are following this lead, for example:

• Products marketed as being made in part or whole from recycled fabrics, plastics or ceramic are growing in popularity especially at the higher price points, and are commanding higher prices. • Reuse of plastic bottles is made more effective by designing all bottles in a range to be the same shape so that they can be cleaned and relabelled for refilling, which is more efficient than recycling as they remain in use. They are collected in reverse vending machines, which give refunds or tokens. • Farming practices for food and textiles are going beyond organic to avoid monocultures, and regenerate natural soil systems, water courses and habitats. • BTAA (British Travelgoods, Handbags & Accessories Association) member Shona Easton designs small items using the offcuts from leather and fabric handbags, saving waste and generating sales. • Fast-fashion retailers reduce waste with smaller product runs to avoid excess stock being sent to landfill or sold at a discount, and in doing so, also increase profit. • Designing products to be modular so that parts which fail or can be upgraded are easily swapped is a circular concept that is being adopted in a variety of industries. For example, one headphones brand has designed its products to be modular, and customers rent rather than buy them. Upgrades or repairs are achieved by returning them for replacement, and parts can be refurbished and reused or exchanged for upgraded versions. • The motor industry is refurbishing used engine parts, which are then indistinguishable from new ones. • Alternatives to petroleum-based plastic derived from abundant biomaterials, including unavoidable food waste, are becoming more widely available, particularly for packaging. • The government plans to bring in ‘right to repair’ legislation this summer to keep domestic electrical goods in use for longer. This principle is likely to be applied to other products in future.

and has effective waste reduction processes because of the materials’ value. Processes are established to supply reliable information for purchasers on the origin of raw materials to avoid supporting bad mining practices, which cause pollution or social problems. Customers see purchases as long-term investments that can be remodelled or ‘returned’ by selling them as secondhand or as scrap.

International charity

Sarah Ward is chief executive of the Giftware Association, which is at the heart of the gift industry supporting members by offering invaluable advice and assistance. Coming originally from a retail background, she then worked at Penny Kennedy gaining extensive knowledge in the card, wrap and stationery sector, and now uses these skills across a broader environment.

Tel: 0121 236 2657 Web: www.ga-uk.org

The Ellen MacArthur Foundation is an international charity working to research, publicise and support the circular economy. You can see more examples online at www.ellenmacarthurfoundation.org/ circular-economy/what-is-the-circulareconomy