The business models of circular economy Circular economy is the business of the future Circular economic entrepreneurship creates modes of action in which the materials used and the value bound to them remain in circulation for as long as possible. The designs of products and services is based on life cycle thinking, in which waste and loss is either eliminated or minimized. In the future, earning models in business are predicted to be based more and more on circular economy and dematerialization. Future trends include moving from products to services, utilizing technology in optimization, as well as distribution economy.* The businesses in question are not a marginal segment. According to Sitra's estimate, carbon neutrality will create a market worth 6,000 billion euros for green solutions by 2050. Source: https://media.sitra.fi/2016/05/19132907/2018-01-12-sitra-hiilineutraalissa-bisneksessa-on-tulevaisuus.pdf
BUSINESS OPERATING MODELS OF CIRCULAR ECONOMY Sitra has sorted the business operating models of circular economy thusly: • • • • •
Product as a service Renewability Extending a product's life cycle Distribution platforms Recycling and resource efficiency
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