The current world population has exceeded
seven billion. Such a number of people poses two to three times more than the
sustainable level would be. The population is expected to grow to ten billion
by the end of the century, yet the size of the planet Earth remains the same.
(World Population Balance 2014.) As a consequence of a rapidly growing
population, the demand for products and natural resources increases and,
therefore, the gross domestic product (GDP) per capita as well (Towards the
Circular Economy Vol 1 2012). The global natural resources will soon ‘go
bankrupt’. This will and already has an impact on the world’s economy. Nowadays
our economy of today use circular economy in order to satisfy the need of the
current growing population.
Circular economy is industrial term which
indicates recycling instead of production, use and destruction. Circular
economies offer better value to the customer and society, reducing costs and
protecting resources. Briefly, circular economy is to use less natural
resources and gain economic profit. In fact, circular economy is opposite of linear
economy. In linear economy everything produced from scratch however in circular
economy recycling is essential. In this process, main goal is to recycle waste
materials to economy. Products are designed and optimised for disassembly and
reuse. Biological material can be safely returned to the soil.
According to World Economic Forum shifting to
circular economy will be US$1 trillion a year by 2025 and also Accenture has
informed like a shift could cause an additional US$4.5 trillion in growth by 2030.
Many organizations are already trying to implement
to circular strategies. Examples electrical goods provider Philips, waste
manager Veolia (see box) and carpet manufacturer Interface. Even cities, such
as Phoenix in the US, are getting recognition for their work in building
circular strategies, targeting, for example, 40% waste reduction through a
range of regenerative strategies. ( accaglobal, AB
magazine 01 November 2016 the circular economy – a revolutionary model)
However, circular economy is not just for
environmentally sectors. According to Colin Tetreault who is senior scholar at
the Global Institute of Sustainability at Arizona State University, all types
of organizations are interesting to this innovative model. They are
increasingly implementing that this model (circular economies) ensure the best
value to the customer and society, while decreasing costs and saving resources.
They can also enlarge financial constancy by managing risks.