Traditionally, economies have operated on a ‘take, make, dispose’ model which has come to be known as a linear economy. While this had its benefits initially, such as the mass production of goods, the model has many negative effects stemming from the creation of non-recycled waste. This has included environmental damage, impacts to human life, and resource mismanagement.
Recent official UK statistics on waste estimate that businesses are responsible for producing around 40 million tonnes of commercial and industrial (C&I) waste each year. This represents a significant portion of the 191.2 million tonnes of total waste generated by the UK the same year, 85% of which came from England.
Embracing the circular economy is an effective way for businesses to not only reduce the amount of waste that enters landfills, but also save on costs in the process. In this post, we explain the key features of a circular economy compared to a linear model, as well as looking at the many possible benefits for businesses.
What is a circular economy?
A circular economy is a model of consumption and production, typically involving sharing, reusing, recycling, refurbishing, leasing, and repairing. This is done with the goal of extending the life cycle of materials and products. As a result of a circular approach, waste production can be reduced and businesses can generate repeat value.
The concept and implementation of a circular economy is a hot topic on the international stage as many countries try to reduce emissions. In April 2024, the EU and China signed a Memorandum of Understanding on the circular economy. This was an agreement to further collaboration following the previous Memorandum of Understanding on Circular Economy Co-operation signed in 2018.
The core principles of a circular economy include keeping materials in use for as long as possible, reducing the consumption of natural resources, and protecting the environment. The circular economy strategy summary from the UK government cites waste governance and smart waste management as some of the key strategies. Additionally, they highlight that the creation of a more circular economy requires an investment in repair and remanufacturing workshops, as well as logistics and storage infrastructure.
Circular vs linear economy
In a linear economy, resources are extracted to make products that eventually become waste in one form or another. While this is similar to the circular model in its consumption of resources and creation of consumer products, the linear economy doesn’t contain any measures for reusing and recycling. Instead, a majority of the products created by a linear economy become waste at the end of their lifespans. This model functions most productively when there is an abundance of cheap and readily accessible resources.
A circular economy operates with far greater efficiency. Products are designed with a longer life cycle in mind, with the intent from the outset being towards repair and regeneration of resources. The circular economy is also more concerned with limiting resource consumption during production processes. These sustainable practices can therefore involve limiting energy use and the consumption of polluting materials, alongside an effective commercial waste recycling strategy.
Some of the main forms of waste produced by businesses include cardboard, metal, and glass, all of which can be recycled. However, at the time of writing, many don’t utilise the proper waste recycling services to make this an efficient practice.
The environmental impact of commercial waste
Unfortunately, landfills are still a common destination for business waste produced in the UK. At the last revision it was estimated that around 65% of packaging waste created in the UK gets recycled. While this is a step up from one or two decades earlier, there is still work to be done. Certain types of waste produced by businesses contain potentially harmful materials which can have negative implications for surrounding areas. This is especially relevant for electronic waste, which often contains hazardous materials like lead.
Medium and large size businesses can lead the way in curbing the environmental impact of waste through reuse and proper disposal methods. Below are the ways that poorly disposed commercial waste impacts the environment.
Toxic materials
Many commercial waste products contain toxic substances. Without proper waste management in place, discarded electronics devices can damage surrounding natural environments as the chemicals leach into the soil and water.
Commercial waste removal is therefore necessary to protect surrounding environments. Over long periods of time, entire ecosystems are affected by the dumping of waste. This contamination can also affect crops, which then pass pollutants down the food chain to animals and humans.
Negative effects on air quality
Ineffective disposal methods for business waste, such as melting or forceful dismantling, often lead to particulates entering an ecosystem. Burning toxic chemicals is a common contributing factor in chronic diseases and cancers.
Not only does the release of airborne pollutants risk the health of those handling commercial waste, it can also travel distances easily to affect large areas. As such, industrial businesses outside of cities can still impact air quality through fumes.
Health impacts of commercial waste
Many businesses operate using a framework powered by electrical systems and electronic devices. As such, these businesses often produce e-waste incidentally throughout their lifetimes.
Any toxic pollutants released into the environment due to e-waste and other forms of business waste can come back to impact humans. Children and pregnant women are the most vulnerable, with research by the World Health Organisation finding that e-waste can risk exposure to neurotoxicants which can disrupt central nervous system development, as well as lung function.
Real world circular economy examples
The creation of a widespread circular economy isn’t hard to imagine because there are many different examples of circular principles being put into practice. This includes:
- Denmark achieved a 93% return rate on disposable packaging in 2021 through their Dansk Retursystem deposit and return system for recyclable cans and bottles.
- The City of Toronto created and utilised a Circular Economy Procurement Implementation Plan and Framework with the goal of becoming a zero waste city.
- Patagonia continues to promote circular practices through their Worn Wear program, encouraging customers to recycle and repair their clothes.
- IKEA’s circular agenda includes using renewable and recyclable materials, as well as offering a Take-Back programme to repurpose their used furniture.
How the circular economy can benefit businesses
As time goes on, more and more businesses are recognising the benefits that come with incorporating circular practices into day-to-day operations. The main circular economy benefits for business operations include:
- Minimise risk – circular practices reduce your reliance on scarce/high demand resources which are more likely to experience volatile price changes.
- Encourages innovation – redesigning existing products to be reused, repurposed, and remanufactured can lead to greater efficiency and untapped savings.
- New market opportunities – switching to circular priorities, whether it means creating new products and services or reevaluating pre existing ones, can open the door to new revenue streams.
- Stronger relationships – the circular economy is something that many consumers and suppliers feel strongly about. As such, if your business can demonstrate its commitment to sustainable practices, it may generate appeal for your products and services.
- Facilitate collaboration – often, businesses and organisations will work together to create a circular economy that benefits all parties.
- Shorter supply chains – a circular model often means a greater reliance on local suppliers and businesses. This reduces the need for long and complex supply chains which usually cause costs to rise.
For businesses, the circular model serves as a way to increase operational efficiency, thereby saving money while reducing waste output and environmental impact. Depending on the nature of your business activities, you may produce more waste more regularly. In the UK, according to Statista data, 64% of waste is generated yearly by Construction, Demolition & Excavation (CD&E) activities.
Identifying sources of waste
Commercial waste is defined as any and all forms of waste produced by a business, including food, food packaging, damaged products, and much more. When it comes to making a business operation more circular, the first step is to identify the areas within the current model that are creating the most waste. Below are some of the common examples of commercial waste and where it comes from:
- Office waste. Offices produce a significant amount of commercial waste in various forms. This includes paper, plastic, food, and different kinds of packaging materials. A large proportion of this waste will likely be recyclable, so it’s important that businesses have measures in place.
- Packaging. A large source of business waste is packaging, as most of it is discarded after the product has been delivered. Packaging waste can consist of polystyrene, wood, cardboard, paper, and metals, depending on what is being transported.
- Manufacturing. Business manufacturing processes are rarely waste-free. At the bare minimum, some energy and labour will be involved in creating the products. Typically though, manufacturing waste comes in the form of material offcuts and other resources consumed by the process.
- Electronics. Being used across almost all businesses in all sectors, electronics like computers, phones, appliances, and displays contain hazardous materials which must be disposed of appropriately.
- Hazardous waste. It’s important that businesses check whether or not their waste contains chemicals which could be hazardous. This could be batteries, certain oils, solvents, and other forms of hazardous liquid waste.
- Construction waste. Changes to the internal or external structure of the premises will likely produce waste. For instance, small jobs involving paint, sealants, or adhesives.
Examples of circular business models
- Recovering valuable resources. In a linear economy, many kinds of valuable materials get lost when they are disposed of. Offering a collection service for old and disused products can allow businesses to reclaim some of the resources used in their production.
- Circular supply chains. Businesses should seek to establish an infrastructure based on entirely recyclable/renewable inputs, rather than single-use ones.
- Innovation to extend product lifespans. Businesses can extend the lifespan of their products through many ways, such as offering repair, resale, or upgrade options.
- Sharing platform. Establishing shared ownership, access, or use can allow businesses to get more out of their products and services.
In addition to any of the above measures, we recommend putting together a site waste management plan (SWMP). This should establish where waste is produced within business premises, the rough amount in each case, waste storage solutions, and waste disposal methods (including the parties responsible for waste removal). Having this in place helps make everyone aware of the commitment to the circular economy and how their actions contribute.
Your waste management partner
Executing a waste management strategy can be difficult for businesses that have been constructed to fit within a linear economy. However, as economies across the world continue to embrace the circular model, businesses must adapt in order to experience the full benefits of a circular economy.
The principles of the circular economy continue to be adopted around the world as governments and businesses focus on reducing environmental impact. Consumers have also been shifting their focus to this topic and so any business that demonstrates it values the circular model stands to generate interest. Whether you have an event business, operate in the retail space, or run your business from a factory or manufacturing facility, our experts can help.
At Yorwaste, we’ve helped hundreds of businesses meet regulatory demands and capitalise on circular economy principles. If you’re interested in adopting a circular business model or developing circular practices, further total waste management support is needed. The Yorwaste team will devise a plan that’s unique to your industry, product, operation, and local area.
Get in touch today to discuss your waste management goals.