Circular Economy Sustainability

THE CIRCULAR ECONOMY AND SUSTAINABILITY

Introduction

Our lives can feel like there are constant needs for more things--goods and products. From electronics to the things that shape our homes, our day-to-day lives seem like a continuous pattern of making, using, and discarding. Yet, supporting this pattern is a troubling reality: the linear economy model that governs our consumption habits is not sustainable.

In a linear economy, resources are extracted, transformed into products, consumed, and often disposed of in landfills or incinerators. This "take-make-dispose" approach not only depletes finite resources at an increasing rate but also generates vast amounts of waste, pollutes our environment and contributes to issues like climate change and biodiversity loss.

However, a shift is underway among growing concerns about the negative environmental and social impacts of our consumption patterns. Enter the concept of a circular economy—an approach that redefines our relationship with resources, products, and waste. At its core, the circular economy is founded on sustainability, resource efficiency, and regenerative design principles.

What is a Circular Economy?

A circular economy and sustainability depend on each other. A circular economy is a system where materials aim never to become waste and nature is regenerated. A circular economy definition is regenerative by design and aims to decouple growth from the depletion of finite resources.

Unlike the linear economy, which follows a straight-line trajectory from extraction to disposal, the circular economy aims to close the loop, keeping resources in use for as long as possible, extracting maximum value from them, and minimizing waste and pollution. This involves designing products with durability in mind, promoting reuse and repair, and embracing recycling technologies to reintegrate materials back into the production cycle.

What is the Goal of a Circular Economy?

In addition to positive environmental benefits, a sustainable circular economy focuses on inclusivity as the circular economy diagram aims to protect the environment, strengthen economic opportunities, and promote social justice. Fundamentally, sustainability requires a dedication to social equity. How we extract, utilize, and discard resources profoundly affects our communities.

Benefits of a Sustainable Circular Economy Model

Pursuing a circular economy offers a wide variety of benefits. Many of us have a stake in accelerating the transformation to a circular economy.

Economic Benefits

There are macroeconomic benefits of shifting to a circular economy. It presents an opportunity to increase growth, promote innovation, and create jobs. Specific economic benefits to consider include:

Material cost savings
Supporting employment
Economic growth
Social equity
Innovation opportunities

Environmental Benefits

The circular economy is necessary to achieve our global climate objectives. Specific environmental benefits to consider include:

Reduced greenhouse gas emissions
Reduction of virgin material extraction
Less waste
Less pollution
Improving environmental justice

Business Benefits

Companies could benefit from a shift to a circular economy. Specific corporate benefits to consider include:

Lower costs
New profit streams
Increased supply chain resilience
Demand for new products and services
Improved customer service and loyalty
Talent attraction and retention
Solutions to meeting sustainability commitments

Consumer Benefits

There are benefits of a circular economy for individual consumers. Specific individual benefits to consider include:

Improved health and wellness
Reimagined patterns of use
Alignment with environmental and social benefits
Greater durability

Examples of a Sustainable Circular Economy

Businesses are beginning to benefit from the environmental, economic, and social advantages offered by a circular economy model. While the widespread adoption of the circular economy won't happen overnight, various industries are making substantial progress by embracing circular initiatives and practices:

Automotive Industry:
The automotive industry is leveraging circular opportunities, ranging from initial design and remanufacturing to the introduction of alternative ownership models and car-sharing. Leasing is becoming a more popular option for those looking for new vehicles.
Consumer Goods Industry:
Many companies are innovating new products that reduce the use of resources and increase circularity. Milliken continues work with PureCycle Technologies to enable the production of commercial ultra-clean, virgin-like recycled polypropylene pellets.
Fashion Industry:
Fast fashion has become one of the most popular shopping choices, especially for those following the latest trends. But there are 92 million tons of clothes-related waste each year. Many brands are prioritizing 100% recyclable clothing in their design and planning stages and promote customers returning worn items for a credit towards new purchases. Items swapped for a credit are used to make future products.
Furniture Industry:
Furniture is built to be durable and long-lasting, but many companies are actively working to expand the lifetime of materials. IKEA is currently exploring ways to produce 100% circular products through advocacy, collaboration, and business partnerships. Furniture crafted from natural materials like solid acacia wood and pine can either be recycled or repurposed for energy generation.
Finance Industry:
The financial sector plays a crucial role in progressing a circular economy. For example, the World Bank, stressing urgent action, has committed over $4.7 billion to solid waste management programs across the globe. The U.K.’s Green Finance Institute also reports much larger inflows going to environmental, social and governance aligned funds.

To see additional specific examples of the circular economy in action, visit the Ellen MacArthur Foundation.

Principles of a Circular Economy – The Three Circles of Sustainability

A circular economy is driven by three key principles: (1) eliminate waste and pollution, (2) circulate products and materials, and (3) regenerate nature.

Eliminate Waste and Pollution: By shifting our mindsets and asking, “What happens to this product at the end of its life?” we can transform the take-make-waste system into a circular network.
Circulate Products and Materials: The longer we keep products and materials in use, the higher value they will be. This means keeping materials in use, either as a product or as components or raw materials. Value creation is reimagined so that the intrinsic value of products and materials are retained and waste is significantly reduced.
Regenerate Nature: By shifting our economy from linear to circular, we support natural processes and opportunities for nature to thrive. A regenerative model aims to mirror a natural system, where there is no waste.

Read Milliken’s 2023 Sustainability Report for Trends and Updates on Sustainable Manufacturing

Expanding awareness of the circular economy and sustainability accelerates the scale of our collective progress. Milliken &Company invests in and partners with companies that work to make an impact, such as Circ™, a company working to recycle fashion waste back into textiles. We participate in global conferences to share our decarbonization journey, including our CEO’s participation at Reuters Impact. We co-founded the launch of The Recycling Partnership’s Center for Sustainable Behavior and Impact. We are working to positively impact the world around us.

For more information on Milliken’s sustainability efforts, read our latest sustainability report.

The Necessary Role of the Circular Economy