Circular Economy? What is that?

I love getting into a new space and learning the new lingo.  In my early days at SMPTE, I was exposed to so much jargon that was new to me.  What is this thing called SDI or HDR or how about jitter or latency?   

Every industry has its lingo and understanding sustainability is no different. 

Over the past several weeks, I’ve put together a glossary of terms to help guide media tech clients in understanding the language of sustainability.  What’s the definition of net zero, for example?  One of the terms that I researched is “circular economy”.  The circular economy sounds interesting, so I wanted to better understand what it means in terms of sustainability.   

I recently became a member of the Ellen MacArthur Foundation community, which promotes the concept of the circular economy. 

The linear economic model is basically one where products are made, used, then discarded.    Products have a distinct lifecycle.  Think about that old stereo system that you tossed out recently.  Or the clothing you threw away to make room for the latest style.  The linear method is carbon intense not only in the production of the product, but because the product is discarded, there is much waste.  When we think about the electronics that are discarded on a daily basis, we can add e-waste to the equation.    

According to the Ellen MacArthur Foundation there here are three principles that drive the circular economy:  eliminate waste and pollution, circulated products and materials, and regenerate nature.  In the circular economy, products are produced with the intent that once their useful life ends, the products will either be recycled or upcycled.  Either way, the product lives on in another form and thereby reduces waste.  

But wait!  Upcycle?  What is that? Another word for recycle?   

When we recycle, we are taking a product at the end of its useful life and repurposing its parts into something new.  Think about recycling glass bottles or aluminum cans, which when recycled, are melted down and turned into completely new things.  Beyond the home, industry is now actively recycling its own products.  Apple, for example, takes trade-in phones and recycles them into new products. 

Upcycling is different.  It is taking a product at the end of its useful life and transforming it into something completely different that has a useful life.  So, take that bottle of wine you love and turn it into a vase or candleholder.  In this very simple example, there is practically zero energy required to repurpose the product into something new.  But, of course, at scale, upcycling can have real substantive impact.   

The circular economy is based on a completely new business model that starts at the very beginning of the production.  Actually, in the planning stages.  It means building products knowing that they can be transformed into useful new products, so that waste and pollution are essentially eliminated.  

It sounds rather difficult to achieve, but there are real examples of companies who are making this work.  The fashion industry is one where processes and business models are being reengineered to produce clothing with a smaller carbon footprint, that can be worn longer without washing, and that can then be turned into new clothes when they are no longer needed.  Even the explosion of the shared economy – Uber, AirBnB, etc. -- can be viewed as part of the circular economy.  

My word to the media tech industry is to begin thinking about a circular economy as you design your new products.  How will these products be repurposed into the next product with minimal wasted energy added into the ecosystem? 

That is the challenge that I want to help solve.