Circular business model

A circular business model is one where all resources are recycled. It is environmentally sustainable because the business:

  1. does not systematically increase the amount of waste in the environment
  2. does not systematically degrade the environment with toxins, greenhouse gas emissions and pollution
  3. reduces the amount resources mined out of the earth’s crust

Business as usual

Traditional business is based on a linear supply-chain model. Inputs from the environment include energy, mostly from fossil fuels, raw materials (or components made from raw materials) and water. At the end of the chain the products, waste and pollution are dumped into the environment.

Circular business

A circular business will:

  • recycle all water and materials
  • use clean (emission-neutral) energy
    – solar, wind, sustainable biofuel, geothermal etc
  • internalise all external costs
  • create no toxic, or otherwise harmful, outputs