Reduce, Reuse, Recycle♻️
Charts on the circular economy
Today we’re discussing the concept of a circular economy, and what it means for the future.
What is a circular economy?
Unlike a linear economy, which follows a ‘take-make-dispose’ model, the circular economy model is a regenerative and sustainable system where resources are used for as long as possible. In this way, a circular economy mitigates the impact of increasing waste, and fosters an environment where resources are continuously fed back into the economy.
The circular economy has 5 main components:
Make: This stage involves making products that are durable and use sustainably sourced materials.
Return: Reducing waste of faulty products by returning them back to their producers to be reused or recycled.
Reuse: Reusing products via rental schemes to maximise their utility.
Repair: Attempting to repair products rather than dispose of them and buy new ones.
Recycle: Where products are no longer functional, they are recycled back into the system.
Let’s take a look at some companies who are facilitating the transition to a circular economy:
Companies that have embraced the circular economy principles are not only contributing to a more sustainable future but are also finding innovative ways to enhance their bottom line. One prime example is the fashion industry: whilst fast fashion is known for its high resource consumption, companies such as Patagonia and Nuuly (from parent company URBN) are facilitating the reuse and recycling of clothing.
In the tech sector, circular economy principles are also being implemented, from Apple’s trade-in program to Samsung’s sustainably produced phones. In the automotive industry, Tesla and other EV makers are paving the way toward a more sustainable future, whilst car-sharing platforms such as Zipcar promote collaborative consumption. For foodies, the popular app ‘Too Good To Go’ offers consumers a chance at discounted food from their favourite restaurants, whilst reducing waste for businesses.
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Taking a peek inside BlackRock’s Circular Economy Fund
BlackRock's Circular Economy Fund invests in companies and projects that embrace the principles of a circular economy. With a focus on resource efficiency, waste reduction, and sustainable practices, the fund aims to drive positive environmental and economic impacts.
The fund's diverse portfolio includes waste management companies such as Waste Management and Republic Services, beverage company Coca-Cola, and manufacturer ASML, among others.
Overall, the circular economy holds immense environmental benefits, and many companies are embracing the transition to make their businesses more sustainable.
See you on Friday for a deepdive on Ansys!
Created by Shivani
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