The clean-cut, comely plastic bottle of water that is lying beside your study place or in the refrigerator was once an open leafy container. Thanks to initiatives, inventions and industries.
Humankind has created industries and industries have regulated and administered human standards. I think it to be a great idea tagged to the concept of circular relationship. But does it really reflect the circular relationship in true sense. Let us dig!
There are two broad concepts of economies or industry ecologies:
1. Linear Economy: Industries consume raw-materials, produce finished products and dispose the by- products.
2. Circular Economy: Where industries consume, produce and utilize the by-products or consumed materials to reproduce goods or to recycle them for further consumption.
The term is engaging, however, we are still able to appreciate the barriers against the theory in our current industry ecosystem.
The three broad barriers to it are:
a. Technological Barrier: It deals with the lack of hardware or software leverages, a company can employ to create circles with the products and raw materials.
b. Legislation Barriers: It deals with friction towards the change of course. The policies, prevalent laws, conventional practices and lack of funds to support new ideas are the common reasons for the company, firm or nation to succumb to this friction.
c. Social Barriers: Poverty and Income Inequality constitutes the major pie, followed by the barriers at different levels as stated below:
CASE 1- Developed and developing nations
CASE 2- Relative and Absolute social barriers
CASE 3- Barriers among countries and within countries
The concept does come with the business constraints, monetary risks and opportunity losses initially when we measure concerns of current businesses and industries. Here comes the concept of 'Green Management'.
Green Management - "In this concept, the company understands its environmental problems and try to curb the challenges into advanced business solutions that target the 3P methodology i.e. People, Profit and Planet."
Case Studies:
1. H&M was criticized for being a fast fashion brand. However, It came up with a submenu item by the name of sustainable products. Also, it started discounting rates on new items bought in exchange of used goods for recycling.
2. Carlsberg Group, a well know beer brand, launched a new way of beer distribution. They invented a very light keg. Owing to the light weight, it became a lot easier for them to transport kegs around the world. The plastic material they used can be easily recovered and recycled, which added to its success.
3. Piaggio's Vespa has adopted a unique plastic which can be recycled and has permanently eliminated disposal problems.
