Business Models
Model |
Purpose |
Example |
| Circular supplies |
Fully renewable, recyclable or biodegradable resource inputs |
Biohm materials and buildings, Notpla packaging. |
| Resource recovery |
Eliminate material leakage and maximise economic value through looping of materials. |
Teemill t.shirts, Dyecoo dyes, automotive sector closing plastics and metals loop |
| Product of life extension |
Design for reuse, repair, remanufacture to extend current lifecycle |
Caterpillar Reman engine blocks, Herman Miller chairs, Fairphone mobile phones. |
| Sharing platforms |
Facilitate collaboration through sharing of products and assets that have a low ownership or use rate |
Zipcar, Library of Things. |
| Product as a service |
Access not ownership, leasing models, pay-per- use vs current buy-to-own model |
Philips ‘pay per lux’ lighting, Bundles washing machines internet enabled ‘pay per wash’. |
A circular economy uses materials and resources more efficiently, reducing the levels of greenhouse gases produced. A study by the Ellen MacArthur Foundation, a leading think tank in this space, tells us that:
“To date, efforts to tackle the [climate] crisis have focused on a transition to renewable energy, complemented by energy efficiency. Though crucial and wholly consistent with a circular economy, these measures can only address 55% of emissions.
“The remaining 45% comes from producing the cars, clothes, food, and other products we use every day. These cannot be overlooked. The circular economy can contribute to completing the picture of emissions reduction by transforming the way we make and use products.”