“Every day is Earth Day”: Unknown
Introduction
When a new shirt is purchased, it is used at the marriage party. After using it effectively, it is generally worn when a person is going to the nearby market. Later on, it is worn in the night. Once it is not for use, it is either gifted to a needy person or worn during the Holi festival. This concept is common in the majority of households in India. The reason may be economic but the concept of circularity is built in into it!
Content: What is Circular Economy
Objective
The circular economy is an economic system that aims to eliminate waste and the continual use of resources by creating a closed-loop system. In a circular economy, products, materials, and resources are kept in use for as long as possible, extracting the maximum value from them while in use, and then recovering and regenerating products and materials at the end of each service life.
Once you go through the article, you will understand the meaning of linear and circular economy, the key differences, and their purpose.
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Definition: ISO 59004: 2024
Circular Economy (Cl 3.1.1): Economic system that uses a systematic approach to maintain a circular flow of resources by recovering, retaining or adding to their value while contributing to sustainable development.
Sustainable Development (Cl 3.1.11): Development that meets the environmental, social economic needs of the present without compromising the ability of the future generations to meet their own needs.
Life Cycle (Cl 3.2.4): Consecutive and interlinked stages in the life of a solution.
Linear Economy (Cl 3.5.10): Economic system where resources typically follow the pattern of extraction, production, use and disposal.
End of Life (Cl 3.5.30): <Product> point in time when a product is taken out of use and its resources are either recovered for processing or is disposed of.
Life Cycle Assessment (Cl 3.6.8): Compilation and evaluation of the inputs, outputs and potential environmental impacts of a product system throughout its life cycle.
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Detailed Information
German chemist Michael Braungart and American architect William McDonough (often referred to as the “father of circular economy”): wrote a book in 2002, “Cradle to Cradle: Remaking the Way We Make Things,” that envisioned products being designed to regenerate ecosystems instead of harming them.
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Linear Economy:
Our current industrial economy is dominated by linear processes. Imagine a massive network of conveyor belts where goods are produced, used and ultimately discarded. This one-way flow has a clear beginning and end.
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Circular Economy:
The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.
In practice, it implies reducing waste to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby creating further value.
A circular economy keeps materials and products in circulation for as long as possible
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Key Difference Between Linear and Circular Economy
| S.No | Key Aspects | Linear Economy | Circular Economy |
| 1 | Definition | An economic system where resources typically follow the pattern of extraction, production, use and disposal. | An economic system that uses a systematic approach to maintain a circular flow of resources by recovering, retaining or adding to their value while contributing to sustainable development. |
| 2 | Product Life Cycle | Products are conceived, produced, used and then disposed of as waste (design is for a short lifespan Like a Sealed Mobile phone). | A longer life cycle approach is adopted, designing products that can be repaired or regenerated. |
| 3 | Resource Exploitation | Relies primarily on the extraction and use of virgin raw materials, leading to the intensive exploitation of natural resources (Lithium for EV). | Aims to reduce dependence on virgin resources and promote the circular use of existing materials (Solar Power). |
| 4 | Waste Management | Products become waste once used and are disposed of (Plastic drinking bottles). | Promotes the adoption of more sustainable waste management practices based on the recovery, reuse, and recycling of materials (Glass Bottle). |
| 5 | Economic Model | The primary goal is the production of new goods and encouraging consumption practices (Use & Throw). | Where materials and resources are kept in a continuous cycle of use and regeneration (Compost from waste). |
| 6 | Design Approach | Primarily focuses on a design whose sole purpose is to meet customer demand (Formula 1 Racing tyres). | Necessary to design goods with circularity in mind, known as Eco-design (Passenger Vehicle Tyres: Retreading). |
| 7 | Consumer Engagement | Consumers are primarily passive purchasers of products. to whom products are promoted through marketing activities, leading them to spend their money (Sachets of Shampoo). | Consumers are actively engaged. This is referred to as “prosumers,” individuals who consume but also consciously choose the products to purchase (Why not bottle of shampoo instead). |
| 8 | Environmental Impact | This leads to increased resource exploitation, resulting in greater waste generation and pollution (Personal Vehicle) | Aims to reduce or eliminate this environmental impact (Metro, shared mobility like Osla, Uber). |
| 9 | Economic Sustainability | being dependent on limited natural resources is subject to fluctuations in market prices for raw materials. This uncertainty leads companies to have no control over costs and therefore unable to make their processes economically sustainable (Crude oil). | By using materials already present in the system, companies partially counteract the increase in prices (CNG, EV, Hybrid). |
| 10 | Social Impact | Greater waste production can harm vulnerable communities that are victims of unregulated and unethical systems (the gap between rich and poor is widening). | The adoption of the Circular Economy is of fundamental importance in reducing inequalities and promoting the creation of a more equitable and just society (balanced society). |
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Conclusion:
Overall, the circular economy aligns better with long-term environmental, economic, and social goals, making it a more viable model for a sustainable future. It offers a sustainable alternative to the traditional linear economy, aiming to create a more resilient and sustainable future.
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References:
ISO 59004: 2024
ISO 59010: 2024
ISO 59020: 2024
Industry Experts
https://www.sfridoo.com/en/blog/differences-between-circular-and-linear-economy/#:~:text=In%20a%20linear%20economy%2C%20products,can%20be%20repaired%20or%20regenerated.
This is the 218th article of this Quality Management series. Every weekend, you will find useful information that will make your Management System journey Productive. Please share it with your colleagues too.
In the words of Albert Einstein, “The important thing is never to stop questioning.” I invite you to ask anything about the above subject. Questions and answers are the lifeblood of learning, and we are all learning. I will answer all questions to the best of my ability and promise to keep personal information confidential.
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