What is the circular economy?

The circular economy is a model that aims to reduce the amount of waste generated and to minimize the use of natural resources. This idea is closely linked to the ESG (Environmental, Social and Governance) concept, which refers to the assessment of environmental, social and governance risks associated with companies.

Therefore, the adoption of circular economy practices is a way for companies to demonstrate commitment to ESG factors while improving operational efficiency and profitability. To do this, they must be based on three principles:

Elimination of waste and pollution

The circular economy seeks to reduce waste and pollution at every stage of a product's life cycle, from the extraction of raw materials to final disposal.

Focus on renewable resources

The model aims to maximize the use of natural and renewable resources, as well as to minimize the extraction of non-renewable resources.

Preservation of natural capital

The circular economy seeks to maintain the integrity of natural capital, preserving ecosystems and natural resources for future generations.

What are the objectives of the circular economy?

The objectives of the circular economy can be summarized in the following points:

Waste reduction

The circular economy aims to reduce the amount of waste generated, promoting the recovery, reuse and recycling of materials.

Reduction of greenhouse gas emissions

Adopting circular economy practices can help reduce greenhouse gas emissions by minimizing resource extraction, using more sustainable materials, and reducing the carbon footprint.

Encouraging innovation

The circular economy promotes innovation in terms of design, technology, and business models, encouraging the development of new solutions that meet market and consumer needs in a more sustainable way.

What are the challenges of the circular economy in Brazil?

Although the circular economy is an increasingly common practice around the world, there are still some challenges to be faced in Brazil. Among them, we can highlight:

• lack of public policies aimed at the circular economy;
• difficulty accessing finance for companies that wish to invest in more sustainable technologies and solutions;
• lack of awareness and education among consumers and the population about how to help preserve the environment and promote a more sustainable future;
• lack of adequate infrastructure for selective collection, recycling, and recovery of materials.

What are the good practices of the circular economy?

Implementing good circular economy practices can help companies reduce costs, minimize environmental impact, and improve their reputation with consumers. Among them, we can mention:

Implementation of environmental management systems

The Environmental Management System (EMS) is a set of processes and practices implemented to manage their environmental impacts associated with the organization's activities, products, and services. Its primary purpose is to ensure compliance with applicable environmental laws and regulations.

The ISO 14001 standard defines a series of requirements for the implementation of the SGA, including:

• definition of the organization's environmental policy;
• identification of environmental aspects and impacts associated with the organization's activities;
• establishment of environmental objectives and targets
• environmental performance monitoring and continuous SGA review.

Sustainable product and packaging design

Designing more sustainable products is an important circular economy practice. This includes the use of recyclable and biodegradable materials, as well as the reduction of the size of the packages.

Implementation of reverse logistics programs

Implementing reverse logistics programs, such as collecting materials used for recycling, can help reduce the amount of waste sent to landfills. This work involves:

• Identify products or materials close to the end of their useful life, damaged goods, or products that are frequently returned by customers;
• map impacts associated with the collection, transportation, sorting, and processing of returned materials or products;
• establish return flows with collection points, means of transportation, and screening methods.

Partnerships with suitable suppliers

Collaborating with other companies can help find more sustainable and efficient solutions for the circular economy. The choice of suppliers must take into account the following aspects:

• definition of selection criteria aligned with the principles of the circular economy;
• evaluate the environmental performance of suppliers in terms of carbon emissions, use of recycled materials, efficient use of resources, and compliance with environmental regulations;
• verify the environmental certifications of suppliers; such as ISO standards.

Do you want to better understand how this should work in practice? Learn what are the 5 essential waste management practices to adopt in your company.