Thursday 20th of January 2022
Environmental sustainability has become a matter of concern for every business. The depletion of
...natural resources and increasing pollution levels...
Environmental sustainability has become a matter of concern for every business. The depletion of natural resources and increasing pollution levels harm the ecosystem considerably. The impact of the relentless pursuit of commercialisation and development has affected the flora, fauna and our natural habitat. Changing weather patterns, heat waves, rising sea levels and shrinking glaciers are evident across regions.
Consequently, it has become critical to adopt the circular economy concept, which helps develop sustainable businesses. It is the best way to reduce the burden on the ecosystem and create processes that reduce waste and carbon emissions. Consumers are also looking for products that have been manufactured without harming the environment and create less waste. So, let us understand what a circular economy is and which sustainable business practices can help entrepreneurs. It is vital to change the traditional policies that must be changed to save the environment.
What is a Circular Economy?
The circular economy involves reusing and recycling materials instead of discarding them after use. Whether it is the supply, production or consumption phase, the products and materials must be restored and repaired to be used again. Thus, they remain in circulation for long and reduce the mindless extraction of resources. The regeneration of old and outdated products reduces waste and costs. Since the same materials keep moving back and forth, it is known as a circular economy, which is in contrast to the traditional linear economy.
A circular economy can help decrease the impact of climate change and make businesses cost-effective. Since most sustainability practices work on reducing, reusing and recycling, the business is more productive, innovative and profitable. It is even beneficial for the economy because the natural resources are not on the verge of extinction, and demand and supply are working in tandem. As a result, the carbon footprint of businesses declines, and its credibility rises. Thus, if you plan to purchase a business for sale in New Zealand, you must ensure that you follow sustainable practices to become a part of the circular economy.
Sustainable Business Practices
Like Mother Nature’s way of replenishing resources, the circular economy follows the closed system approach. It does not let materials be used after a single use and propagates continuous utilisation of the same items. For this purpose, it focuses on:
Many processes in the manufacturing activity can lead to waste, such as overstocking perishable goods that get spoiled or using non-renewable energy sources. Businesses must focus on reducing waste by managing inventory with the help of digital tools that do not make errors and track the stock effectively. It prevents problems like overstocking or understocking.
They must create reusable packaging for products or biodegradable materials that help reduce the burden on landfills. The office should go paperless and adopt digital tools to eliminate the need to use printed documents. Entrepreneurs who purchase businesses for sale in New Zealand should stop using disposables and single-use plastic and sensitise their employees to follow eco-friendly practices.
In addition, production must be optimised by ensuring the machines are serviced and there is no electricity and water wastage. The lights, computers and machines must be switched off when not in use and water conservation strategies must be implemented to stop leaks and overflows.
The traditional approach of businesses was using the products and throwing them out later. However, in a circular economy, businesses repurpose old and outdated items to make them usable again. For example, old and broken furniture pieces in the office can be revamped and restored to create a new item. Similarly, the old computers can be used as an external hard drive or a media box instead of entering the dumping zone.
The packing material must be returned by the delivery service executives and reused instead of discarded. Entrepreneurs who buy a business for sale in New Zealand must focus on developing long-lasting and highly durable products. Thus, they need not be replaced and can be repaired for long-term use.
Also, businesses must pay attention to upcycling and repurposing to build a sustainable entity with zero waste tolerance. Clothing companies can use this approach to collect and revitalise old clothes for sale. It helps to create a trash-to-cash business model, which reduces the cost of procuring raw materials and production and eliminates waste.
Green businesses are working on creating new products from waste, which is different from repairing old items. The most common example of recycling is converting organic waste in the kitchen to compost that can be used to build rooftop gardens in the office building.
Similarly, products can be developed from factory scrap like Nike created its Space Hippie footwear line that helped reduce emissions effectively. Many small businesses use plastic bottles and disposables to make bags and other accessories bought by eco-conscious buyers.
Recycling is also beneficial in making the economy progress by creating new jobs in the sector. Many entrepreneurs looking for business opportunities in New Zealand are now considering creating recycling businesses. These are highly innovative entities built to make environmentally friendly products from scrap. Glass, plastic and digital waste can be used to make new products that consumers demand.
Besides utilising existing materials, business owners can reduce waste and greenhouse gas emissions by leasing products to customers instead of selling them. It ensures an extended product lifecycle as the products are offered on a subscription basis to customers. When the customer no longer requires it, it is returned to the business, which recycles it and leases it again.
The process is Product-as-a-Service and is widely used in the circular economy to maintain sustainability. The service can be used by entities selling furniture, electronics, vehicles, digital tools and medical equipment. Another similar service where consumers share products is the sharing economy or peer-to-peer economy.
It involves sharing physical products or assets to increase collaboration with the help of the internet and helps to attract local customers. An example of this service is Airbnb, and even co-working spaces are a part of the sharing economy. It helps to preserve resources and conserve energy to create a positive impact on the environment.
Wrapping Up
Circular economy and sustainability practices are intertwined. This economy aims to close the loop and stop wastage through reusing, recycling and restoring. Entrepreneurs must follow these practices to become a part of the circular economy and save the environment from further damage.
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