Climate change is usually the dominant topic in discussions about sustainability. Sustainability, however, is a much broader concept to which manufacturing companies, service providers and every single individual can contribute. There are two especially topical areas where broader public engagement is required: the implementation of circular economy principles and the preservation of biodiversity.
The circular economy envisages a transition from the so-called linear economic model, in which resources are consumed and then thrown away, to a cyclical model, in which resources are used as efficiently as possible and over a longer period of time by renewing and recycling the products manufactured. This approach also makes good use of by-products and waste, which are recycled and used as raw materials for new products
The preservation of biodiversity is an existential task for human survival. Climate change is a major influence, but it is not the only one. Human management in the broadest sense of the word must be subordinated to the preservation of the harmonious ecosystem that provides us with a healthy environment for a fulfilling life - clean air and water, food, raw materials to improve health, protection from the natural elements, etc.
A sustainable approach to manufacturing and consumption: repair and reuse
In the European Union, over two billion tonnes of waste are produced yearly, which is nearly five tonnes per EU resident (including manufacturing, construction, energy, etc. economic sectors). About one-third of this amount ends up in landfills. It is therefore important to strive to achieve such a manufacturing and consumption model that involves sharing, renting, reusing, repairing, restoring, and recycling existing materials and products for as long as possible. This extends the life cycle of products, uses fewer resources to manufacture new products, and produces less waste.
Sustainability and the circular economy are usually associated with something abstract, such as political initiatives and decisions taken in Brussels or at a summit of heads of state and government. In fact, a circular economy (and sustainability in general) cannot succeed unless each of us is aware of a few simple principles and follows them daily. We do not throw away used things, we repair and reuse them. We do not buy unnecessary things. We choose as little packaging as possible. We buy things that can be recycled and used as a resource to make other things. We sort waste.
A couple of examples from the business world that show how the concept of the “circular economy” is put into practice. The furniture manufacturing and trading company accepts used furniture from customers, repairs it, and offers it for sale at a lower price. The retailer sells some products without packaging (the buyer uses their reusable packaging) and also offers reusable, washable cloth bags. The car manufacturer relies on reusable materials (mono-materials) when designing a car and on the greatest possible digitalisation of the car, which makes it possible to dispense with various control units. The clothing manufacturer accepts used clothing from its customers and returns it to retailers at a significant discount. A similar option is offered by manufacturers and retailers of digital devices. And finally, we should mention the promising lease services offered by manufacturers of a variety of products.
Considering the specific needs of the circular economy, it opens up opportunities for new types of businesses, such as offering repair services for all kinds of appliances, furniture, and equipment, so that an iron that no longer works, a worn sofa, or a rusty bicycle can be given a “new lease on life” and serve a new life. There are and will be opportunities for lease service providers, manufacturers of recyclable packaging, and many others. It is fair to say that the business focus is shifting from manufacturing as many products as possible and aggressively pushing them onto the market to a long-term approach of building loyal relationships with customers, participating in used product recycling initiatives, and using lease and repair services.
The challenge of preserving biodiversity
One can get the best explanation of the importance of biodiversity by watching some of Sir David Attenborough’s films about our planet and the impact of humans on it. They are united by one main message - nature and humans are interdependent and live in a harmonious “life support mechanism”. The greatest challenge is to balance the needs of modern humans with the opportunities and resources we can extract from the planet without causing critical damage to it.
The preservation of biodiversity has been defined as an important goal by many global producers. Concrete steps towards this goal are generally associated with lower resource consumption. Certain sectors are particularly important here and can do much more. For example, sustainable agriculture companies operating in a way that minimises harm to the environment (in terms of pest control, soil enrichment, etc.). The forestry industry is investing in forest restoration and educating the public about the importance of preserving biodiversity. Pharmaceutical companies are switching their production to a new type of approach where the main objective is not to harm the diversity of nature. Every company can support nature conservation initiatives by donating money, volunteering, and training their employees.
Implementing the circular economy, preserving biodiversity, and a sustainability mindset; in general, it is a complex issue that requires an integrated approach. It cannot be “commissioned” or “introduced” from the outside - each of us must understand and accept these matters as important to us. Businesses therefore have a decisive role to play, both in demonstrating best practices, and inspiring examples and in educating the public. This is a movement requiring many to engage because it is about creating favourable living conditions for us all.
Viktors Toropovs
Head of Sustainability at SEB
