Circular economy creates new job opportunities

L’économie circulaire ou l’art de transformer le vieux métal en or

The Consumerism that we have experienced since the 80’s and the industrialization of the emerging countries have exposed the reality of our world: we have turned our resources into complete waste. But for the last 20 years, an idea gradually dawned on business leaders’: waste can be worth its weight in gold.

Two of the first visionaries to alert the world to the endemic problem of pollution were Michael Braungart, German chemist and William McDonough, an American architect and designer. At a meeting with President G.W Bush, they warned about the catastrophic consequences of pollution. At the beginning of 2000, they co-wrote Cradle to Cradle or C2C (Consumer-to-Consumer), an exposé on the social and environmental figures of their time. They concluded that without recycling, industrial use of natural resources could lead to long-term environmental problems. They introduced the idea of eco-conception - finished goods designed for re-use, and the circular economy principle. They posited that if manufacturers continued to consume natural resources at current rates, both the economy and their very businesses would be placed in jeopardy. The pair went one step further and dared link pollution and public health.

This concept arrived in France 10 years later. Since then, the French government has tried to implement incentives and provide a legal framework to spur companies to adopt environmentally responsible economic principles.

 

Crash into the wall or recycle it into a new world?

Since the Industrial Revolution, manufacturing has worked on a now untenable premise: extract natural resources, transport them to worldwide manufacturing plants, transform or assemble them and dispatch finished goods worldwide to sales outlets.  Once the products break or become obsolete, they are thrown “away.” Little thought has been given to just where “away” might be.

The early 1980s recession encouraged the countries to adopt neoliberalism. Ousting welfare states; limiting government involvement in economic matters; allowing markets to self-regulate based on supply and demand. To boost all sectors of the economy, people are encouraged to purchase through appealing marketing campaigns and packaging, get the support of services companies whose real business is to facilitate more consumerism. This created a frenzy of new fashion trends and digital innovations. In just 20 years this economic model started to crack: consumers in Europe now condemn planned obsolescence and incoherent fashion trends. It is all the more disturbing for the new generation that this race to consume more means that industries and services companies now must maintain a frantic pace. This results in poor management, or nervous breakdowns. At the same time, new markets abroad and fast growing populations in some regions offer highly attractive business opportunities for companies willing to go the extra mile. Winning these new markets could mean the end of manual labor in favor of automation. Machines don’t ask for a raise, do not fall ill, get pregnant and above all, can work day and night with very little room for mishap. With such production means, nothing can come between a good product at a competitive price and the buyer. Nothing but the somber cloud that darkens our idyllic picture: pollution. 

Automation results in the need for more machines, needing more energy and increasing threats to our health already dampened by long hours of anxiety at work: the necessity to find a remedy to this global sickness became vital.

 

An unforeseen solution; reuse what already exists

If the two theorists did not get destroyed by big corporations when presenting their arguments, it is mainly thanks to their ability to recycle the notion of economic growth. Not only did they support economic development and economic consumption, but they also presented solutions where the companies save time, energy and most importantly: money. A true win-win situation. As in our previous article Why is the environment at risk today?, the use of recycled materials costs about 13 times less than the initial extracted resource. Not to mention that the implementation of solar panels can significantly lower your energy bill as countries increase their taxes regarding greenhouse gas and toxic waste. The concept of green cities met with success just as town councils saw a way to reduce public expenses and grant a pleasant setting to their citizens.

Another winning ticket was to recreate the jobs cut by machines. In 2017, the well-known consulting firm McKinsey wrote a compelling report about the jobs lost and the jobs gained in the time of automation. Following the current trend, 400 to 800 million jobs around the world would disappear before 2030 and at least 375 million people would have to transition to new careers. In France, the environmental roadmap published in April 2018 highlighted the government’s goal to create 500 000 new jobs from its green strategy. The government also emphasized its determination to recycle 100% of all plastics by 2025 and to reduce its energy bill by 30% before 2030. 

 

A business model for all sectors

The annual Belfius Smart Belgium Awards lists exemplary recycling projects. The project’s website lists 6 inspiring initiatives that embody the potential of the circular economy concept. For example, Comet treatment invested 1,1 million euros in a process that turns old cars into fuel and diesel. In another instance, the community website «Op Wielekes» encourages replacing a child’s old bike with a second-hand one, better suited to his or her new size.

For a few years now, white dumpsters have become ubiquitous in France. Entirely dedicated to textiles and leather goods, these bins allow a second life to the clothes and shoes that failed to sell online. The following article published in L’Express (May 2017) sums up the importance of recycling your wardrobe: in France - according to TLC - 600.000 tons of clothes are recycled for the French market. Recycling your clothes means reducing the volume of waste from the fashion industry. It also means preserving natural resources and limiting pollution. Furthermore, recycling creates a new source of jobs to collect, sort and distribute the fabric. Old t-shirts may reappear as insulation panels for homes: it has been proven that cotton works far better than traditional mineral wool versions.

The circular economy also translates in the notion of eco-conception: right from the start, parts and goods must be thought out so that they can later be reused very easily. The need to rethink production each step of the way offers the opportunity to better know the production chain and hence to improve or optimize its logistics and manufacturing. This knowledge often results in reducing the costs and environmental impacts and produce parts that can be reused for several purposes: repairs, parts for new equipment, recycling material for energy. This summer, in Australia, a new recycling factory in Sydney will turn a quarter of a million tons of garbage into fuel every year, replacing 100,000 tons of coal power and taking the equivalent of 20,000 cars off the road.

« From darkness comes light » is no longer a cliché.  This popular saying rings particularly true when it comes to the circular economy model and the capacity of humankind to rethink business as usual when faced with its continued survival. This capacity to imagine, create and evolve is certainly something that machines are incapable of. So far, only humans have discovered noble values such as sharing and caring that evolves from recycling.

 

Did you know ? The French are pioneers when it comes to food waste. The ministry of Environment states: In France, food waste represents about 10 million tons of products per year, valued at 16 billion euros worth. In France, measures to curb food waste have become law: supermarkets with more than 4300sqf must sign an agreement with an association of their choosing. This law, soon to apply to catering businesses has led a major supermarket chain to save 350 tons of food and to serve 700,000 free meals. [] Instead of the expenses involved in destroying edibles, the chain can reap the benefits of tax breaks for donations in kind. Recently, Jean Moreau, co-founder of the Advice firm Phoenix, laid out this strategy in an article published in Convergences for the Stop Food Waste day.

 

Did you Know ? France is also a pioneer in the fight against planned obsolescence. The BBC reports that the French government has planned an investigation following new regulations forbidding the techniques by which a manufacturer aims to deliberately reduce the life of a product to increase its replacement rate. Apple admitted that they had deliberately slowed down the Iphone model through a software update to encourage sales of their new Iphone 8. The company had no other choice but to change their users’ battery for free or at an affordable price. Faced with such immoral methods, some French companies have decided to take the opposite stance. The small home appliances manufacturer Seb has embraced a new strategy: guarantee each of their products for 10 years and encourage repairs over replacements. Michelin also decided to take a stand and launched Vision, a concept tire [] that “recharges.” Using 3D printers, it is possible to use just the right amount of rubber and thus extend its life depending on needs, thereby ensuring mobility in all situations. The materials used are both bio-sourced and biodegradable, thus minimizing the tire’s environmental footprints.

 

Did you know ? When it comes to recycling, our German neighbor won the 2017 top prize according to the World Economic Forum. The article outlines a study by Eunomia on reducing domestic waste and ways to reuse it (excluding combustion in energy production). Germany led the way with 56,1% of their trash recycled for other uses. The study also cites China’s determination to stop purchasing scrap plastic from Europe or the US (which only recycle 9% of their plastic). China had been buying 45% of the world’s plastic waste; China now forces western countries to deal with their own waste, a giant pile that could reach 111 million tons by 2030 according to National Geographic.

 

 

 
CSR
Sustainable development
environment
Economy
Society
Circular economy
Recycling
Cradle to Cradle
Recycle
Reuse
Save an operating expenses
Sustainable development objectives
CSR Strategy
Comment