From jewelry to food waste, firms are 'shaking' things up with circular-economy shift
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From jewelry and clothes to food waste, a growing number of sectors are focusing on operating as part of a "circular economy," aiming to waste less — and reap the financial benefits in the process.
The rising cost of raw materials and a move to reduce carbon emissions could mean working in this way becomes "critical," according to Goldman Sachs, which said the global economy could benefit to the tune of up to $4.5 trillion by 2030.
In simple terms, the circular economy refers to the process of reusing, repairing or recycling products while keeping waste to a minimum. It represents a move away from the linear model of "take-make-waste," according to the Ellen MacArthur Foundation, a charity that researches and promotes the circular economy.
"The circular economy is not about making small, incremental changes to our current system — it's about completely transforming the way the entire system works," said the foundation's Executive Lead Reniera O'Donnell, in an email to CNBC.
"A circular economy follows three principles all driven by design — eliminate waste and pollution; circulate products and materials at their highest value, and regenerate nature," she added.
For example, Chinese company Deartree buys and refurbishes used office furniture and then sells or rents it to companies such as Microsoft, Tencent and Starbucks. Dutch company De Clique, meanwhile, collects food waste such as coffee grounds and sells them to companies who make them into new products.
Even cities are aiming to become "fully circular," with Glasgow pledging to do so by 2045 and Amsterdam by 2050.
Working in this way can mean a shift in mindset. U.S. jewelry company Sonalore says it is