The Sharing and Circular Economies – Last Chance to Save the Planet?

 

Across the world we are seeing a movement develop amongst businesses as well as communities towards a more sustainable economy and fairer society. The ‘sharing economy’ is one component of this new approach as assets and resources are pooled to utilise scarce materials more effectively and reduce environmental impact. 

 

Juliet Schor* suggests that sharing economy activities fall into four broad categories: recirculation of goods, increased utilisation of durable assets, exchange of services, and sharing of productive assets.

Examples include Airbnb (accommodation), Zipcar (car rental by the hour), Lyft (ride service company), Freecycle (surplus personal goods), ThredUp (apparel), Swapstyle (women’s clothing), Neighborgoods (durable goods), Skillshare (co-operative education). There are also companies in Brighton who are embracing this movement, such as Compare and Share (sharing advice and booking services) Hey Guevara (group pooling of car insurance), Goodmoney (value exchange), FareShare (surplus food distribution) and Big Lemon Bus (running on donated cooking oil).

 

The sharing economy is part of a much broader change in the way we buy, consume and dispose of durable goods. Our current economic model is ‘linear’ in design where products are made, used by consumers and disposed of without a great deal of thought to environmental sustainability. This linear economy is powered by increasingly expensive fossil fuels and generates waste. 

 

An alternative approach to a linear economy is a circular economy. This is a system which benefits both society and nature; it aims to reuse products and the materials they are made of to realise their maximum value and eliminate waste, as in a natural ecosystem. 

 

The Ellen MacArthur Foundation has undertaken research into circular economy frameworks, and the benefits to business (see diagram below). They found that circular economy thinking is now being used in a variety of business applications. For example, recycling toner cartridges (HP), selling of light rather than light fittings (Philips) and motor vehicle take-back schemes (Renault). The lessons learnt in these contexts are being considered for use in other applications such as the design, reuse, repair, repurposing, refurbishment and recycling of mobile phones.

 

In order to create a circular economy a concerted effort will be required between business, government, consumers, academics and NGOs. This approach has the potential for reducing adverse environmental and social impact whilst creating new profit opportunities for business. It is not a quick fix but rather a longer-term strategic option which requires collaborative working amongst a diverse range of stakeholders. Perhaps your business could be part of that effort and gain some bottom-line benefits?