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THRIVE Outreach Cluster: Embracing A Circular Economy – The Roadmap to Thrivability

Index

An Introduction to Circular Economy

The world follows a linear economy model, encouraging a throwaway culture where products are discarded after a single use. This approach not only exacerbates the problem of waste, but also leads to the depletion of natural resources, loss of biodiversity, and increased environmental pollution. Embracing a circular economy is one of the transformative solutions necessary to build a thrivable future. Humanity must transition beyond sustainability towards thrivability, ensuring a regenerative, self-sustaining system that benefits both people and the planet.

Defining a Circular Economy

According to the United Nations Environment Program (UNEP), a circular economy model is designed to eliminate waste and pollution, circulate products and materials so that they are used for a longer duration, and regenerate nature. In other words, a circular economy is not just a mere concept, but a practical and sustainable, and aiming for a thrivable, way of living on Earth without depleting its precious resources through a closed-loop system. 

Circular economy models are influenced by the three Rs: reduce, reuse, and recycle. The word “circular” encompasses how materials are recovered and reinserted into the life cycle of a product. Figure 1 illustrates this circular concept. 

Figure 1: A Product Life Cycle Diagram to Illustrate the Concept of Circular Economy Achieved by Reusing and Recycling Containers.
Source: Gheewala & Silalertruksa, 2021

A Circular Economy and The Ellen MacArthur Foundation

Many researchers have presented their own strategies for achieving a circular economy. The three R system is a simplification of the bigger picture. Some advocate for a six R strategy or even a nine R strategy. The Ellen MacArthur Foundation (EMF), a leading authority on circular economies, has presented a unique viewpoint on circularity, emphasising that recycling must occur based on the nature of the material. This is referred to as the technical cycle for products made from finite materials, and the biological cycle for products made from biodegradable materials. The EMF has developed a butterfly diagram to illustrate this concept (Figure 2). In the technical cycle, products undergo reuse, repair, remanufacturing, and recycling to stay in circulation. In the biological cycle, nutrients from biodegradable materials are returned to the Earth to assist with nature’s regeneration.

 Figure 2: Butterfly Diagram For Biological and Technical Cycles.
Source: The Ellen MacArthur Foundation, 2019

The Current Status

According to the Global Circularity Gap Report 2023, global circularity (a metric to measure circularity around the world) has fallen from nine per cent (in 2018) to just over seven per cent (in 2023). This means that more than 90% of the materials used today are wasted, lost, or remain unavailable for reuse. This is highly unsustainable. While THRIVE supports the circular economy model, it recognises the many challenges countries and organisations face while transitioning to a thrivable future.

Challenges Faced While Transitioning To A Circular Economy 

Economic challenges, such as a lack of investment in the technology and infrastructure necessary to support circular economies, are a significant barrier for developing nations and small businesses. Technological hurdles include establishing efficient recycling techniques for different materials and testing the quality of recycled products. Transforming consumer behaviour and acquiring regulatory support from governments are other obstacles that must be overcome.

Examples Of Companies That Have Implemented Circularity

Despite the various challenges, many public and private companies have implemented circular economy design principles, and provide a positive example of successful transitions toward circular economies. Philips, for example, has implemented a circular economy model into their company culture by designing products for recyclability and emphasising easy disassembly during the end-of-life phase of their products. This approach reduces recycling costs and minimises environmental impact, showcasing their commitment to thrivable practices.

Fat Llama, a peer-to-peer lending platform for technical equipment, exemplifies circular economy principles by promoting a sharing economy model over a traditional ownership model. Through this platform, Fat Llama encourages the reuse of products and the extension of item lifespans, reducing the overall demand for new products. This shift from ownership to sharing exemplifies how waste can be minimised with circular economy principles. 

Thrift stores, such as the online platform Depop, promote circular economy principles by promoting the resale and reuse of clothing. By providing easy thrift shopping opportunities to second-hand clothing via an app- and web-based buyer-seller platform, Depop promotes sustainable consumption and actively reduces the amount of waste going to landfill by extending the life of clothing and minimising the demand for new production.

About The Circular Economy Cluster 

At THRIVE the Circular Economy Cluster covers a broad range of initiatives on circular economies. These intersect with the following Sustainable Development Goals (SDGs): SDG2 (Zero Hunger), SDG8 (Decent Work and Economic Growth), SDG9 (Industry, Innovation and Infrastructure), and SDG12 (Responsible Consumption and Production). This cluster is one of the seven within THRIVE that conducts outreach activities with external collaborators.

The Circular Economy Cluster conducts outreach activities that promote United Nations SDG2, SDG8, SDG9 and SDG12

Figure 3: The SDGs That Intersect With The Circular Economy Cluster at THRIVE.
Source: United Nations

The cluster identifies the following three goals that need to be achieved:

  1. Build a zero-waste economy.
  2. Create regenerative, resilient, and effective resource management.
  3. Ensure thrivable economic growth and living standards for everyone.

1. Build A Zero-Waste Economy

A zero-waste economy produces no waste from the products and services it consumes to support the needs of its population. This is achieved by ensuring that every product is utilised to its full extent, and any possible waste marked for disposal is fully recovered and redirected. It is either processed through biological methods, such as composting, or reintroduced into the system as input for a different industry or product.

https://www.pexels.com/photo/aerial-footage-of-landfill-5441311/

Figure 4: Landfills, a Stark Reminder of Our Past Practices and the Need for Zero Waste to Achieve a Circular Economy.
Source: Leaflogic

Some key areas that THRIVE focuses on are:

  • Responsible Consumption Through Product And Service Certification.
  • The Authenticity Of Certifications.
  • How Individuals Can Contribute To A Circular Economy.
  • Extending Product Life Cycles.

Responsible Consumption Through Product And Service Certification

The United Nations highlights the importance of responsible consumption through its SDGs. Specifically SDG12, which focuses on responsible consumption and production. Responsible consumption refers to the conscious and sustainable use of goods and services to meet individual and societal needs, while minimising adverse environmental, social, and economic impacts. The power of responsible consumption in shaping a thrivable future lies in the initiative taken by both individuals and governments. While governments should raise awareness about the benefits of sustainable consumption and a sustainable lifestyle, they should also implement policies and practices that will guide individuals to choose more sustainable options. This can be done through standards and certifications, which verify that a product or service meets specific environmental, social, or ethical standards. Some positive examples of these certifications are the Fair Trade certification, Organic Certifications, Energy Labels, Cradle to Cradle, Global Organic Textiles Standard, and B Corporation by B Lab.

How Can We Ensure The Authenticity Of Certifications?

Certainly, certifications and labels are deemed authentic when endorsed by reputable certifying bodies. However, it’s important to note the lack of universal regulatory definitions, leading to significant variation in their meanings. Some businesses engage in greenwashing. Defined by purposefully misrepresenting the true sustainability or ethical nature of their products for economic gain, eroding trust in eco-labelling.

How Can Individuals Contribute To A Circular Economy?

There are plenty of ways individuals can contribute towards the transition to a circular economy.

  • Buying second-hand: purchasing items from thrift stores or online marketplaces reduces the demand for new products.
  • Repairing and upcycling: broken or outdated items can be repaired or upcycled rather than being discarded to landfill.
  • Practising conscious consumption: choose brands prioritising sustainability, ethical consumption, and circular practices (products with verified certifications are a good place to start).
  • Home initiatives: practice at home initiatives such as composting, gardening, and proper waste disposal to reduce environmental impact.

Extending Product Life Cycle 

Extending product life cycle is a key practice for a circular economy. This refers to the practice of extending the lifespan of a product through various strategies. Strategies include repair, refurbishment, and reuse. Instead of products being discarded after a short period of use, items must be designed and managed to maximise utility and minimise waste. Here, businesses play a crucial role in making efforts to extend their product life cycle.

A well-known example of reuse is businesses encouraging consumers to reuse shopping bags. Refurbishing involves returning a product to proper working order through repairing, cleaning, or upgrading. Furniture stores are a positive example of this, often there are sections dedicated to the sale of items that have been refurbished or are imperfect, but still useable. Buying pre-owned cars or second-hand certified cars is another way of refurbishing. Electronics can also be given a second life if refurbished or upgraded. Remanufacturing, in circular economy terms, means to dismantle, remodel, and reassemble a used product, giving it better functionality. Upcycling or repurposing are other methods where an outdated product is given a new life by enhancing its looks and functionality. For example, taking old clothing items and turning them into something new. 

While waste reduction is a crucial aspect in transitioning to a circular economy, it is imperative to focus on ensuring that current processes are regenerative, and resources are effectively managed.

Built-In Obsolescence

A key circular economy principle is extending product life cycles through reuse, refurbishment, and remanufacturing. However, many industries still practice built-in obsolescence. Products, especially white goods (such as refrigerators, washing machines, and microwaves), are designed to fail or become obsolete within a short period. For example, modern washing machines and refrigerators often contain non-replaceable components or expensive repair processes. this makes it more cost-effective for consumers to replace them rather than fix them. This is in stark contrast to older appliances, which were built to last 20-30 years, whereas many modern equivalents fail within 7-10 years owing to planned obsolescence. Addressing this issue requires stricter regulations, incentives for repairability, and consumer awareness initiatives.

2. Create A Regenerative, Resilient, & Effective Resource Management 

The second approach towards building a circular economy is to create a regenerative, resilient, and effective resource management approach. This holistic approach involves individuals, communities, and nations managing and restoring natural resources sustainably to ensure the long-term usability of resources, without damaging or harming the environment. A few of the areas that THRIVE focuses on are:

  • Regenerative Agriculture
  • Recycling Of Biomass
  • Effective Processes
  • Sustainable Production
  • Sustainable Business Models
  • Corporate Accountability

What Is Regenerative Agriculture?

Farmlands today face the increased industrialisation of farming practices, which have led to soil degradation, loss of biodiversity, and water pollution. Regenerative agriculture is a farm management technique that works with nature rather than against it. Such practices will help to rehabilitate soil health, restore lost biodiversity, and rehabilitate water cycles. Some examples of regenerative agriculture include crop cover farming, where certain plants are grown to help reduce soil erosion, and crop rotation farming, where alternating crops are grown to improve the soil composition and fertility. No-tillage is another regenerative practice where crops are planted and grown without disturbing the soil composition and structure, thereby reducing soil erosion. Other practices include holistic livestock grazing and composting of food waste, which acts as natural fertiliser for plants.

Recycling of Biomass is a Regenerative Practice 

Another regenerative practice for bio-based waste materials is to convert biomass waste into biogas and heat energy. Referring to Figure 2, bio-based products are either composted to create manure or burnt to create energy. This can be done through various methods such as combustion, gasification, and pyrolysis to produce heat energy and biogas fuel. Combustion entails burning biomass waste to produce heat and make electricity. The gasification and pyrolysis processes involve heating biomass waste to produce energy in an oxygenated and non-oxygenated environment respectively.

Effective Processes In A Circular Economy  

For chemical processes, where new materials are synthesised from raw materials, there is always the risk of pollution through the emission of harmful by-products. The synthesised chemicals could also pose dangers during manufacturing or use. In circular economies, such processes need to be converted into closed-loop processes or may need to be designed in such a way that both the resulting product and the waste are managed properly. One of the ways to achieve this is to implement sustainable production methods.

What Are Sustainable Production Methods?

Sustainable production focuses on utilising regenerative systems and processes that enable the conservation of resources. This approach minimises waste, reduces water and energy usage, and lowers pollution, including greenhouse gas emissions, to reduce the environmental footprint. Additionally, it aims to extend the lifespan or shelf-life of products. An example of a company which demonstrates the use of sustainable production is Seventh Generation. This company makes use of plant-based materials in their production process. Moreover, they have planned a pathway to reduce packaging waste, and completely remove toxins and chemicals from their manufactured products to reduce impacts on human health. 

Sustainable Business Models

Sustainable Business Models, also referred to as circular business models, are models that consider the impacts of their business operation. Impacts on all stakeholders are considered and strategies altered to reduce any negative impacts accordingly. THRIVE Project has developed the Thrive Framework which helps businesses to grow while maintaining a regenerative holistic economy and minimising negative impacts on the environment. There are two specific SDGs (SDG9 and SDG12) that encourage companies to adopt business practices that enable them to develop innovative sustainable smart buildings, products, and services. This will ensure increased resource-use efficiency, adoption of clean environmentally friendly technologies, and drive a more sustainable and socially inclusive global economy.

Below is a list of 3 business models that have helped companies produce innovative products or services and gain competitive advantage.

Product-as-a-Service Model

This is a sustainable business model that assists companies in transitioning towards a circular economy. It includes pay-per-use services and renting or leasing practices whereby the leased product or service can be reused or remodelled at the end of its lifecycle. Some examples of pay-per-use services include equipment rentals and car-sharing services. Consumers are only charged for the usage that they need, rather than having to purchase a product outright.

Sharing Models

This model enables individuals to access shared spaces, transportation, and facilities. An example of this is an apartment building that provides its tenants access to shared office spaces or amenities such as gyms, common barbeque areas, or other recreational facilities. Another example is the use of public transportation. Access to shared products and services is a new alternative way in which companies can extend the life of a product or service. Companies such as Uber and Lyft promote the idea of sharing products instead of individual ownership. Examples of sharing-models can also be seen on the national scale, for example in the Netherlands, with their bicycle sharing systems. 

Sustainable Supply Chain Models

This model’s main focus is to minimise environmental impact, promote social responsibility, and ensure economic viability throughout the supply chain process. It integrates sustainability principles into sourcing, production, distribution, and disposal, aiming for a balance between profitability and ecological and social considerations. An example of a sustainable supply chain model is Patagonia, which prioritises sustainable materials and ethical labour practices. The company also promotes other circular economy principles. They encourage consumers to repair and recycle products through their ‘Worn Wear‘ initiative.

Achieving A Circular Economy Through Corporate Accountability

In a quest to integrate sustainability within business operations, companies can first begin their journey by demonstrating accountability. This is regarding both the materials used in their value chain and all resulting waste generated from those materials. Some of the ways in which companies demonstrate their commitment are through ethical manufacturing practices, the use of carbon credits, and engagement in social and environmental responsibility. Corporate accountability makes it necessary for companies to be transparent. Their community involvements, fair labour practices, and diligence for human rights must be visible. Many large corporations struggle to enforce proper corporate accountability.

For example, Nike has faced significant scrutiny regarding corporate accountability. This is particularly concerning allegations of using forced labour from Uighur workers in China. While Nike may have made strides in promoting corporate accountability and sustainability, the allegations concerning Uighur labour highlight the complexities and challenges in ensuring ethical practices and corporate accountability throughout a global supply chain.

Corporate accountability is crucial for fostering trust and transparency, ensuring that businesses act responsibly in their day-to-day operations. By prioritising ethical practices, companies can minimise environmental impact. Furthermore, they can promote social well-being, which is essential for achieving a circular economy. Ultimately, proper corporate accountability plays a vital role in driving systemic change and creating a more thrivable future for all.

3. Ensure thrivable economic growth and living standards for everyone

A society thrives when its people and the planet are equally prioritised. In a circular economy, the importance of environmental stewardship and social equity, alongside sustainable economic growth, is recognised and maintained. THRIVE focuses on several key areas to achieve this, including circular economy policies and governance, zero-waste systems, regenerative resource management, responsible consumption, resilient infrastructure, and inclusive economic policies. These elements work together to create a truly circular and thriving future. Below, we expand on each focus area in greater detail.

Circular Economy Policies and Governance

The world is changing and moving towards a circular economy with increasing support from governments, businesses, and non-governmental organisations (NGOs). Government action in transitioning to a circular economy is equally, if not more, important than individual action. Effective policies and governance ensure that organisations and businesses are held accountable for their actions. They also help guide parties towards more circular practices. Establishing an effective circular economy policy can return financial, environmental, and social benefits along with driving growth, and creating more jobs. Globally, there is a growing consensus that existing tax systems penalise circular activities. For instance, China, Japan, and countries in Europe have rapidly advanced in embracing a circular economy. They have achieved this by implementing tax incentives such as value-added tax (VAT) exemptions and refunds.

The concept and implementation of circular economy principles have been widely adopted, particularly in high-income countries referred to as the Global North. This trend is particularly evident in regions such as Europe, Asia, North America, and China. Notably, Australian State and Territory Governments, along with the Commonwealth Government, have agreed to implement tailored circular economy policies. Australia’s environment ministers have agreed to partner with the private sector to eliminate waste and pollution. Their goal is to achieve an 80% resource recovery from all waste streams by 2030, reflecting a shared vision for sustainability.

The United Nations

However, they also acknowledge the enormous effort and collaboration among science, business, policy, and community sectors. A holistic approach to all sectors is required to achieve this goal. As the importance of transitioning to a circular economy becomes more apparent, more countries are developing national circular economy policies. The UN National Circular Economy Roadmap Report states that 75 national circular economy ‘calls to action’, ‘roadmaps’, and ‘operational strategies’ have been launched since 2016.

Figure 5: Global distribution of countries with a call to action, roadmap, or operational policy regarding circular economy.
Source: United Nations, 2024

Another important area is resilient infrastructure, which is required in both developing and developed countries to accommodate a smooth transition to a circular economy model. This policy will come in two forms:

  1. Circularity for Infrastructure 
  2. Infrastructure for Circularity

Circularity for Infrastructure

In the initial approach, the circularity of infrastructure refers to policies that enable countries to fulfil their resource growth requirements. For example, the construction industry accounts for approximately 20% of all global emissions, with four primary materials – cement, steel, plastics, and aluminium contributing significantly to this figure. With the inevitable increase in demand for these materials, embracing circularity becomes an effective solution. Reducing reliance on virgin resources, prioritising recycled and renewable materials, and extending the lifespan of infrastructure can substantially reduce carbon emissions and pave the way for an authentic circular future.

Infrastructure for Circularity

In contrast, the second approach includes building infrastructure particularly tailored to support circular economy activities. This involves developing accessible technologies for establishing recycling facilities capable of processing complex waste streams into valuable resources. Essential components include efficient waste management systems and the integration of digitalisation, such as adopting digital platforms for resource tracking and optimising supply chain management. Additionally, implementing effective reverse logistics systems for collecting and transporting used materials back into the production cycle and establishing circular markets and products are crucial aspects of this approach.

Sustainable finance mechanisms, such as green bonds and impact investing, provide the necessary capital for businesses. This results in the ability to invest in circular practices and for communities to build infrastructure that fosters resilience against environmental challenges and resource constraints.

Adaptive and Inclusive Jobs and Skills

Moving from a linear economy towards a circular economy has broad benefits for inclusive jobs and skills development. Providing a plethora of job opportunities, particularly in the sector of “green jobs”. This transition not only has the potential to generate long-term economic, social, and environmental advantages, but also provides adaptable and inclusive opportunities. Such a shift will contribute to economic resilience, offering employment prospects in sectors such as recycling, repurposing, and sustainable manufacturing. In addition to job creation, the circular economy enhances the accessibility of goods, ensuring that quality products and services are available to more of the population.

Food Security, Living Standards, & Inclusivity

Fostering a circular economy paves the way to greater food security, improved living standards, and greater inclusivity. This creates greater food security by strongly focusing on minimising food waste, localising food production, and emphasising regenerative agriculture to create a more resilient food system. Fighting food waste and progressing towards zero-waste in a circular economy is linked with achieving UN SDG2: Zero Hunger. 

Circular economy principles also encourage community cooperatives and food-sharing initiatives, which can contribute to better living standards and inclusivity. As a result, more job opportunities are created, hence providing greater financial means for improvement. Sustainable packaging and environmentally responsive and inclusive decision-making processes are crucial action points in a circular economy, ensuring a healthier and more equitable future. This economy also enhances resource efficiency and promotes fair distribution of the resulting benefits across society.

A Circular Economy is a pathway towards all SDGs

The Circular Economy cluster at THRIVE Project is initially focused on addressing the most relevant SDGs for circular economies. Namely: SDG7 (Affordable & Clean Energy), SDG8 (Decent Work & Economic Growth), SDG11 (Sustainable Cities & Communities), and SDG12 (Responsible Consumption and Production). However, a deeper dive into the literature reveals that in truth a circular economy will not just be a solution for a handful of SDGs, instead it will be the master key focusing on all 17 SDGs.

Figure 6: Contribution of CE Practices to the SDGs through seven specific pathways.
Source: Ortiz-de-Montellano CG, et. al., 2023

Conclusion

The Circular Economy Cluster within THRIVE Project is committed to building a sustainable future. This is through its focus on a zero-waste economy, regenerative resource management, and thrivable economic growth. By promoting responsible consumption, extending product life cycles, and designing for circularity, the cluster aims to minimise environmental harm and maximise resource efficiency. Through regenerative processes such as: regenerative agriculture and composting of bio-based products, efficient sustainable production methods that conserve resources and reduce waste, and sustainable business models, the cluster strives to foster a circular economy that respects our planet’s finite resources. Furthermore, by advocating for national circular economy policies that favour resilient infrastructure, food security, and inclusive jobs and skills, the cluster aims to ensure a thrivable economic system and improved living standards for all. 

To effectively translate our circular economy goals into tangible community actions, our outreach cluster aims to engage with communities through a series of targeted activities:

Educational Series on Circular Economy Practices

This involves developing educational content focused on recycling practices, emphasising specific materials, and showcasing successful case studies of circular economy practices. This will help to raise awareness about the importance of resource conservation and inspire action based on real-world successes.

Workshops on Circular Design and Innovation

THRIVE plans to launch workshops and co-branded activities to explore the principles of circular economy and design. These workshops aim to foster creativity and innovation in adopting circular economy practices.

Research on Sector-Specific Waste Reduction

THRIVE will help industries identify and implement more thrivable practices. This can be done by conducting studies on waste generation in different sectors. Furthermore, new strategies for waste reduction and resource optimisation can be designed and offered.

Promotion of Sustainable Business Models

This includes showcasing businesses that have successfully adopted circular economy principles to encourage industry-wide transformation. The THRIVE platform will be utilised to offer sustainability performance scoring to incentivise and recognise businesses making significant strides in this area.

Outreach Through Digital Platforms

THRIVE podcasts, webinars, and social media events often open discussions regarding various aspects of a circular economy. This highlights innovative projects and expertise from our collaborators. This will serve to broaden the discussion and engage a wider audience in circular economy topics.

Collaboration with Local Communities for Responsible Consumption

Working alongside local community groups means we can foster a culture of responsible consumption and support the development of zero-waste communities.

THRIVE Framework summary

THRIVE, The Holistic Regenerative Innovative Value Entity, is a scientific, independent, and advocacy-based organisation with aims centred around building a thriving future for all. The THRIVE Framework is a holistic approach to sustainability that considers the environmental, social, and economic dimensions of thrivability. The framework is based on 12 Foundational Focus Factors that are essential for creating a thriving world. 

Learn more about the THRIVE Project. Follow our informative blog and come along to our free monthly webinars to hear from expert guests in the field. Furthermore, sign up for our newsletter and follow us on LinkedIn to keep up to date with all our new content.

Authors

  • Myles Hall

    Myles is a writer with several years of experience in politics, consultancy and marketing. He is a socially-engaged individual, with an immense passion for sustainability and the environment.

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  • Ben Shaw

    Ben is a passionate environmentalist currently pursuing a Master's degree in Environmental Science at the University of Melbourne. His love for the outdoors and immersion in nature has fueled his passion for conservation, with a particular interest in the unique wildlife endemic to Australia. Ben aspires to direct his career towards making impactful conservation efforts and establishing a future in which all forms of life can thrive.

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