In the EU, raw material consumption in 2020 amounted to around 14 tonnes per citizen and waste generation came to just under 5 tonnes per capita. But is it really waste or is it raw materials that we can use? For product developments, circular design offers an answer to this question, especially in the area of product design. An answer that not only protects the environment, but brings considerable brand benefits. In this blog post, we look at the concept of circular design, what it means for brands and the environment, and explain why now is the right time to consider it. Find out how your company can benefit from circular design despite challenging economic times.
Author: Alexander Peschke
June 24, 2024
Circular design aims to design the life cycle of products to minimise waste and use resources efficiently. An inspiring example of this is “Loop” from TerraCycle. TerraCycle is a global and innovative recycling company focussing on materials that are difficult to recycle. The Loop programme promotes a circular ecosystem by working with brands, producers and retailers to enable the sale and collection of reusable and recyclable versions of conventional single-use products. This makes reuse convenient and accessible.
In 2016, ~2.02 billion tonnes of waste were produced worldwide. According to Statista and World Bank forecasts, this is an alarming amount that will continue to increase over the next 25 years: by 2050, the global amount of waste is expected to reach around 3.4 billion tonnes. At the same time, the consumer market is increasingly demanding sustainable products. This makes it clear that the time has come for companies to take advantage of circular design – to be pioneers in a changing economy, but also to minimise risks in the supply chain.
For more than half of consumers around the world, consideration of ESG factors (ESG = “environmental, social & governance”) is essential and represents crucial purchasing criteria (examples are waste reduction and care for the earth). Companies whose brand philosophy and communication are based on ESG elements benefit from a positive brand image and considerable sales growth. According to research by Bain & Company, brands that scored highest on these elements achieved five times the sales growth of those with the lowest scores. In addition, customer loyalty to sustainable brands is increased. Circular design is a powerful approach that not only benefits the environment, but also positions your company as responsible and future-orientated, thereby increasing the appeal to your customers.
Increase attractiveness as an employer: Companies that are actively committed to circular design and sustainability can increase their appeal to potential employees. Particularly the younger generation is looking for employers that are recognising the importance of environmentally friendly practices and who make a positive contribution to society and the environment. By placing circular design at the centre of its corporate strategy, a company can position itself as an attractive and responsible employer.
Employee engagement and satisfaction: Implementing circular design principles can increase employee engagement and satisfaction. Employees often feel more motivated and satisfied when they know that their work contributes to positive environmental and social change. This increased engagement can boost productivity and promote employee retention.
Promote a culture of innovation: Circular design requires creative thinking and innovative approaches in order to design products and processes that support a circular economy. Companies that promote circular design are signalling that they value innovation and give employees room for creative thinking and experimentation. This can attract talented innovators and foster a culture of continuous improvement.
By reducing, reusing and recycling materials, circular design can help to significantly reduce the need for new raw materials. According to the Circularity Gap Report 2022, global greenhouse gas emissions could be reduced by up to 39% through circular design practices, which represents a significant step towards climate neutrality. Read more about the benefits of circular design in our blog post
The world is at a crucial turning point in terms of environmental and sustainability concerns. With the growing threat of climate change and the excessive consumption of resources, governments and international organisations have recognised the need to introduce stricter regulations and guidelines for companies. These measures aim to promote the principles of circular design and make it a standard in product development and product use.
EU Circular Economy Action Plan: The European Union has published an ambitious action plan for a circular economy. It aims to accelerate the transition to a more sustainable economic model. The so-called CSRD (Corporate Sustainability Reporting Directive) incorporates the topic of circularity and primarily focusses on ESG reporting. This includes specific measures that contribute to reducing the ecological footprint of products – such as restricting the use of single-use plastic or introducing a ‘right to repair’. Companies trading in or with the EU must prepare for these changes by adapting their products and processes in line with the CSRD. Read more here
Global ISO standards for circular design: The International Organisation for Standardisation (ISO) is working on the development of global standards for circular design and sustainable production processes. These standards are expected to define criteria for material selection, product life cycle assessments and recyclability in order to provide companies with a framework for the development of sustainable products. Read more here
National laws on extended producer responsibility (EPR): Various countries are planning to introduce or tighten EPRs, which oblige companies to take back, reuse or recycle their products at the end of their life cycle. These regulations aim to encourage manufacturers to develop more durable and more easily recyclable products. Read more here
By adapting to these upcoming regulations and guidelines at an early stage, companies can not only avoid penalties, but also position themselves as pioneers in the field of sustainability. It is important that companies follow these developments closely and integrate them into their strategic planning in order to remain successful and competitive in the long term.
Circular design offers a win-win situation for companies and the environment. By implementing this approach, brands can not only reduce their operating costs and increase customer satisfaction, but also make a significant contribution to environmental protection. Start by analysing your products and processes, commit to take-back and recycling programmes and communicate your progress transparently.
– Alexander Peschke
Circular design has the potential to achieve measurable sustainability in product design and effectively reduce the burden on the environment. Little by little, companies are recognising the positive effects of this design strategy, but there is still plenty of room for improvement.
At PESCHKE, we have been integrating environmental aspects into our product design process for a long time and are increasingly focusing on circular design and its many optimisation possibilities. Together with our clients, we want to contribute to making Austria one of Europe’s leading countries in the field of circular design.
Would you like to incorporate more sustainability and elements of circular design into your projects or receive guidance on the topic? We look forward to hearing from you!
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