Sustainability and increasing profitability can go hand-in-hand

Traditionally, businesses have looked at building a sustainable business and profit as two conflicting objectives. Many businesses commonly consider sustainability as a cost to the business. The circular economy creates a paradigm shift in that it shows businesses how they can use the circular economy to add value and increase profits (and why they should).

The best way to look at this is to go through the key areas of a financial statement. Let’s examine the ways that businesses can increase their profitability by embracing sustainability.


Using the Circular Economy to Add Value

Cost of Goods Sold (COGS):
Using the Circular Economy to Add Value - renewable energy
Operating Costs:


This makes a difference from both a sustainability perspective and in reducing overall costs.


Working Capital:

Using the Circular Economy to Add Value


There are many other ways to profit off the circular economy. As more businesses adapt and adopt circular principles, even more profit and cash drivers will emerge.

Looking for more info? Axios’ CEO Chris Legler explains how adopting a circular model can increase revenue, decrease product costs, and improve operating and marketing costs. Check out this free webinar: Capture the Financial Benefits of the Circular Economy, presented in partnership with Metal Tech Alley.