Showing a Profit by Adopting a Circular Economy

Industries can reliably increase their profitability while reducing their dependence on natural resources. Some companies have embraced this thinking, while others still believe that these two things are mutually exclusive. Demonstrating how companies can increase their profits by adapting circular principles into their business is very important, especially in educating companies that are resistant; this not only helps skeptical companies understand why it’s the right thing to do, but also that it is a viable way to increase their profits. By educating those resistant to adopting the principles, we can help them start to see that they need to adapt to a circular economy.


How do businesses prove this?



They need to demonstrate the feasibility and practicality of increasing profit through adopting circular economy principles to:

1. Customers

  • Consumer behaviour trends indicate customers are seeking more sustainable ways of shopping for the products they want and need.
  • Businesses are seeking companies that have more sustainable practices.

2. Employees

  • If everyone understands that it is their mission to improve sustainability, front line workers will find ways the entire company can improve.

3. Managers

  • Managers need to implement processes that show a more sustainable attitude.

4. Executives

  • If executives buy into the profit benefits, they will see their bonuses increase which will increase willingness to further embrace circular beliefs.

5. Suppliers

  • If everyone supports the importance of sustainability from both a profit and more perspective, suppliers will start to adapt these practices.
  • Companies can also demand these efforts are put in place.  Once they do and suppliers see they are increasing profit, they will start to implement these methods with other customers.

6. Shareholders

  • Once shareholders see the profit improvement, enterprise value increases and shareholders are happy.

Embracing the circular economy drives sustainability and increases revenue and profits. Remember the three principles of a circular economy; design out waste and pollution, keep products and materials in use, and regenerate natural systems.

Want to learn how to level up your strategy?

For expert guidance contact us today