From jewelry to food waste, companies are focused on the economy about circulation

From jewelry and clothes to waste of food, the growing number of sectors focuses on action as part of the “professional economy”, aimed at less wasting – and deriving financial benefits in this process.

The growing costs of raw materials and movement to reduce carbon dioxide emissions may mean that work in this way becomes “critical”, according to Goldman Sachs, which stated that the global economy can use adaptation to the adaptation to $ 4.5 trillion until 2030.

Simply put, the circulation economy refers to the process of reusing, repairing or recycling of products while limiting waste. Represents the departure from the linear model of “organizing waste” in accordance with Ellen MacArthur FoundationA charity organization that studies and promotes circulation economy.

“The economy with professional circulation is not about introducing small, incremental changes in our current system – it is a complete transformation of the way the entire system works,” said Reniera O'donnell, in E -Mail to CNBC.

“The economy with the plant is in line with three principles driven by the project – eliminate waste and pollution; There are products and materials of the highest value and regenerate nature, “she added.

For example, the Chinese company Deartree buys and renews office furniture, and then sells or rents it to companies such as Microsoft, Tencent and Starbucks. Meanwhile, the Dutch company De Clique collects food waste, such as coffee areas and sells it to companies that introduce them to new products.

Even cities intend to become “fully round” Glasgow commitment to this until 2045 and Amsterdam until 2050

Working in this way can mean a change in thinking. American jewelry company Sonalore says It is a “shaking” industry, running an unusual business model: it will buy its elements from customers when they do not want them, guaranteeing that it will pay the market price for gold minus 15% of the fee.

For Nidhi Singhvi, co-founder and general director of the company, this model works best on high-value products-plead with luxury watches or cars. “Successful business models in a professional economy depend on three components: valuable basic resources, transparent prices or (a) fair price determined by demand and supply forces and efficient resale mechanisms,” said CNBC by E -Mail.

Singhvi, who lives in California, said that young people “deeply care for sustainable development.” “They copy deeper and ask questions about obtaining and chain of supply and weigh influence on what they buy,” she said.

In addition, millenniums are less rich than their parents, and therefore they think “more like investors” while shopping, taking into account the value of resale of clothes and accessories, said Singhvi. Indeed, the second -hand clothing market will reach $ 350 billion around the world until 2028, this year compared to $ 264 billion and grow three times faster than the clothing market, in general, the clothing market, According to the website report, Thredup mods sales.

Manufacturer from Singapore SMC Corporationwhich makes industrial equipment and focuses on products that reduce emissions and raw materials, are on the list of companies with “high quality” “high quality” economy. There is also a Chinese company on the list Lenovowhile his “highest general points of the circle Waste management and a French company Veolia.

“The economy with a concluded circulation is of key importance for solving low coal economy and the loss of biological diversity, which is increasingly recognized by investors, corporations and politicians,” Goldman analysts said.

Indeed, several regulations regarding the European Union require that circularity is included in product design, and the EU has Action plans Managing such things as plastics, textiles and food waste.

According to 624, food waste is “market failure” and “environmental failure” Food waste index reportWith 1 billion meals wasted around the world every day. Meanwhile, over 700 million people were influenced by hunger every day, according to the UN report.

Big Food Food Food Foundation Challenge Ellen MacArthur Foundation aims to solve this problem. The group is to announce the details of food products that have been made in accordance with the principles of closed circulation economy, taking into account the biological diversity and water consumption in their production.

“Currently, the way our food has been designed means that we bend nature for food production, but we can make various design decisions so that food can be designed so that nature develops,” said O'Donnell.

This is a topic that has been close to the food safety specialist Matthew Tan for over two decades. “If you saw what the poor earth has undergone, okay, in the last 100 years you will agree with me that if we do not start looking at this circular of the economy and the way we run agriculture, it does not go to look really, really bright,” he said Tan CNBC by combining video.

Tan takes part in several technology companies based in Singapore, which is aimed at balanced food products, including Kosmodehealth, which brings protein from published barley grains for pasta production.

In Singapore, the government is expanding its requirements for disclosure of sustainable development, thanks Singapore Stock Exchange that the financial, agricultural and energy industry reports on its climate policies and goals from 2024. This year, construction and transport sectors were also included.

Tan said that investors ask more questions about climate disclosure, adding that they are expecting “change” of the money market in the direction of sustainable development.

“The value of bonds, especially those related to sustainable development, will present the stage. It will become more and more important, “said Tan.

In the case of Singhvi jewelry entrepreneur, round models can be used to many industries. “Here's what excites me as the founder: we already know that these models are working. The real challenge and possibilities is to convey this thinking traditionally opaque industries through technology and transparency, “she said.