How Might We Design A Radically Different Restorative & Regenerative Business Model? With Joe Iles, Ellen MacArthur Foundation Circular Design Programme Lead & Chris Grantham, IDEO Circular Economy Executive Director
Nov 23, 2021
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Guests Joe Iles and Chris Grantham discuss the vision of a regenerative circular economy, the need for a paradigm shift in business models, the importance of setting a vision and transitioning to a circular economy, and reshaping value for a sustainable circular economy.
Shifting to restorative and regenerative business models requires a change in mindset and values, focusing on eliminating waste, circulating products, and regenerating nature.
Transitioning to a circular economy involves reshaping value, shifting mindsets, and adopting service-centric models to prioritize durability, repairability, and reusability.
Deep dives
The Need for a Shift from Linear Business Models
The dominant linear economy model of extraction, production, and waste disposal no longer aligns with the finite resources and growing awareness of environmental consequences. There is a need for a break from linear models and a shift towards restorative and regenerative business models. This requires a change in mindset and values, focusing on eliminating waste, circulating products and materials, and regenerating nature. While many businesses are making efforts to be more efficient and less polluting within the linear model, a distinct break towards regenerative models is necessary to address systemic challenges.
Scaling the Circular Economy
The circular economy offers scalable solutions that address the environmental challenges we face. The key is to connect these solutions with a common vision of a circular economy: one that eliminates waste and pollution, circulates products and materials efficiently, and regenerates natural systems. While the specific solutions may vary across contexts, the principles of elimination, circulation, and regeneration are universally applicable. Companies like H&M and Zalando in the fashion industry are exploring circular practices such as renting products and changing material selections. Progress is also being made in packaging design, with efforts to reduce plastic waste. The food industry is another promising area, with innovations in biodiverse ingredients, upcycling byproducts, and regenerative sourcing.
Reshaping Value and Shifting Mindsets
Reshaping value and shifting mindsets are crucial in transitioning to a circular economy. It requires redefining the role of businesses, considering their impact on the overall system and the well-being of society. Companies need to develop a clear vision for their future role, integrating circular principles into their business strategies and operations. It is important to foster collaboration and surround the problem, bringing together key actors within industries to co-create solutions. Design thinking and a systems mindset are essential in identifying opportunities, understanding the wider ecosystem, and driving innovation at various levels. While the transition may be daunting, companies that embrace circularity can create lasting impact and align their values with a healthier, regenerative economy.
Moving from Products to Services
Shifting from product-centric to service-centric models is a key strategy in the circular economy. By selling the performance or services that products provide, companies can maintain ownership of the assets and prioritize durability, repairability, and reusability. This approach encourages keeping products in circulation for as long as possible, reducing waste and improving resource efficiency. Rental and leasing, sharing models, digital services, and incentivized product returns are examples of the transition from products to services. However, this shift requires understanding the wider system, considering the life cycle impacts, and designing out waste from the outset. It also opens up opportunities for collaboration and ecosystem thinking to create new value and shape industry-wide change.
