Global Business

BUSI1602 – Global Business and Sustainability

Introduction

The circular economy has been a best-suited way of having a sustainable environment with a great future. This aims at enhancing the stages and its contribution tothe economy of products in the environment by limiting the wastage of resources.

Thus, it has been stated that the circular economy has been a solution for sustainable growth and development. The role of the circular economy and its impact will be demonstrated in the report which makes the nation to have sustainability and manage with the resources in a required way.

The challenges that have been faced by the industries with the embracement of the circular economy model will be depicted in the essay. Different principles which help the circular economy model for eliminating the waste and reduce the pollution in the country will be presented in the report.

Additionally, this makes the industries to meet with its obligations and have products and services with the right usage of resources. The crisis that took place due to ecological disbalance will be elaborated in the essay.

It has made them face different problems for eliminating the impact of activities which affects the environment at a huge level. The implications of such types of model for having sustainability in the environment will be clearly mentioned in the essay.

Discussion

Concept of circular economy

As per the current researches, it is examined that around 2.5 billion tones of the wastage are produced by the European Union every year. That is the reason, European Union has been currently updating its existing legislation related to waste management so that it can be capable to promote the shift for the more sustainable model that is known as the circular economy.

In other words ofGeissdoerfer et al. (2017),it is reflected that the circular economy is defined as the model of production as well as consumption that includes sharing, reusing, leasing, recycling, refurbishing and repairing the available tools, materials and products as much as possible within the organization. In this manner, the life cycle of organizational products and tools is extended at a significant level.In a practical manner, the circular economy implies decreasing waste for a minimum (European Parliament, 2018).

It means when the organizational products reach the end of its life, then its material which was used in the production of organizational products is kept under the economy where on earthpossible. Because of effective waste management, it can be productively utilized again and again so that further value can be created under the organization.

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(Sourced: European Parliament, 2018)

In a similar manner to above, this is defined as the planned obsolescence at the time of designing a product whole having a limited lifespan with respect to encourage the potential customers to buy the organizational product again. In order to deal with the problem of waste, some measures are called by the European Parliament so that this problem can be tackled (Ferronato et al., 2019).

Apart from this, the circular economy is also identified as an alternate for the traditional linear economy under which the organizations keep the resources for use as much as possible and it extracts the maximum value from the resources (Kirchherr et al., 2018). After that, products and materials are recovered and regenerated at the end of each product’s life. In addition, the circular economy works on some important principles as:

  • To the reduction of the wastage
  • To generate the productivity of the resources
  • To provides the more competitive economy to the UK
  • To provide the best position to the UK in order to better address the emerging resources scarcity issue in further life (WRAP, 2019)
  • To help the organizations to reduce the environmental impacts of the productions as well as consumption in European countries

As per the above circular economy principles, it can be reflected that the activities of the economy develop and redevelops the complete system health. In this way, the concept of circular economy identifies the importance of the country’s economy which needs to work efficiently at all the scales in respect to large as well as small businesses, individually as well as organizations and locally as well as globally (Zamfir et al., 2017).

Moreover, switching to the circular economy does not only the value to adjustments which objected to decreasing the negative impact of the linear economy. Instead of this, it reflects the systemic shift which develops the long-term resilience, develops the economic and business opportunities and gives the number of benefits related to the environment and society.In this manner, the circular economy model categories between the technical cycle and the biological cycle.

It further defines that the consumption of resources takes place only in biological cycles under which the biologically-based materials, as well as food, are developed in order to feedback within the system with the help of the process such as composting as well as anaerobic digestion (Korhonen et al., 2018).

These biological cycles redevelop living systems like soil that gives renewable resources to the economy. However, the technical cycles restore as well as recovers the products, their related materials, components with the help of different strategies including repair, reuse, recycling and remanufacture.

Under the deep discussion of the circular economy, it is examined that there is the biggest need to switch to a circular economy as the population of the world has been increasing on regular basis and the demand for the raw materials and products has also been increasing simultaneously. However, the supply of natural resources and the raw material is limited (Ormazabal et al., 2018).

Due to this issue, some EU countries are dependent on the other counties in the world for the supply of their raw materials. At the same time, the extracting as well as utilizing the raw materials also has a major impact on the country’s environment.

Similarly, it increases the energy consumption in a particular country and it also increases the quantity of CO2 emission in the same country. So, there is a need for EU countries to adopt a significant system that includes the smarter utilization of the raw materials which can be efficient and effective to lower the CO2 emission in aparticular country (Ghisellini et al., 2016).

In similar concern, it is also found that the standards related to waste prevention, redevelopment and recycling can be helpful for the EU companies to save around €600 billion which is equivalent to 8% of annual turnover. Moreover, this circular economy system is also beneficial to reduce the emission of the total annual greenhouse gases by 2 % – 4%.

In the same context, it is also described byGeng et al., (2012) on the basis of its research studies that the shifting towards the more circular economy can be effective to provide the number of benefits like improving the safety of raw material supply, boosting economic growth within the particular country, decreasing the pressure of natural resources on the environment, stimulating the innovation, establishing more jobs, increasing the competitiveness and so on.

Due to the adoption of the circular economic system, organizations are also capable to offer more durable as well as innovative products to its customers and these products will be effective to enhance the quality of life and save the people’s money in the long term (European Parliament, 2018).

In addition, after analyzing and concerning about the circular economy in detail, seven key elements emerge which defined the majority of the different terms which are linked to the circular economy system.

In these elements, the designing for the future, incorporating digital technology, preserving & extending what is already made, prioritizing the regenerative resources, the adoption of the waste as resources, rethinking the business models, the collaborating to create the joint valueetc are included in an effective manner so that the implementation of the circular economy can be effectively done in the particular country (Smol et al., 2017).

The ecological crisis in a European country

After discussing the circular economy system, it is essential to analyze the ecological crisis in the European countries so that it can be ensured that there is the need of adopting this system in an effective manner.

In a similar manner, it is also defined that the ecological problems need an integrated approach with respect to their appraisal, pressures, cutting across the media and human activities. In this manner, several ecological issues are determined in regard to European counties (European Environment Agency, 2016).

In the specified ecological crisis, climate change is one of the important crises that deals with the impacts in Europe related to the increased greenhouse effect which is caused by the increased level of CO2 in the environment that is already found 50% more than within the pre-industrial times.

In this manner, the main reasons for climate change are the changed climate pattern, effects on hydrology, land degradation, sea-level rise and threats to the ecosystem within a particular country. In a similar manner, another ecological crisis is the stratospheric ozone depletion which arises because of releasing the chemicals which are identified as chloro- as well as bromofluorocarbons, using as the refrigerants, foaming the agents, industrial cleaners and the fire extinguishersetc (Korhonen et al., 2018).

Due to this issue, several consequences are determined such as possible changes within the environment circulation, eye cataracts, the effect on ecosystems as well as materials and the enhanced UV-B radiation over the earth’s surface that may lead to the increased level of the skin cancer.

At the same time, the loss of biodiversity is also considered under the ecological crisis which is found due to the pervasive. In this manner, it is analyzed that the ecosystem in European countries considers more than 2500 habitat types as well as around 215 species of which around 90% are invertebrates (Ferronato et al., 2019).

Similarly, it is also examined that some other ecological crises include the major accidents which define the acceptable level of risk in regards to both such as human health and the environment. In this way, the risk within the environment and the society is analyzed efficiently by concentrating on the magnitude related to the probability which it will happen (European Environment Agency, 2016).

In this way, it can be mentioned that the major accidents are also the cause of the ecological crisis due to which the European countries have to face several problems as these issues require proper solutions so that the ecological crisis can be reduced or eliminated at a significant level within the country.

Circular Economy has been carried in the environment as this makes the nation to have effective and continue the use of resources with the elimination of wastage. This leads to having an effective use of resources by employing repairing, reusing, remanufacturing, sharing and recycling of resources in such a way that balance in the environment could take place.

This also aims are procuring and reserving the requirements so that it could be used for a longer time. It makes the process for industries to get enhanced with the improvement in production and resources. The circular economy has been the best-suited way of having a sustainable environment with a great future.

This aims at enhancing the stages and its contribution tothe economy of products in the environment by limiting the wastage of resources (Ferronato et al., 2019). Thus, it has been stated that the circular economy has been a solution for sustainable growth and development.

The generation of warning about the pollution and wastage of natural resources has given encouragement to the development of the circular economy in the environment. The solution carried by the circular economy is under the strict assessment and evaluation so that it would not affect the environment or sustainability at the harsh level.

The circular economy is a model which is used for having required production of goods and services by limiting its consumption and reducing the wastage of materials. The linear economy breaks the model into a paradigm of take-make-consumer-throw away.

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Source: (European Parliament, 2018)

The economic model fits the ecology and sustainable with the management of resources and has become part of the global economy. This majorly works on different principles such as sustainable procurement, Eco-design, industrial ecology, the economics of functionality, responsible consumption, extension of duration and recycling.

This would help in eliminating the waste and meeting with social standards of the economy. The implementation and use of circular economy have been made for benefitting the business and make it have usage of its products and services which are as per the requirement of the environment.

The concept has been laid down for having an understanding of the economy and its system with the use of material which is effectively used in the business (Ferronato et al., 2019). This majorly focuses over eliminating the waste by stopping the development of phases which create pollution inthe first place.

It makes the designing of products which releases a smaller number of products which impact negatively to the environment. This also protects the human health and natural system which makes the environments to be safe and secure in all the conditions.

The contribution of the circular economy has brought sustainability in the environment as it provides information to the people and society for making use of methods which do not pollute the environment. Moreover, the resources are to be used multiple types so that their extinction would not even take place.

Circular economy has been taken up at global level so that it would not affect the environment overall. Globalization is resolved as the key idea under which various nations are united while trading the abilities, human capital, merchandise, information and different things.

Right now, idea of globalization is encouraged by worldwide exchange and venture. That is the reason it is said that the rise of amazing assets, for example, data innovation is the foundation of globalization as it prompts the combination of the regions just as the organizations at the universal level.

Likewise, globalization is one of the significant pieces of the business because of which various nations and organizations are fit to take in various things from one another and give the office to lead the organizations in a powerful way (Smol et al., 2014).

The evaluation of strategies shas been made in advance by making the organization to explore the areas so that it could manage with the changes in the respective manner. Globalization has coordinated the ejection identified with the business brands which order a worldwide after.

Simultaneously, it is likewise discovered that the globalization gives the office to the individuals everywhere throughout the world to choose the best things among the assortment of items which are from the various nations of the world. The economy of the country is measured and developed with the development of such products which do not affect the environment. It makes the management of resources in such a way that allocation or resources

Along these lines, the development of the worldwide brands of the organizations just as the global organizations is totally answerable for driving the improvement and development inside the rising economies in entire the world. It has been adopted and managed with the consideration of affects and developing it in sequential manner.

Likewise, in the wake of breaking down and worried about the round economy in detail, seven key components rise which characterized most of the various terms which are connected to the roundabout economy framework.

In these components, the planning for the future, consolidating advanced innovation, safeguarding and broadening what is as of now made, organizing the regenerative assets, the selection of the loss as assets, revaluating the plans of action, the teaming up to make the joint worth and so on are remembered for a successful way with the goal that the execution of the roundabout economy can be viably done in the specific nation (Ormazabal et al., 2018).

The development of the country and economic region take place with the implementation of model into the nation. The ecological balance is driven with the management of resources and eliminating the waste material in a required and effective way.

The reduction in the emission of pollution into air has laid down the effective and required usage of material in a required way. This has made that management of resources in a desired way which could help in integrating the resources and fulfilling the requirement with the emergence of sustainability in efficient manner.

Conclusion

From the above discussion, it has been analyzed and identified that circular economy has its effective role in the development of the organization. This has made the country to have sustainable environment for meeting with needs and wants of the country. The role of model has been demonstrated in the above study.

The role of the circular model has been depicted which helps in assuring and having sustainability in the environment. It is necessary for having management of products and services which are required by the organization, which will help in safeguarding the interest of the customers.

The discussion of the model and its impact over the economy has been carried in the report. The crisis that took place due to ecological disbalance will be elaborated in the essay. It has made them to face different problems for eliminating the impact of activities which affects the environment at huge level.

Different role and impact of circular economy model with the challenges it faced in the industries will be provided in the essay. Problems and contrary things which draws with the economic model have been complied in the essay. Lastly, the impact over the sustainable growth on the European countries have been mentioned in the report.

References

European Environment Agency, 2016. Problems. [Online] Available at: https://www.eea.europa.eu/publications/92-827-5122-8/page014.html. (Accessed: 12th March 2020)

European Parliament, 2018. Circular economy: definition, importance and benefits. [Online] Available at:

https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits. (Accessed: 12th March 2020)

WRAP, 2019. WRAP and the circular economy. [Online] Available at: http://www.wrap.org.uk/about-us/about/wrap-and-circular-economy. (Accessed: 12th March 2020)

Geissdoerfer, M., Savaget, P., Bocken, N.M. and Hultink, E.J., 2017. The Circular Economy–A new sustainability paradigm?. Journal of cleaner production143, pp.757-768.

Ferronato, N., Rada, E.C., Portillo, M.A.G., Cioca, L.I., Ragazzi, M. and Torretta, V., 2019. Introduction of the circular economy within developing regions: A comparative analysis of advantages and opportunities for waste valorization. Journal of environmental management230, pp.366-378.

Kirchherr, J., Piscicelli, L., Bour, R., Kostense-Smit, E., Muller, J., Huibrechtse-Truijens, A. and Hekkert, M., 2018. Barriers to the circular economy: evidence from the European Union (EU). Ecological Economics150, pp.264-272.

Zamfir, A.M., Mocanu, C. and Grigorescu, A., 2017. Circular economy and decision models among European SMEs. Sustainability9(9), p.1507.

Korhonen, J., Honkasalo, A. and Seppälä, J., 2018. Circular economy: the concept and its limitations. Ecological economics143, pp.37-46.

Ormazabal, M., Prieto-Sandoval, V., Puga-Leal, R. and Jaca, C., 2018. Circular economy in Spanish SMEs: challenges and opportunities. Journal of Cleaner Production185, pp.157-167.

Ghisellini, P., Cialani, C. and Ulgiati, S., 2016. A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner production114, pp.11-32.

Geng, Y., Fu, J., Sarkis, J. and Xue, B., 2012. Towards a national circular economy indicator system in China: an evaluation and critical analysis. Journal of cleaner production23(1), pp.216-224.

Smol, M., Kulczycka, J. and Avdiushchenko, A., 2017. Circular economy indicators in relation to eco-innovation in European regions. Clean Technologies and Environmental Policy19(3), pp.669-678.

 

 

 

 

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