Future business success hinges on sustainability and circular economy practices: GlobalData
14 June 2024: As public demand for climate action and resource conservation grows, businesses must pivot to sustainability to thrive. Embracing circular economy principles, such as reducing waste and extending product lifecycles, is crucial. As a result, future success hinges on adopting innovative technologies and sustainable practices, ensuring businesses remain efficient, compliant, and resilient in an evolving regulatory landscape, says GlobalData, a leading data and analytics company.
GlobalData’s latest Thematic Intelligence report, “The Circular Economy,” reveals that natural resource use has tripled over the last 50 years and continues to grow at an average of about 2.3% every year. Should the pace of consumption and production continue, resource use will reach 160 billion tons by 2060, up 60% from 2020, according to UN Environment Programme. This will have a severe impact on the environment.
Pinky Hiranandani, Senior Thematic Intelligence Analyst at GlobalData said “The successful businesses of the future will be sustainable. New business models will be required to transition companies toward the circular economy. For example, companies must develop sustainable business models that consider the entire lifecycle of a product. In addition to reusing and recycling, many are focusing on ecodesign, which will help minimize the environmental impact of a product.”
Proactively adopting circular practices can help businesses stay ahead of the evolving regulatory environment and avoid penalties. Sustainable businesses will likely disrupt linear counterparts by offering greater efficiency, long-term sustainability, and regulatory compliance.
Hiranandani continues “The circular economy is still conceptual, as no major industries operate in a completely circular manner. However, technologies like 3D printing, advanced materials, artificial intelligence (AI), batteries, blockchain, digital twins, electric vehicles, the Internet of Things (IoT), robotics, and smart city platforms are enabling the shift towards circularity. These technologies help lower resource consumption, improve energy efficiency, increase supply chain visibility, and extend product lifecycles.”
Hiranandani concludes “To support the development and scalability of these technologies, businesses, governments, and financial institutions need to invest and provide incentives. This investment is crucial if the scale of the circular economy is to match the current linear economy.
