Circular Economy: fainin - an example of Circular Business Models
Significant quantities of production materials often end up as waste, which leads to a considerable loss of the value we aim to generate. Transitioning towards a circular economy demands a significant departure from this model, with larger corporations leading the charge due to their capacity to mainstream circular practices. Success stories of businesses that have fully embraced circular economy principles can serve as a catalyst for established brands to adopt similar approaches. Even though the modalities of transitioning to a circular economy may differ, the fundamental question is whether a business is generating value through a traditional extraction-consumption process or a more sustainable model of regeneration and restoration.
Why circular business models help the planet
Increasing an item's lifespan can be realized by emphasizing durability in design. However, to unlock the full value, a combination of sustainable design strategies should be employed, which includes maintenance, repair, standardization of parts, disassembly, refurbishment, and remanufacturing innovations. Businesses that prioritize service access over product ownership, and focus on selling the performance rather than the product, will likely extend the usage period, even under more intensive conditions.
How circular businesses are evolving
Manufacturers stand to enhance their profitability by incorporating higher durability, reusability, and energy and water efficiency into their designs, thus promoting the usage of better-designed products. Customers too, can reap benefits from the circular economy, as subscribing to a service instead of owning a product relieves them from maintenance, repair, and disposal responsibilities, and grants access to otherwise unaffordable products. Car sharing platforms like Zipcar or Car2go allow multiple users to share a vehicle, local libraries may lend power tools on an hourly basis, and clothes can be rented as needed, as demonstrated by the New York Public Library's 2018 professional attire lending program and the LENA fashion library in Amsterdam.
fainin unites these tendencies in a stuff-sharing-community where YOU can earn money with the stuff you do not necessarily use in specific moments.
What needs to change further in the context of circular economy
Companies are moving away from just selling cars to offering mobility, and from selling clothes to providing access to fashion. Through proactive reconsideration of consumption patterns, businesses can effectively pivot towards the circular economy, preserving the value inherent in social and ecological systems.
What can you do to promote sustainable consumption?
List an item on fainin, reduce waste & purchase used in case you necessarily need the product. The best thing about it? You're earning money while lending securely.
