BESS - Write Up PGFA1902

BUSINESS ENVIRONMENTAL AND SOCIAL SUSTAINABILITY
(WRITE-UP)
SUBMITTED TO:
PROF.SANJIV GOEL
SUBMITTED BY:
AAYUSHI BHANDARI
PGFA1902
CIRCULAR ECONOMY FOR SUSTAINABLE DEVELOPMENT
The current system of management and production of resources, goods and services promotes
short term consumption which leads to full utilization of resources leading to a polluted and
unsustainable environment. The current system of operations is opposite of life cycle of
environment and nature and it collides with sustainable development and questions the
survival of all long term goals. All elements must act as a chain so that they can be
continuously recycled and reused at different stages.
Unlike other economic models where profit maximisation is given more importance over
social and environmental aspects circular economy plays an important role by leveraging
both economical as well as social aspects which is beneficial for both business and
consumers. Many companies have started implementing this system as it is cost effective to
reuse resources rather than creating new material from scratch. This leads to lowered
manufacturing cost as well as sale price thereby benefitting both consumers and businesses
both economically as well as socially and environmentally.
Circular economy is an economic system which aims at eliminating waste and continuous use
of resources. This system creates a closed loop comprising of reuse, repair, sharing,
remanufacturing, recycling and refurbishment which minimises the use of resources, creates
less waste, less pollution and low carbon footprint. This system’s objective is to keep
products infrastructure and equipment’s for longer use so as to improve productivity of the
resources. One of main aims of circular economy is to make all waste the food for another
which can be either a by-product for another industrial use or a regenerative source for the
nature for example compost.
Most of the companies today work on linear economy which is based on make, take and
dispose model. They use all resources as if they are infinite. In circular economy all resources
are used keeping in mind that they are finite and ownership of the resources is taken. The
model works on “make, use and return”. There are various fundamentals on which this model
works.
1) Waste is a resource: The decomposable materials are returned back to nature like
compost and the non-biodegradable material is reused.
2) Second use: bringing back those products to the use which are no longer used by the
end consumer to recreate material which can be used by consumers.
3) Reuse: all products that can be used further must be reused.
4) Reparation: the damaged products must be regenerated to make new products.
5) Recycle: usage of scrap material.
6) Valorisation: extract energy from scrap material which cannot be recycled again.
7) Eco-design: designing and integration of products in such a way which does not deter
environment.
8) Industrial and territorial ecology: establishing an organization in a territory which has

optimum level of stocks, energy and services.
There are various sustainable companies who are now incorporating closed loop
system.
Dell was one of the first electronic manufacturer to use closed loop recycled plastics
in its computer. They reused plastics and cut down e-waste and saved resources which
reduced their carbon emissions by 11%. Last year Walmart also implemented closed
loop structure which included a process of recycled products to get back to packaging,
which maximized efficiency and reduced environmental degradation.
Giant clothing retailer H&M works on a strategy to become 100% closed loop. The
company collects unused clothes from stores and recycles them. To reuse new
garments it has collected more than 55000 tons of fabric since 2013. Some
governments are also shifting towards circular economy. In 2015 the European Union
implemented an action plan to make its supply chain more circular by including
manufacturing, production, consumption, repair, and waste management. Adopting
circular economy will be beneficial for India since it will save our resources.
Such examples will continue to emerge but it will take a lot of efforts to bring a shift
and widespread adoption of this system. Circular economic business models work
more for the benefit of the society. It also influences consumers to be more conscious
regarding their consumption and also encourages more companies to implement such
model.

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BUSINESS ENVIRONMENTAL AND SOCIAL SUSTAINABILITY

CIRCULAR ECONOMY FOR SUSTAINABLE DEVELOPMENT

3) Reuse: all products that can be used further must be reused.

4) Reparation: the damaged products must be regenerated to make new products.

5) Recycle: usage of scrap material.

8) Industrial and territorial ecology: establishing an organization in a territory which has

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