Circular economy initiatives are increasingly being viewed as value-creation opportunities for firms in apparel, automotive, construction, CPG, energy and more. A combination of new circular economy regulations, consumer demands, supply chain pressure and awareness of upside revenue opportunities are influencing organizations’ views on the circular economy. Ultimately, circular economy services provide organizations with the ability to improve sustainability performance. As a result, many are turning to service firms that provide consulting engagements from singular product design through to multi-year transformations.
To help organizations capture value from circular economy opportunities, Verdantix has released the Buyer’s Guide: Circular Economy Consulting Services (2023). This report includes profiles on nine circular economy service providers and outlines the key criteria for buyers to consider when making a selection. It also sets out the business case for integrating circular economy principles into business models, sourcing, product design and end of life management. Circular economy services can support organizations to:
- Source non-virgin, innovative materials in supply chains.
The input of recycled materials can help manufacturers to reduce their water, waste and carbon footprint, while promoting innovative advancements in materials science and product development. - Design products for repair, refurbishment, reuse, resale and recycling.
Smarter design can save on materials, cost and energy use, while presenting opportunities for extended product lifespans, as well as to capture value in service-based activities down the value chain. - Build service-based business models to support product life cycle extension.
Re-orienting business models captures more value past the traditional point of sale and builds a tighter connection with customers. Product as a service models also enable opportunities for resale, repair and refurbishment services. - Create value out of waste streams.
Waste valorization is significant for manufacturers and users of plastic-based substances, metals and minerals. Understanding how to achieve value from waste and optimize sourcing channels for production is key to closing the loop. - Instilling confidence to meet burgeoning regulatory compliance.
Delivering on circular economy strategy requires focus on corporate, industry and product-specific regulations to help to set targets, goals and actionable operational changes. Regulatory expertise can provide the basis for developing value creation and competitive advantage.
We expect a continued trend in organizations seeking services for enhancing their circular economy activities. Regulations impacting certain industries, initiatives to improve consumer transparency on products, capturing business value and enabling sustainability, and climate performance improvements all make circular economy an initiative worthy of investment. For additional research on the circular economy, visit the Verdantix ESG & Sustainability research portal.
