Sustainability is an issue concerning both businesses and consumers. In the last two years, 69% of consumers say sustainability has become more important to them (NIQ). People want to buy socially responsible and environmentally friendly goods, and companies want to produce them. The idea of sustainable goods points to consuming less and, therefore, manufacturing less. However, implementing a circular economy model in your business can create multiple sales routes from one item. Unfortunately, the problem for many is figuring out how to do this.
Circular economy and sustainability
So, what is a circular economy? It’s a model that aims to limit waste by turning it into a resource. This means reusing, repairing, refurbishing and recycling materials for as long as possible. The Circularity Gap, a recent report by Deloitte and Circle Economy, found that over 90% of the UK’s material use comes from virgin sources, with 80% of these materials extracted abroad. What’s more, only 7.5% of materials are circled back into the UK economy after use.
The depletion of natural resources makes it more critical than ever to optimise their use and maximise their value. As well as limiting environmental impact, circular practices also increase resilience and self-sufficiency. For example, reducing dependence on finite resources and imported materials enhances security and resilience to supply chain disruptions. There are also initiatives like urban recycling and community repair workshops that support local economies and reduce the carbon footprint associated with transporting raw materials. Adopting circular practices is both essential and timely in addressing the pressing challenges of sustainability.
How can a circular economy be implemented?
One company taking circularity seriously is Fairphone. Since 2013, they have been on a mission to craft the world’s most ethical phone. Their key impact areas are longevity, e-waste, fair materials and fair factories. By establishing a circular economy, they avoided 15 tons of e-waste in 2022 using two different strategies:
A) Reducing resource use (and future e-waste) through the longevity of their phones (5.4 tons).
B) Removing 9.6 tons of e-waste through responsible recycling and take-back/collection programs (Fairphone 2022 Impact Report).
Circularity is built into Fairphone’s business model. It offers free and public repair information, printed circuit board schemes for board-level repairs and affordable spare parts. It also incentivises the return of old devices to refurbish and reuse or recycle. The success of their products continues to grow. 2022 saw the company’s third consecutive year in profit, increasing its revenue by 62% compared to 2021.
Circularity with DefProc
Push to Talk
A collaboration with Liverpool 5G Health and Social Care Testbed, Push to Talk helps people build meaningful connections, reducing feelings of loneliness and boosting mental well-being.
Designed with circularity in mind, the Push to Talk buttons are injection-moulded using ABS plastic. The robust material means the buttons can be returned, refurbished and reused. The devices use a multi-mode LPWA (low-power wide-area) module for coverage. Allowing for different connection technologies means that the Push to Talk buttons are future-proofed, minimising e-waste and overall costs.
Push to Talk provides a vital service to people experiencing loneliness. By using a circular economy model, we can reduce costs and ensure the service remains accessible.
Remlok
DefProc supported the Medication Support Company with the creation of Remlok, a remotely operated medicine cabinet, allowing people to access their medication in the correct quantities at the right time. Many devices used in the healthcare sector have a life cycle longer than their intended use cycle. Medication Support was keen to trial a right-to-repair service as part of their business model, allowing them to maximise the value of their Remlok cabinets and reduce their waste, costs and environmental impact.
As the cabinets are in people’s homes, we recognised there will be some general wear and tear that comes with daily usage In this instance, we ensured that they are easily repairable and durable enough to be reused for multiple customers. We carry out any essential repairs throughout their life cycle if required. At the end of their use cycle with a customer, they can be easily refurbished by us, ready for Medication Support to redistribute them to someone else.
What does the right to repair mean?
The UK introduced Right to Repair regulations in 2021 to increase producer responsibility, reduce waste and enable consumers to identify energy-efficient products on the market easily. These regulations include:
- Appliances must be designed so they can be dismantled using conventional tools.
- Manufacturers of washing machines, washer-dryers, dishwashers, televisions and fridges are legally required to provide customers with spare parts for simple repairs. Manufacturers must also make parts available for more challenging repairs that professionals can carry out.
- Spare parts must remain available for either seven or ten years after the product has been discontinued, depending on the part.
While this is a step in the right direction, there is no limit to what manufacturers can charge for spare parts, so it might cost more for consumers to repair than replace. As well as this, the law only covers limited products. Products like smartphones and laptops which are more prone to damage and subsequent replacement, are not included.
So what is being done? To combat this waste problem, the Right to Repair Europe coalition is advocating for repairs to be affordable, accessible and mainstream. By targeting legislative change, they aim to ensure that businesses and manufacturers are forced to create products that can be repaired easily and affordably.
The benefits of a circular economy
Currently, WEEE (Waste Electrical and Electronic Equipment) requirements demand that distributors must offer free takeback on WEEE, retain a record of all WEEE taken back for at least four years, and provide customers with access to written information on the service provided and what they should do with their waste. Rather than regarding WEEE as a liability, businesses should approach it as a resource stream.
- By using appropriate materials, e.g. plastics that can be shredded or remoulded after their first use, input costs for new products can be reduced.
- Why destroy electronic components? Rebuild them into a new product! Circuit design usually has a longer life than product design. For example, Arduino microcontrollers run on chips from the early nineties and can still fulfil requirements required for new technology such as IoT.
- Out-of-date software is a common reason for goods becoming unusable. To combat this, the product could be reflashed with new/updated software, which allows manufacturers to retain original materials.
To maximise the benefits of the circular economy, it’s crucial to implement it into your business model as early as possible. Consider the example of a device: if it’s not designed to be easily disassembled and reassembled or lacks hardware capable of supporting software upgrades, its lifespan and adaptability will be limited. These critical design decisions must be addressed early in the development process.
Once the design is optimised for longevity and flexibility, you can focus on future sales strategies. Creating a product that can be refurbished three or four times unlocks multiple sales opportunities using the materials of one product. This approach reduces waste while enhancing profitability and sustainability.
Ready to reduce your waste stream?
The Circularity Gap report estimates that remanufacturing, repair and reuse activities could create over 450,000 new UK jobs by 2035, helping to offset job losses generated by offshoring and automation. In fact, the market value of manufacturing in the EU could reach £25.5 billion by 2030.
DefProc has over ten years of experience as an innovation partner. Our clients are spread across multiple industries, such as utilities, healthcare and the environment. We offer end-to-end services, supporting clients from their initial project scoping through to passing regulatory testing. Adopting a circular economy is a cost-effective model to reduce waste and ensure that your products are durable and reliable.