Circular economy
What is circular economy?
The circular economy is an economic system in which products are intended to stay in the economy as long as possible thanks to their design that allows products to be repaired, reused, and the constituent materials to be easily separated for recycling. Customers do not have to own products, but can borrow or share them. In this system, waste is minimized. The circular economy is in contrast to the linear model, in which waste is generated, which must be disposed of. The reasons that lead companies to focus on the circular economy include increasing prices of primary raw materials, their availability, and increasing legislative pressure. The application of circular economy principles at businesses will have a significant positive impact on global warming, as extraction and processing of raw materials accounts for about half of total global GHG emissions. Therefore, customers and business partners are increasingly preferring companies with a business model supporting circularity, and thus sustainability.
The circular economy is beneficial for businesses, e.g.:
- reduced risk of disruption and price volatility of supplied raw materials;
- higher productivity and competitiveness;
- innovations in the production process, which can lead to a further increase in effectiveness and cost savings; and
- new business opportunities and possibilities to enter new markets,
- by attracting new customers and establishing long-term business relationships with them.
PwC is one of the founding members of Circular Slovakia – a sharing platform in circular economy
Our goal, together with our other partners in Circular Slovakia, is not only to ensure the sustainability of our economic environment, but also to find effective business combinations.
Circular Slovakia’s goals include:
- increase general awareness in the area of circular economy;
- promote active discussions between the public and private sectors on opportunities and eliminate barriers to the transition to a circular economy;
- develop new projects and create partnerships between public administration, research and business; and
- exchange experience and knowledge, and present successful implemented examples.
The founding partners of Circular Slovakia are:
At PwC we use the following steps to support organisations in the development of a circular strategy
Trends around circularity in your business
- How are enabling technologies, regulations & customer demands around circularity changing?
- What initiatives are competitors launching?
- What is your circularity today?
- What form does full circularity have in your business?
Performance, ambition, strategy & capabilities
- How has your circular performance developed over the past years?
- What is your circular ambition for the future?
- What are key differentiating capabilities you can leverage to become circular and which capabilities do you need to develop?
Initiatives that shape your future
- Which capabilities do you need to focus on to materialize your circular strategy?
- What initiatives/ investments are required to build these capabilities?
- How does the strategy impact your operating model – i.e. how to organize yourself?
- How can people and culture contribute to your strategic direction?
Support structure to allow you to deliver
- What is the financial impact of a renewed strategy?
- What does the execution roadmap look like?
- What are the critical enablers that need to be in place for your strategy to work?
- What is the immediate action plan that your teams can execute on?
- How to create company wide buy in for the renewed strategy?
How can PwC help you?
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