From jewelry to waste that is falling, companies focus on a circular economy

From jewelry and clothing to food waste, an increasing number of sectors are focused on working as part of a “circular economy”, with the aim of consuming less – and use financial benefits in the process.

The growing cost of raw materials and a move to reduce carbon emissions could mean that working in this way becomes “critical”, according to Goldman Sachs, who said that the global economy could benefit from the amount to the amount to 4.5 trillion dollars by 2030.

Simply put, the circular economy refers to the process of re -use, repairing or recycling the product, while reducing the waste to a minimum. Represents a departure from the linear model of “makeup waste”, according to Ellen Macarthur FoundationA charity organization that explores and promotes a circular economy.

“The circular economy is not in achieving small, incremental changes in our current system -but about the complete transformation of the way the whole system works,” said the Renier O’Donnell Foundation Executive Manager, Ue -Stands CNBC.

“Circular economy follows three design principles – eliminating waste and pollution; circulating products and materials by your highest value and regenerate nature,” she added.

For example, the Chinese company Deartree buys and renews used office furniture, and then sells it or for rent to companies such as Microsoft, Tencent and Starbucks. In the meantime, the Dutch company De Clique collects food waste like coffee and sells them to companies that bring them into new products.

Even cities aim to become “completely circular” with Glasgow promise for this by 2045. And Amsterdam until 2050.

Working in this way can mean a shift in thinking. American jewelry company Says sonalore This is a “shake” industry to manage an unusual business model: they will buy their customers pieces when they no longer want them, guaranteeing that he pays the market price of a gold minus of 15% fee.

For Nidhi Singhvi, co-founder and executive director of the company, such a model works best for high-value products-think luxury watches or cars. “Successful business models in a circular economy depend on three components: valuable fundamental assets, transparent prices or [a] A fair price set by demand and offers and effective mechanisms for resale, “she told CNBC E -aftermath.

Singhvi, who lives in California, said the young people “take a deep care of sustainability” there. “They dig deeper and ask questions about the procurement and supply chain, and they weigh the impact on the environment of what they buy,” she said.

In addition, the millennials are less rich than their parents and therefore think “more as investors” when shopping, given the value of clothing and supplements, Singhvi said. Indeed, the market clothing market should reach $ 350 billion globally by 2028, which is $ 264 billion this year and grows three times faster than the total clothing market, According to a report of the fashion resold website Thrudedup.

A manufacturer based in Singapore SMC CorporationWhat makes industrial equipment and focuses on products that reduce emissions and raw materials is located on the Goldman’s “high quality” circular economical companies. There is also a Chinese company on the list LenovoWhile his “top -end scorpion of total circular enabling” included an American company Waste management and a French company Veil.

“The circular economy is crucial to solving low carbon loss and loss of biodiversity, which is increasingly recognized by investors, corporations and politicians,” Goldman’s analysts said.

Indeed, several European Union regulations dictate that the circle is included in the design of the product and the EU Action plans targeting things like plastic, textiles and waste in food.

Food waste is “market failure” and “environmental failure”, according to the UN -A 2024 program Food Food Index Reportwith a billion meals that are spent globally every day. Meanwhile, more than 700 million people have been influenced by hunger every day, according to the UN report.

The challenge of the ellen Macarthur edition of the Foundation is the Foundation to solve the problem. The group was supposed to announce the details of the food products that were made in accordance with the principles of the circular economy, taking into account things such as biodiversity and water use in their production.

“Currently, the way our food is designed means that we bend the nature for food production, but we can make different design decisions so that foods can be designed so that nature can succeed,” O’Donnell said.

This is a topic that has been close to the heart of the food specialist Matthew Tan for more than two decades. “If you have seen what a poor country has gone through, okay, in the last 100 years, you will agree with me that if we do not start studying that circle of economy and the way we do agriculture, it doesn’t go really, really bright,” he said is tan for a CNBC video call.

Tan has been included in several agricultural -based agriculture companies with the aim of maintaining the food, including cosmodehealth, which draws protein from the barley grains spent to make noodles.

In Singapore Government extends its sustainability requirements, with The Singapore Stock Exchange command That the financial, agricultural and energy industry reports on their climatic policies and goals from 2024. The construction sectors and traffic are also included this year.

Tan said investors ask more questions about the discovery of the climate, adding that he expects a “shift” in the money market for sustainability.

“The value of bonds, especially those related to sustainability, will enter the front phase. This will become more and more important,” Tan said.

For Singhvi jewelry entrepreneurs, circular models can be applied to multiple industries. “Here’s what excites me as the founder: we already know that these models are acting. The real challenge and the opportunity is to bring this thought to traditionally opaque industry technology and transparency,” she said.