<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Circular Economy 101&nbsp;writes about circular economy, a model of production and consumption of sharing, renting, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.</h3><hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">How do systems transform?As the importance of circular economy increases on the global agenda, expectations for a definition of the concept that is accepted by everyone are also increasing. While we should consider circular economy as a systemic mindset, an umbrella concept that will completely change the way we do business, simpler definitions prevent circular economy from realising its potential.As it is considered only as an 'innovative waste management' strategy, the goals of different stakeholders regarding circular economy are also limited within this framework. As we have mentioned in our previous articles, the transition to circular economy requires different road maps to be determined from the very beginning according to the characteristics of each stakeholder and each sector. In other words, it is critical that the circular economy concept is correctly understood and integrated into our own processes. This, in fact, explains why the circular economy should not have a single and inclusive definition, and why it should not be handled in a single framework.For this reason, it makes much more sense to have a definition that circular economy requires a systemic transformation for the efficient use of all resources. Each stakeholder has different resources and roadmaps in their own life, way of doing business or way of thinking. This requires each stakeholder to switch to a new system that will utilise its resources in the most efficient way. So how can there be a systemic transformation to circular economy? Our discussion topic this week is shaped by what needs to be considered for systemic transformation.<p contenteditable="false" fr-original-class="custom-button-wrapper fr-deletable" fr-original-style="text-align:center" style="text-align: center; margin-top: 0px; margin-bottom: 1em; box-sizing: border-box;"><a bgcolor="#effe75" color="#090909" contenteditable="false" fr-original-class="custom-button-link" fr-original-style="background-color:#effe75 !important;color:#090909 !important" href="https://aposto.com/i/how-do-systems-transform" rel="noreferrer" style="background-color: rgb(239, 254, 117) !important; color: rgb(9, 9, 9) !important; text-decoration: none; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Read more</a><p contenteditable="false" fr-original-class="custom-button-wrapper fr-deletable" fr-original-style="text-align:center" style="text-align: center; margin-top: 0px; margin-bottom: 1em; box-sizing: border-box;"><a bgcolor="#effe75" color="#090909" contenteditable="false" fr-original-class="custom-button-link" fr-original-style="background-color:#effe75 !important;color:#090909 !important" href="https://aposto.com/n/circular-economy" rel="noreferrer" style="background-color: rgb(239, 254, 117) !important; color: rgb(9, 9, 9) !important; text-decoration: none; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Subscribe</a>

Aposto Digest

As the importance of circular economy increases on the global agenda, expectations for a definition of the concept that is accepted by everyone are also increasing. While we should consider circular economy as a systemic mindset, an umbrella concept that will completely change the way we do business, simpler definitions prevent circular economy from realising its potential.As it is considered only as an 'innovative waste management' strategy, the goals of different stakeholders regarding circular economy are also limited within this framework. As we have mentioned in our previous articles, the transition to circular economy requires different road maps to be determined from the very beginning according to the characteristics of each stakeholder and each sector. In other words, it is critical that the circular economy concept is correctly understood and integrated into our own processes. This, in fact, explains why the circular economy should not have a single and inclusive definition, and why it should not be handled in a single framework.For this reason, it makes much more sense to have a definition that circular economy requires a systemic transformation for the efficient use of all resources. Each stakeholder has different resources and roadmaps in their own life, way of doing business or way of thinking. This requires each stakeholder to switch to a new system that will utilise its resources in the most efficient way. So how can there be a systemic transformation to circular economy? Our discussion topic this week is shaped by what needs to be considered for systemic transformation.This week, our discussion is accompanied by the article 'Circular Economy through a system change lens' from the book <a fr-original-style="" href="https://link.aposto.com/click?uri=aHR0cHM6Ly9saW5rLmFwb3N0by5jb20vY2xpY2s/aXNzdWU9NjM5NmU4YjQwYzJiYmYwMDA2NmZhYjYzJnN1YnNjcmliZXI9NjJiMDMzOTA1ZDM3OTIwMDA2MWQ4OTM1Jm5ld3NsZXR0ZXI9NjAwMDQ5OTY1Njg2MGYwMDA4MDAzMzdkJnB1Ymxpc2hlcj02MDAwNDc4MzU2ODYwZjAwMDgwMDJmNmQmc291cmNlPWVtYWlsJnVybD1odHRwcyUyNTNBJTI1MkYlMjUyRnd3dy5yb3V0bGVkZ2UuY29tJTI1MkZUaGUtSW1wb3NzaWJpbGl0aWVzLW9mLXRoZS1DaXJjdWxhci1FY29ub215LVNlcGFyYXRpbmctQXNwaXJhdGlvbnMtZnJvbSUyNTJGTGVobWFubi1IaW5za2UtTWFyZ2VyaWUtTmlrb2xvdmElMjUyRnAlMjUyRmJvb2slMjUyRjk3ODEwMzIxNTQ0MzU=" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">'The Impossibilities of the Circular Economy'</a>.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">What is needed for systemic transformation?</h2><h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ Redesigning the system, not improving it</h3>Systemic transformation is a challenging and long process that needs to be addressed at both macro and micro levels. The sustainability efforts we are currently engaged in, especially those led by governments and the private sector, focus on improving the faulty points within the existing structures rather than redesigning them. In other words, the aim is not to renew, but to improve systems that were not designed with a focus on environmental and social welfare. Although it is possible to consider the Sustainable Development Goals here as the predetermination of environmental and social outputs, the work carried out focuses on improving the system, not a systemic transformation to achieve these SDGs.The systemic transformation addressed in the process of transition to circular economy, on the contrary, proposes that environmental and social outputs should be defined first and all structures should be redesigned from the beginning based on these definitions. In other words, it is expected that the entire system (including global systems) will be designed in line with predetermined environmental and social welfare-oriented expectations, not only to eliminate the errors in the production and consumption structures specific to the current sector. Therefore, if we aim for a systemic transformation in the transition to circular economy,&nbsp;the first critical point we need to pay attention to can be summarised as the need to redesign the system from the very beginning, not to improve the system.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰To evaluate the opinions, suggestions and expectations of all stakeholders</h3>As our readers who have been following our articles for a long time will remember, individuals are as important as any other stakeholder in the process of transition to circular economy, but this stakeholder is not given the necessary attention. When we accept that social and economic structures are created, guided and shaped by individuals, we can understand the importance of feedback processes, which are also critical for systemic transformation.Feedback processes, which are critical in the transition to a circular economy, aim to ensure that every step taken in the change process is actually reviewed by all stakeholders and areas that are faulty, deficient or open to improvement are shared. In this way, it may be possible for all stakeholders to examine all steps taken in the focus of environmental and social outputs that should be determined at the initial design stage for systemic transformation. In the opposite case, the main problems we face in the sustainability transformation we are in today arise.Transformation roadmaps that emerge as a result of the decisions taken by the private sector or governments on their own are carried out without the opinions of consumers, meaning, individuals. The main reason for this is the belief that society will naturally fully adapt to the transformation process of a state or a company. It is not possible to talk about a systemic transformation as long as the states or the private sector, which aim to improve some faulty points with various regulations or new business models, are not involved in a transformation process that will meet the realistic expectations of individuals, who are the main stakeholders of society. For this reason,&nbsp;the opinions, suggestions and expectations of all stakeholders, not limited to individuals, should be received and evaluated at every stage of transformation.&nbsp;<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ Conducting science-based, realistic processes</h3>Perhaps the most important point to be considered while addressing the system at both macro and micro levels in the process of transition to circular economy is to carry out science-based, realistic processes. Especially when it comes to designing the transition to a circular economy, building a recycling-oriented system is an approach that is completely far from science and reality.Recycling is the last preferred step in circular economy. When we consider the subject in detail, we can see that a system that is completely recycling-oriented cannot be built with today's technologies. The main reason for this is the laws of physics in general and the laws of thermodynamics when we get a little more specific. We will not go into the technical details of these laws, but to summarise, recycling is a process that cannot continue indefinitely and therefore at some point resources are used inefficiently. Current technologies allow many materials and materials that are described as 'recyclable' today to be recycled at a maximum rate of 10-15%. Especially the recycling rates of products produced using many different raw materials are quite low.While this is the case, all of the recycling-oriented transformation strategies that we often hear are actually unrealistic road maps that are far from scientific facts. At this point, it becomes much more important to understand the circular economy correctly, to learn the different concepts it contains as an umbrella concept (biomimicry, cradle-to-cradle, R-strategies, etc.) and to design a systemic transformation in this context.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ A mindset open to change</h3>One of the most challenging aspects of systemic transformation is the need to transform the entire system at both macro and micro levels. This requires a much more complex structure in the process. This process, in which many different factors need to be considered at the same time, will of course be too comprehensive to be compressed into a single framework. For this reason, the definitions, road maps and action plans initially determined in the systemic transformation process may have to change over time.This indicates that the uncertainty in the process of transition to circular economy shows that we are on the right track at some point. However, this uncertainty should not cause everyone to carry out this transformation process on their own. For this reason, the road maps and the new structures to be designed should be shaped in a way that will be open to change after an indefinite period of time. Instead of trying to determine the most accurate, optimum solutions, roadmaps should be created in the light of scientific facts that are accepted as true today, which will also enable rapid action to be taken. Considering the environmental and social impacts of our current system, seeking perfection will slow us down completely and even cause us to deviate from our main purpose.For this reason, for systemic transformation, action should be taken quickly with today's realities, but we need to be in a mindset that is open to change at any time and constantly question the 'truths'.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ Focus on environmental and social well-being without being influenced by political developments</h3>Lastly, while covering all of the abovementioned, we need to carry out a transformation process in line with our purpose, independent of individuals and organisations. Today, we can see that policies are restricted by political election cycles for political purposes. Our environmental and social impacts, which should be handled independently of the functioning of political structures, actually need to be examined independently of all opinions.In particular, a systemic transformation is required in which the fight against specific issues that concern the whole world, such as the climate crisis or hunger, is not used for specific political purposes, but is actually addressed as a higher purpose independent of all viewpoints. Here, road maps similar to the 20XX net zero targets of many countries since the Paris Agreement may come to mind. It is necessary to create these roadmaps by considering the opinions of all stakeholders in that country, and to maintain them with the co-operation of all stakeholders despite any political change. In this way,&nbsp;a systemic transformation focused solely on environmental and social welfare can be possible without being affected by local or global politics.🔎 Circular Economy 101's take: To summarise, all these topics that we have opened up for discussion for systemic transformation can basically allow the real potential of the circular economy to be unlocked. Through an innovative system design that puts innovation at its centre, it may be possible to increase cooperation and bring about change for a fundamental purpose without ignoring social needs.In the process of transition to circular economy, the expectations, goals or steps taken by other stakeholders should be questioned by all stakeholders forming social and economic structures in the light of science, deficiencies/errors should be identified and, if necessary, change should be forced in line with the common goal.

How do systems transform?

Circular Economy 101&nbsp;writes about circular economy, a model of production and consumption of sharing, renting, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">What are the key elements of circular transformation?Unlike the concept of sustainability, circular economy is a concept that aims to redesign existing systems, not improve them. This makes the transition to circular economy a much slower, and more challenging process. However, since circular economy not only has positive environmental and social impacts but also the potential for economic growth, it does not matter how challenging this transformation process is.Improvements in existing systems, repairing faulty areas or reducing negative impacts, unfortunately, do not have the expected impact in combating the climate crisis nor in issues such as social justice and equality. One of the most important reasons for this is that the private sector and governments want to keep their financial situation under control in this transformation process. The fact that making improvements to reduce environmental impacts is seen as costly actually sheds a light on our current situation in the fight against the climate crisis, which is progressing slowly based on scientific data.<p contenteditable="false" fr-original-class="custom-button-wrapper fr-deletable" fr-original-style="text-align:center" style="text-align: center; margin-top: 0px; margin-bottom: 1em; box-sizing: border-box;"><a bgcolor="#effe75" color="#090909" contenteditable="false" fr-original-class="custom-button-link" fr-original-style="background-color:#effe75 !important;color:#090909 !important" href="https://aposto.com/i/key-elements-of-transformation?utm_source=aposto" rel="noreferrer" style="background-color: rgb(239, 254, 117) !important; color: rgb(9, 9, 9) !important; text-decoration: none; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Read more</a><p contenteditable="false" fr-original-class="custom-button-wrapper fr-deletable" fr-original-style="text-align:center" style="text-align: center; margin-top: 0px; margin-bottom: 1em; box-sizing: border-box;"><a bgcolor="#effe75" color="#090909" contenteditable="false" fr-original-class="custom-button-link" fr-original-style="background-color:#effe75 !important;color:#090909 !important" href="https://aposto.com/n/circular-economy" rel="noreferrer" style="background-color: rgb(239, 254, 117) !important; color: rgb(9, 9, 9) !important; text-decoration: none; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Subscribe</a>

Unlike the concept of sustainability, circular economy is a concept that aims to redesign existing systems, not improve them. This makes the transition to circular economy a much slower, and more challenging process. However, since circular economy not only has positive environmental and social impacts but also the potential for economic growth, it does not matter how challenging this transformation process is.Improvements in existing systems, repairing faulty areas or reducing negative impacts, unfortunately, do not have the expected impact in combating the climate crisis nor in issues such as social justice and equality. One of the most important reasons for this is that the private sector and governments want to keep their financial situation under control in this transformation process. The fact that making improvements to reduce environmental impacts is seen as costly actually sheds a light on our current situation in the fight against the climate crisis, which is progressing slowly based on scientific data.In circular economy, it is the opposite. Circular economy is a concept that differs from sustainability in that it creates new businesses, redesigns faulty systems and allows for the avoidance of mistakes that were previously made in the redesign process. In doing so, it also brings an innovative perspective to the cost part, which is actually ignored but, as mentioned above, is the biggest obstacle to the concept of sustainability. Economic growth is one of the most important benefits of circular economy. It provides this return with the new income and consumption models it embodies.In order for this transformation to proceed smoothly, all stakeholders need to act for the same purpose and fulfil their duties and responsibilities by adopting the principles of circular economy. However, in addition to this unity, different practices must also be implemented for the transformation that constitutes the main discussion of this week's article. These practices should be considered a part of social transformation as they affect the way we think and do business.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Data analysis and digitalisation</h3>Data science is now an indispensable part of our lives. In our daily lives, we interact with data science at every moment of the day, whether we are aware of it or not. Although this situation is handled under 'marketing activities', especially for consumers, it can be said that data science actually facilitates or streamlines our daily lives in many different areas. Data science, which has become more popular with the introduction of Industry 4.0 technologies into our lives, is also critical for circular economy.Circular economy basically aims to use resources efficiently. The main goal is to create less waste by consuming fewer resources. Although it seems very simple, this goal is very difficult to achieve due to the current linear economy. Data analyses come into play to achieve this goal.With innovative data analysis systems, we can use resources more efficiently, consume only when we really need to, and prevent waste generation. But this is of course an application that brings with it the digitalisation of all processes (in professional and private life) that you can think of today. Therefore, the first step towards the realisation of circular economy is the digitalisation of all processes and the inclusion of data science in this process.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Experience</h3>There is research on how circular economy has potential environmental, social and economic impacts. The most striking of these is, of course, how it has a positive economic impact. The potential of circular economy can be overestimated on paper, but this does not necessarily make it a 'profitable' concept. A process that is favourable on paper, in theory, may not have the expected effect in real life.For this reason, in order to complete the transition to circular economy with minimal damage, innovative circular business models should be implemented quickly and tested with pilot studies. It is critical to pay much more attention to initiatives with circular business models, especially at the point of providing financing, and to in-house circular pilot studies in the private sector.By correctly testing circular strategies and business models with high potential in these trial processes, the transition process of all stakeholders to circular economy will accelerate, while the abovementioned potential for economic growth will be tested.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Measuring impact</h3>In the current, linear economic system, especially financial data are of critical importance. Companies' balance sheets, debts, receivables, turnover, etc. are still among the most important indicators today. But this situation is the main reason for the establishment of the faulty system we are in. To avoid misunderstanding, it should be noted that we are not criticising the 'capitalist/socialist' systems.Systems designed in the light of financial metrics naturally put profitability at the centre of business models and mindsets. This causes the impact of the work done, regardless of the sector, company, country or region, to be ignored. As long as an X&nbsp;product brings the expected profitability, gender equality is not sought in the production process of this product, or how much natural water resources it pollutes is ignored.Although the situation in linear economy is unfortunately as depressing as we have mentioned above, of course, this situation is changing with the increasing awareness in recent years. Stakeholders in the value chain (especially investors and consumers) now demand that the private sector, and in some cases governments, share not only financial returns but also environmental and social impact analyses. This situation now makes it mandatory to measure not only the economic but also the environmental and social impacts of the work done, the step taken, and the decision made.This critical process, which is also very important in the transition to circular economy, should actually be addressed in the process of designing the systems from the beginning. In this way, possible impacts can be determined at the very beginning, at the design stage, and the negatives can be identified and prevented in advance.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Standardisation</h3>Since circular economy does not have a specific framework for the time being, its potential remains uncertain. This uncertainty can be seen as positive, especially as it paves the way for innovation and allows the potential to grow further. However, the uncertainty also leads to a misunderstanding of circular economy as a waste management system and therefore its potential is lost before it can be realised.Especially within sustainability, there are metrics used to measure the performance of the private sector in the areas of environmental, social and governance (ESG). This allows companies to make their sustainability journey in a controlled manner with continuous improvements.From this point of view, it is critical that the transition to circular economy is also monitored with some globally recognised standard metrics. However, it is useful to remind the distinction of innovation. Transformation within a certain framework will of course be limited and insufficient. For this reason, while preparing metrics for performance monitoring (or circularity rate) for circular economy, circular economy principles should not be limited and business models should not be handled within a certain framework. In this way, while the transformation process can have a specific roadmap, innovation, which is the most valuable building block of circular economy, may not be prevented.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Mindset</h3>Circular economy is first and foremost a way of thinking that requires us to change the way we do business and our ways of thinking. Circular economy is a system that will enable us to live in touch with nature by changing our view of life and will allow us to redesign our systems in this direction. In doing so, it is a much more inclusive and broad concept as it focuses on economic development as well as environmental and social welfare.Even if we design all the applications that come to mind during the transition to the circular economy with circular economy principles, we will not be able to achieve the transformation we expect if we do not update our mindset as humanity in a way that adopts the circular economy.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">For this very reason, circular economy should be understood and adopted not only by waste management units of companies, but also by each stakeholder of social structures in a way to cover their own spheres of influence. Not only resource utilisation, waste management or responsible consumption, but also education systems need to be designed from the ground up to ensure that future generations continue their lives with circular mindsets. In order to get rid of the roots of linear economy in every aspect of life, we need to do more research, learn the right information and experience more circular business models.

🧩 Data analysis, digitalisation, experience, measuring impact, standardisation

What are the key elements of circular transformation?

Contrary to current sustainability efforts, circular economy does not aim to improve existing systems or correct faulty points, but to change the system as a whole. This transformation, which should be kept separate from sustainability, requires a complete change in social and economic structures starting from the smallest scale. Although the transition to circular economy requires an innovative perspective that has no boundaries and is not restricted by certain frameworks, it must of course be measured and monitored correctly. A holistic approach is still too innovative for our current mindsets, so it is critical that a holistic process of transformation of systems is properly tracked, and the stakeholders are properly guided.A complete systematic transformation will bring many challenges that are currently unforeseen. Governments and legislative bodies have the greatest responsibility to ensure that the transformation process is carried out in the right way.Starting from this point, in this week's article, we discuss the critical action steps for governments to manage and follow the process correctly in the transition to circular economy. We will use the <a fr-original-style="" href="https://pacecircular.org/circular-economy-indicators-coalition" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Circular Indicators for Governments report</a> published in 2021 for our discussion.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Action plan</h2><h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">1- General measurable metrics</h3>We have already mentioned that the circular economy is an umbrella concept with no clear roadmap. However, this creates an uncertain situation where most stakeholders, especially the private sector, do not know what to do. Therefore, the first step is to prepare circular economy tracking metrics that all systems and sectors can benefit from, starting from the smallest scale systems (sectors, institutions, education system, etc.). In this way,&nbsp;each sector can have a framework&nbsp;that they can refer to while carrying out the change within themselves.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">2- Information exchange</h3>All stakeholders that make up the social and economic structures of circular economy need to carry out their own processes in cooperation with other stakeholders. This cooperation should not be limited to committing to projects together. The learning process should be accelerated by&nbsp;sharing the information that is learned from different processes with all stakeholders, and a holistic approach should be taken thanks to this exchange of information while transforming small systems. It is also important that governments coordinate the necessary sharing platforms in this context.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">3- Expanding the scope</h3>In almost all of our articles to date, we have criticized that the circular economy is misunderstood and treated only as a waste management process. In order to correct this misconception, it is a critical step for governments to introduce the circular economy as a broader system of doing business and thinking rather than just waste management. This broadening of scope, which will prevent stakeholders from having a limited perspective due to existing linear processes, will allow circular economy to be understood correctly and reach its true potential.🔎 Circular Economy 101's take:&nbsp;A more inclusive general definition of circular economy is also critical for scope expansion. While it is unlikely that there will be a single definition of circular economy in the near future - which is open to debate as a single definition would limit the circular economy in every way - at least the outputs of the studies can be considered from a broader perspective. In this way, it may be possible to address not only waste management but also many different aspects from production to supply, logistics to product and service use processes and to analyze the circular economy holistically within the value chain.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">4- Identifying economic impacts</h3>Because the circular economy is not just a waste management strategy, it changes systems and addresses environmental and social issues. In this way, it also focuses on economic growth, which is often overlooked but is much more inclusive than sustainability. From this point of view, the economic benefits and drawbacks of the circular economy should also be addressed within a certain framework and it should be ensured that all stakeholders involved in the process adopt circular economy with its economic factors. A system transformation that is measured by economic metrics similar to, but not limited to, the current Environmental, Social and Governance (ESG) standards will increase the potential of circular economy.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">5- Setting the right targets</h3>Governments and companies have sustainability goals that are very much on the global agenda. These goals are especially shaped within the framework of the Paris Agreement and the United Nations Sustainable Development Goals. The sustainability journey, which is tried to be carried out with the main goals of 2030, 2040 and 2050, has unfortunately not adopted the circular economy sufficiently today. Therefore, in order to accelerate the transition to circular economy and to prevent only the improvement of faulty areas, circular economy strategies and targets need to be set in a way that is truly meaningful, measurable and unleashes the potential of circular economy.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">Although the above-mentioned action plans are considered as action plans that governments should implement, they are actually critical processes that all stakeholders should be involved in. Of course, it is very important for states to manage this process as a governance structure and to assign duties and responsibilities to all stakeholders in order for the process to be carried out in the right way.Still, there is no need for a single stakeholder to start the transition to a circular economy. As we always mention, consumers, producers, NGOs, academia and all other stakeholders that make up the society should know their duties and responsibilities in the process of transition to circular economy, understand circular economy correctly and adopt it in every moment of their lives and mindsets.To this end, we need to do more research, be skeptical of any information that does not have a scientific basis, and question the authenticity of every piece of information we receive. Only in this way can we change the fate of the concept of sustainability, which has lost its meaning, and achieve a circular economy.

🧭 Action plans for states in the transition process to circular economy

Where are the governments?

<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️ What is a closed loop?</h2>Closed loops are one of the main concepts that are used in circular economy in order to decrease environmental impact. At its core, the concept describes avoiding waste by using circular economy principles and strategies.Let’s take a look at the production of an X product as a simple example. In order to create the X product, the process that starts with the supply of raw material continues with its entry into production, and its launch in the market for sale. Of course, logistics take part in this entire process, and the X product eventually reaches the consumer. Because the linear economy, the current system in which we exist, has an open loop, there’s no information available or deemed necessary on what happens to X product after it reaches the consumer.Closed loops, which are expected to exist in the systems of circular economy, are involved in the life of the X product after the consumer’s use of it is completed, and aim to put it back into the cycle. Either the various substances that make up the X product are included in the production of another product, or as a last result, they are entered into the recycling process to close the loop.🔎 Circular Economy 101’s take: Recycling is a process that shouldn’t exist in circular economy, it is only to be used as a last result if absolutely necessary. However, it looks necessary for the closed loop concept to be realized. Closed loops are included in a majority of the resources about circular economy. However, that doesn’t validate ignoring that this recycling process actually devalues resources and doesn’t completely prevent waste.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️ The discussion of demand</h2>The ongoing discussion of closed loops within academic circles is the main subject of this article. While seeking an answer to “How beneficial are closed loops in the path to environmental sustainability?” we will draw from the discussions included in the article, “Closed-loop systems to the circular economy: A pathway to environmental sustainability?”Concerning the creation of making circular products, circular economy centralizes innovation. Because it aims to create a new system from scratch by creating new and innovative business models without covering up the problems of the current linear economy and producing technologies that would completely reverse the negative impacts. However, the first salient point here is that circular economy is not just a set of “engineering &amp; technology”-based strategies, on the contrary, it is a system that uses engineering and technology in an innovative way.The fact that circular economy is an economic system reveals that it will be shaped according to the demand in the market. This makes it unclear whether it is difficult to produce products that are the exact equivalents of existing products, or whether consumer demand will be in this direction or not even if extraordinarily innovative products are produced. The main reason for this is that circular economy wants to prevent the supply of unused raw materials by offering products that do not fit the consumption habits of the consumer yet, such as reuse and second-hand production. In other words, circular economy can reduce the use of resources, reuse materials to produce second-hand items, and preserve the value of resources. However, it can’t clearly answer whether there will be consumer demand for these products.&nbsp;This brings out the fact that it doesn't make much of a difference whether economic systems actually have open or closed loops. Market demand for recycled products and the price of these products are the two most important factors that will determine whether they can replace brand-new products.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">❌&nbsp;The negatives of the closed loop</h2>Closed loops come from recycled, reused products. At first, this may bring to mind a decrease of the environmental impact through little usage of resources. However, when this process is analyzed as a whole, things may not be so positive.The recycled and reproduced products may lead the consumers to think “I already use a much less detrimental product,” and feel good about consuming more. This can cause an extraordinary increase in consumption, and therefore in production. In an economy where there is more production and more consumption, it would be unfeasible to suggest that environmental impact would decrease.The reduction strategies of circular economy are generally based on consumers consuming less. At the same time, it is another prediction that circular products will directly replace existing products. However, as mentioned above, although it is theoretically possible to change consumers’ consumption habits, they are not easily controlled in real life.Let's consider products that are recycled through circular economy strategies. These strategies degrade materials because of the present technologies they use. This can result in consumers having to use straw paper instead of paper of higher quality because of this recycling system. Another example is construction materials. Recycling is a process that reduces the quality of materials. This will cause a decrease in the quality and durability of the metals used in construction, for example. This, of course, may prevent the security of quality standards.The last example, which is much easier to understand, is refurbished smartphones. Electronic waste is of critical importance due to the excess of valuable materials in it. Based on this, “refurbished phones” that would be obtained through renewing old smartphones would most likely be sold in countries that don’t have access to newly manufactured smartphones. While this offers economic growth for the second-hand phone market, it will not reduce the habit of buying new phones in countries that already have uninterrupted access to smartphones. This can lead to the production of new products and the increase of renewal and logistics processes of old products at the same time, thus increasing the environmental impact instead of decreasing it.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️&nbsp;It can increase consumption indirectly</h3>As we can experience it today, closed loop recycled products have a relatively lower price than brand-new products that were produced for the first time. Of course, this is due to reasons such as decreasing quality of the products due to recycling and the fact that they have been used before. This change in prices may indirectly cause a change in consumption habits.Prices of brand-new products which will compete with affordable products may go down in price in the free market, causing consumers to buy more products at lower prices. This will lead to an increase in production and consumption again.Another indirect example would be people’s budgeting habits. Consumers who have the possibility to consume at lesser prices will spend the remainder on developing consumption habits that didn’t suit their budget beforehand. For example, consumers who shop for an affordable price can now direct the money toward purchasing travel services. This can cause a consumption frenzy on a great scale that is hard to calculate for the time being.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🌱&nbsp;Let’s discuss: What is necessary for the solution?</h3>There is a boring yet crucial fact:&nbsp;Circular economy is way more than a few “extraordinary” waste management strategies. Reducing circular economy to processes such as engineering &amp; technology-oriented waste prevention and second-hand product production leads us to ignore the "economic" factors, which are the most basic components of the concept of the circular economy. These economic factors, of course, are of critical importance to trigger social transformation.For this reason, one of the most critical yet common mistakes is to blindly adhere to closed loops focused on recycling, to limit circular economy to "circular waste management processes," as the private sector does, and to not pay enough attention to raising awareness among consumers. It is useful to remind ourselves how critical it is to raise awareness among individuals, who are also the starting point of Circular Economy 101, economically and therefore socially.What do you think? What needs to be done to consider circular economy as a whole and to correctly calculate its impact?

Are closed loops a trap?

One of the most recent discussions about the transition into a circular economy is around who should take responsibility in this process. Global action plans usually put the responsibility on the private sector. However, it is a fact that states, individuals, the academy, and NGOs should take equal responsibility. However, this responsibility put on the private sector increases the importance of circular economy within corporate social responsibility strategies.&nbsp;However, this increasing emphasis creates new problems.The lack of a clear, limited frame of circular economy –&nbsp;which we as Circular Economy 101 think is one of its best qualities&nbsp;– causes every business to frame circular economy in their own way. Obviously, this leads to a misunderstanding of circular economy, diminishes it to waste management exclusively, and slows down the transition.A group of academics conducted a study focused on the relationship between circular economy and sustainability in&nbsp;the private sector. The study was conducted with leading companies in the field of economics in Italy and the Netherlands, and the article was published with the title “<a fr-original-style="" href="https://link.springer.com/article/10.1007/s43615-021-00064-7" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">What Is the Relation between Circular Economy and Sustainability? Answers from Frontrunner Companies Engaged with Circular Economy Practices</a>.”We will not be focusing on the entirety of the article, but as Circular Economy 101, we believe that we need to reassess some issues in order for circular economy to be understood correctly and to discuss the rights and wrongs of the transitional period of the private sectorLet’s investigate how the private sector defines circular economy, relates it to sustainability, and how much importance it attributes to it.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️&nbsp;What is circular economy?</h2>The first question that was posed to the companies in the research was about the definition of circular economy. Most companies define circular economy in a way that suits their company, but only a few of them give definitions that are similar to those of the <a fr-original-style="" href="https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Ellen MacArthur Foundation</a> or the <a fr-original-style="" href="https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">European Commission.</a>When asked about the characteristics of a circular economy, its most frequently mentioned feature is “Designing products to prevent waste.” But there is another issue here. One of the most basic principles of circular economy, "the Product as a Service" feature is the least mentioned feature by the companies. Companies don’t attach much importance to this feature which proposes taking ownership of the product from the consumer and giving it to the manufacturer, aiming to conduct processes such as maintenance and repair, thus keeping the products in use for a much longer period of time.<img src="https://images.aposto.com/2022/6/2/1658243893586.png" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.72" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">Source:&nbsp;<a fr-original-style="" href="https://link.springer.com/content/pdf/10.1007/s43615-021-00064-7.pdf" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">https://link.springer.com/content/pdf/10.1007/s43615-021-00064-7.pdf</a>&nbsp;p:740<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">🔍 Circular Economy 101’s take: Even though there is no clear definition of circular economy, it is incorrect to limit it to recycling&nbsp;or the&nbsp;10 R Strategy. Circular economy should be approached as a system of thought, a way of working that is the exact opposite of linear economy.Hence, it requires not only managing waste correctly, but also preventing waste generation, changing design processes to prevent waste generation, changing the mindset to change that, and changing the education system to change that mindset... In other words, the circular economy is a mentality that requires a change in the social systems. As the definitions made by companies according to their own practices limit the potential of a circular economy, it will be no different than putting a band-aid over the linear economy and its existing problems.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Reductive definitions</h2>One out of four companies emphasizes the need for a change in mentality in society when defining circular economy. Researches note that only a few, small-scale initiatives define circular economy as a thought system that&nbsp;“promotes respecting nature.”Moreover, while defining circular economy, it is noteworthy that one-third of the companies say it’s a "roof concept." Since circular economy includes different concepts as such as biomimicry, cradle to cradle, R strategies, it may have a non-stable definition for some of the companies.🔍 Circular Economy 101’s take:&nbsp;We can see that definitions change according to where and how companies use the concept of circular economy. For some, this allows for a positive meaning to emerge, as circular economy can adapt to any subject thanks to its flexible structure. On the other hand, defining it on a case-by-case basis leads to reducing it to a single, simplistic strategy, something we criticize. We are of the opinion that circular economy is losing the totality of its meaning with reduced definitions as just waste management, or efficient use of resources.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;"><h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">“Less consumption,” whose responsibility is it?</h2>Another issue that the research draws attention to is the definition of one of the most important features of circular economy as sufficiency. Although more than half of the companies state that sufficient consumption and efficient use of resources are very important for circular economy, all participants state that they do not know whose responsibility it is to “consume less.”Companies think that it is not their responsibility to promote less consumption, and that they are only responsible for consumers’ demand. In other words, the responsibility for less consumption is left entirely to the consumer.While companies that trade directly from business to consumer (B2C) leave the responsibility to the consumer, companies that trade from business to business (B2B) state that they do not have much influence on who is responsible. The last note, which draws attention to the context of consuming less, argues that "being content with less" is irrelevant to circular economy, and that instead of saying "consume less" to consumers, a consciousness of "responsible consumption"&nbsp;should be instilled.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️&nbsp;Circular economy and sustainability</h2>The vast majority of companies that participated in the study stated that circular economy is one of many tools to achieve <a fr-original-style="" href="https://turkiye.un.org/en/sdgs" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">the United Nations Sustainable Development Goals.</a> While it is noteworthy that the area where circular economy is strongest is environmental issues, its impact on social and economic areas is emphasized. The most striking finding is that all participants agree that there would be no improvement in terms of “social equality” with the implementation of a circular economy.Participants agree that sustainability and circular economy are intertwined concepts, and think that the most important deficiency that distinguishes circular economy from sustainability is that it does not influence social issues directly. The participants, who think that a circular economy is the most powerful tool to achieve goals in environmental and economic issues, argue that this tool does not directly contribute in terms of social issues.After all of that, another issue that all participants agree on is that they cannot say "which one of circular economy or sustainability is a more generalized, more inclusive concept." It is believed that since both are very intertwined, broad concepts, a clear distinction cannot be made at this time.Finally, while some of the participants associate sustainability with the term "less," they associate circular economy with more positive, innovative questions such as “What are the alternatives? Is this possible?” While sustainability is thought to be a more ill-defined concept, it is among the points emphasized by the participants that circular economy is a more logical, tangible concept based on more scientific grounds.<img src="https://images.aposto.com/2022/6/2/1658244121861.png" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.87" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">Source:&nbsp;<a fr-original-style="" href="https://link.springer.com/content/pdf/10.1007/s43615-021-00064-7.pdf" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">https://link.springer.com/content/pdf/10.1007/s43615-021-00064-7.pdf</a>&nbsp;p:743<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">In conclusion, the problem of misunderstanding circular economy, which we, as Circular Economy 101, always draw attention to, persists not only in our country but also in leading countries in the field of circular economy in the world today.“Is sustainability more inclusive or is circular economy more applicable?” No one has a clear answer. But what we must do is quite simple. We should read, learn about, and apply circular economy in its broadest form. Social change is only possible through holistic reforms regarding the environment, society, and the economy. The basis for which is every individual being made aware.What do you think the results would be like if this study was conducted in Turkey?&nbsp;

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