The circular economy A sustainable revolution for global business

June 5, 2018  was  designated by the United Nations as  World Environment Day. As more organizations and individuals are becoming aware of the damage our throwaway culture has on the world around us, the theme for this year is all about beating plastic pollution. The call from the UN today is simple: refuse what you cant re-use. At an individual level, this reminds us to try to avoid  single-use plastics, like straws or food packaging. For companies, an emphasis on re-usability could mean far-reaching changes to traditional business models. Forward-thinking organizations are already finding ways of moving away from the linear model of â€Å"take, make, and dispose† to embrace the concept of the circular economy. â€Å"The circular economy is the detection of waste or wastefulness in the production of goods or services, with an attempt to reintegrate this waste back into the economy—in a direct or indirect way,† Hult Professor of Business and Economics, Dr. Mark Esposito, explains. This approach seeks to extract maximum use out of resources by extending their longevity through reusing, reintegrating, and regenerating them in a circular way. Since 2015, Mark has been investigating the application and benefits of the circular economy, in collaboration with colleagues from the Circular Economy Research Center at the Judge Business School, at the University of Cambridge. Not only is cutting back on wastefulness good for the environment, it’s also fundamentally good for business. Through their research, Mark and his collaborators found that a fundamental shift from a linear to a circular approach in production could represent an economic opportunity worth trillions of dollars. In recognition of the value of his research, Thinkers50 named Mark as one of the emerging thought leaders most likely to reinvent capitalism. We had the opportunity to ask Mark a few key questions to learn more about this growing trend in sustainable business. Whats the first step for organizations who want to move away from traditional linear production to a more sustainable, circular model? The first step is to recognize where, in the value chain, possible â€Å"candidates† for circularity can be found. Next, identify the immediate changes or actions that can be taken without incurring high costs. In strategy, we call these small or â€Å"quick wins.† Then, ultimately, try to fund the gradual transformation of the production process, potentially through external investors, grants, E.U. funds, etc. Which industries or regions are successfully pioneering a more circular approach to the supply chain? The European Union is leading the conversation on the circular economy, and a generous funding package has been made available for companies who are willing to start the transformation of their industrial models. The manufacturing industry is the most exposed, but equally the one with most low hanging fruit. In the production of goods, such as textiles, there is an opportunity to reintegrate lots of materials back into the value chain for companies. Exciting progress has also been made in the electronics market. Many existing appliances are now being recovered and many of the existing components are being refurbished. For example, Apple is now actively promoting the return of old phones. They use the components of old phones in the assembly of new, refurbished phones, at a lower price.  Philips is doing something equally exciting by shifting to a leasing model for their lightning business, rather than a sales model. In light of today’s theme, how could a circular approach to production help to eliminate plastic waste? Plastic is a difficult battle to pick as the cost of new plastic is so low that it is cheaper to buy new than to recycle. That said, we can re-use existing plastic several times, in what is called close looping. Or we can transform plastic into something new, in what is called open looping. Eventually, over time, we may be able to significantly reduce the production of new plastic and to recover what already exists. If the latter can happen in our oceans, that would be a big step forward. What opportunities are there for todays business students or aspiring entrepreneurs who want to build sustainable businesses? The UN Sustainable Development Goals (SDG) have truly become a global benchmark of good practice. Integrating a business education towards the achievement of these goals is paramount. In the next few years, the number of projects in this domain will continue to grow, without a doubt. This will see the rise of new jobs that will be created ad hoc to address these challenges. This is where I see limitless opportunities ahead of us. Does your research inform the classes you teach at Hult? I teach circularity to my MBA and Executive MBA students in one of my favorite courses called Business and Global Society. I have been active for almost three years now in this particular field, and the amount of research published on it has become visible to scholars and  practitioners alike. I see the benefit of using my own research in my classes as a way to close the gap between the theoretical aspects of research and the need for the findings to become practice-based. What can we do on an individual level to embrace circularity? Recognize the â€Å"story of stuff† and how linearity was imposed upon us by design. This is where we can start. Over time, when people see the boundaries of a linear system and they get exposed to a couple of good ideas on how circular models are virtuous, self-sustainable, and lucrative, this is when more circular business models will emerge. When people see how circular models are virtuous, self-sustainable, and lucrative, this is when more circular business models will emerge. Interested in learning more? Mark, together with colleagues Terence Tse and Khaled Soufani, has guest edited  a Special Issue on the Circular Economy, on one of the leading practitioners magazines: California Management Review. You can access this latest issue online. Curious to see how business and sustainability is built into the Hult curriculum? Download a brochure.   About Mark Esposito Dr. Mark Esposito teaches Global Economics and Business Global Society on Hult’s MBA, EMBA, and Masters in International Business programs.   He consults in the areas of corporate sustainability, complexity, and competitiveness worldwide, including advising to the United Nations Global Compact, national banks and governments, and NATO. Mark holds a PhD in Business and Economics from the International School of Management. Follow Mark on Twitter:  @Exp_Mark Make the most of what your career has to offer with a Masters in International Business from Hult. To learn more, take a look at our blog Masters of International Business: Connect locally, build internationally, or give your employability a huge boost with an MBA in international business. Download a brochure or get in touch today to find out how Hult can help you to explore everything about the business world, the future, and yourself. 1527945003810 --> Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .