Circular Economy for a Sustainable Future

With the world’s finite natural resources depleting rapidly, the circular economy offers a more sustainable model by prioritising resource efficiency, reuse and regeneration. It significantly reduces waste, minimises pollution and curbs greenhouse gas emissions, helping combat climate change. At a recent online session of the India Sustainability Forum, Dr Sujiv Nair, Global Chief Human Resources Officer at Re Sustainability, explored the concept of the circular economy, emphasising its transformative potential. The discussion highlighted actionable strategies for resource efficiency, waste minimisation and value creation across industries.

Addressing Global Challenges through The Circular Economy

The circular economy emphasises resource efficiency, reuse and regeneration to tackle pressing issues such as resource scarcity, waste reduction and climate change. It promotes innovation, cost savings and supply chain stability. India has a rich tradition of circular practices, including recycling, upcycling and repurposing. However, the urgency of sustainable practices is underscored by the fact that Earth Overshoot Day –  the day each year when the planet’s annual ‘biocapacity budget’ gets used up, i.e., when humanity has consumed more resources than the Earth can regenerate in a year – falls earlier and earlier. In 2024, it fell on August 1^st, compared to December 31^st in 1970, indicating the unsustainable consumption of natural resources.

Double Materiality: Shifting Business Responsibility

The concept of double materiality marks a shift from focusing solely on shareholder profit to incorporating stakeholder interests. This approach emphasises the importance of environmental and social responsibilities, as seen in the European Union’s leadership in enforcing sustainable practices. Businesses that ignore these factors risk penalties and eventual closure, as has happened in various industries. 

Understanding Carbon Concepts

Key carbon-related concepts underpin the circular economy. Carbon emissions, including CO2 equivalents, encompass greenhouse gases like methane and water vapor. Embodied carbon, the emissions linked to materials and construction processes throughout a building’s lifecycle, is a critical challenge. Operational carbon, the emissions from energy use in buildings, has seen reductions due to technological advancements, but embodied carbon requires innovative solutions. Carbon offset projects and financial mechanisms like carbon credits and taxes encourage emission reductions, with India increasing its carbon tax from Rs 50 to Rs 400 per tonne. Policies like Extended Producer Responsibility (EPR) hold manufacturers accountable for their products’ environmental impact, incentivising recycling and sustainable production.

Linear Versus Circular Economy

The linear economy, operating on a ‘take, make, waste’ model, depletes finite resources and harms ecosystems through deforestation, biodiversity loss and greenhouse gas emissions. In contrast, the circular economy minimises waste and pollution by keeping materials in use through recycling, upcycling and remanufacturing. For instance, recycling aluminium saves 95% of the energy need for virgin production and recycled plastics reduce the carbon footprint by 30-80%. Glass and steel recycling also significantly cut emissions, conserving resources while lowering environmental costs. These practices align with the UN SDGs, particularly Goal 12 on responsible consumption and production and support several others promoting environmental health and human well-being.

Global and Corporate Circular Initiatives

Governments and corporations worldwide are adopting circular principles. The EU Circular Economy Action Plan mandates sustainable product design and recyclability. Germany and France target ambitious recycling goals, with France banning single-use plastics by 2040. California aims to reduce single-use plastics by 25% by 2032 and India has introduced a Repairability Index for electronics to help extend product lifecycles. Companies like Apple, Dell and Microsoft lead in e-Waste takeback programmes, while Tesla and Volkswagen focus on closed-loop metal recycling. Brands such as Gucci and Patagonia embrace repair and resale; and Unilever and P&G emphasise 100% plastic packaging recycling, showcasing the widespread adoption of circular strategies.

Re-Sustainability: A Case Study

Re-Sustainability is a leader in sustainable waste management, evident in its operations in Hyderabad, where the company processes approximately 8,500 to 10,000 metric tonnes of municipal solid waste daily. The waste management process begins with the collection of waste from households, which is then transported to dedicated processing facilities. At these facilities, waste undergoes meticulous segregation into several categories, including plastics, e-Waste, wet waste and construction and demolition (C&D) waste. Plastics are sorted, cleaned and processed into chips for recycling, while e-Waste is directed to a specialised refinery for the extraction of precious metals such as platinum, silver and gold. Wet waste is composted and packaged for agricultural use and about 95% of C&D waste can be repurposed, with materials like sand and cement extracted for resale as construction materials.

In addition to recycling and resource recovery, Re-Sustainability focuses on energy generation. Waste with calorific value is converted into refuse-derived fuel (RDF) for use in cement kilns, substituting traditional fossil fuels. The company also incinerates municipal solid waste to produce steam, which drives turbines and generates over 100 MW of electricity for local consumption. Any residual waste is sent to landfills, where gases produced during decomposition are captured and converted into compressed biogas for automotive fuel. Through its operations in Hyderabad, Re-Sustainability exemplifies the idea that ‘waste is wealth’. By adopting circular economy principles, the organisation minimises environmental impact and fosters responsible waste management practices within the community, illustrating a sustainable approach that benefits both the economy and the environment.