Kyle Francscio
A circular business model explains how a company develops, delivers, and captures value for a wide range of stakeholders while reducing environmental and social costs. The Circular Economy is gaining ground as an alternative paradigm for reducing resource depletion, waste, and emissions in academics, industry, and policymaking. Business models are a powerful tool for implementing the notion at the organisational level. Circular business models help to reduce natural resource extraction and usage, as well as the production of industrial and consumer waste. They reflect the critical actions needed to make the transition to a more resource-efficient and circular economy. The pattern of product and material flows across the economy is altered by circular business models. They can lessen the negative environmental consequences of the extraction, use, and final disposal of natural resources and commodities by doing so. This is due not only to advances in material productivity at the facility level, but also to more fundamental shifts in production and consumption patterns. Renewable energy generation and the manufacturing of raw materials from scrap, for example, do not exploit natural resource inputs as efficiently as they could.