Finland was the first country to develop a roadmap for transition to circular economy. The work was coordinated by the Finnish Innovation Fund Sitra.
Circular economy reshapes the way individuals, communities, cities and government works and functions. More and more, the industry is based on sustainable resources and renewable energy, services instead of ownership, durable products, shared resources and material reuse. Even companies business models reshape. The way the profit used to be made, no longer applies.
There are five business models based on circular economy:
- Product as a service: offering services instead of products.
- Renewability: using renewable and recyclable materials as well as renewable energy in product planning and production
- Sharing platforms: increasing the level of use of goods and resources and prolonging their life using digital platforms. This can include renting, selling, sharing and reuse.
- Prolonging product’s life span: products are in their original use as long as possible by renovation, repair and remanufacture.
- Resource efficiency and recycling: effective solutions, recollection and reuse of products and recources that are at the end of their lifetime.
These business models offer new ways to create added value through service and digitalization.
Transformation to circular economy requires cross-sectoral collaboration, resources and a clear strategy. Road maps are the base of this work.
Sitra has put together and published an open guide which can be used as a tool for constructing an own circular economy road map on national, municipal or organizational level. Start your journey to circular economy today! Access the guide.