{"id":51645,"date":"2025-07-03T08:16:14","date_gmt":"2025-07-03T12:16:14","guid":{"rendered":"https:\/\/www.ienyc.edu\/the-blueprint\/?p=51645"},"modified":"2025-08-13T06:23:40","modified_gmt":"2025-08-13T10:23:40","slug":"circular-economy","status":"publish","type":"post","link":"https:\/\/www.ienyc.edu\/the-blueprint\/circular-economy\/","title":{"rendered":"The circular economy: business strategies for a sustainable future\u00a0"},"content":{"rendered":"\n

Since the Industrial Revolution, humanity has relied on a linear economy: we take, make and dispose. Companies source the raw materials to make their products. They sell them to customers who use them until they wear out, and those products are then thrown away.\u00a0
\u00a0
While this worked well for a long time, at least financially, growing global awareness of climate change and the environmental damage caused by this model have rendered it obsolete in the modern age. To be successful now, businesses simply have to transition to a circular model.\u00a0<\/p>\n\n\n\n

What exactly is the circular economy<\/strong>? <\/h2>\n\n\n\n


The circular economy is a model of production and consumption<\/a> that involves sharing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible. This greatly reduces the amount of raw materials extracted from the planet and increases the lifespan of those materials or the products made from them. 
 
How much do we mean by \u201cgreatly reduce?\u201d A study of three key industrial sectors<\/a>\u2014electric vehicles and battery manufacturing, the built environment and the electronic equipment sector\u2014shows that adopting circular economy strategies could cut annual greenhouse gas (GHG) emissions by between 370 million and 850 million tons of carbon dioxide equivalent.\u201d That represents a reduction of 7% to 16% of total US GHG emissions from those three industries alone. 
<\/p>\n\n\n\n

The circular economy: the only way forward<\/strong> <\/h2>\n\n\n\n

 
Not only will the planet\u2019s finite resources eventually make raw-material scarcity and environmental damage inevitable. Companies that have already transitioned to a circular economy model are enjoying clear advantages over those still clinging to the traditional linear model.  <\/p>\n\n\n\n

Hernan Saenz, Global Head of Performance Improvement Practice at Bain & Co, has said<\/a> that he \u201c…cannot imagine a world in which, in ten years, purely linear models are the winning models in the economy.\u201d\u00a0
\u00a0
In recent years, almost every industry has seen supply chains disrupted or broken completely due to global crises. This includes the pandemic, conflicts in areas where food or raw materials are sourced and growing resource scarcity.\u00a0\u00a0<\/p>\n\n\n\n

Circular economy models are much more resilient when supply chains are under pressure, as companies already have access to what they need. Even if the materials are in something they\u2019ve already sold once, they can be recovered and fed back into the production process. <\/p>\n\n\n\n

 Consumers demand a circular economy<\/strong> <\/h2>\n\n\n\n


\u201cWhether it\u2019s a customer, a regulator or an investor, they want circular models. That is the way you\u2019re going to make money in the future,\u201d says Hernan Saenz. The circular economy model has become a business imperative, not just something environmental activists care about.\u00a0
\u00a0
Forbes points out that circular models can reduce material use\u2014and therefore costs\u2014by as much as 70%. And the World Economic Forum<\/a> describes the circular model as \u201cthe blueprint for any business building a sustainable future.\u201d According to the WEF, the fundamental concepts of value creation, capture and delivery aren\u2019t just changed, but \u201cfundamentally reimagined\u201d by the circular economy model.<\/p>\n\n\n\n

Change, or lose customers\u2014that\u2019s the simple message. <\/h3>\n\n\n\n

Around 24%<\/a> of American consumers actively consider a product\u2019s environmental credentials when shopping. In contrast, only 4% say they don\u2019t engage with Environmental, Social and Governmental concerns and don\u2019t intend to. Millions of consumers are already aligned with circular economy values\u2014it\u2019s up to businesses to meet them there.\u00a0<\/p>\n\n\n\n


 <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

New leadership required to make the transition sustainable<\/strong> <\/h2>\n\n\n\n

Of course, making the move to a circular model isn\u2019t easy<\/a>. It could mean, for example, moving entirely from sales to offering repair and maintenance services. That kind of model was once common before disposability became the norm. We now need to relearn what we\u2019ve lost. <\/p>\n\n\n\n

Education plays a vital role in preparing professionals. Not just to work in a circular economy, but to conceive, implement and lead the change. New York City is already a global hub of innovation. Check out our MS in Business for Social Impact and Sustainability<\/a>. A program that builds on that with a cutting-edge curriculum that empowers individuals looking to align sustainable impact with profitability.\u00a0\u00a0<\/p>\n\n\n\n

Meanwhile, our partner institution in Madrid, IE Business School, has crafted its Master in Management<\/a> to deliver the skills and knowledge needed to drive purposeful change in business.  <\/p>\n\n\n\n

These programs reflect the changed realities in which businesses now operate. A sustainable future\u2014for your career and in a broader sense\u2014will depend on the lessons we can learn from them. <\/p>\n","protected":false},"excerpt":{"rendered":"

The linear, make-use-discard business model is dead. Or at least, it should be. Circular economy is no longer just about doing your bit for the environment\u2014it\u2019s a critical business imperative.\u00a0<\/p>\n","protected":false},"author":85,"featured_media":51659,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[129],"tags":[1752,1756,1748],"class_list":["post-51645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-insights","tag-ms-in-business-for-sustainability-and-social-impact","tag-ms-in-finance","tag-ms-in-management"],"acf":[],"yoast_head":"\nCircular economy: the key to business success - IENYC \u2013 The Blueprint<\/title>\n<meta name=\"description\" content=\"The circular economy lowers costs, boosts resilience and drives growth by meeting today\u2019s consumer and environmental demands.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ienyc.edu\/the-blueprint\/circular-economy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Circular economy: the key to business success - 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