Abstract:
This paper shows how companies can drastically reduce their consumption of scarce natural resources in their value chain by designing, making and selling, products and services with a lower environmental impact. It describes how to implement sustainable practices such as cradle to cradle and the circular economy (where components and materials are repeatedly recycled) to design and manufacture waste free products of value to customers. It shows how the sharing economy – in which customers share products as pay as you go services rather than own and consume them – can boost customer loyalty and generate new sources of revenue. And it explains how some pioneering firms are using techniques such as upcycling to combine and integrate the principles of the sharing and circular economies, thus paving the way for the spiral economy: a virtuous system that generates ever more value while reducing waste and the use of natural resources. For many years, companies only paid lip service to sustainability as part of their CSR (Corporate Social Responsibility) and philanthropic activities. Recently, however several factors have forced developed world companies to take a more strategic approach to sustainability. Paul Polman of Unilever notes that world consumes 1.3 times more than the planet can replenish. Looking at the present scenario we will have to find materials that can be recycled, repaired and reused at the same time usage of materials that cannot be recycled needs to be reduced. We will also have to educate the consumers to take up the responsibility to reduce consumerism (buying things not immediately required). What is more important remains a question, economic development or sustaining the environment? Can there be a way where environment is taken care of and development can also continue without creating dump yards? Earth has enough for our needs but not enough for our greed. As citizens we may have to adopt more frugal life styles.
