
The rising economies in Asia, Latin America, Africa and the Middle
East are expected to lift three billion people out of poverty in
the next few decades, which is likely to create ever increasing
demand for consumer goods from the new middle classes.
However, the planet will not be able to sustain this surge in
economic activity and use of resources this will generate unless a
new more environmentally positive business model is created in
which materials are managed more responsibly.
There is an alternative - the circular economy, which is a
restorative or regenerative system by intention and design.
Desso, with its circular economic model shaped around Cradle to
Cradle® design is well placed to take advantage of this new
industrial innovation. A new report, Towards the Circular
Economy: Economic and business rationale for an accelerated
transition1) launched in January 2012 by Dame Ellen
MacArthur, the founder of the Ellen MacArthur Foundation states
that the circular economy, "replaces the 'end-of-life' concept with
restoration, shifts towards the use of renewable energy, eliminates
the use of toxic chemicals, which impair reuse, and aims for the
elimination of waste through the superior design of materials,
products, systems, and within this, business models."
The same report, co-produced with McKinsey & Co., calculated
that businesses in the EU could reap annual savings of $630
billion/ €464 billion (almost 4% of annual EU GDP) by moving to the
circular economy.
A second report, Towards the Circular Economy Volume
21), produced by the Ellen MacArthur Foundation and
McKinsey in 2013 focused on the impact of circular models in the
consumer goods industry. It found that there was a global economic
opportunity worth USD 700/€516 billion in that sector alone .
Desso remains one of the pioneers of the circular economy,
providing case material for the Ellen MacArthur Foundation and
others.
“We are delighted to see more and more interest in the circular economy model as a new, positive way forward for business and society. At Desso, we are five years into a comprehensive programme to change our business model in this way. It links directly to our core vision which is to deliver products that improve people’s health and wellbeing that also have a positive impact on the environment.”
Alexander Collot d'Escury, former CEO Desso Group
The report cited Desso as one of the pioneering companies
leading the change.
After buying out the company, the top management team at Desso took
inspiration from the Cradle to Cradle® movement and decided to
pursue Cradle to Cradle® certification for the entire company. A
major spur to innovation and an inspiration for both customers and
employees, Desso's broad adoption of the circular economy
principles has been driving top-line growth.
1) Both reports are available online at: www.ellenmacarthurfoundation.org