Five reasons why the Circular Economy is a great idea

Five reasons why the Circular Economy is a great idea

The Circular Economy has the power to transform the planet for the better. This video explains why we are supporting the move for change


What is the Circular Economy? It is easily explained by looking at nature. In the natural world, one thing is regenerated into another, in a continual loop.

Think of a plant coming to the end of its life cycle. It produces seeds that grow into other plants or it nourishes other plants. In the same way, the Circular Economy is all about re-use. It is regenerative and waste-free. It is an approach that makes production and consumption a circular process, rather than a linear one. Here’s why we are supporting the move for change away from the old economy towards a new, circular one:

  1. We need to change
    The world’s resources are under strain and waste is a big problem for the planet. We all need to take fewer resources, keep them in use for as long as possible and feed them back into the production cycle when done.
  2. It makes business sense
    Resources are expensive and so is energy, plus customers have ever-higher environmental expectations. It is good business sense to ensure processes are as waste-free as possible and customers are satisfied.
  3. It creates new opportunities
    Thinking about waste in new ways leads to thinking about business in new ways, too. Many businesses, from multinationals to start-ups, have already committed to the Circular Economy and seen real change.
  4. Recycling isn’t enough
    The Circular Economy also means rethinking materials, design, production and services.
  5. Ownership doesn’t work
    Sharing services and upgrade agreements for products such as cars or mobile phones show that the “buy access and use” model works, both for consumers and manufacturers.

Intesa Sanpaolo is the first Financial Services Strategic Partner of the Ellen MacArthur Foundation, which works towards a global Circular Economy. Our Innovation Center funds and supports new ideas and research on the subject.

Transformation to a new way of using and reusing resources is not just good for the planet, it is good for all of us.

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