Recently, the European Union has been trying to lead the solution processes of many global problems, especially the fight against the climate crisis. New regulations, road maps, changing tax systems... And perhaps the most important; regulations on plastic, which is actually one of humanity's biggest problems. So what do the EU's regulations on the use of plastics and plastic packaging mean for non-EU countries?In this week's article, we discuss the strategic steps that non-EU countries need to take to maintain their competitive advantage and market share.Contact:&nbsp;donguselekonomi101@gmail.comLet's get started!

Everything about circular economy, a model of production and consumption of sharing, renting, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.

A model of production and consumption of sharing, renting, reusing, repairing, refurbishing, and recycling.

Circular Economy 101

♻️ What do the EU's plastic regulations mean for other countries? What are the strategic steps that these countries should follow?

Plastics: the EU vs. the world

Circular business models are the most effective tools of the transformation process that directly concern both manufacturers, legislators and consumers in the transition to circular economy.Although dynamics such as current market dynamics, consumer concerns, and regulatory shortcomings create barriers to the adoption of circular business models, the environmental, social and economic benefits of innovative business models are critical to overcoming these barriers.In this week's article, we discuss the benefits of circular business models in terms of different dynamics and their positive impact potential.May 2023 bring health, happiness and peace to everyone.Contact: donguselekonomi101@gmail.comLet's get started!

🧭 What do future business models offer?

Potential impacts of circular business models

The process of transition to circular economy cannot be realised quickly due to different obstacles and structures that are not open to change. Although the duties and responsibilities of stakeholders are critical for the acceleration of this transformation process, some structures that exist with a common consciousness and do not have a direct interlocutor seem to be the biggest obstacles.The current market dynamics that have developed over the years in accordance with the current structure of linear economy and the main topics that they bring into question with circular economy constitute the main point of our discussion this week.Contact: donguselekonomi101@gmail.comLet's get started!

🪙 Private property, planned obsolescence, appraisal

Barriers to Transformation: Market Dynamics

Circular economy requires a complete redesign of all of our existing systems, that is, a systemic transformation. Unlike today's sustainability projects aimed at 'improvement', circular economy aims to change the system as a whole, not the problems within the system.The topic of discussion in this week's article is what needs to be considered in the systemic transformation process to be carried out to achieve circular economy. You can participate in our three-question&nbsp;survey at the end of the issue to let us know what you think about the subject!Contact: <a fr-original-style="" href="https://link.apos.to/c/pFRik3RHeDHr?c=BoyeysyJK-yVIq6PzhA7r&sub=62b033905d379200061d8935&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🏗️ Redesign, participation, science, open mindset

How do systems transform?

In the process of transition to circular economy, each stakeholder has duties and responsibilities within their own sphere of influence. Within these duties and responsibilities, each stakeholder who correctly understands circular economy can prepare their own road map.However, leading this long-term and challenging transformation process requires much more than the existing standards for leadership qualities.In this week's article, we discuss the leadership qualities that individuals or organisations that assume the leadership role in the circular economy transition process should possess.Contact: <a fr-original-style="" href="https://link.apos.to/c/UsKO_AUXrw1d?c=-ueXfddak1jlNo04E_97N&sub=62b033905d379200061d8935&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🧠 360° thinking and other qualities of a leader in the transformation to circular economy

Leading circular economy

An average of 11 million tonnes of plastic waste is thrown into the oceans every year, and this rate is expected to triple by 2040. The 267 species that will be affected by this are the clearest example of humanity's damage to nature.Although biodiversity has been on the agenda in recent years, in a scenario where it does not receive the attention it deserves, it has the power to drag not only humanity but the whole world into disaster. In order to prevent biodiversity loss and to design a new system with restorative activities, we come across circular economy.The main topic of discussion in this week's article is shaped in this context and we discuss the strategic steps that the private sector should take for biodiversity in the transformation process.Contact: <a fr-original-style="" href="https://link.apos.to/c/DWS_99w1Jitv?c=_EgGmiZU8cGrV7bBhDNfG&sub=62b033905d379200061d8935&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🌿 How can we utilize circular economy for biodiversity?

Transformation for Biodiversity 

The transition to circular economy requires the simultaneous transformation of different dynamics. Circular economy, which basically aims to change social structures, actively uses all resources that enable innovative thinking in this process.In this week's article, we discuss some of the elements that are critical in the process of transition to circular economy, and discuss their importance and impact on the process.Contact: <a fr-original-style="" href="https://link.apos.to/c/T0JkXSpKbfvD?c=ZRvnmgiNWLo0mRVzkYs2D&sub=62b033905d379200061d8935&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🧩 Data analysis, digitalisation, experience, measuring impact, standardisation

Key elements of transformation

Although social transformation in the process of transition to circular economy does not have a specific framework, the responsibilities of the stakeholders that make up the society are somewhat clearer.So, what are the value areas that the private sector, which has the biggest impact among these stakeholders, should focus on for transformation? Which areas should it focus on in order to complete the circular economy transition process by increasing the positive impact?The main topic of our discussion this week is the value-creating transformation of the private sector.Contact: <a fr-original-style="" href="https://link.apos.to/c/zS4X1yFQxvkT?c=94BlKtuELqfkFbdYfZoXd&sub=62b033905d379200061d8935&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🏢 What are the areas of value in the business world?

Value-creating transformation

Remember the trendy clothes that were bought only to be left to their fate in the depths of the wardrobe? Or the clothes that were bought just 'not to miss a sale' even though they were not needed? The textile industry has a critical importance in circular economy thanks to the potential of these forgotten 'wastes'.The environmental, social and economic potential of the second-hand raw material that the textile industry can provide for recycling and reuse processes is the main topic of our discussion today.Contact: <a fr-original-style="" href="https://link.apos.to/c/TSy9IMfQU_f1?c=Q71L5MGB9gXTPqPvkkRyn&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🧵 What to do to unlock this potential?

Circular potential of the textile industry

Islands of plastic in the oceans, mountains of plastic in invisible areas of cities, plastic packaging that has become part of animals' bodies... All this explains how plastic gained its bad reputation.But is plastic really harmful? Or is it a scapegoat for the systems of production and consumption that we, as humans, have designed incorrectly?This week, we are discussing the place of plastic in circular economy and how it should be considered in the transformation process.Contact: <a fr-original-style="" href="https://link.apos.to/c/isv8Efm4KD__?c=5ZVcN_JDJ3rj6DrMvX7SQ&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">donguselekonomi101@gmail.com</a>Let's get started!

🥤 Can plastic transform despite its bad reputation?

Circular plastics

Business related articles and publications

Business

Economy related articles and publications

Economy

Social issues related articles and publications

Social Issues

Science related articles and publications

Science

The transition to circular economy continues to gain momentum under the leadership of different countries and regions. Thanks to the&nbsp;European Green Deal, all EU countries are willingly or unwillingly involved in this process, while countries such as the Netherlands, France and Finland stand out by leading this transition process. The United Kingdom, which left the European Union, continues to work rapidly in order to maintain its global leadership position in the transition to circular economy.So how does the process of transition to circular economy work outside EU countries? In our previous articles, we have discussed what the EU's Circular Economy Roadmap integrated into the European Green Deal will mean for non-EU countries. Of course, when we consider the impact of the EU's leadership of this transition process on other countries, it is necessary to discuss whether EU-oriented regulations cover the rest of the world. Considering the socio-economic situation, time will tell how accurate it is to include non-EU countries in this transformation process only through regulations.In this week's article, we discuss the impact of the EU's regulations on plastic packaging and plastic use in non-EU countries. While the question of how the regulations and strategic roadmaps determined by the EU should be handled for non-EU countries will be our main focus, the report <a fr-original-style="" href="https://link.apos.to/c/3l0PfzUckDpK?c=_yZkhdoLp5424APyXAgrW&sub=62b033905d379200061d8935&s=web" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">'THE EU'S CIRCULAR ECONOMY TRANSITION FOR PLASTICS AND TEXTILE'</a>&nbsp;prepared by the United Nations Industrial Development Organization and Chatham House will accompany us.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">What should non-EU countries do against the EU's regulations on plastic?</h2><h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️&nbsp;Prioritise recycling</h3>Recycling is the last resort in circular economy. The main reason for this is not the management of waste, but the principle of preventing waste generation. In other words, instead of a system where we continue to generate waste, we need to design a circular system where we prevent waste generation at the very beginning, namely the design stage. The next steps are repair, maintenance, reuse, remanufacture and finally, recycling.Nevertheless, the EU's 'Ecodesign for Sustainable Products Regulation' and 'Packaging and Packaging Waste Directive' regulations are recycling-oriented. However, it is worth noting the difference between the use of the word 'recycling' in EU countries and other countries. Unfortunately, recycling materials 100% is not possible due to current technologies. This causes the material to lose its current value in the recycling process. However, the word 'recycling' does not only refer to a transformation centred on loss of value. Recycling literally means the reintroduction of materials into the economy. In other words, it means that the materials are recycled back into the economy with the right strategic steps before recycling, which we know causes loss of value.The first lesson here is that recycling, which is handled within the scope of EU regulations, actually means that in products such as plastic packaging in non-EU countries, materials with reduced environmental and social impacts and, if possible, recycled materials should be used. It is of critical importance for plastic packaging manufacturers, especially in countries like Turkey that have intensive trade relations with the EU, to use materials that are not only recycling-oriented, but also prevent waste generation thanks to their design, can be reused, can be included in re-production processes and can be recycled at the last stage.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️&nbsp;Demand for recycled plastic</h3>As an outcome of the global struggle against the climate crisis, the demand for the use of recycled plastic materials is increasing day by day. The EU's transition to recycled plastic materials, known as rPET, is of critical importance for non-EU plastic manufacturers.The EU has not made a commitment to zero plastic use in the near future. However, the use of recycled plastic material has already become a material of interest throughout the entire EU supply chain. In particular, the fact that the plastic packaging of food products is made of recycled plastic material and that this is done in accordance with food safety laws and regulations makes it mandatory for countries producing plastic packaging outside the EU to change their supply chains.Another critical issue is related to the process of buying waste plastic from abroad and recycling them to produce various products, which is also on the agenda from time to time in countries such as Turkey. While the EU now supplies plastic packaging from non-member countries, it also examines how the raw materials of these products are supplied. For example, even if the plastic packaging produced in Turkey is recycled, it is necessary to transparently explain how the materials included in the recycling process are made. This makes the inclusion of local waste in recycling processes much more important.In addition, the practice of recycling the EU's waste by sending it to Turkey and similar countries is coming to an end. Thanks to the recycling facilities, the number of which is planned to increase rapidly in EU countries, the EU will now be able to recycle its waste within itself without sending it to other countries. In other words, while the EU-originated wastes coming to Turkey are decreasing, the environmental and social impacts of the wastes coming from other countries should also be taken into account.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➡️&nbsp;Digitalisation and innovation</h3>While the demand for recycled materials in plastics and plastic packaging is growing, the potential for plastic manufacturers is not limited to recycling. For pioneering countries and companies of circular economy, innovative plastic products made from biodegradable, single-material plastics also have enormous potential. Therefore, innovation is critical for non-EU countries to maintain and increase their share in the EU market.In addition, with Industry 4.0 technologies, the demand for transparency from consumers regarding many products and services we use in daily life is increasing day by day for plastics and plastic packaging products. While the consumer demand for more detailed and transparent information about the environmental and social impacts of the products is increasing as opposed to cursory information, regulations are forcing manufacturers to transform in this area.The use of life cycle analysis (LCA) is on the rise, while consumers' demand for information on raw material procurement, production processes, logistics and even post-use processes of products continues to increase. At this point, it would not be wrong to predict that the level of awareness of consumers in EU member states on these issues will increase with the strategic steps of the EU. For this reason, it does not seem possible for plastic and plastic packaging manufacturers in non-EU countries to maintain their current business models unless innovation and digitalisation are included.🔎 Circular Economy 101's take: The sustainability efforts led by the EU and the transition to circular economy are very important, especially for countries with intensive trade relations with the EU. Nevertheless, it is not realistic to expect that a transformation process focused solely on EU strategies on issues such as climate crisis, hunger, gender equality, etc. will be accepted globally. It is important for each country and each region to design a transformation process in accordance with its own geographical, demographic, cultural and economic structure. In other words, a correct strategy determined according to the socio-economic structure of a country, not only according to the directives from the EU, is important for the transition to circular economy.Regulations play a key role for the transition to circular economy. Although keeping up with this change process led by countries is critical in terms of economic competition, it is also important for the localisation principle of the transition to circular economy that countries determine a transformation strategy according to their own characteristics, not only in line with demands from the leading countries. A business model that works in another country cannot directly be adapted in Turkey and needs to be updated according to the culture. Similarly, it will not be possible to manage the transition to circular economy correctly in the accordance with direct external demand.

What do the EU's plastic regulations mean for other countries?

Studies in the field of circular economy have become an increasingly widespread point of focus for governments, legislative institutions, the private sector and academia, especially in recent years. Circular economy is being addressed from different perspectives as people try to integrate it into daily and professional life. In this way, reducing the use of resources, designing the most efficient processes, preventing waste generation and reducing greenhouse gas emissions are of course among the primary goals.The different perspectives of circular economy are of course considered as various perspectives aiming to transform social and economic structures. At the forefront of these are, due to their environmental, social and economic impacts, circular business models. Innovation-oriented circular business models are changing our daily lives, even if we are not aware of this. They are developed to accelerate the transition of the private sector, especially startups, to circular economy and to maximise financial returns.In this week's article, instead of the obstacles facing circular business models, we are discussing what kind of returns circular business models will bring regarding different dynamics.In this article, we are accompanied by the article<a fr-original-style="" href="https://link.aposto.com/click?uri=aHR0cHM6Ly9saW5rLmFwb3N0by5jb20vY2xpY2s/aXNzdWU9NjNiMmNlOTA3ZGY3ZTEwMDA2MjkwNTk3JnN1YnNjcmliZXI9NjJiMDMzOTA1ZDM3OTIwMDA2MWQ4OTM1Jm5ld3NsZXR0ZXI9NjAwMDQ5OTY1Njg2MGYwMDA4MDAzMzdkJnB1Ymxpc2hlcj02MDAwNDc4MzU2ODYwZjAwMDgwMDJmNmQmc291cmNlPWVtYWlsJnVybD1odHRwcyUyNTNBJTI1MkYlMjUyRm9ubGluZWxpYnJhcnkud2lsZXkuY29tJTI1MkZkb2klMjUyRjEwLjEwMDIlMjUyRmJzZS4zMzM5" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">&nbsp;'Drivers and barriers for circular business model innovation'</a>, which will shed light on our current discussion as it has just been published.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Positive impacts of circular business models</h2><h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">💰Financial effects</h3>In addition to the sustainability of existing processes, circular economy prioritises economic return through new business models. This is basically possible through the realisation of innovative business models with various principles such as R-strategies. In this context, circular economy can first bring financial growth by opening new markets and innovative business development processes.In addition, it will be possible to both reduce costs and create new income models, especially by reducing the use of resources and ensuring that waste remains in the cycle. In this way, it can enable the business world to increase resilience, which is critical for managing different crisis periods with less damage.Finally, especially for a future scenario in which various materials, which are being rapidly depleted due to the use of too many raw materials, become completely inaccessible, circular business models may help avoid the problem of access to resources thanks to closed loops.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">⚖️&nbsp;Legal impacts</h3>Due to the sustainability and circular economy studies that have occupied the global agenda, many countries are working on different regulations and legal arrangements. The Circular Economy Action Plan, integrated into the European Green Deal, makes transformation mandatory for European Union (EU) countries as well as non-EU countries.At this point, it is possible to foresee how important and at some point mandatory circular business models will be in the future. Many business models that do not seem possible at the moment may come back to the agenda thanks to new regulations that will emerge in the coming days and years. One of the biggest examples of this is the business models focused on preventing food waste, which are increasingly adopted in France after the regulation on <a fr-original-style="" href="https://zerowasteeurope.eu/library/france-law-for-fighting-food-waste/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">food waste</a>.New regulations expected to come into force in the future are critical for taking action and managing potential risks correctly. However, circular business models can be considered an important tool for today in order to comply with the regulations that have been intensively worked on in the last few years due to global studies such as the European Green Deal, United Nations Sustainable Development Goals, etc. In particular, circular business models are reappearing again at the point of compliance with innovative regulations that restrict the use of existing materials and support the use of recycled materials, or allow consumers to purchase or rent second-hand products.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🏪 Effects on the market</h3>In the process of transition to circular economy, various obstacles create negative effects on the transformation processes of stakeholders that constitute social and economic structures. The most important of these is market dynamics, which are much more difficult to transform since they do not have a direct interlocutor. You can reach our previous discussion article on this topic <a fr-original-style="" href="https://aposto.com/i/barriers-to-transformation-market-dynamics" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">here</a>.Market dynamics are not very easy or fast-changing unless there are extraordinary crises like Covid-19. Although technological developments cause a new product or service to be developed every day and existing products and services to become 'obsolete', market dynamics often change slowly within certain patterns. With circular business models, however, market dynamics can change and it may be possible for the business world to increase its market share.Circular economy can be expected to increase the share of companies in the market, especially thanks to the aim of taking product ownership away from the consumer and giving it to the manufacturer or, the company that carries out sales. In existing business models, after the product is sold to the consumer, the relationship between the manufacturer and the consumer ends, whereas, with circular business models, a much longer-term relationship can be established between the manufacturer who retains ownership of the product and the consumer who uses the product only when needed. In addition, thanks to the increasing demand of consumers for sustainable and circular products and services, innovative products to be added to the product portfolio may also enable the increase of market share and the creation of new markets.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">💡Technological impacts</h3>Global problems such as combating the climate crisis, hunger, loss of biodiversity and greenhouse gas emissions are at the centre of technological studies. R&amp;D studies, innovation investments and incentives carried out within the scope of combating global problems are increasing day by day. Circular business models support the transformation of technological developments in this direction, with innovation at the centre.Circular business models aiming at the efficient use of resources expand the development areas of technologies such as data science and blockchain. On the other hand, innovative business models that will enable the recycling of waste into the economy, especially on the consumer side, also expand the scope of technological studies.Biomimicry studies, which have an important added value, especially in circular economy, prepare the environment to make technological developments more environmentally friendly with solutions inspired by nature.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧭 Impacts on corporate governance</h3>Sustainability and the transition to a circular economy, in which companies are obliged to participate, especially as it has found its place on the agenda of the investment world, also have positive effects on the corporate governance strategies of companies. The decisions made by investors with a more sustainable/responsible investment perspective and the criteria set by large investment funds in environmental, social and governance areas prevent companies from ignoring these areas.Circular business models are also becoming an extremely important tool, especially for companies that are trying to enter new markets by transforming their existing business models, trying to create new revenue models or simply trying to respond to the demands of consumers.Corporate sustainability and circular economy studies, in which top management of companies are directly involved, are becoming indispensable issues both in the eyes of investors, in terms of the company's current operations and employees, and perhaps most importantly for customers. Circular business models can have a much more positive impact than expected for companies that put innovation at the centre of their corporate culture.🔎 Review of Circular Economy 101: Contrary to popular belief, circular business models do not aim to 'reinvent the wheel', but to make existing processes much more efficient according to circular economy principles. By doing so, it may be possible to minimise negative environmental and social impacts, while maximising the potential for economic growth through innovative revenue models that we are not even aware of at the moment. It would not be wrong to predict that especially consumers and market dynamics will create various obstacles in the near future regarding circular business models. However, considering the changing purchasing decisions, especially for consumers, it is possible to think that circular business models will spread to all areas of our lives in the next 5 years.The process of transition to circular economy can be handled from different perspectives. However, all these different perspectives should act together for a total transformation without forgetting that the ultimate goal is systemic transformation. While state support programmes, investments and new regulations are required for the dissemination of circular business models, different studies that will raise consumer awareness should be carried out in parallel. For this, as we have mentioned in every article, all stakeholders that make up the social and economic structures should carry out this transformation process together, integrating everyone, and clearly learning their duties and responsibilities.

What do future business models offer?

When circular economy is considered as a mindset that requires all systems to be designed from scratch, it is also subject to criticism on many issues due to its motivation to change the existing order. Of course, the aim of changing the existing economic and social structures from top to bottom is not a process that a single stakeholder can decide and realise alone. However, since circular economy is a concept that has not yet been properly understood as a concept and is not addressed at the macro level, not all stakeholders have this holistic systemic transformation motivation yet. This causes the transition to a circular economy, which prioritises environmental and social welfare but also puts economic welfare at the centre of transformation, to be hampered.In the process of transition to circular economy, as we have mentioned many times in our previous articles, the main stakeholders that make up the social and economic structures, namely governments, private sector, academia, NGOs and individuals, have duties and responsibilities. Since these stakeholders are considered as legal or real persons, they have to be involved in the transformation within certain metrics or roadmaps. However, there are also different stakeholders who carry critical importance in the transformation but do not have a clear interlocutor.The 'market', which is the most fundamental part of economic systems, where all stakeholders come together and trade is carried out, appears as a stakeholder without a direct interlocutor. The market, which can be considered as the environment where buyers and sellers meet in its simplest definition, can be named as the biggest obstacle in front of the transition to circular economy or most basic sustainability issues today.Although all stakeholders that make up the market have started to attach importance to welfare-enhancing activities on environmental and social issues in recent years, financial expectations, profit-oriented structures that do not like change are seen as the main reason for the loss of momentum in the process of transition to circular economy.So at what points do the expectations of the market and circular economy conflict?<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧰 Private property</h3>Today, private property is no longer limited to commodities such as land or real estate. With the development of mass production and technology, all products and services we use in our daily lives are handled within a system organised under the ownership of consumers or sellers/manufacturers.All products and services purchased in daily life (except for rental services) are completely owned by the buyers. Private property, which has a critical place in circular economy, is handled differently compared to its current setup. Circular economy advocates that product ownership should be taken from consumers and given to manufacturers/sellers in order to use resources efficiently.The instinct to own a car, a house, a smartphone, which is encoded in our mindset, inevitably opposes this idea. However, the basic motivation underlying the idea is as follows: In order to extend the lifespan of any product produced using many resources, the product needs to be included in the maintenance and repair processes. This can only be possible if the consumer who owns the product carries out these processes correctly. Thanks to mass production, the fact that everyone can access the desired product at any time, with alternatives suitable for their own budget, prevents the processes of preserving the value of the products. Of course, it is not realistic to expect a consumer who can access the same product at any time to carry out such maintenance and repair processes efficiently.At this point, the circular economy argues that the ownership of products and services should be left to the manufacturers and that all maintenance and repair processes should be carried out by the manufacturers . This would extend the life cycle of a manufactured product, while preserving the value of all utilized resources as long as possible. In addition, the fact that consumers can access products and services only when they need them has a positive impact on both cost and utilisation efficiency. Here, as an alternative to increasing profitability by selling more products, which is the expectation of the market, circular economy actually introduces innovative business models by suggesting the rental of products and services. Thanks to innovative business models such as rental, maintenance, repair, etc., consumers can have the product they want only when they need it. While purchasing costs are reduced, manufacturers can diversify their revenue models thanks to innovative business models.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🗑️ Planned obsolescence</h3>Planned obsolescence, which emerged in the early 20th century, means that products are deliberately and intentionally designed to cause them to lose their function.For our readers who want to get detailed information about planned obsolescence, we invite you to read our previous issue titled <a fr-original-style="" href="https://aposto.com/i/how-do-we-stop-planned-obsolescence" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">'How do we stop planned obsolescence?'</a>Planned obsolescence is another critical practice where the market is at odds with circular economy. The main application method of planned obsolescence is the use of products and services for a limited period of time determined by the manufacturers, after which they completely lose their function and are considered as 'waste'.Aside from preserving the value of resources, planned obsolescence, which causes them to be considered as waste in a shorter period than they should be, is used in many products today. This type of design, which aims to compress the lifespan of products to a certain period of time by reducing their durability, aims to make consumers buy the same or similar products continuously.Circular economy, on the contrary, aims to design products and services with the most durable technical and hardware features at the initial design stage and to maximise the value of resources by using them for a long time. This is, of course, the biggest indicator of why market dynamics do not accept the circular economy as it is. Current market dynamics cannot naturally accept products and services that offer long-term use and durability. Products with a longer life span, which create obstacles to more sales, cannot exist in a profitability-oriented system. However, extending the product life cycle and designing durable products can reveal different business models for manufacturers as mentioned above.Although the products are durable, they may need to be renewed at any time due to new technologies, user errors, etc. In addition to maintenance and repair processes, designing modular products that can be improved in parallel with updated technologies and with the replacement of a few minor parts, are alternatives that can contribute to the increase in profitability, which is at the centre of the business as the main motivation.To summarise, market dynamics unknowingly create much bigger obstacles in the process of transition to circular economy. The examples in this article are just a few of these obstacles. Many factors such as labour rights, product valuation and pricing, technical efficiency and market efficiency stand as obstacles to the systemic change proposed by circular economy because they have typical structures.The transformation of market dynamics is considered to be a very challenging process as there is no clear interlocutor. However, there is a point that should not be forgotten; those who determine the dynamics of the market are also the main stakeholders that make up our social and economic structures. For this reason, in a future where all stakeholders know their duties and responsibilities and adopt the circular economy as a mindset that will ensure prosperity in every field, the market may change the stereotypes that we say 'would never change' today.

What challenges do market dynamics pose against transformation?

As the importance of circular economy increases on the global agenda, expectations for a definition of the concept that is accepted by everyone are also increasing. While we should consider circular economy as a systemic mindset, an umbrella concept that will completely change the way we do business, simpler definitions prevent circular economy from realising its potential.As it is considered only as an 'innovative waste management' strategy, the goals of different stakeholders regarding circular economy are also limited within this framework. As we have mentioned in our previous articles, the transition to circular economy requires different road maps to be determined from the very beginning according to the characteristics of each stakeholder and each sector. In other words, it is critical that the circular economy concept is correctly understood and integrated into our own processes. This, in fact, explains why the circular economy should not have a single and inclusive definition, and why it should not be handled in a single framework.For this reason, it makes much more sense to have a definition that circular economy requires a systemic transformation for the efficient use of all resources. Each stakeholder has different resources and roadmaps in their own life, way of doing business or way of thinking. This requires each stakeholder to switch to a new system that will utilise its resources in the most efficient way. So how can there be a systemic transformation to circular economy? Our discussion topic this week is shaped by what needs to be considered for systemic transformation.This week, our discussion is accompanied by the article 'Circular Economy through a system change lens' from the book <a fr-original-style="" href="https://link.aposto.com/click?uri=aHR0cHM6Ly9saW5rLmFwb3N0by5jb20vY2xpY2s/aXNzdWU9NjM5NmU4YjQwYzJiYmYwMDA2NmZhYjYzJnN1YnNjcmliZXI9NjJiMDMzOTA1ZDM3OTIwMDA2MWQ4OTM1Jm5ld3NsZXR0ZXI9NjAwMDQ5OTY1Njg2MGYwMDA4MDAzMzdkJnB1Ymxpc2hlcj02MDAwNDc4MzU2ODYwZjAwMDgwMDJmNmQmc291cmNlPWVtYWlsJnVybD1odHRwcyUyNTNBJTI1MkYlMjUyRnd3dy5yb3V0bGVkZ2UuY29tJTI1MkZUaGUtSW1wb3NzaWJpbGl0aWVzLW9mLXRoZS1DaXJjdWxhci1FY29ub215LVNlcGFyYXRpbmctQXNwaXJhdGlvbnMtZnJvbSUyNTJGTGVobWFubi1IaW5za2UtTWFyZ2VyaWUtTmlrb2xvdmElMjUyRnAlMjUyRmJvb2slMjUyRjk3ODEwMzIxNTQ0MzU=" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">'The Impossibilities of the Circular Economy'</a>.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">What is needed for systemic transformation?</h2><h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ Redesigning the system, not improving it</h3>Systemic transformation is a challenging and long process that needs to be addressed at both macro and micro levels. The sustainability efforts we are currently engaged in, especially those led by governments and the private sector, focus on improving the faulty points within the existing structures rather than redesigning them. In other words, the aim is not to renew, but to improve systems that were not designed with a focus on environmental and social welfare. Although it is possible to consider the Sustainable Development Goals here as the predetermination of environmental and social outputs, the work carried out focuses on improving the system, not a systemic transformation to achieve these SDGs.The systemic transformation addressed in the process of transition to circular economy, on the contrary, proposes that environmental and social outputs should be defined first and all structures should be redesigned from the beginning based on these definitions. In other words, it is expected that the entire system (including global systems) will be designed in line with predetermined environmental and social welfare-oriented expectations, not only to eliminate the errors in the production and consumption structures specific to the current sector. Therefore, if we aim for a systemic transformation in the transition to circular economy,&nbsp;the first critical point we need to pay attention to can be summarised as the need to redesign the system from the very beginning, not to improve the system.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰To evaluate the opinions, suggestions and expectations of all stakeholders</h3>As our readers who have been following our articles for a long time will remember, individuals are as important as any other stakeholder in the process of transition to circular economy, but this stakeholder is not given the necessary attention. When we accept that social and economic structures are created, guided and shaped by individuals, we can understand the importance of feedback processes, which are also critical for systemic transformation.Feedback processes, which are critical in the transition to a circular economy, aim to ensure that every step taken in the change process is actually reviewed by all stakeholders and areas that are faulty, deficient or open to improvement are shared. In this way, it may be possible for all stakeholders to examine all steps taken in the focus of environmental and social outputs that should be determined at the initial design stage for systemic transformation. In the opposite case, the main problems we face in the sustainability transformation we are in today arise.Transformation roadmaps that emerge as a result of the decisions taken by the private sector or governments on their own are carried out without the opinions of consumers, meaning, individuals. The main reason for this is the belief that society will naturally fully adapt to the transformation process of a state or a company. It is not possible to talk about a systemic transformation as long as the states or the private sector, which aim to improve some faulty points with various regulations or new business models, are not involved in a transformation process that will meet the realistic expectations of individuals, who are the main stakeholders of society. For this reason,&nbsp;the opinions, suggestions and expectations of all stakeholders, not limited to individuals, should be received and evaluated at every stage of transformation.&nbsp;<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ Conducting science-based, realistic processes</h3>Perhaps the most important point to be considered while addressing the system at both macro and micro levels in the process of transition to circular economy is to carry out science-based, realistic processes. Especially when it comes to designing the transition to a circular economy, building a recycling-oriented system is an approach that is completely far from science and reality.Recycling is the last preferred step in circular economy. When we consider the subject in detail, we can see that a system that is completely recycling-oriented cannot be built with today's technologies. The main reason for this is the laws of physics in general and the laws of thermodynamics when we get a little more specific. We will not go into the technical details of these laws, but to summarise, recycling is a process that cannot continue indefinitely and therefore at some point resources are used inefficiently. Current technologies allow many materials and materials that are described as 'recyclable' today to be recycled at a maximum rate of 10-15%. Especially the recycling rates of products produced using many different raw materials are quite low.While this is the case, all of the recycling-oriented transformation strategies that we often hear are actually unrealistic road maps that are far from scientific facts. At this point, it becomes much more important to understand the circular economy correctly, to learn the different concepts it contains as an umbrella concept (biomimicry, cradle-to-cradle, R-strategies, etc.) and to design a systemic transformation in this context.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ A mindset open to change</h3>One of the most challenging aspects of systemic transformation is the need to transform the entire system at both macro and micro levels. This requires a much more complex structure in the process. This process, in which many different factors need to be considered at the same time, will of course be too comprehensive to be compressed into a single framework. For this reason, the definitions, road maps and action plans initially determined in the systemic transformation process may have to change over time.This indicates that the uncertainty in the process of transition to circular economy shows that we are on the right track at some point. However, this uncertainty should not cause everyone to carry out this transformation process on their own. For this reason, the road maps and the new structures to be designed should be shaped in a way that will be open to change after an indefinite period of time. Instead of trying to determine the most accurate, optimum solutions, roadmaps should be created in the light of scientific facts that are accepted as true today, which will also enable rapid action to be taken. Considering the environmental and social impacts of our current system, seeking perfection will slow us down completely and even cause us to deviate from our main purpose.For this reason, for systemic transformation, action should be taken quickly with today's realities, but we need to be in a mindset that is open to change at any time and constantly question the 'truths'.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">➰ Focus on environmental and social well-being without being influenced by political developments</h3>Lastly, while covering all of the abovementioned, we need to carry out a transformation process in line with our purpose, independent of individuals and organisations. Today, we can see that policies are restricted by political election cycles for political purposes. Our environmental and social impacts, which should be handled independently of the functioning of political structures, actually need to be examined independently of all opinions.In particular, a systemic transformation is required in which the fight against specific issues that concern the whole world, such as the climate crisis or hunger, is not used for specific political purposes, but is actually addressed as a higher purpose independent of all viewpoints. Here, road maps similar to the 20XX net zero targets of many countries since the Paris Agreement may come to mind. It is necessary to create these roadmaps by considering the opinions of all stakeholders in that country, and to maintain them with the co-operation of all stakeholders despite any political change. In this way,&nbsp;a systemic transformation focused solely on environmental and social welfare can be possible without being affected by local or global politics.🔎 Circular Economy 101's take: To summarise, all these topics that we have opened up for discussion for systemic transformation can basically allow the real potential of the circular economy to be unlocked. Through an innovative system design that puts innovation at its centre, it may be possible to increase cooperation and bring about change for a fundamental purpose without ignoring social needs.In the process of transition to circular economy, the expectations, goals or steps taken by other stakeholders should be questioned by all stakeholders forming social and economic structures in the light of science, deficiencies/errors should be identified and, if necessary, change should be forced in line with the common goal.

Circular economy is a system of thought that requires us to redesign all our economic and social structures, and needs to be embraced globally. This makes the issue of strategic leadership for the transition to circular economy even more critical. Simply renewing waste management systems, replacing raw materials used in production processes with reusable alternatives, introducing circular economy into the education curriculum or introducing innovative business models are not enough to unlock the true potential of the circular economy.We have mentioned in our previous articles that all stakeholders that constitute social and economic structures have various duties and responsibilities in the process of transition to circular economy. Although these duties and responsibilities are shaped within the framework of each stakeholder's own sphere of influence, some stakeholders also assume the role of leadership in this transformation process and take the role of guiding other stakeholders. This leadership role is sometimes observed on the basis of countries (the Netherlands), companies, and sometimes NGOs (Ellen MacArthur Foundation). However, it is also possible to encounter situations where the real goal of everyone who takes on this role is not really to lead the transition to circular economy.In this week's article, we focus on how leadership qualities should be shaped in the transition to circular economy, especially in terms of mindset. The chapter 'Circular economy leadership' in the book <a fr-original-style="" href="https://link.aposto.com/click?uri=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" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">'The Impossibilities of the Circular Economy: Separating Aspirations from Reality'&nbsp;</a>accompanies our discussion.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Professional humility</h3>Unlike other concepts that require sustainability or transformation, the transition to circular economy is a process that should not involve personal interests. Because it is not possible to transition to the circular economy only as an organisation or an individual. Collaboration, the adoption of circular economy principles by other stakeholders and the motivation to redesign all systems with the same mindset should not be associated with personal fame or brand reputation.Leaders who put innovation first by proceeding logically should consider the transition to circular economy as a long-term vision, first within the scope of their corporate strategies, then within the scope of the needs and realities of their region, and finally within the scope of their impact on global systems.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Commitment to right actions</h3>When it comes to the right action, we might question 'right according to whom?' This quality can be considered as a criticism of the steps taken in combating the climate crisis, which is also on the global agenda today. Within the scope of combating the climate crisis, decisions that were changed by taking into account economic interests, agreements that were not implemented or workshops that did not meet expectations come to mind.On the contrary, the people or organisations that will assume a leadership role in the transition to circular economy should take whatever is the right step for systemic transformation. Of course, this does not mean rejecting all other ideas or alternatives in line with a single decision. The steps to be taken today and in the future of transformation can change at any time. We can say that the most important feature of leaders here is to have a wide enough perspective to recognise the right steps on the way to the main purpose. This can be possible if we consider the definition of the right action as 'the right action required for transformation'.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">360° thinking</h3>The abovementioned wide perspective is actually another critical characteristic that leaders should have in the process of transition to circular economy. Approaching circular economy, which requires systemic transformation, in terms of a single organisation, a single structure or a single city may, of course, be the result of a limited perspective. This would not be a suitable feature for the transition to circular economy, whose potential is much more than estimated, as it does not have a clear framework.The specific frameworks we have been accustomed to in all areas of our lives so far, our limited fields of action and our ways of thinking with a certain structure are among the main reasons that hinder the transition process. The correct understanding of circular economy comes into play at this point. Since circular economy is a mindset that cannot fit into certain frameworks, it should be defined in terms of the current situation of each stakeholder and should be considered as a vision that is open to continuous development in the light of current developments. Leaders with a 360-degree perspective should follow a leadership method with a broad perspective that is open to innovation at any time within the scope of a road map suitable for whatever structure they lead.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Being multi-faceted</h3>The main reason why the transition to circular economy is progressing relatively slowly - or even regressing - is that stakeholders are completely unfamiliar with this innovative system. Leaders who are accustomed to linear economy, which has been embedded in all our systems, ways of living and doing business for more than 300 years, sometimes willingly and sometimes unwillingly slow down the transition. For this very reason, circular economy leaders need to be leaders who have versatile skills, who have a diverse range of interests, who are constantly curious and who can think not only within the structure they are in, but also beyond it.In order to accept innovation, it is necessary to understand innovation first. For this reason, leaders in organisations that only focus on transformation within the scope of their activities or individual leaders who only try to change their own lives have difficulty adapting to the transition to circular economy. As a result of the realities of the current modern world, having expertise, knowledge and decision-making ability in many different fields instead of expertise in a single subject is among the most critical characteristics of circular economy leaders.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Supporting development</h3>The most common answer to the question 'What is the most important characteristic of a leader?' is usually 'guiding the team they work with correctly and supporting their development at all times'. This generic answer is much more critical for individuals or organisations that assume the leadership role in the transition to circular economy. The main reason for this is that the transition to circular economy offers a completely unknown future through innovation. In fact, this means the realisation of many innovations that we cannot think of, cannot even be imagined yer, or are not possible with existing technologies. In order to eliminate this uncertainty and shape our future with innovation, people working in the field of circular economy should be supported by their leaders and innovative ideas should be evaluated even if they are not suitable for existing processes.In order to support the development of teams, the main criterion should no longer be the suitability of an idea in existing processes, but its potential to shape the future. This, of course, can only be possible with leaders who are open to development and change in every way.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Inspiring</h3>The transition to a circular economy is much more challenging than any other idea due to the uncertainty it involves. Due to the linear thinking system we live in, which is present in every aspect of our lives, many people today either consider the circular economy in a limited scope or see it as an unattainable 'dream'.It is important for circular economy leaders to inspire the large audiences they influence to understand the circular economy in the right way, to realise that it is achievable if we act together, and to realise the true potential of the circular economy. The transition to a circular economy is a long, challenging and patient process that requires a shared vision where all stakeholders know why they have embarked on this journey. Although this vision may lead to the loss of some stakeholders in long-term processes, the task of leaders should be to bring all stakeholders together at the necessary points and inspire them to gain the same motivation.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Being natural collaborators</h3>Circular economy requires the establishment of a new system that is completely different from our existing structures. This requires a complete change in everything we have, and this change requires cooperation with as many different experts as possible (not only individuals who are experts in one subject, but also different institutions or organisations should be considered among these experts).Identifying areas along the value chain where resources are used inefficiently or piloting an innovative business model requires the views or expertise of different stakeholders. For this reason, as we have stated in every article, it is worth noting again that it is not possible to carry out a single transformation in the process of transition to circular economy. The wider the information flow, the more comprehensive a transformation is possible.In conclusion, the characteristics we have mentioned above are the characteristics that are included in different definitions of leadership today. These characteristics, of course, do not cover all the characteristics that individuals or organisations expected to lead the transition to circular economy should possess. As we can see, all the characteristics we have included in our discussion are shaped by the mindsets that leaders should have. These leadership qualities, which once again show that circular economy is not a waste management strategy, but an innovative way of thinking that proposes to redesign systems, should not be limited to an institution, a person or a government official.Every individual, every organisation, every brand is leading a separate transformation process. This leads us to assume the leadership role from time to time within our sphere of influence at different points in our lives. For this reason, it is becoming more and more important to understand circular economy correctly, to be more open-minded about the future with each passing day in order to be included in the transformation, and to direct the flow instead of getting lost in it.

How to lead in circular economy?

While circular economy aims to reinvent systems, it actually proposes the larger system to renew itself thanks to the basic principles of the concept. This system we are talking about is, as you can guess, natural ecosystems. As it has been for millions of years, nature ensures its own sustainability through a cyclical system, and thanks to its resilient structure, it continues to survive regardless of the conditions. In fact, we are aware of the fact that nature can renew itself no matter how much damage we do to it. Today, the biggest motivation of humanity in combating the climate crisis is unfortunately still largely 'ensuring the continuation of the human race. The sustainability strategies implemented with this perspective are not designed as strategies that make it fully possible to protect nature.This is precisely why biodiversity is one of the most popular topics on the global agenda today. Biodiversity basically defines a characteristic of life on earth, biological diversity. Although this expression may seem very simple, the impact of biodiversity is of course much more complicated. While all life on Earth is possible thanks to the current balance of biodiversity, some factors cause biodiversity to decrease and disappear. Here, biodiversity should not be considered only as the extinction of an animal species. Of course, the extinction of an animal species is a very critical and threatening factor as it disrupts the natural balance within biodiversity. However, biodiversity loss is a process that has devastating consequences far beyond just affecting the food chain.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">What causes biodiversity loss?</h2>➡️ Misuse of land and sea areas:&nbsp;Humanity is the most dangerous invasive species in nature. This is a feature that causes humanity to try to alter every place it steps into, and thus damage the living ecosystem in that area.➡️ Planet exploitation:&nbsp;No matter how advanced technology is today, we are still amazed by human inventions, things that exist on their own in nature but can be reproduced with a human mind. It is useful to get used to this feeling of amazement because as humans, we have consumed the resources on earth so inefficiently that in the very near future we will not have access to thousands of natural resources that seem insignificant to us now, but which we actively use in all areas of life. What makes the situation even worse is that we dream of leaving a habitable world to future generations (of humans) under the name of 'sustainability', but we never leave living creatures in their natural ecosystems alone.➡️ Climate change:&nbsp;Among the most important causes of biodiversity loss is of course climate change. Problems caused by climate change such as changing weather conditions, temperature increase, and sea levels rising affect biodiversity much more than it affects humanity.➡️ Pollution:&nbsp;You may have come across photos of plastic islands in the oceans or turtles with wires wrapped around their bodies. This information alone explains how humanity causes biodiversity loss, especially in aquatic ecosystems.➡️ Invasion of alien species:&nbsp;Each ecosystem has a certain balance within itself. While it is possible to come across this balance in all our living spaces, you may have witnessed that different factors shake these balances. Another factor that disrupts biodiversity is invasive species that reduce biodiversity by disrupting the balance within the ecosystem. In addition to considering humanity as the most dangerous invasive species, it is also possible to consider other invasive species (animals, plants, bacteria, micro-organisms, etc.) that cause biodiversity to deteriorate for different reasons.Once we have seen some of the factors that directly accelerate biodiversity loss, we can discuss the question of what steps should be taken to restore and renew biodiversity with circular economy. The report <a fr-original-style="" href="https://ellenmacarthurfoundation.org/topics/biodiversity/overview?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">'The Nature Imperative - How the circular economy tackles biodiversity loss?"</a> published by the Ellen MacArthur Foundation will guide us in this discussion.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Private sector's road map</h2>As in the fight against the climate crisis, a large part of the responsibility is given to the private sector in the process of systemic transformation within the scope of circular economy. This is, of course, a natural situation considering the impact of the private sector. However, unless the private sector integrates its environmental and social impacts into its profit-oriented perspective, it does not seem possible for it to fulfil its responsibility. Nevertheless, the number of studies carried out by the private sector in the field of biodiversity has been increasing rapidly in recent years.&nbsp;So what steps should the private sector take to protect and increase biodiversity?<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Impact and risk analysis</h3>In the private sector, financial risks have been carefully analysed for a long time, and according to the output of these analyses, companies design risk avoidance strategies. The first step for a company taking action to increase biodiversity with the transition to circular economy is to conduct this impact and risk analysis with a focus on biodiversity. Does the company have a direct impact on biodiversity loss? Will biodiversity loss affect the company directly or indirectly (problems in raw material supply, impacts on the regions of operation, etc.)?These questions allow companies to understand their own impact on biodiversity, and to identify how biodiversity loss will affect them, possible risks and opportunities. The analyses, of course, enable the preparation of new strategic roadmaps that allow these impacts and risks to be properly managed through the correct evaluation of the results. Scientifically designed goals can help halt biodiversity loss and implement restorative practices.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Circular economy principles</h3>As circular economy recommends designing systems from the ground up, it aims to design the system from the very beginning by considering all possible scenarios. This allows not only impact on biodiversity, but also the environmental and social faults of all systems to be recognised at the very beginning. The innovative road maps of transformation that companies will develop based on circular economy principles after the first step of impact and risk analyses are critical for stopping the loss of biodiversity.Circular economy, which aims to establish innovative systems by imitating nature, and operates on the principle of 'Waste = Raw Material', aims to give back to nature what it takes from it, unlike current linear economy practices. This is already a process that will completely eliminate the most fundamental cause of biodiversity loss.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Co-operation</h3>Regular readers of our publication are well aware of the importance of cooperation in circular economy. Contrary to what is currently being attempted, the process of transition to circular economy requires the active participation of each stakeholder in the system as it designs the system from top to bottom. If this seems complicated, let's simplify it with an example: If a company does not foresee a process on how the consumer uses this product after selling a product produced with circular economy principles to the consumer, if it does not take the consumer's opinion or if it does not somehow contribute to raising consumer awareness on 'waste management', that 'circular' product will unfortunately not fulfil its purpose. This is because the company has excluded consumers from its system by preferring a subjective transformation rather than a systemic transformation. This, of course, does not allow a systemic transformation to take place.Collaboration is also critical for reducing and stopping biodiversity loss and implementing restorative actions. After analysing the impacts and risks, a company that initiates the transformation process with circular economy principles should seek opinions from other stakeholders (other companies in the sector, consumers, legislators, NGOs or academia), share good practices and allow the transformation to be completed holistically.These steps are, of course, not enough to completely halt biodiversity loss. Since the private sector has the opportunity to carry out a much more systematic transformation than other stakeholders, the transition to circular economy can be carried out relatively faster. However, this transformation process requires other stakeholders to conduct their own impact and risk analyses, adopt circular economy principles and cooperate with other stakeholders. Of course, each stakeholder will have its own steps and strategies. However, especially when it comes to such a critical issue as biodiversity, the correct understanding of circular economy, the realisation that it is not just a waste management system and raising awareness to start the transformation process can be listed as the steps that each stakeholder should carefully implement.As for us, the individuals who will ensure social transformation, we should educate ourselves, change our daily lives and make the best contribution we can in this process, which we think we cannot fully grasp because we may not come across in our daily lives such as circular economy, biodiversity or carbon emissions, but in terms of impact, we are as effective as each stakeholder. In order to do this, we need to do more research, understand our impact in our own lives and realise our responsibility.

How can we utilize circular economy for biodiversity?

Unlike the concept of sustainability, circular economy is a concept that aims to redesign existing systems, not improve them. This makes the transition to circular economy a much slower, and more challenging process. However, since circular economy not only has positive environmental and social impacts but also the potential for economic growth, it does not matter how challenging this transformation process is.Improvements in existing systems, repairing faulty areas or reducing negative impacts, unfortunately, do not have the expected impact in combating the climate crisis nor in issues such as social justice and equality. One of the most important reasons for this is that the private sector and governments want to keep their financial situation under control in this transformation process. The fact that making improvements to reduce environmental impacts is seen as costly actually sheds a light on our current situation in the fight against the climate crisis, which is progressing slowly based on scientific data.In circular economy, it is the opposite. Circular economy is a concept that differs from sustainability in that it creates new businesses, redesigns faulty systems and allows for the avoidance of mistakes that were previously made in the redesign process. In doing so, it also brings an innovative perspective to the cost part, which is actually ignored but, as mentioned above, is the biggest obstacle to the concept of sustainability. Economic growth is one of the most important benefits of circular economy. It provides this return with the new income and consumption models it embodies.In order for this transformation to proceed smoothly, all stakeholders need to act for the same purpose and fulfil their duties and responsibilities by adopting the principles of circular economy. However, in addition to this unity, different practices must also be implemented for the transformation that constitutes the main discussion of this week's article. These practices should be considered a part of social transformation as they affect the way we think and do business.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Data analysis and digitalisation</h3>Data science is now an indispensable part of our lives. In our daily lives, we interact with data science at every moment of the day, whether we are aware of it or not. Although this situation is handled under 'marketing activities', especially for consumers, it can be said that data science actually facilitates or streamlines our daily lives in many different areas. Data science, which has become more popular with the introduction of Industry 4.0 technologies into our lives, is also critical for circular economy.Circular economy basically aims to use resources efficiently. The main goal is to create less waste by consuming fewer resources. Although it seems very simple, this goal is very difficult to achieve due to the current linear economy. Data analyses come into play to achieve this goal.With innovative data analysis systems, we can use resources more efficiently, consume only when we really need to, and prevent waste generation. But this is of course an application that brings with it the digitalisation of all processes (in professional and private life) that you can think of today. Therefore, the first step towards the realisation of circular economy is the digitalisation of all processes and the inclusion of data science in this process.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Experience</h3>There is research on how circular economy has potential environmental, social and economic impacts. The most striking of these is, of course, how it has a positive economic impact. The potential of circular economy can be overestimated on paper, but this does not necessarily make it a 'profitable' concept. A process that is favourable on paper, in theory, may not have the expected effect in real life.For this reason, in order to complete the transition to circular economy with minimal damage, innovative circular business models should be implemented quickly and tested with pilot studies. It is critical to pay much more attention to initiatives with circular business models, especially at the point of providing financing, and to in-house circular pilot studies in the private sector.By correctly testing circular strategies and business models with high potential in these trial processes, the transition process of all stakeholders to circular economy will accelerate, while the abovementioned potential for economic growth will be tested.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Measuring impact</h3>In the current, linear economic system, especially financial data are of critical importance. Companies' balance sheets, debts, receivables, turnover, etc. are still among the most important indicators today. But this situation is the main reason for the establishment of the faulty system we are in. To avoid misunderstanding, it should be noted that we are not criticising the 'capitalist/socialist' systems.Systems designed in the light of financial metrics naturally put profitability at the centre of business models and mindsets. This causes the impact of the work done, regardless of the sector, company, country or region, to be ignored. As long as an X&nbsp;product brings the expected profitability, gender equality is not sought in the production process of this product, or how much natural water resources it pollutes is ignored.Although the situation in linear economy is unfortunately as depressing as we have mentioned above, of course, this situation is changing with the increasing awareness in recent years. Stakeholders in the value chain (especially investors and consumers) now demand that the private sector, and in some cases governments, share not only financial returns but also environmental and social impact analyses. This situation now makes it mandatory to measure not only the economic but also the environmental and social impacts of the work done, the step taken, and the decision made.This critical process, which is also very important in the transition to circular economy, should actually be addressed in the process of designing the systems from the beginning. In this way, possible impacts can be determined at the very beginning, at the design stage, and the negatives can be identified and prevented in advance.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Standardisation</h3>Since circular economy does not have a specific framework for the time being, its potential remains uncertain. This uncertainty can be seen as positive, especially as it paves the way for innovation and allows the potential to grow further. However, the uncertainty also leads to a misunderstanding of circular economy as a waste management system and therefore its potential is lost before it can be realised.Especially within sustainability, there are metrics used to measure the performance of the private sector in the areas of environmental, social and governance (ESG). This allows companies to make their sustainability journey in a controlled manner with continuous improvements.From this point of view, it is critical that the transition to circular economy is also monitored with some globally recognised standard metrics. However, it is useful to remind the distinction of innovation. Transformation within a certain framework will of course be limited and insufficient. For this reason, while preparing metrics for performance monitoring (or circularity rate) for circular economy, circular economy principles should not be limited and business models should not be handled within a certain framework. In this way, while the transformation process can have a specific roadmap, innovation, which is the most valuable building block of circular economy, may not be prevented.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🧩 Mindset</h3>Circular economy is first and foremost a way of thinking that requires us to change the way we do business and our ways of thinking. Circular economy is a system that will enable us to live in touch with nature by changing our view of life and will allow us to redesign our systems in this direction. In doing so, it is a much more inclusive and broad concept as it focuses on economic development as well as environmental and social welfare.Even if we design all the applications that come to mind during the transition to the circular economy with circular economy principles, we will not be able to achieve the transformation we expect if we do not update our mindset as humanity in a way that adopts the circular economy.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">For this very reason, circular economy should be understood and adopted not only by waste management units of companies, but also by each stakeholder of social structures in a way to cover their own spheres of influence. Not only resource utilisation, waste management or responsible consumption, but also education systems need to be designed from the ground up to ensure that future generations continue their lives with circular mindsets. In order to get rid of the roots of linear economy in every aspect of life, we need to do more research, learn the right information and experience more circular business models.

What are the key elements of circular transformation?

The transition to circular economy requires social transformation. Social transformation, and naturally cultural transformation as well, need to be carried out in line with a common goal and road map adopted by all stakeholders that make up social structures. Social transformation is a process that has no clear boundaries and is difficult to control according to the diversity in the reactions of individuals, but today it can be carried out more easily than in the past, especially with new media tools.It is possible to see that circular economy is inevitably at the centre of social transformation thanks to its innovative and borderless structure. However, the road maps, duties and responsibilities of the stakeholders that make up the society are not as uncertain as in cultural transformation. In particular, the transformation processes of the business world and governments involve clear targets, regulations and specific roadmaps, which have been very much on the agenda recently.This week, we discuss the steps that will create value in the transition process of the business world to circular economy, the points to be considered and the action areas that will accelerate the transition process. '<a fr-original-style="" href="https://www.unep.org/resources/publication/role-business-moving-linear-circular-economies?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">The Role of Business in Moving from Linear to Circular Economies'&nbsp;</a>report prepared by the United Nations Environment Programme (UNEP) will accompany us in our discussion.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Is value-creating transformation possible?</h3>The transformation of the business world, which started within the fight against the climate crisis and then took a broader framework by including social issues, unfortunately does not carry out the transition to circular economy as it should.Circular economy, which is misunderstood as merely innovative waste management strategies, is of course far from realising the potential that exists within the concept. However, there are still steps that need to be taken to ensure a transformation that creates value for private sector representatives who are trying to carry out the transition to circular economy in accordance with its principles.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Search for new markets</h3>With concepts such as R-strategies, biomimicry and cradle-to-cradle, circular economy is a concept that aims to completely change the existing ways of doing business and existing systems. This actually allows the private sector to create new business areas while changing existing business models.The first step that companies should pay attention to while carrying out the transition to circular economy can be seen as entering innovative economies and markets by updating their existing business models with circular economy principles. In the current linear economy, manufacturers give ownership of their products to their customers after producing them, while the circular economy suggests the opposite.Take a car manufacturer as an example. After the car is produced, it goes to the consumer, and after the consumer's use expires, the car is reintroduced to the market through second-hand sales. Although second-hand, in other words reuse, is critical in circular economy, it is only the first step in the process. Although it may seem like the right strategy to change owners many times, the value of the car decreases day by day until it finally becomes unusable, and when it does, it takes its place in the junkyard.Circular economy aims to change this situation for manufacturers and keep the ownership of cars in the manufacturer. This allows the car to be renewed after each use, maintenance &amp; repair practices to be carried out and the value of all the resources that make up the car to be preserved for a long time. Instead of making money by selling the product, manufacturers can enter new markets by renting the product permanently and continue economic growth with different revenue models.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Cost reduction</h3>R-strategies in circular economy include steps such as less consumption, reuse, maintenance &amp; repair, remanufacture and recycling. This is actually a strategic cycle that ensures that resources remain in the cycle continuously. Thanks to this cycle, producers can reduce the use of raw materials by incorporating the product they produce once into their production processes after use, while reducing their purchasing costs by purchasing a used resource at a more favourable price.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Risks of access to resources</h3>The linear economy, which has been included in all our lives with the acceleration of industrialisation, supports production and consumption as if the resources on earth will never end. This is the main reason for the global shortages in access to many different materials and resources today. In addition, many studies show that in the coming years, there will be difficulties in accessing many different resources that we use in every aspect of our lives.Circular economy is basically a strategy that ensures the correct use of resources instead of a waste management strategy. In other words, a system that will utilise resources in the right way must first be designed so that we can then manage waste in the right way. Thanks to this perspective, the faster and more accurately the private sector adopts circular economy principles, the easier it can avoid the risks of access to resources in the coming years.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Putting innovation at the centre</h3>The sustainability of the business world involves the design of current processes in a way that will ensure the use of sufficient resources for future generations. Unfortunately, this reduces the concept of 'sustainability', which is widely used by the private sector, to continuing linear economy.Circular economy is a concept that centres on changing existing systems from top to bottom. In order to change all systems, innovation should of course be at the centre of our ways of thinking. In other words, it is not necessary to 'improve' existing ways of doing business, but to design them in an innovative way from top to bottom. Innovation has an extremely important place in the circular economy, not only in finding new environmentally friendly business models, but also in innovative ideas that will increase the welfare of society, change daily life, and at the same time provide economic growth.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Acquisition of new skills</h3>As circular economy is a concept that aims to change all mindsets, ways of doing business and even the education system, it has a lot of potential for new talent and employment.For this reason, the private sector needs to develop or incorporate talents in many different areas, from innovative business models to circular economy principles. Employees with a linear economy mindset are unlikely to be able to truly implement the principles of circular economy.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Customer value</h3>By taking product ownership away from consumers, circular economy actually enables new areas of value to be created for them. While the consumer who owns a product has the responsibility to maximise the value of that product for the longest time, they may not have the technical competences required for this.In order to maximise the value of resources by extending the life cycles of products, manufacturers offering services such as maintenance &amp; repair, and remanufacturing to their customers can offer innovative value propositions for them. This is likely to increase customer loyalty and satisfaction.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Societal expectations</h3>One of the most critical areas for the private sector is customer expectations. The reshaping of customers' purchasing decisions based on issues such as climate crisis, loss of biodiversity, and gender equality makes it imperative for producers to move in this direction.Thanks to business models designed with circular economy principles, it is possible to create environmental and economic benefits while meeting the demands of the consumers. In this way, the private sector, which contributes to the transformation of society, can guarantee economic growth while diverting to less consumption from more consumption.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">🔎 Circular Economy 101's take:&nbsp;Of course, these shared value areas do not actually cover all the steps that need to be addressed for the transformation of the private sector. However, all these topics we have opened up for discussion are critical for a holistic transformation and the correct realisation of circular economy.If the private sector adopts an understanding that centres these value areas in the transition to circular economy, it can be the biggest supporter of social transformation. The critical point to be considered here is to transform the 'profit-oriented' perspective of the private sector in the right way and to explain the financial return of circular economy in addition to its environmental and social impact. Although the design of a global circular economy system is a long and challenging journey, each stakeholder needs to understand circular economy correctly and fulfil their part.

What are the areas of value in the business world?

Since circular economy is a system of thinking and doing business, it is also critical for us to change our social structures top to bottom. However, especially due to its place on the agenda, we see circular economy more in the transformation of various sectors in the fight against the climate crisis.The most critical of the sectors in this struggle is the textile indusrty, which, like the food industry, involves the consumer a lot, but whose transformation is much more complex due to its current structure. The textile industry is in a very important position both because of its potential and because it is a sector with direct consumer impact. For this reason, it needs to be handled much more carefully than other sectors and carry out its circular transformation.In this week's article, we will discuss the transformation of the textile industry and the duties and responsibilities of stakeholders, especially in the European Union countries, with reference to the report <a fr-original-style="" href="https://reports.fashionforgood.com/report/sorting-for-circularity-europe/#chapter3?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">"Sorting for Circularity Europe: an Evaluation and Commercial Assessment of Textile Waste Across Europe"</a> prepared by Fashion For Good and Circle Economy.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">👕 The current state of the textile industry</h3>92 million tonnes of textiles are buried in landfills worldwide every year. If this doesn't mean anything to you, let's use an analogy. One garbage truck full of textile products is buried in the ground every second.Unfortunately, the waste generation of the textile industry is not limited to the products. Today, the textile industry alone causes&nbsp;20% of the water pollution&nbsp;due to the use of chemicals in its current practices.The potential of this industry is as high as its negative effects. According to the research shared in the report, close to 500 thousand tonnes of clothing and textile products in only six European Union countries have the structure that would allow closing the cycles. Although 92 million tonnes of textile waste may seem small compared to this amount, we can better understand the potential of the industry when we consider that textile waste in only six countries has this potential. When this is considered from another aspect, a potential emerges for the textile industry to create an average annual value of 74 million Euros.So what are the duties and responsibilities of the stakeholders in order to unlock this potential and for the textile industry to transform in accordance with circular economy? Let's investigate together.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🚚 Waste collectors, sorters and recyclers</h3>Re-collecting of products in circular economy is much more complex than other processes as it requires many different stakeholders to fulfil their duties and responsibilities at the same time. To date, recycling processes have mostly focussed on the collection process, while the waste management processes in which the products will be included after collection have been ignored or not prioritised. This means that even if the products are somehow collected back, they are not properly included in waste management and thus continue to cause pollution through waste generation.In order to carry out a circular waste management process, it is necessary to carry out R&amp;D processes that are independent of all existing processes, handled with innovative approaches and actively using new technologies. The textile sector has products that are difficult to recycle and separate, especially due to the chemicals used in production processes. This is a major obstacle to the correct implementation of R-strategies within the circular economy of existing technologies. For this reason, the duties of stakeholders who are responsible for waste management processes and making waste reusable in the cycle, which can be handled as collectors, recyclers and sorters, are to find innovative solutions that will force the legal regulations related to these processes to change and to redesign waste management processes.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🏭 Manufacturers and textile brands</h3>Manufacturers are seen as the stakeholders with the most responsibility in circular economy. However, as we mentioned in our previous articles, the steps they take alone are not enough to establish a complete circular system. However, manufacturers also have critically important duties and responsibilities as their sphere of influence is very wide.It is the responsibility of manufacturers to design products in accordance with the principles of circular economy at the very beginning, at the design stage, from raw material procurement to production processes, from logistics to consumption and even post-consumption waste management processes. This proves the impact of manufacturers. For this reason, it is imperative for manufacturers to adopt innovative business models that will guide the stakeholders we defined above as collectors, recyclers and sorters to implement strategies that will enable textile brands to re-cycle products after use.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">⚖️ Lawmakers</h3>While lawmakers often have the task of accelerating the transformation process, this is unfortunately not the case anywhere in the world. However, there are two main topics that legislators should carefully address in order to carry out the transition to circular economy in the right way. The first of these is the realisation of regulations&nbsp;that will facilitate the transition of the private sector to circular economy. In addition to financial incentives,&nbsp;it is the duty of lawmakers to establish and lead platforms to increase the momentum of transformation by bringing together stakeholders such as the private sector, waste management, academia and NGOs.The second issue is to ensure that the price of recycled textile raw materials in the free market is lower than that of unprocessed raw materials and to increase the demand for these raw materials. Legislators are obliged to support consumers and producers by providing product-based price control&nbsp;when necessary. For the transition to a circular economy, price controls and financial incentives of the legislators are critical in order to include stakeholders in the process, especially in terms of 'financial return'. It may be possible to ensure the traceability of resources by harmonising regulations with new technologies. A comprehensive resource monitoring regulation that will include data science will help prevent waste generation for many different sectors, especially textile waste.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">🛍️ Consumers</h3>Although consumers are not taken into account much in the transition to circular economy, they have a greater responsibility than any other stakeholder in the textile industry, as in many other sectors. The fact that not only the material dimension but also the environmental and social dimensions are effective in purchasing decisions clearly shows the potential impact of consumers on the entire transformation process.Based on this, consumers should contribute to increasing recycling rates by preferring textile products produced using a single raw material, products that are easier to separate, and actively and correctly use the recycling opportunities offered by various stakeholders, especially municipalities.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">In conclusion, the potential of textile products that we frequently use in daily life, which we can consider as low-value textile products, in circular economy cannot be ignored. However, as we mentioned in the introduction, this process has a very complex structure. For this reason, it is critical that all stakeholders know their duties and responsibilities in the transformation process, and that decision-making processes are carried out by going deeper into environmental, social and economic dimensions.It may be possible to achieve a complete transformation at the point where we consider circular economy not only as a waste management process, but also as a way of thinking and building systems, and integrate its principles into all decision-making mechanisms.

What to do to unlock the potential of the textile industry?

In the recent years, discussions around plastics, plastic pollution in the oceans and the piles of rubbish created by single-use plastics have been widely debated. Although this leads to a war against plastic material, in fact, plastic makes a great contribution to the development of the modern world thanks to its durable, flexible, and strong structure. Plastic, which was declared "bad" due to people's unconscious use of it, has many positive effects in all areas of life.Today, an average of 40% of all plastic is used in packaging processes. Although we think that plastic is used intensively, especially for packaging, it is predicted that by 2050, more than 318 million tonnes of plastic will be used annually for packaging alone.Plastic, which has so many uses, can become the most valuable material of the modern world with a properly designed system. The damage to the environment and social life is not due to the current structure of plastic, but rather to humanity's inability to consume plastic responsibly. In order to overcome these problems, we need a circular plastic system&nbsp;that is redesigned according to the principles of circular economy and will be realised by thinking down to the finest detail.Despite its bad reputation, plastic, which will be the most important material in the world if its usage areas are designed correctly, and its place in circular economy are the main topics of our discussion this week. Our discussion this week is accompanied by the "<a fr-original-style="" href="https://link.aposto.com/click?uri=aHR0cHM6Ly9saW5rLmFwb3N0by5jb20vY2xpY2s/aXNzdWU9NjMzZDZlMjQ0ZTAyMzEwMDA2ZmU4MGNkJnN1YnNjcmliZXI9NjJiMDMzOTA1ZDM3OTIwMDA2MWQ4OTM1Jm5ld3NsZXR0ZXI9NjAwMDQ5OTY1Njg2MGYwMDA4MDAzMzdkJnB1Ymxpc2hlcj02MDAwNDc4MzU2ODYwZjAwMDgwMDJmNmQmc291cmNlPWVtYWlsJnVybD1odHRwcyUyNTNBJTI1MkYlMjUyRnBhY2VjaXJjdWxhci5vcmclMjUyRmFjdGlvbi1hZ2VuZGElMjUyRnBsYXN0aWNz" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">The Plastics Programme</a>"&nbsp;report prepared by the <a fr-original-style="" href="https://link.aposto.com/click?uri=aHR0cHM6Ly9saW5rLmFwb3N0by5jb20vY2xpY2s/aXNzdWU9NjMzZDZlMjQ0ZTAyMzEwMDA2ZmU4MGNkJnN1YnNjcmliZXI9NjJiMDMzOTA1ZDM3OTIwMDA2MWQ4OTM1Jm5ld3NsZXR0ZXI9NjAwMDQ5OTY1Njg2MGYwMDA4MDAzMzdkJnB1Ymxpc2hlcj02MDAwNDc4MzU2ODYwZjAwMDgwMDJmNmQmc291cmNlPWVtYWlsJnVybD1odHRwcyUyNTNBJTI1MkYlMjUyRnBhY2VjaXJjdWxhci5vcmclMjUyRg==" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Platform for Accelerating Circular Economy</a>&nbsp;(PACE)<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">A system for circular plastics in 10 steps</h2>In the report prepared by PACE, the plastic system suitable for circular economy is discussed on the axis of the duties and responsibilities of governments, private sector and non-governmental organisations that we include in every article.Reminder from Circular Economy 101: Circular economy is a system of thought in which all stakeholders that make up social structures have interdependent duties and responsibilities, and everyone should be included in the process of transformation. For this reason, not directly including the duties and responsibilities of consumers in the report can be seen as a critical error. Unfortunately, the belief that the transformation of governments, the private sector and NGOs will naturally lead to the transformation of consumers is the biggest obstacle to the full realisation of the transition to circular economy.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">1- Elimination of plastics with negative effects</h3>Some types of plastics used today pose a danger to all living things on earth due to the harmful substances they contain. For this reason, the first step is to decide which plastics will not be used and to remove them from use in a certain order.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">2- Supporting designs suitable for reuse and recycling</h3>The biggest problem with plastics is that disposable alternatives are not reusable or recyclable. For this reason, disposable plastics, which have many uses in our daily lives, can be seen as the main cause of pollution. From this point of view, it is necessary to change the design of single-use plastics for reuse or recycling, which are also critical in circular economy. However, it should not be forgotten that recycling is the last resort in circular economy, it is not preferred. For this reason, it is important not only for plastics but also for all materials to design products with a focus on reuse, not recycling.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">3- Hygiene and safety concerns</h3>The most important reason for the emergence of single-use plastics is the possibility of harming consumer health when plastics used in products such as food and beverages are reused. Although packaging a product with a plastic that will be used only once creates confidence in terms of health on the consumer side, this may not be valid for every product, or with innovative solutions, it may be possible to transform plastic into reusable alternatives, especially in food products. For this reason, plastics need to be redesigned with a focus on issues such as safety and hygiene, which are the biggest concerns of consumers and regulations.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">4- Consumer awareness</h3>As mentioned above, consumers are critical in the transition to circular economy. Other than raising consumer awareness as mentioned in the report, it is critical to present innovative business models that will change consumption habits, and include consumers in the process.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">5- New business models for environmental, social and economic achievements</h3>Circular economy also puts innovative business models at its centre. Of course, this situation is also critical for the use of plastic. In particular, the economic potential of alternatives such as reuse requires the promotion of circular business models and the cooperation of innovation-centred initiatives and private sector representatives.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">6- Recycling systems</h3>As we have mentioned in our previous articles, the recycling of finished products in circular economy is a very difficult issue due to the limited systems created by the current, linear economy. All products that have been utilised but not properly re-incorporated into the value chain should be treated as resources whose value have been destroyed. Perhaps the first step should be the establishment of a functional recycling system that is suitable for the proper recycling of plastic, which is widely used especially in packaging processes.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">7- Waste management facilities</h3>Proper management of wastes, i.e. resources, within circular economy is important for the continuity of the cycles. Therefore, all products, such as end-of-use plastics, must be correctly sorted and included in upcycling/recycling processes. However, this process should start with the municipalities and the placement of waste bins on every street that allow this distinction to be made. If you have to separate your waste (resources) at home and throw them all in the same bin when you go out on the street, this may indicate a lack of infrastructure. Here, of course, it is of critical importance to educate the consumers on this issue, to create penalty systems with regulations if necessary, and to ensure social transformation.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">8- Second-hand/recycled plastic economy</h3>Circular economy creates not only environmental and social benefits. As the name suggests, it has a great economic potential that has not yet been fully calculated. For this reason, creating a competitive market with a focus on upcycling/recycling and reuse may enable the private sector to focus on the reuse of these products instead of producing plastics from scratch.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">9- Humane working processes</h3>This item is critical not only for the process of redesigning plastics in accordance with circular economy principles, but also for a total transition to circular economy. Although circular economy is considered globally only with its environmental impacts, it has many important effects. For example, its impact on social life would bring social welfare, and the acquisition of new competencies by people through new business areas. For this reason, it should be considered not only in terms of decent work, but also as a redesign of our existing social systems and a transition to an innovative system in which people, living beings, and nature will prevail at the same time.<h3 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">10- Renewable material opportunities</h3>Some types of plastic have a structure that cannot be reused with existing technologies. This is already the biggest factor that gives plastic its bad reputation today. However, a proper understanding of circular economy and a transformation process that puts innovation at its centre can turn this situation around. Replacing the materials in plastics with reusable alternatives has significant potential both environmentally, socially, and economically.<div align="center" fr-original-style="" style="box-sizing: border-box;"><hr size="0" width="100%" align="center" fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;"></div>As we always say, circular economy requires a total transformation. For this reason, although the above-mentioned items have been addressed through specific focus areas, the impact of all items on all stakeholders along the value chain should be analysed. Designing plastics to be fully reusable is not enough to establish a circular economy on its own. It is necessary to carefully consider the system down to the smallest detail, to identify all possible scenarios and to design processes to prevent waste generation in the first place. This is a critical process that needs to be carried out with patience and requires a change in mindsets for social change.

Circular Economy 101

Circular Economy 101