A new global initiative, Factor10 aims to reinvent the way businesses source, use and dispose sources and materials that make up global trade. More than 30 international companies valued at over $1.3 trillion have committed to fostering circular economy principles in their processes.
The new initiative is part of the Factor10 programme which was established by the World Business Council for Sustainable Development (WBCSD)- an organisation working towards business sustainability.
Andrea Brown, WBCSD’s Director of Circular Economy, said: “Through Factor10, we can move circular economy beyond the group of early adopters, into the early majority of global supply chains—opening new ways for companies to collaborate on scalable business models to gain competitive advantage.”
Companies backing the initiative include Veolia, a major environmental services company, BMW Group, Michelin, Philips, Renault, and PwC.
This year, the group will focus on 3 priority areas. Firstly, it will aim to develop transformative value-chain solutions to unlock circular opportunities for businesses. Then, it will invest in raising awareness about the difference between circular and linear economy and help companies understand the advantages and opportunities it offers.
By displaying success stories, best practices and leading examples it also aims to boost the business voice globally and trigger further business engagement.
Advocates of this new business model stress the massive economic benefits it can bring, describing it as a $4,5 trillion business opportunity.
Antoine Frérot, Veolia’s CEO, stated: “Through the circular economy, the Group’s mission is to produce alternative resources that compensate for the scarcity of natural resources; waste is transformed into valuable raw materials”.
Other companies that joined the initiative are Accenture, Arcadis, ArcelorMittal, BASF, BCG, CRH, Dow, DSM, Enel, ExxonMobil, EY, Honda, IFF, KPMG, Navigant, Novartis, Rabobank, SABIC, Saint-Gobain, Solvay, Stora Enso, Yara, and Yokogawa.
Last month, the Global Circularity Report released by the social enterprise Circular Economy, revealed that only 9 percent of the world’s resources are recycled back to the economy.
Recycling and re-use can achieve a 28 percent reduction in global resource use and a cut of 72 percent in greenhouse gas emissions.