So instead of owning, customers may need to follow the lead of a ‘millennial’ generation more enthused by experiential and sharing behaviors and using services rather than abundant possessions. The circular economy is characterized by these things and more – a commitment to protecting the environment and developing a low-carbon society, a transformation from selling boxed products to supplying ongoing services, ensuring a more effective use of raw materials, nurturing relationships with customers rather than simply relying on a one-way corporate model of selling and buying.
Research undertaken by the Waste & Resources Action Programme has identified that circularity could result in an improved trade balance of £90bn across the EU and the employment of an extra 160,000 people in the materials recovery sector alone.
I strongly believe that Philips’ approach to circular economy will be successful when it is woven into the fabric of everyone's job, mindsets and reaches the very highest levels of the company. We realize that the circular economy is not a strategy you can pursue alone. It requires relationships with recyclers, retailers, consumers, resource providers, regulators and so forth: basically, everyone involved in a company's value chain, from start to finish.
Change cannot be achieved in isolation - we are stronger together.