As conversations around climate change and reduction of carbon emissions continue to dominate headlines, and while two key measures are often seen as the main levers: transitioning toward sustainable energy and reducing carbon use in the supply chain, these are only part of the solution.
That’s according to a new report compiled by DHL which points out that these two interventions alone are unlikely to drive down emissions enough to meet the targets that scientists and many world economies have set.
“Circularity is the much-needed additional piece.”
DHL explains: “At its heart, circularity describes a departure from the traditional produce-sell-use-waste paradigm toward more sustainability.
“Think of a circular economy as a design for an ecosystem that builds on sustainability, visibility, and multidirectional flows.”
To move away from the traditional paradigm, production volumes and materials need to be optimised, product life cycles must be extended, new models for product use have to be developed, and solutions for end-of-life recycling need to be found.”
The report, which focuses in particular on the significant environmental impact of fashion and consumer electronics, reveals some interesting statistics.
The fashion and consumer electronics industries drive a large share of GHG emissions and other environmental impacts, including resource, land and water use, as well as waste.
Together, their carbon footprint makes up approximately 6% of global emissions.
Currently, around 20% of garments produced are never used, and smartphones are often exchanged after just two to three years. Therefore, the positive impact that circularity in these two industries could have is pronounced, and industry front-runners are actively participating in the paradigm shift toward circularity.
“Up to 80% of emissions of an average fashion or consumer electronics item accrue during production.
“Hence, extending the product lifetime as much as possible is essential.
“According to research, this shift in the supply chain paradigm has the potential to cut emissions by up to about 40% – and beyond its ability to curb global warming, circularity can also positively impact other environmental and social issues, such as waste, land use, water use, and poor working conditions.”
While consumer goods, fashion and electronics are resource intense and in part behind other front-running industries – such as the automotive parts industry – in terms of circularity initiatives, their global consumer and supply-chain reach, as well as high visibility, make them one of the pivotal participants of circularity, DHL believes.
Equally pivotal is the role of logistics.
“Circularity is about the flows of physical goods and relies on the careful orchestration of the physical supply loop across different elements.
“Especially innovative business models around post-sale interventions such as reselling, repairing, refurbishing, and recycling will require novel multidirectional flows to be designed and managed.
“As a result, logistics will play a more pronounced role during the extended lifetime of products and raw materials.
“Visibility backed by digital technologies will be a central anchor to master the increasing complexity of the flow of goods and ensure ease of use for consumers.”
