Planet
The functions of a business can be separated into 4 categories: Planet, People, Price and Purpose. Planet is the category that focuses on the companies’ impact on the environment both on a small more localised scale as well as on a global scale. The planet’s health is critical in humanities survival and business need to be aware of this when profiting from the resources provided. Newer and more sustainable methods must be implemented and utilised in order to ensure a better future for the generations to come.
The current production system used by most companies currently would be classed as a “Linear Structure”. This process is damaging to the environment as when the production is done the resources have been taken and turned into waste, this means the resources are not returned to the world they came from. In order to change this businesses need to revert to a “Circular Economy”, this is where at the end of the production cycle the products are not reduced to waste but instead are recycled into another product meaning although the raw materials are not replaced, they are still in circulation and not wasted.
The current leader in the fashion industry for implementing a circular economy is the brand “Patagonia”. Based in the US Patagonia has implemented a unique sales idea in which customers are able to rent specialised sports and outdoor wear such as waders and hiking jackets. These clothes can be used by the customers and are then returned to the company where they are repaired and cleaned professionally in order to be rented out to another customer. This means the raw materials used to construct the clothes are constantly in use and never put to waste. This method of renting out their clothes to the consumer has been a great success for Patagonia, with the new demand for second hand clothing increasing at an increase of 25 times that of standard retail with the projection that by 2024 the sector will be worth up to $64 billion, as people become more environmentally conscious brands such as Patagonia have been able to utilise new methods of production and selling which has not only benefited their profits but also has improved consumer opinion on them all whilst benefiting the planet.
As society becomes more aware of the dangers that will come if the planet is not protected, governments of the world have started to work together in order to try and prevent the worst from happening. One of these policies that were implemented were the UN’s SDG’s (Sustainable Development Goals), these goals were put in place to act as an aim and a guide for what countries should be focusing on and what they should be trying to achieve.
One of these goals is “Responsible Consumption and Production”, the UN has stated that “doing more and better with less” is the goal that they wish to achieve in order to reduce humanities impacts on the environment and the resources we have. This goal links closely to the ideas of circular economy as companies need to ensure that they are producing their products in the least damaging way and that the use of these products, using Patagonia again this works as their rental ideas allow for the company to reduce the amount of materials they need for production as the clothes are available ready for rental and returned which means not only are they using less but they are also wasting less.
Resources
https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
https://planetark.org/newsroom/news/what-is-the-linear-economy-and-why-do-we-need-to-go-circular
https://www.un.org/sustainabledevelopment/sustainable-consumption-production/