Eight Circular Business Models to Be Applied by Companies
There are several methodologies that companies can use to design a circular business model. The most suitable methodology depends on the company’s specific circumstances, such as its industry, products, and services. Captain Forest selected for you eight circular business models. Which one would you use?
1) The Circular Business Model Canvas
- A general tool that companies in any industry can use.
- Helps companies visualize and map out their circular business model.
- Based on the traditional business model canvas and includes new circular economy elements, such as product life extension and resource recovery.
2) The Cradle-to-Cradle Design Framework
- Particularly useful for companies in the manufacturing, consumer goods industries, and service industry.
- Developed by the Cradle-to-Cradle Products Innovation Institute.
- Helps companies design safe products and services for people and the environment.
- Includes five design principles: material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness.
3) The Circular Economy Business Model Assessment
- A general tool that can be adapted to different types of companies and sectors.
- Developed by the Ellen MacArthur Foundation.
- Helps companies evaluate their business model’s circularity and identify improvement areas.
- Includes a set of questions that companies can use to evaluate their use of resources, waste generation, and circular business models.
4) The Natural Capital Protocol and The Natural Capital Coalition
- Particularly useful for companies in the natural resources extraction, agriculture, and construction sectors.
- Aims to identify, measure, and value business direct and indirect impacts and dependencies on natural capital.
- Helps companies understand their impacts on natural capital, develop strategies to reduce their environmental footprint, and design a regenerative business model.
5) The Circularity Index
- A general tool that can be used by companies in any industry.
- Developed by the World Economic Forum.
- Measures the circularity of a company’s operations based on its resource productivity, waste and pollution reduction, and circular business models.
6) Resource Productivity and Circular Economy self-assessment tool
- A general tool that can be used by companies in any industry.
- Developed by the European Union.
- Helps companies assess their resource productivity and identify opportunities for circular economy implementation.
- Can be used to evaluate the company’s use of resources, waste generation, and circular business models and to set targets for resource efficiency and circular economy implementation.
7) The Bio-based Business model canvas
- Particularly useful for companies in the agricultural and chemical industries.
- Business model canvas focused on the development of bio-based products and services.
- Helps companies design and develop products and services based on renewable biological resources and incorporate circular economy principles such as biomass sourcing and product design.
8) The Circular Value Chain Mapping
- A general tool that can be used by companies in any industry.
- Helps companies understand the entire life cycle of their products and services, including sourcing raw materials, production, distribution, use, and end-of-life.
- Allows to identify opportunities for circular economy strategies such as product life extension, repair, refurbishment, and recycling.
Which circular business model would you use?
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What are the three principles of the circular economy? Click here.
