Is Your Business Burning Money Just to Satisfy ESG?

The circular economy isn’t just about environmental protection; it’s about maximizing material economic benefits. It’s normal for companies to feel overwhelmed by ESG, as its three main areas—environment, social, and governance—aren’t strongly linked to business economics. While buying carbon credits may balance reports in the short term, true sustainability comes from innovating at the source and finding smart ways to connect the economy with the environment.

Draining Money on Corporate Social Responsibility

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Disconnected Business Model
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Governance

Society

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A Business Model with Built-in ESG Impact

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Creating Profit with Build-in Impact Starts with Exploring Material Economic Value

Over the past ten years of hands-on experience, we've learned that without a clear plan, it can be challenging to help you move into the unknown alongside your supply chain partners. Leveraging practical insights and research from around the world, we've identified eight profit models to help businesses maximize resource economic value.

Using Design for Business Model Innovation: Creating Innovative Profit with Built-in Impact

Design is considered the heart of the circular economy, with it often said that up to 80% of environmental impact determined during the design phase. However, your view of 'design' might differ from those effectively using design innovation. So, how can design aid in the shift to a circular economy? Focusing only on product innovation isn't enough. As highlighted in the bookProducts that Last, product-centered business models fail to preserve material value; they can only slow down its loss. Instead, the true goal of circular design is 'business model innovation based on interactions.' By maximizing the economic value of materials through design innovation, we can effectively extend their value within a well-planned system, ensuring we do not waste any resources.
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Create High Economic Value

Selecting the most suitable/minimal resources to meet user needs will create the highest economic value.
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Preserve Economic Value

Creating user-friendly processes and interaction systems will preserve economic value.
Zero economic value
Remember, resources become waste if no one needs them; but when there’s a demand, even trash can turn into gold. In circular design, all our decisions are driven by user behavior. The key to successful innovation lies in understanding whether users need and are willing to return resources.