Getting Hold of the Key Concepts
A circular economy approach encourages companies to look at their operations and their supply chains and think about how resources are sourced, how they can be used more efficiently, where they can be more effectively recovered, and where the need for raw materials can be designed out of the business model altogether. Together, these strategies add up to greater understanding and control of the supply chain, reducing exposure to resource risks, avoiding reputational threats and eliminating waste. For the UK, important influences on circular economy thinking include European Directives aimed at the reduction and recycling of waste, as well as the work of the Waste and Resources Action Programme to help develop markets for the materials collected from our households by local authorities, and materials collected from businesses. All economic activity depends on resources, whether obtained in one country or many, in short or long supply chains.