Businesses can save over 70% on costs by switching to a circular model, which translates to around £24,000 in savings for the average business, according to a new study.
The study by London recycling and resource management firm Bywaters highlights what it describes as the financial benefits of businesses adopting circular models that minimise waste.
According to the study, a linear system can cost the average business – based on an office in London with 32 floors (400,000 square feet) – as much as £34,000 a year (for the average business/office site), with the majority of the expenses coming from the disposal of dry mixed recycling.
Implementing a circular model and the correct segregation of recyclable materials at source can bring savings of approximately 70% of waste disposal costs, the study said.
These findings show clearly that implementing a circular business model isn’t just a win for the planet.
A linear system relies on a take-make-waste model where natural resources are extracted and used to manufacture products. Then, once a product has reached the end of its life cycle, it is disposed of as waste.
Whereas a circular model aims to reduce consumption, design products for longevity, and ensure a product is reused, repaired or recycled at the end of its life.
Commenting on the study, John Glover Jr, MD at Bywaters, said: “These findings show clearly that implementing a circular business model isn’t just a win for the planet, but also a win for your business from a financial point of view.
“Moving away from a linear model to a circular model brings all sorts of savings on an annual basis, especially as you can literally reuse equipment that would otherwise be discarded or avoid waste that’s expensive to remove and take to landfill.”