With the industrial revolution and new products developed to make people’s lives easier, it ended up exponentially increasing the volume of waste, making its final destination a big headache.

The National Solid Waste Policy was implemented with a view to precisely solving or minimizing this problem. However, waste management has become a mandatory corporate matter, as the ESG (Environmental, Social, Governance) indexes are attracting investors’ attention, making sustainability one of the main focus of discussions and debates in the world.

In this context, the term “circular economy” opened the door to a world without waste and more and more sustainable. But do you know what it is and how does this process work?

What is Circular Economy

Circular Economy is nothing more than reintroducing waste into the production chain, that is, instead of disposing of it, it is reused within the production process or transformed into raw material for the manufacture of new products. Thus, we reduced the amount of waste and started to extract less natural resources, preserving the environment for future generations.

To carry out this process, companies need to collect all material, send it to a sorting center that does the segregation and dispose, in an environmentally correct way, each type of waste. In the circular economy, everything goes through the proper classification procedure, in order to become raw material for the manufacture of new products.

There are several benefits to the companies that carry out this process. We have separated the top five reasons to better explain why companies should be concerned with the circular economy.

1 – Cost reduction

Large companies typically spend large sums to send waste to landfills. By practicing circular economy, it is possible to reduce costs, not only by eliminating the destination, but also by returning them within the production process itself, in addition to generating revenue from their valuation. Based on studies, there is a way to define a way to reuse waste or transform it into new products, which can be sold. Many industries even use to sell their own waste so that other companies can use it as raw material.

2 – Compliance with legal aspects

With the National Solid Waste Policy, companies need to reduce the amount of waste and dispose of it in an environmentally friendly manner. The circular economy is a great ally for companies to comply with legislation. From the recovery of waste and reintroduction in the production chain, companies reduce the amount of materials sent to landfills.

3 – Low carbon economy

The low carbon economy is increasingly a concern for companies and the whole of society. Reducing the amount of waste and stop sending it to landfills means reducing greenhouse gas emissions, which cause climate change. In addition, many companies have signed the United Nations (UN) Global Compact, committing themselves to achieving the 17 Sustainable Development Goals (SDGs).

4 – Institutional Brand Enhancement

Companies that practice the circular economy have institutional valuation of their brand, after all, investors are eyeing shares of companies aligned with the ESG pillars. By promoting the circular economy, the company reinforces its foundation in the market, being able to create new products from waste used within the unit itself or distributed to employees. Food scraps, for example, can be transformed into compost, a “natural fertilizer” rich in nutrients for vegetable gardens and gardens.

There are several actions that add value to the company’s image, because by practicing the circular economy, it is possible to preserve the environment, reduce the use of natural resources and develop socio-environmental work inside and outside the organization at low cost.

5- Competitiveness and sustainable economic development

The circular economy reduces the extraction of natural resources, promoting sustainable development. In addition, there are economic benefits, since the manufacture of new products from waste generates competitiveness in the market and the promotion of new technologies and innovations. Thus, it is possible to stimulate economic growth and create more jobs, always aiming at environmental preservation.

Ambipar has a RD&I laboratory to develop technologies and innovations from waste. With several patents registered for sustainable products, it promotes a circular economy and assists companies with the correct disposal of their waste. Among the main innovations, we highlight the rations made from crustacean remains, which were previously dumped in the sea; the sustainable softener produced with residues from the cosmetics industries and the soap developed based on collagen from the coating of capsules for the pharmaceutical industries.