Work together with chain partners for a circular transition

“This is how you close the circle”

In this series of blogs, we talk to 2BHonest specialists about topics of interest we come across in our daily work as sustainability consultants. In this article, Floor Mooij explains why working on circularity is just as important as working on your climate targets and how you can shape the circular transition together with your chain partners.

You believe circularity is really a supply chain issue, could you explain why?

Circularity works in two directions: the products or materials you buy, and the products you sell. This means that circularity will require you to collaborate with parties beyond your own organisation. You can start small with the parties closest to you, such as your supplier and your waste treatment company. The three of you can already create a closed loop and focus on reuse and recycling. You can then work on widening the circle further, as in, the ripple effect. For example, when you decide to make a type of material in a product more sustainable and look further down the chain to do that.

When it comes to working on circularity, why is there such a sense of urgency?

The use of raw materials is a major contributor to climate change through greenhouse gas emissions, so working towards a circular economy contributes to achieving climate goals. In addition, the energy transition is putting pressure on the availability of large amounts of raw materials. You therefore need to view the climate issue with a circular perspective to be able to meet the targets. Circularity is also linked firmly to issues such as biodiversity and health, for example, consider the negative impacts of e-waste and microplastics. Unfortunately, the lack of circular solutions means that this is still a reality. The sense of urgency is mainly due to the fact that there is still a large gap in knowledge and solutions concerning circularity. While we know that a circular economy is needed, we are still do not know how we are going to make this happen.

“It would be nice if you could address circularity across the sector and also with your suppliers and learn to speak with one voice.”

What does (European) legislation say about circularity?

A lot of European legislation is in the pipeline stemming from the Circular Economy Action Plan (CEAP), such as legislation banning single-use plastics, legislation to reduce packaging and make it more sustainable, and legislation pushing for more opportunities for repairs and longer lifespans of products. These laws still need to be worked out and adopted on a national scale.

Circularity also plays an important part in the legislation on reporting (CSRD) that will take effect for many companies starting in 2026. For example, companies will be required to indicate by weight how much renewable and non-renewable material they source, what type and how much waste they generate, and how much of their product range is circular. This is a challenge when it comes to data, as these insights are often not yet available.

It is clear that circularity will become an increasingly important issue. What challenges should companies expect?

Circularity isn’t necessarily always in line with climate targets. Replacing your old appliance for a more energy-efficient one, for example, might be a smart choice from a perspective of energy consumption; but from a circular point of view, it is better to extend the operating life of a product for as long as possible. In addition, recycling materials leads to carbon emissions. That is why it is essential to examine the environmental impact of products integrally, for example by means of a life-cycle analysis (LCA).

A further challenge is that there are all kinds of dependencies associated with circularity. The result is that companies point fingers at consumers, consumers point fingers at the government, and the government in turn points fingers at companies. Therefore, we need to make a concerted effort to take the first steps and maintain a good dialogue with each other; and ultimately, we need to let the government standardise new circular initiatives when they are available to a sufficient extent. Meanwhile, the government can already encourage those initiatives through subsidies, for example.

“You therefore need to view the climate issue with a circular perspective to be able to meet the targets.”

I would like to start working on circularity with my company. What should be my first step?

First, you should define your personal vision and ambition, then share this vision with your partners and find common ground. It would be nice if you could address circularity across the sector and also with your suppliers and learn to speak with one voice. In this respect, the topic of packaging can be a good place to start working together, as it is often not the core business of a company.

We have found that it is important to start with what is already in place and build from there. You have to start small; one step at a time. So don’t let a lack of available data hold you back. You can be honest and transparent that you have ambitions to become more sustainable and work towards creating a circular product, but you are not quite there yet. Transitions don’t happen overnight.

How does 2BHonest help its clients integrate circularity into their business practices?

We come up with business strategies centred on circularity, we also help with understanding the impacts related to circularity, such as the Swinkels Circularity Index (SCI). In the installation sector, we are also helping with the Packaging Sector Plan. For example, we created a folder with purchasing conditions that buyers can use in their meetings with suppliers. Organisations can decide for themselves how to integrate these — as a basis for discussion, or as part of a contract. And we also act as a catalyst, as in, we hope to use our knowledge to get sectors on board.

Want to know more about integrating circularity into your business? 
Floor is on hand to help you!