Page 12 - Environmental_Circular Economy

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Chapter 2

Circular economy and CANVAS

2.1 The modellisation of Circular business

In the recent past the most common economy was the linear economy, which prevailed sinde the
Industrial Revolution in the late 18th century. This traditional model was based on
‘take-make-consume-waste’ approach to using resources. The raw material is transformed into a product
and after it ends its life cycle is thrown to waste. Experts and non-experts know that this model is one of
the main causes of the actual natural resource depletion and if this model is not replaced, the world will
approach a tipping point where it will lose the capacity to sustain itself.

As the Circular Economy (CE) progressively moved from theory to practice, new ways of conducting
business took shape leading to solid economic models. (Marcello Tonelli and Nicoló Cristoni , 2019). We
must be clear that the circular economy is not a passing fashion concept, but it is here to stay. In fact it is
a reality, and with which companies that are not aligned with the circular economy with any future future,
especially once the policies (legislation and strategy) by the EU (such as the Green Economy Action Plan)
are focused to this economic model.

Here is an infography of the circular economy process designed by the EllenMacArthur foundation, which
modellise the structure of the business relationships that should take place in such an economy.
Butterfly diagram