Embracing circularity for a more sustainable future

By Ahmed Radwan

The pressing need to transition to a circular economy has never been clearer. Our current way of life is depleting resources at an unsustainable rate, contributing to emissions and climate change. Embracing circularity is not only essential for safeguarding our environment but also for enhancing business resilience.

Through efficient and more circular use of materials in just four key industrial materials (cement, steel, plastics, and aluminum), circular economy strategies can help reduce global GHG emissions by 40 percent by 2050. And if we also include circular approaches within the food system, we could achieve as much as 49 percent reductions in global GHG emissions overall according to studies from the @Ellen Macarthur Foundation.

Earlier this year, a published report from ABB Motion, entitled ''Circularity: No Time to Waste,'' demonstrate that businesses now view circularity through a comprehensive lens that surpasses conventional recycling practices. This broader perspective encompasses waste reduction, sustainable design, and the development of resource-efficient processes. However, much work remains to establish a common understanding and metrics for circularity across industries.

It reveals that 91 percent of industrial businesses are feeling the effects of resource scarcity, prompting two-thirds to increase their investment in circularity initiatives within the next three years.

Despite their optimism about future investments in circularity, most businesses presently face challenges related to resource scarcity and waste. Approximately 95 per cent of businesses are encountering barriers to adopting circular practices, including cost management and limited resource access.

To accelerate the adoption of circularity, businesses are actively seeking technologies, partnerships, and other forms of support. These initiatives include implementing energy-efficient motors and drives, collaborating with waste management and recycling companies, incorporating more recycled materials into their processes, and conducting lifecycle assessments for equipment. While new regulations will compel businesses to embrace circular practices, 77 per cent feel the need for increased government support.

The survey highlights three main takeaways for businesses striving to maintain their competitiveness:

1. Adopt a holistic approach that considers all aspects of circularity.

2. Instill a sense of responsibility for circularity at every level of the organization.

3. Embrace new technologies and foster collaborations with other groups to expedite the advancement of circular practices.

While there are challenges to overcome, businesses that fully embrace circularity see significant benefits. These include improved cost control, waste reduction, enhanced business reputation, and energy savings – ever more important as 40 per cent reported energy as the biggest source of waste. Therefore, we must act now, to make circularity the norm in global industries.

The UAE has embraced the concept of a circular economy to promote sustainable development and environmental stewardship. The UAE Circular Economy Policy, approved in January 2021, provides a comprehensive framework aimed at achieving sustainable governance and optimal use of natural resources. This policy focuses on key areas such as infrastructure, sustainable transportation, manufacturing, and food production and consumption. By adopting circular economy principles, the UAE aims to reduce environmental stress, support clean production methods, and enhance economic growth through innovation and job creation. The Circular Economy Council oversees the implementation of these strategies, ensuring alignment with national and local objectives.

Taking into consideration that the global population is growing, and resources are becoming scarce it is vital to address the issues and be part of the solution. The ABB’s 2030 sustainability strategy, targets to have 80 per cent of our products and solutions covered by a circularity approach and to send zero waste from own operations to landfill.

With this ambition, we have developed a framework to actively enable the transition to a circular economy, implementing it across our value chain and the life cycle of our products and solutions. As part of our R&D, we identify opportunities to bring value to products through sustainable materials and design considerations.

- Ahmed Radwan is the Head of Motion Business Area - Middle East and Africa Region at ABB