ACR+

Growing inequality, the climate breakdown and diminishing resources are challenging our planet and society. These challenges require major systemic change in the logic of value creation, with the aim of shaping new, more responsible business models. The circular economy is widely presented as an alternative model of production and consumption that can keep materials, products and components flowing at their highest value through our economic system. A circular approach may therefore help businesses create value by disconnecting profit from production volume through slowing, narrowing and/or cycling resources as well as reducing waste and consumption of virgin materials.

This research provides clarity into some of the potentially harmful side effects of the linear value chain and business models which are unaddressed or underexplored when promoting circular business models. The report dives into three specific business model archetypes within the textiles and electronics sectors that can be considered to slow or close loops when designed to promote circularity. These cases include reverse cycles of repair and maintenance, resale and services such as rental and subscriptions (Productas- a-Service, here referred to as PaaS) both in the textiles and electronics sectors.