Environmental sustainability experts are urging industries and policymakers to embrace a transition towards a circular economy, emphasising its potential to mitigate waste and pollution while fostering economic resilience.
This call came during the ABSA Sustainability Roundtable Series on Citi TV on Tuesday, June 4, which featured Venan Sondoh, a Certified Sustainability (ESG) Executive and Chartered Environmentalist and also Joshua Rockson, the Head of Procurement with Absa Bank.
Speaking on the topic ‘Circular Economy as Gold: Opportunities in waste management’, the panellists argued that transitioning to a circular economy, where resources are reused, recycled, and regenerated, holds the key to mitigating climate change and reducing waste.
Mr Sondo highlighted the core principles of a circular economy. They are; eliminating waste, reducing pollution and regeneration.
He explained that by engaging in these practices, businesses not only conserve the environment but also help in sustaining economic activities.
“There are three basic principles of a circular economy and the central of them is eliminating waste. When you eliminate waste, what you literally do is you are avoiding the need for recycling and its effect. If you are eliminating waste by the design of the product.
“The second principle is reducing pollution. This would mean for a country like Ghana, water pollution, air pollution, the pollution from cars and those from factories and mines, and others. The third principle is regenerating.
“By this, it means making sure that the earth has the capacity to regenerate itself and to continue to provide that ecosystem with the kind of service that it provides to us as human beings. That would mean that our practises of agriculture would be aimed at conserving the environment and agroforestry,” he stated.
Joshua Rockson, the Head of Procurement at Absa Bank highlighted the operational benefits of embracing circularity within industries.
He added that any government or business that wants to run a circular economy must make its plans clear to all stakeholders to make the implementation easier.
“Every industry has their way of operations and what they look out for. But when we come to our example there are benefits that we derive from circularity. Touching on some of the benefits, you get to use things much longer, reducing cost and in the end reducing waste in the end. Once you have these benefits at the backend, what steps must you follow to make sure that you derive those benefits?
“You make the business case to the key stakeholders who would have to support you to achieve it and it has to be crystal clear. In doing this, we are not only reducing cost in our operations or saving the environment but then you are also ensuring that everyone within the chain buys into it and supports the process by being deliberate about it,” he stated.
However, Mr. Sondo further pointed out the challenges faced, particularly by Small and Medium-sized Enterprises (SMEs), in transitioning to a circular economy.
“The challenge generally is the cost implementation. Not just the know-how but in terms of how to go about it. Most bigger companies will benefit from the network of collaborators available that they can leverage. However, the SMEs who are sought or isolated in our operations will generally struggle with resources to help them with that transition.
“Again, even if you are transitioning there are no incentives that actually help you write off that cost in your transitioning. So, it will make you a little bit uncomfortable compared to your competitors because you are investing in reducing your costs by cutting parts.
“… Also, the lack of a level playing field makes it difficult for most businesses to want to raise the transitioning,” he added.
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