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Marketing has a pivotal role to play in driving the significant change required to shift from a linear to a circular economy. By Marie Hattar via Fast Company • Reposted: June 30, 2023

Corporate social responsibility has long been viewed as a unifying organizational principle. These initiatives have successfully helped companies improve their impact on society, local communities, and the environment. However, the magnitude of climate-related problems is pushing environmental concerns to the forefront, with the principles of a circular economy gaining visibility as we understand the need to change how we produce and consume products.

The circular economy is a broad-reaching product lifecycle approach in the CSR space that reflects systemic change rather than a series of initiatives to achieve social, economic, and environmental sustainability. This means creating products that are more durable, reusable, repairable, and recyclable so they remain in circulation as long as possible. In addition, it requires a cultural shift to end the practice of make, buy, and throw away.

CIRCULAR ECONOMY 101

Driven by design, the circular economy involves eliminating waste and pollution, keeping products and materials circulating, and regenerating natural systems. This means designing for long-lasting use, then extending the product life by sharing, leasing, reusing, repairing, and refurbishing, ultimately ending with product and component recycling. This represents a shift in how we produce and consume goods and services.

And if the circular economy gains more traction, it can help slow the pace of rising temperatures. Global adoption remains slow, with less than 9% of economic systems embracing circularity. In addition to the sustainability benefits, there are other business advantages, including creating new revenue streams, cost savings, and reputational gains. By moving to a circular model, organizations can build a more sustainable and profitable entity, helping create a more resilient and responsible future.

Marketing plays a pivotal role in helping push circular economy approaches forward. Brands should champion the principles of less raw material and waste, resulting in fewer emissions. This can help fundamentally change how to promote and position products, and the focus should be on demonstrating evidence of living the values.

So, how can marketing teams help broaden the adoption of the circular economy? Below are some fundamentals to focus on.

PRODUCT REUSE

Patagonia is a prime example of a consumer brand that has long advocated for a more sustainable approach, as reflected by its Worn Wear initiative launched in 2013. The program aims to reduce the environmental impact of Patagonia’s products and ensure that its gear and clothing remain in circulation as long as possible by offering repairs by expert technicians. In addition, it has long demonstrated its commitment to recycling materials in its product range.

Every company, irrespective of industry or target persona, can follow Patagonia’s lead and adopt key principles of the circular economy. By promoting circular attributes of products, brands can differentiate and appeal to customers searching for more sustainable options.

For example, the Keysight Trade-In Program promotes and rewards technology refreshes for customers by offering compelling credits. This trade-in initiative helps keep electronic waste out of landfills, reduces the need for new products, and reuses existing equipment. This program has been highly successful, with 80% of the returned products resold and the remaining 20% recycled. The program is a vital part of our commitment to sustainability, repurposing, and reuse.

TRANSPARENCY = TRUST

Marketing teams should be clear on exactly how their products support the circular economy. Building trust with your audience requires disclosing critical information, including the product’s carbon footprint, reusability, and recyclability. Through campaigns, advertisements, and branding, marketing can show the entire life cycle, highlighting aspects such as designing for circularity, material sourcing, production, usage, and end-of-life management.

SHARING AND SERVICE 

The sharing economy is another crucial piece of circularity, as it promotes allocating resources with multiple groups rather than a single entity helping maximize the usage. It can also uncover new revenue streams such as ride-sharing, coworking, peer-to-peer lending, and cloud solutions.

DIGITAL ACCELERATOR

Digital technologies like big data, IoT, and AI can help marketers optimize the circularity of products and materials and create more personalized and efficient experiences. At Keysight, our digital twin technologies allow organizations to evaluate new product designs. The virtual model ensures the solution is fit for purpose before building anything, supporting a more sustainable and efficient way to design and build products.

COST BENEFITS

There are many financial benefits from using recycled materials, minimizing waste, and extending the life of products. In addition, with governments increasingly introducing environmental regulations, organizations can ensure compliance by adopting circularity.

THE FUTURE IS CIRCULAR

Marketing has a pivotal role to play in driving the significant change required to shift from a linear to a circular economy. From demand creation for sustainable products and services to promoting the shift towards a more circular way of doing business, I believe CMOs must champion the cause. As teams embrace circularity, it’s vital to remember that the long-term benefits for the organization and the world far outweigh any short-term difficulty experienced.

And for anyone thinking about ignoring the circular economy, I will remind you of the wise words of Robert Swan: “The greatest threat to our planet is the belief that someone else will save it.”

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Marie Hattar is CMO at Keysight Technologies, responsible for brand and global marketing efforts.

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