Over half of Gen Z consumers consider how trustworthy a brand is before buying it.
Circularity is not just for leading sustainable only brands; it is becoming increasingly crucial for fast-moving consumer goods (FMCG) providers to create responsible, transparent and inclusive practices addressing challenges affecting their products and experiences.
Circular economy builds economic, natural and social capital by designing out waste, keeping products in use for longer and creating a regenerative mindset around resources across the supply chain. The shift to a circular mindset will spur on holistic changes that encompass consumption, production and economic models, underpinned with ambitious policies and governance.
A circular approach is more than just for sustainability, it saves the industry money through reduced cost of resources and energy, generating revenue from waste streams – like new uses for the byproducts from manufacturing processes - and retention of value in existing infrastructure and assets through new business models, such as leasing and sharing.
According to a study by the Ellen McArthur Foundation, it is estimated that the European economy can save 600 billion Euros by 2025, if they adopt a more restorative and circular approach. By taking responsibility, organisations will not only make efficiencies in the long-term but also help to remain relevant for Gen Z consumers who are holding brands to a higher accountability.