The circular economy: its place in the transition

The circular economy is a central pillar of the transition towards a sustainable business model and an alternative to the traditional linear economy based on make, use and dispose. The definition of the circular economy is one in which we keep resources in use for as long as possible, extracting the maximum value from them, then recover, renew and reuse products and their components when they are no longer serviceable. This is vital if we are to avoid drowning in our own waste – according to World Bank estimates, global annual waste generation may soar to 3.4 billion tonnes over the next 30 years, up from 2.01 billion tonnes in 2016.

Enel X’s mission is to be a booster of the circular economy and of the five business models on which it is based. These are: using renewable energy sources and materials; extending product life cycles; creating sharing platforms; reuse and regeneration; and rethinking products as services. These models themselves are based on three circular economy principles: design out waste and pollution, keep products and materials in use, and regenerate natural systems.

We want to lead the market in an accredited methodology with our Circular Economy Report and scores that provide businesses, administrations and consumers with a tool to measure their progress towards sustainability and circularity. We aim to do more – we help outline a roadmap to circularity. This is vital in a world where consumers demand to know how a product is built, transported, packaged, delivered, consumed and got rid of, and means that businesses need to rethink their value chain from the point of view of sustainability and then tell the public about it.

Our Circular Economy Report is a detailed assessment of the circularity of a client’s entire value chain. The criteria employed to assign a Circular Economy Score cover the use of recyclable or biodegradable materials, exploitation of renewable resources, as well as sharing, efficiency, and the reuse of materials. The Report sets out ways of boosting circularity, indicating possible improvements based on innovative solutions to the issues identified. We follow that up by monitoring progress toward circularity. 

Our circular solutions include demand response. This supports circular practice because it gives businesses access to markets that allow them to monetize the elasticity that they have in their energy use. It shows sustainable inputs in action, is a sharing platform because it allows customers to share their reserve capacity.

 

Our public lighting solutions use sustainable inputs thanks to totally renewable raw materials and to energy-saving LED technology. They are a sharing platform that hosts other functions and are a product offered as a service. We also offer condensing boilers that have sustainable inputs, and which recycle and reuse the heat from the exhaust.

Our Circular Economy Factbook is designed to help companies and consumers understand the aims of the circular economy and how it works. We see the concept of the circular economy as a driver of competitiveness and innovation in the global market and want to be an accelerator and enabler of circularity for all our suppliers, customers and partners.