What are Circular Business Models (CBM)?

With the impending challenges of a future where resources will be three times as high in demand and waste production will skyrocket, Circular Business Models (CBM) have become a necessary solution. CBM reduces costs, improves resource management and helps decrease waste production through refurbishing, remanufacturing and recycling. The article dives into the definition of CBM, its drivers and barriers, solution strategies, and evaluations. While CBM is a subcategory of Sustainable Business Models (SBM), it is distinct from closed-loop business models. Organisations are moving toward CBM to achieve environmental benefits and new market access, although there are barriers such as fashion vulnerability and negative customer behaviour, that can be tackled through product, supply, and offering design, regulations, and policies. The CBM approach helps companies deal with limited resources, advanced technology, and shifting customer behaviour.