MSD Hub editor's note (Michael Field, Senior Systems Specialist, Vikāra Institute):
The blog highlights the growing importance of circularity. Maybe the most important insight from the blog is that circularity will require a substantial shift in the various forces and factors that combine to influence how market systems work. While various projects and even the discussion focused more on how a single firm integrates circularity practices and tactics, it is maybe more important to focus on how wider systems increase their level of circularity. As the blog points, this shift from thinking about disposing of waste to thinking about a valuable material that can be sold/used is essential. Projects need to be able to do both firm level, as well as system-level interventions to shift how systems evolve in ways that lead to greater levels of circularity.
Circular business models are increasingly taking center stage in both large and small-scale private sectors worldwide. As MSD practitioners, understanding this shift is crucial. The Market System Synopsis 2024 summit invites us to dive into the nuanced concept of circularity through a systems-thinking lens. We explored the vital importance of scale and resilience in circular business models, addressing the inherent fragility and interconnectedness at the micro level, as well as the efficiency and interconnectedness at the macro level.
In the session on "Innovations in Business Circularity Models within MSD," we had an exhilarating opportunity to delve into the dynamic intersection of circular economy principles and Market Systems Development (MSD). Esteemed experts such as Laurie Pickard (Resonance), Sara Holloway (Ernst and Young), Ashwin Kumar Rao (Habitat for Humanity International), Heather Parker (SOLVE), Chris Whyte (ACEN), and Rika Preiser (Stellenbosch University) led a vibrant discussion that sparked fresh insights.
Chris Whyte opened the conversation by drawing attention to a crucial yet often overlooked distinction: the circular economy is not merely a synonym for sustainability. It’s a transformative approach that reframes waste as a resource—essentially a mindset shift where what is typically deemed "unused" transforms into a valuable opportunity. This perspective aligns seamlessly with the core objectives of MSD: fostering innovation, enhancing resource efficiency, creating value, and driving systemic change.
A particularly striking point Chris raised was the alarming statistic from the Circular Gap Report: globally, we are only 7% circular. This stark figure highlights the considerable journey ahead as we work to move beyond extractive systems. The conversation then shifted toward actionable solutions, with circular food systems emerging as a promising starting point. Chris also introduced groundbreaking innovations in infrastructure, such as using fly ash as a cement substitute, potentially reducing carbon emissions by up to 90%. Yet, this challenge involves the disruption of a deeply entrenched cement industry, long supported by regulatory frameworks.
Balancing Planet, People, and Profit
Chris emphasized that harmonizing the interests of the planet, people, and profit is essential, but this hinges on a collective mindset shift. Achieving the Sustainable Development Goals (SDGs) requires us to rethink not just our business models but also how we create value on a broader scale. Innovation alone won’t suffice; we need systemic change.
Rika Preiser deepened the discussion by unpacking the complexities of sustainability challenges. She reminded us that we are not simply shaped by systems; we actively shape them. Her focus on regenerative circular systems—where systems adapt and evolve based on lived experiences—served as a powerful reminder that sustainability is not a destination but an ongoing, dynamic journey.
Scaling Innovation: Navigating Challenges for All
Sara Holloway shared invaluable insights from her fieldwork, particularly regarding social impact projects. She highlighted Unilever’s commitment to reducing plastic as a commendable example of corporate responsibility. Yet, the real challenge lies in translating these commitments into action. Conversely, smaller companies often have the most innovative solutions but encounter barriers when scaling their impact. Sara introduced Transform, a social impact accelerator supported by EY, Unilever, and FCDO, designed to empower these smaller innovators with grant funding and business services to bridge the scalability gap.
This session was not only thought-provoking but also raised a critical question: How can we effectively close the circular gap using our existing tools, such as MSD, and create a sustainable future where the circular economy thrives?
Comments