How the finance sector can embrace the circular economy

By Rachel Houghton, managing director, Business Moves Group

How the finance sector can embrace the circular economy

Sustainability in the finance sector can be measured through business practices and internal management. The finance sector has the power to create huge change through lending to, investing in, or insuring businesses that have an ethical sustainability policy. By doing so, businesses across all other sectors will need to revaluate their practices to be supportive of the environment. Organisations such as the WWF are calling on the finance sector to invest in more low carbon and sustainable sectors, and support innovation and research.

The internal operations of individual businesses within the finance sector is also an area that needs examining. It has been the norm for organisations in the sector to have large and impressive office spaces in major cities across the country. As the finance world moves towards making better decisions for the circular economy, the amount of real estate necessary for the running of a business should be assessed.

Workers are spending less time at the office, with recent findings stating 31 million square feet of empty work space is currently taking up central London. Many companies are choosing to downsize as a result and the future of the office is under scrutiny.

If finance businesses do decide to cut down on their real estate, the next question is how to do this in line with the circular economy principles. One straightforward solution could be to repurpose the building so it can be used for another business. Instead of tearing down a whole building and using new resources to build something else, the infrastructure should stay the same. More simple amendments such as the building’s aesthetics can be changed to suit its new usage.

What does it mean to be circular?

We all know the traditional mobius loop of “reduce, reuse, recycle”, but the circular economy aims to go beyond this basic level of understanding. The Ellen MacArthur Foundation defines the circular economy as a “systems solution framework that tackles global challenges”. It is based on the principles of designing out waste from our current way of living. This means going beyond the realm of recycling which should be viewed as a last resort option, and instead focus on rethinking, repairing, refurbishing, remanufacturing, repurposing and even recovering.

As sustainability issues continue to encourage business leaders to face their environmental impact, the circular economy opens many new avenues to explore.

Furniture management

If your business decides to move to a smaller office space, it is likely that your office furniture might need a downsize too. One of the best ways to approach your furniture when undergoing a workplace change is to complete a furniture audit. This means you can create a catalogue of every item, making it much easier to identify what to keep and what to part ways with.

For any unwanted furniture, sending it to landfill should not be an option. Instead, you can have your furniture refurbished for a fresh look in your new office, reused in other offices, repurposed for use outside of office work, or recycled; although, as previously stated this should be viewed as the last resort option.

One case study of ours included work with insurance provider Allianz, which took part in a huge workplace change project along with our consultancy and sustainably led office refit. We created a digital inventory to keep track of all furniture and equipment in all Allianz offices across the UK. This meant that the client need not purchase unnecessary new equipment and avoided discarding equipment that might be of use in another location.

Of the new furniture that Allianz purchased for the project, many items were refurbished, providing cost savings and a positive environmental impact by not buying all new items. Surplus furniture was either sold, donated, or placed into storage. Across all of our projects work in 2021, we sold 10,000 items of furniture on behalf of our clients.

The end of the life cycle

When an item has reached the end of its life cycle, we need to look at recycling as a final option. By undertaking an effective recycling solution, you can save your business money by avoiding disposal fines, and the opportunity to sell valuable parts like metals and textiles to recyclers.

In 2021, we managed 1,252 tonnes of waste and diverted an average of 98.6 percent from landfill. This means that in many of our projects, we were able to diver 100 percent of waste, and this year we are aiming to get this average even higher.

If your business is looking to improve on its ESG commitments, or make a workplace change and needs support in how to navigate such a change sustainably, then embracing the circular economy in your journey is essential for its success.