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Gartner defines the circular economy as a model that focuses on the reuse of materials to minimize waste and natural resource consumption. Due to growing consumer and governmental pressures to reduce the impact of industrial operations on the environment, more companies are embracing strategies from improving their procurement to decarbonizing their supply chains entirely.
"The manufacturing industry faces increasing cost pressures and heightened risk exposure from commodity price volatility, customer preferences, regulatory environments, and geopolitical conditions," Rafael Go, senior research analyst at Navigant Research, said in a statement about the firm's latest circular manufacturing report. "While adopting a circular economy model can increase manufacturers' exposure to risks, it presents an opportunity for positive economic growth combined with positive environmental social impact."
One source of this risk is the fact that the "circular economy creates an ecosystem of materials," Sarah Watt, senior director analyst with the Gartner Supply Chain practice said in a press release. "Those ecosystems are complex and include many interdependencies and feedback loops."