The report describes the concept of the circular economy and outlines its key characteristics. It draws attention to both the benefits and challenges in transitioning to such an economy and highlights possible ways to measure progress.
The report explores the circular economy from a product perspective, applying a systemic approach and transition theory. Drivers of product design and usage are discussed in the context of emerging consumption trends and business models. For governance to be effective, it has to address the product life-cycle and the societal context determining it. Indicators and assessment tools are proposed that can help fill the current data and knowledge gaps.
The Circular Phone report provides practical answers to common financing pitfalls for circular businesses, using Fairphone as the real-life example.
So far, businesses striving to implement “Product-as-a-Service” models have had the challenge of reconciling the need to find financing parties with the complexities of their own business model.
To achieve a financeable model for the Circular Fairphone Service, the Community of Practice created a blueprint for Fairphone’s business model. Through the creation of a legal template – a 1st Circular Service Contract - and a financial cash flow tool, the group has proven that the gap between the businesses and financiers can be bridged.
