Catalyse Sustainable Circular Economy
Digital transformation is an opportunity to rethink how private sector business models can contribute to a sustainable circular economy and how companies can achieve full environmental transparency and accountability across their entire value chain. To achieve circular business models, innovations are needed on multiple fronts. First, the digital transformation process itself should be used as an opportunity for companies to identify concrete pathways to advance decarbonization, dematerialization, detoxification and circularity goals across their value chains. This should also include a transitioning away from the provision of products to offering services as part of circular business models.
Second, digital standards and infrastructure are needed for digital product passports to hold data and relevant sustainability information on their lifecycle. This includes a product’s origin, composition, environmental and carbon performance, repair and dismantling possibilities as well as end of life handling. Third, increased use of eco-labels and provision of information from digital product passports to consumers to enable product comparability and inform decision-making in turn driving demand for sustainable products.
Finally, aligning business models, financial and institutional procurement practices with sustainability goals, with the view to transitioning away from unsustainable products and services towards products and services that are fully Environment, Social and Governance (ESG) compliant. Ultimately, digital transformation should drive shifts toward a “beyond growth” paradigm where the application of digital technologies, in addition to profits, is baselined on social and environmental accountability with the goal of accelerating planetary sustainability and respecting planetary boundaries in the context of a circular economy.