Circular Economy: Our Customers, Their Consumers and Global Communities
Our customers continue to develop and adapt to the transition to a low carbon economy. A move to a circular economy underpins this transition. By reducing raw material requirements and energy needs it is seen as a fundamental part of the solution. This brings opportunities for new products but also increased risks across all lines of business – for example recycling facilities and property risks, repurposing/refurbishing products and liability risks and emerging risks from new technology. Are risk managers seeing the full picture?
Consumer trends will need to substantially change for a circular economy to be effective. End users need to move away from the immediate gratification models we are used to. The same day or next day delivery enjoyed by many could become recognized as a thing of the past. How do we grow a repair rather than replace mindset and how will this impact revenue streams of the future?
Communities will feel a socio-economic shift as the decline for some raw materials starts to impact. New employment opportunities will open up, but these will be in different locations perhaps shortening the supply chain and bringing repurposing facilities closer to manufacturing sites. Can local governments and communities understand how they could be impacted? How do we work on closing the income protection gap as well as reskilling a workforce that has grown up servicing specific industries?