The crisis from Covid-19, with its massive disruption of supply chain systems, significantly accelerated the transition to a circular economy. This process is now more urgent and necessary than ever. The crisis involved a shortage of essential goods, pressures on waste management, and volatile prices in global commodity markets.
We must emphasize the world’s increasing dependence on the global market for raw material supply. Commercial activities are expanding, but the number of raw material producers is drastically decreasing. For example, in 2010, 30% of world economies provided the global supply of material resources. At the same time, 70% of all countries were direct importers. This trend has grown further over the past decade.
Natural capital is decreasing worldwide, despite improvements in resource efficiency. Italy, within this global scenario, is a significant importer of all raw material types. Its reliance on international trade is higher than the G20 average. This translates into greater dependence on foreign markets. Consequently, it poses a significant risk to the competitiveness of Italian SMEs and the wider industry.
To remain competitive, we must switch to alternative resource models. These models must truly support our production networks and competitiveness by improving resource efficiency. The circular economy represents a viable alternative to Italy’s chronic dependence on foreign markets.
The circular economy has become central to the European Green Deal over the last two years. It is also the main element of the post-Covid-19 European “green economic recovery.” In the Italian Government’s National Recovery and Resilience Plan, it is the focus of the so-called “Mission 2: Revolution and Ecological Transition.”
The circular economy is a production and consumption model. It involves sharing, lending, reusing, repairing, reconditioning, and recycling existing materials and products for as long as possible. The “reduction strategy,” which includes product design, is central to the macro-context of the circular economy.
In fact, “sustainable design” benefits consumers, businesses, and the environment. It also strengthens the competitiveness of products and economic systems. According to a 2020 McKinsey Quarterly study, “companies that excel in design increase revenue and economic returns for shareholders at almost double the rate of competitors who are less attentive to this factor.”
However, McKinsey’s report also highlighted that 90% of businesses are not reaching their full design potential. This is partly due to a lack of corporate leadership with a long-term, sustainable vision.
The transition to a circular economy is neither immediate nor guaranteed. It involves fundamental changes in how we design, produce, deliver, and maintain value in our economies. It represents a radical shift in the economic paradigm. This change will undoubtedly impact every business and value chain directly.
SMEs must therefore prepare for this latest challenge, as they are the circular economy’s natural partner. Many SMEs have already developed related activities.
The transition to a circular economy is therefore **both a challenge and an opportunity**. It requires new management practices and technological solutions to:
We are moving from the linear “take-make-dispose” management model to the “reduce, reuse, recycle” model. This more complex, circular system for coordinating resources depends on the availability of numerous digital data. This data relates to material characteristics and origins, supply conditions, packaging systems, shipping systems, social requirements, and the circularity and environmental sustainability index.
