The Circular Economy: 7 Ways Canadian SMEs Can Save Money and Reduce Emissions
October was Circular Economy Month in Canada, so we're talking about waste, and what it's really costing your business.
Think about what goes in your dumpster in a normal week. Offcuts, packaging, old pallets, maybe food. You paid for all of it once, and now you're paying again to get rid of it! Most businesses never add that up, but it's often thousands of dollars a year.
In Canada, only about 6% of the materials that enter our economy come from recycled sources, according to the Council of Canadian Academies. And since SMEs make up 99.7% of employer businesses in Canada, a lot of those savings are sitting with businesses like yours.
What Is the Circular Economy?
Most businesses run in a pretty simple way: buy materials, use them, and throw out what's left. The circular economy flips that around. The idea is to keep products and materials in use for as long as possible, by reusing, repairing, refurbishing or recycling them, instead of sending them to landfill.
For a small business, it really comes down to three things: use less, make things last, and find a home for what's left over.
Part of the reason we waste so much in Canada is that throwing things away has always been inexpensive. That's starting to change as waste, material and carbon costs go up, which makes now a good time to improve.
Seven Ways to Put It Into Practice
Here are seven different ways to put the circular economy into practice. You don't need to do all of these. Pick the ones that fit your business.
1. Waste less material
Where does material get lost in your business? It might be offcuts from how things are cut, stock that expires before it's used, defects from equipment that's out of calibration, or just ordering more than you need. Every bit you save is material you don't have to buy or pay to throw out, and it never had to be made and shipped in the first place.
2. Reuse your packaging
Single-use pallets and boxes add up fast. Reusable pallets, totes and crates can go back and forth many times if you set up a return system with your suppliers or customers. Even reusing the boxes that come in for what you ship out helps. Sturdier packaging usually means fewer damaged goods, too.
3. Fix it before you replace it
It's tempting to replace equipment as soon as it starts acting up. But regular maintenance and good repairs can keep machines, vehicles, computers and furniture working for years longer. That means fewer big purchases, less downtime, and none of the emissions that come with manufacturing something new.
4. Buy refurbished or recycled
When you need new laptops, phones, desks or even machinery, check the refurbished options first. They're often half the price, and many come with a warranty. For supplies like paper and packaging, look for recycled content.
5. Find a use for your waste
Your waste might be someone else's raw material. Scrap metal, cardboard and clean plastic can often be sold, and things like wood offcuts, fabric scraps or spent grain might be useful to another business nearby. Waste exchanges can help you find them. Either way, you're paying less to haul it away.
6. Cut food waste
This one is big in Canada. Second Harvest estimates that about 58% of the food we produce is lost or wasted. If you run a restaurant, grocery store or catering business, better forecasting, portion sizes and staff training can make a real difference. Whatever's left can be donated or composted instead of going to landfill, where it produces methane.
7. Rethink how you sell
This is a bigger step, but it can pay off. You could offer repair or maintenance plans for what you sell, take products back when customers are done with them, sell refurbished versions, or rent things out instead of selling them. It's a way to build steady income and keep customers coming back.
Where to Start
Start with one thing. Look through your purchasing records, waste bills and inventory write-offs, and ask your staff where they see materials being wasted. Choose something with an obvious payback, write down where you're starting from, and keep track of what you save. Once you can demonstrate the savings, the next project is an easier sell.
How We Can Help
At Achieve Sustainability, we help small and medium-sized businesses identify where they're wasting materials and money, and what to do about it, from cutting back on packaging to finding new uses for by-products. If you're not sure where to begin, reach out and we'll help you find your first savings.
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