Characteristics of a circular economy

3.4.4 Systems based thinking Transitioning towards a circular economy also means we must learn to understand how each individual component of the collective system influences each other and the whole, and the relationships that tie the system together. These inter-linkages (Navigating Webs of Interdependence) means that actions can have surprising, non-linear consequences. But, it also means that individual components can function as a support system to build resilience and a regenerative capacity into the economic system.

A systems thinking approach in business, allows the resolution of the competing goals between environment and business profitability. Viewing firms and their operational supply chains as a complete system that operates within the wider systems of society and the environment, allows management to proactively consider alternate solutions to persistent systemic problems and improves future decision making potential. This increases environmental efficiency, as well as improves the performance, profits and competitive advantage of the firm.

Source: Deloitte University Press
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