Enabling the transformation to circular business
Shifting to a circular economic model has the potential to unlock $4.5trn in economic growth, says SAP’s Maggie BuggieShow transcript
As the world continues to deal with the challenges of the pandemic, leaders are calling for a continued commitment to sustainability: both to increase the resilience of our economies, and to fight the effects of environmental degradation, including climate change. Maggie Buggie is Chief Business Officer for SAP Services; she argues that society must move from an economic paradigm targeting endless upwards growth, to a circular model based on maintaining balance with the environment.
The New Economy: Maggie, can you share your perspective on where we are today?
Maggie Buggie: Absolutely. With the convergence of crises in health, the economy, our society, and the environment, the future of humanity is increasingly being assessed through our individual and collective economic, social, and environmental contribution.
We must now move from traditional economic paradigms based on endless upwards growth, to circular models, based on balance, where value lies in everyone benefiting.
The circular economy has the potential to unlock $4.5trn in economic growth, by promoting water and nutrient security, reducing carbon emissions by 45 percent, and reducing waste by 90 percent.
COVID-19 is giving us a once-in-a-lifetime opportunity to reset: to build back better, and to kickstart a new economic era. We can now build with resilience and balance at the centre. All of which ultimately helps address this century’s biggest threat to health: climate change.
The New Economy: What’s SAP’s approach to becoming a circular business?
Maggie Buggie: SAP is focused on five areas that together are key to the transformation to circular business. They are: responsible design, responsible sourcing in marketplace, responsible production, responsible consumption, and resource recovery and reuse.
The holistic approach to circular business can minimise costs, increase customer satisfaction, mitigate risk, grow profits, and enable resilience.
Our approach helps companies become smarter, more responsible businesses. It helps balance and maximises earth’s finite resources by bringing us closer to making the circular economy a reality.
The New Economy: In a larger sense, what’s needed at a global level to deliver a circular economy?
Maggie Buggie: The pandemic has revealed that none of us can prosper alone. We now need more than ever a collective, political, social and corporate view, and focused action around our shared future. We need to take a systems approach, in both strategy, mindset, and most importantly in action.
Powering the circular economy will be by definition a global, inclusive project, that we all need to subscribe to together. It will have to go hand-in-hand with our action for climate, and creating a more inclusive society.
To create a blueprint for a better future, we need collaboration, trust, innovation, unity, and leading with action. We can do this, but only together.