In a newly published paper titled ‘The rise of circularity: How the GCC is transforming from the inside for the outside’, PwC Middle East outlines the benefits of a circular economy in the region. With high consumption and heightened environmental threats, the ‘take-make-dispose’ industrial model is no longer sustainable for the GCC. As such, organisations that transition to a circular economy approach, by decoupling economic activity from consumption and creating closed-loop cycles in which waste is minimised, will be ahead of the curve. These organisations will gain a competitive advantage by proactively planning for the future, rather than reacting to regulation or public pressure.
Featuring case studies from across the EUR industry, the paper asserts that adopting a circularity approach not only mitigates climate change risks, but also provides organisations with the following benefits:
- Greater efficiency, lower costs and maximum value
- Improved brand reputation
- Localisation and job creation opportunities
- Attraction of foreign direct investment (FDI)
The circular economy is a key pillar in the Environmental, Social and Governance (ESG) movement, which is now starting to gain ground in the GCC. Companies across the EUR sector have moved closer to a circular economy approach in recent years, with private and public sector giants adopting circularity initiatives and investing in technologies that can deliver sustainable business advantages and long term value. As countries in the region move closer to establishing circular economies, a higher number of actions will be taken at larger scales.
As the rise in circularity accelerates, government regulators, legislators, industry leaders and consumers will also require a level of partnership and collaboration that has not been seen before. The paper addresses actions that policy makers and, in particular, organisations can take to achieve real transformation ranging from understanding circular opportunities and developing clear strategies to establishing regulatory frameworks based on circularity principles.
Neil O’Keeffe, PwC Middle East Energy, Utilities, and Resources Industry Leader noted: “As the focus on sustainability and ESG grows, there will be increased pressure on companies to demonstrate their ESG credentials; pushing solutions such as circularity to become the new normal. In this environment, businesses that radically innovate to create new models – investing in new product technology, value chain partnerships and waste management infrastructure – will be the winners.”
