The circular economy and digitization are two interrelated concepts that can strongly reinforce each other. Which are the synergies between the circular economy and digitization?
Synergies between the circular economy and digitization are for example:
- optimization of resources, where digitization enables better tracking, monitoring, and analysis of resources throughout their lifecycle. It enables more accurate demand forecasting, inventory management, and supply chain optimization, reducing waste and improving resource efficiency;
- traceability and transparency, where digital technologies such as blockchain can improve traceability and transparency in supply chains;
- sharing economy, where digital platforms and applications have encouraged the growth of the sharing economy;
- consumer engagement and behavior change, where digital platforms and apps can educate and inspire consumers about sustainable practices. Through apps, websites, and social media, consumers can access information about the environmental impact of products, find sustainable alternatives, and participate in recycling and other programs.
Digitization can also empower consumers to make informed purchasing decisions, choose products with longer lifespans, and participate in the circular economy through resale platforms. Overall, digitization provides the tools and capabilities to enable the transition to a circular economy by optimizing resource use, increasing transparency, supporting new business models, promoting sustainable design, and engaging stakeholders at different levels.
Tanja Tajnik, Ph.D.
A highly accomplished scientist, specializing in carbon capture and storage (CCS) research and an expert in Life Cycle Assessment (LCA).