Sustainable development is one of the most pressing issues facing our economy. What was once a distant goal has now become a business imperative because of climate change. Companies are increasingly integrating their environmental, social, and governance performance into business strategy. Yet, the way society and businesses are organised today has changed little.
Despite accelerated efforts, Asia Pacific is currently not on track to meet the targets set within United Nation’s 2030 Agenda for Sustainable Development. With less than 10 years on the horizon, countries within the region could risk losing their prominence in the global arena if efforts to achieve sustainability are derailed.
Asia Pacific ramps up efforts for the circular economy
The circular economy provides a new opportunity for innovation and integration between natural ecosystems, businesses, and waste management. This requires strong participation and contributions from all sectors of the economy, including governments, businesses, and individuals. Recognising this, many countries in the region have ramped up their sustainability efforts in recent years.
In January 2020, Indonesia released its first-ever sustainable development plan, emphasising greenhouse gas emissions. Singapore launched the Green Plan 2030, a nationwide movement to advance Singapore’s national agenda on sustainable development.
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Various industries in the Asia Pacific are stepping up and tackling the sustainability agenda more actively. The construction and manufacturing industry in Singapore, for instance, committed to ambitious targets in March 2021 to green the built environment sector as part of the Singapore Green Building Masterplan.
Generating more opportunities in the future of work
Adopting circular economy principles could benefit the future of work by generating increased economic value. In Asia, it is estimated that a circular approach to India’s manufacturing systems will create a US$624 billion annual value in 2050, an amount equivalent to 30% of the country’s current GDP. This will also reduce greenhouse gas emissions by 44% in 2050 compared with the current development plan.
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A boom in the jobs market is also to be expected. With changes in energy production, including the generation of renewable energy, greater efficiency, adoption of electric vehicles and increasing efficiency in buildings, a net gain of 18 million jobs could be created throughout the world economy, including 4 million in manufacturing and 9 million in renewables and construction, according to the International Labour Organisation.
How industries can succeed in the circular economy
For the construction and manufacturing industries, success is within reach if they are willing to invest in climate action. Here are five ways companies can benefit in the circular economy:
Firstly, industries need to improve their approach to design. For sustainable concepts like disassembly or recyclability to work, they need to be integrated at the beginning of the product development cycle. Industries have to proactively employ sustainable design strategies so that their products can be upcycled and repaired more easily while being more durable.
In Bangalore, electric vehicle producer Greendzine used design modularity to create low-speed electric vehicles in just 90 days. To maximise resource allocation and cost-effectiveness, Greendzine uses the same 48-volt design to build all their three product designs – the Quark, the Irrway and the MOPtro.
Secondly, industries need to tap on technology to transform their design approach. Adopting technologies such as Building Information Modelling (BIM), Digital Twin, and Generative Design empower industries to shape the future of sustainable design.
BIM can minimise material wastage, save costs and optimise resources, while Digital Twin can boost predictive capabilities, improve building efficiency and spur innovation. With generative design, designers can produce designs that reduce materials used and waste produced.
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For instance, Airbus is working with Autodesk to help advance its vision of air travel by applying generative design and 3D printing. The collaboration resulted in a lighter aircraft with an airplane partition design that can save up to 3,180kg of fuel per year per partition.
Thirdly, make upskilling and reskilling a priority. As the circular economy gains momentum, systemic shifts in the way we do business will impact the workforce. To ensure a smooth transition and build resiliency, workers should be armed with the right skillsets to stay adaptable while being equipped to seize new market opportunities that emerge.
Next, improve the choice of materials. A circular economy depends on selecting better materials, such as recycled material. Generative design enables industries to explore recyclable materials for their designs and help gauge how these materials impact product performances.
Finally, make the most of global partnerships and government initiatives. The World Economic Forum is leading value chain action partnerships across plastics, electronics, batteries, automobiles, and fashion to advance circular economic models. In Singapore, the public sector has extended incentive schemes such as the Energy Efficiency Fund and Resource Efficiency Grant for Energy to support Singapore companies in sustainable development.
We must act swiftly. What’s good for the environment can also be a boon to business. As the circular economy continues to shape the future of work, industries that embrace sustainable development will benefit from cost reductions in both design and production, meaning fewer materials are needed and companies can benefit from a simplified supply chain with fewer spare parts in inventory.
With 10 billion people soon to be living on the planet with finite resources that can stretch only so far, designing for a circular economy is the only way forward.
Haresh Khoobchandani is the vice president for APAC at Autodesk.
Photo: Autodesk
