Circular Economy

Rather than solid wood, a lot of furniture also utilizes chipboard, which is made of chopped up pieces of wood sealed together with glues that contain toxic chemicals and is often laminated with plastic. Some older pieces of furniture also contain chemicals that are hazardous for health, like flame retardants. These materials are not only almost impossible to recycle, but also difficult and expensive to dispose of safely. Utilizing sustainable materials that do not contain toxic chemicals and are made of recycled materials can make the integration of circular practices more attainable, especially for companies who are already pledging to integrate sustainability into their business operations.  Efforts are being made to reduce furniture waste by using the principles of the circular economy. Ikea, for example, has pledged to vastly reduce its footprint and become a circular business by 2030. As part of this initiative, the company is testing a buyback scheme where furniture still in good condition will be resold, and broken or worn-out pieces will be recycled into new Ikea products.

A survey was conducted in two Italian manufacturing industries in which environmental issues are becoming increasingly important, namely textiles and upholstered furniture. A questionnaire was sent to 700 firms, and 102 usable questionnaires were returned. Results show that companies engage in developing external integrative capabilities through the creation of collaborative networks with actors along the supply chain, the acquisition of technical know-how, and the creation of external knowledge links with actors outside the supply chain (Dangelico,2013).  External knowledge plays a key role in the integration of environmental sustainability issues into the manufacturing process. Capabilities such as the acquisition of technical know-how and the creation of collaborative networks prove to be more important for integrating environmental issues into product design. The integration of environmental sustainability issues into product design leads to the creation of new opportunities for firms, such as opening new markets, technologies, and product arenas, though not necessarily leading to improved financial performance of the NPD programs. 

The circular economy rests on three principles: 

1.  Preserve and enhance natural resources by selecting materials wisely and choosing technologies and processes that use renewable or better-performing resources. 

2. Design for remanufacturing, refurbishing, and recycling to keep components and materials circulating in and contributing to the economy.

3.  Foster systems that design out negative external impacts such as reducing impacts on workers, and managing pollution, release of toxic substances, and climate change. 

Circularity and sustainable practice aren’t just about saving the planet. Studies and real-world examples have proven repeatedly that failing to integrate circular systems will have dire implications for business. Disengaged workforces, missed savings from inefficiencies, penalties for failing to comply with carbon offset initiatives, and lost market share to forward-thinking competitors designing products for sustainability-conscious consumers, are just a few of the devastating realities for businesses ignoring the shift. By applying the principles of a circular economy through integrating materials that utilize less polluting materials and applying systems that will improve on the life cycle of furniture products, manufacturers can apply systems that will not only save them money but also generate more business for them. Reupholstery, repairs and buy back systems are ways that manufacturers can make more money throughout the life-cycle and guarantee that their products do not end up in landfills and polluting the environment.