Circular Economy in Project Management

In recent years sustainability and waste reduction have been some of the main focuses in manufacturing industries. This is due to the need of decreasing current environmental impacts and securing minimal future impacts. In terms, project management is being considered sustainable if it achieves long-terms benefits [1]. This can be problematic for large-scale companies, as they are more difficult to change structurally. However, the long-term benefits can be achieved using Circular Economy. Circular Economy is a method used to mitigate the environmental impacts by using materials much more efficient [2].

Circular Economy is a tool that works alongside the corporate strategy and business development, which is used in project and portfolio management to reduce waste by introducing new methods of reusing, refurbishing, repairing, recycling, leasing, and sharing existing resources that prolongs the products life cycle. This gives the company opportunities to reinvent their products so that they can create circular systems that makes it possible for already sold products to be part of a new product. For that reason, Circular Economy should be a crucial part of portfolio management both in regard to the design and planning of new products, but also in the assessment of existing products.

Implementing Circular Economy may both reduce waste, but also improve finance, as fewer raw materials may be needed. This benefit is ideal for competitiveness and securing more reliable sources of acquiring raw material needed for new products.