3-17. The Integration of Circular Economy and EHS Strategy

The circular economy is an economic system that moves away from the traditional "take-make-dispose" model and aims to circulate resources as much as possible. By integrating it with EHS (Environment, Health, and Safety) strategies, companies can achieve sustainable management that goes beyond mere legal compliance. This is because waste reduction, resource efficiency, and recycling are all closely linked to EHS activities, requiring an integrated approach.

1. The Core Principles of Circularity and Their Connection to EHS

The circular economy's foundational principles include the 3Rs: Reduce, Reuse, and Recycle, along with concepts like Repair and Refurbish. These principles directly align with compliance with EHS-related laws and regulations, such as waste disposal laws and energy conservation acts. EHS initiatives that focus on reducing environmental impact share a strong synergy with the circular concept of resource circulation.

2. Strengthening Waste Management and Resource Circulation

Waste management, a core part of EHS strategy, is directly linked to realizing a circular economy. In addition to properly treating waste under the responsibility of the waste producer, it is crucial to establish systems that can re-circulate reusable components and by-products. For example, metal scraps and plastics from manufacturing sites can be turned into new product materials through collaboration with recyclers.

3. EHS Strategy from a Product Lifecycle Perspective

"Ecodesign," which involves considering the reduction of hazardous substances and ease of recycling during the product design phase, aligns with EHS's chemical substance management and compliance with directives like RoHS. Furthermore, by implementing a Life Cycle Assessment (LCA), companies can quantitatively evaluate the environmental impact from manufacturing to disposal and integrate these findings into their EHS improvement plans.

4. Supply Chain-Wide Initiatives

Achieving a circular economy requires not only a single company's efforts but also cooperation across the entire supply chain. By conducting EHS audits of suppliers and sharing standards for resource circulation and waste reduction, a sustainable ecosystem that includes business partners can be built. This also enhances a company's reputation among investors and consumers, boosting brand value.

5. The Significance of Strategic Integration

Integrating the circular economy with EHS goes beyond regulatory compliance and risk reduction—it also leads to the creation of new business opportunities. For example, models for collecting and reselling used products or developing new goods using recycled resources can achieve both profitability and environmental value. With growing attention from ESG investors, the fusion of circularity and EHS is a management strategy that establishes a competitive advantage.

Conclusion

Integrating the circular economy and EHS strategies is a crucial management challenge that goes beyond environmental compliance and accident prevention. It enables companies to achieve both resource circulation and sustainable growth. By promoting waste reduction and resource efficiency, and strengthening EHS management, businesses can enhance their competitiveness while contributing to a sustainable society.