In the context of EU regulations, companies are obligated to implement circular economy solutions. However, most companies’ knowledge on the subject is still incomplete and greatly disorganized. According to research by DB Schenker, nearly two-thirds of respondents are not even aware that their company is implementing circular economy solutions, and some are unsure about which activities fit into this concept. At the same time, over half acknowledge the benefits of implementing a circular economy and plan investments in this area. Logistic operators see a role for themselves in this process.
“Looking at the key indicator of the circular economy, Poland does not look worst against the other EU countries, but the trend in recent years is worrisome. It’s time to reverse this trend,” emphasizes Kamil Wyszkowski, Executive Director of UN Global Compact Network Poland. He adds that transitioning to a circular economy engages many stakeholder groups from the entire value chain and requires education on the needs and possibilities of implementing circular solutions.
A circular economy is an economic system that aims to eliminate waste. According to this concept, products, materials, and resources should remain in the economy as long as possible, and any waste that does occur should be treated as secondary raw materials that can be sustainably processed and reused, differentiating circular economies from the conventional linear economies.
“We identified the circular economy as a megatrend that could soon revolutionize supply chains, and so we wanted to understand this topic from the perspective of Polish companies. This includes their level of knowledge, investment motivations, and plans related to the circular economy so that we can proactively support them in such initiatives,” says Katarzyna Mejer, Coordinator of ESG Cluster North East Europe at DB Schenker. Their report shows that even though 70% of respondents had heard of a circular economy, nearly two-thirds were unaware that their own companies were implementing circular solutions.
The DB Schenker report “In the Closed Loop – Logistics for the Circular Economy from the Perspective of Polish Companies” is based on research conducted among Polish firms in cooperation with K+ Research by Insight Lab. The quantitative surveys were supplemented with detailed interviews with DB Schenker customers from the FMCG, IT, and automotive industries.
Transitioning to a circular model means investing in new technologies and recycling infrastructure, and redesigning products with longevity and ease of repair in mind. However, the respondents found it difficult to determine the time horizon of investments in the circular economy, with every fifth respondent unable to specify this. The most common plans of companies in this area came down to waste segregation (57%), employee education on the circular economy (55%) and reuse of raw materials (48%).
Additionally, the report revealed that the main barrier to implementing the circular economy among Polish companies remained high costs and lack of market standards, with about 30% of surveyed companies pointing out these factors. Companies operating not only in the domestic market but also in EU markets are the most advanced in implementing this model on a large scale.
Katarzyna Mejer points out that high costs of implementing the circular economy model are still identified as the main barrier, and the largest investments are connected with repairing, renovating, and recycling goods, as they require capital outlays for equipment and space and the development of specialized knowledge in these areas. Therefore, Polish companies, like the logistics industry, could provide services supporting the circular economy on a larger scale if clear market standards and subsidy programs or tax incentives for this purpose existed.
As she emphasizes, the logistics industry is already playing a crucial role in providing services and implementing solutions aimed at achieving circularity.
“To run a business in accordance with the principles of circular economy, it is necessary to introduce a new stage in product circulation – return logistics, which includes repair, service, recycling, and reintroducing goods into circulation. Existing projects show that this stage can be successfully managed and serviced by logistics operators, who are very well prepared for this task,” says the DB Schenker expert. “We have created and are constantly improving a range of services called Circular Economy Logistics, which includes after-sales support, transportation, return logistics, repair activities, and component and material recovery. We currently operate ten contract logistics facilities implementing closed-loop operations on all continents, including Poland.”
She also noted that 20% of returned items are recovered, for example through repair, before being sent back to the manufacturer, reducing transportation and therefore CO2 emissions. Furthermore, the return and disposal of devices take place in one place, and the company has better control over the return process thanks to tracking goods at every stage.
From the research conducted by DB Schenker, it appears that 56% of Polish companies do not know how logistics operators could help them implement circular economy principles.
“Our research clearly shows that education, experience exchange, and the creation of market standards for logistics for the circular economy, including cooperation with logistics operators, are needed. Our report aims to fill this gap and provide a compendium of knowledge on the circular economy. Therefore, we invited external experts, enriched the publication with a glossary of key concepts, and shared interesting examples of implemented solutions,” explains Katarzyna Mejer. “We are confident that such initiatives can contribute to the dissemination of knowledge about the circular economy, and consequently to the widespread application of practices in this area. Importantly, 51% of Polish respondents agree that a circular economy increases a company’s competitiveness in the market, which is a very good sign.”
The circular economy is currently one of the most important business megatrends. This is evident in many sectors. For example, FMCG companies are currently trying to reduce the amount of packaging waste by using biodegradable materials. Meanwhile, tech companies invest in recycling programs and the recovery of raw materials from used devices. Efforts are also being made in the clothing industry, with some chains already introducing used clothing collection programs in their stores, which are then processed into new products.
According to a report by DB Schenker, only between 2018-2022, the European Investment Bank allocated as many as 3.4 billion euros to co-finance 118 projects related to circular economy in various sectors, and more and more companies worldwide are setting ambitious goals in the field of circular economy and making concrete promises in this area.
