Plenty of untapped potential for the Swiss circular economy
The circular economy in Switzerland has great potential: this is shown by the data from the first representative BFH/KOF study of Swiss companies. Switzerland, as a location for innovation with a well-educated workforce and high quality standards, is well placed to make better use of the opportunities offered by the circular economy in the future.
The study published today is based on a representative survey conducted jointly by the KOF and external page Bern University of Applied Sciences (BFH, Department of Economics). The status report on the Swiss circular economy, which is based on this data, was prepared with the support of external page Circular Economy Switzerland and the external page Federal Office for the Environment (FOEN).
Only 10 per cent of Swiss companies today conduct substantial activities in the field of the circular economy and generate a significant proportion of their revenue from it. Many firms have not undertaken any circular economy activities in the last three years or have only done so to increase efficiency. Efficiency-enhancing measures are an important first step. However, more is needed for a functioning circular economy. What is required is activities that close the loop (e.g. renting instead of buying, reprocessing of products) and extend the life of products (e.g. reparability, product upgrades). As the study published today shows, such activities are currently hardly being undertaken.
The study also describes the companies that are active in the circular economy and the obstacles that currently prevent firms from conducting these activities. Based on this, conclusions are drawn about how the transformation to a circular economy could be stimulated. This confirms that the circular economy is an innovation challenge. However, there is currently a lack of opportunities and expertise to adapt existing products and services to a circular economy. Small firms in particular often struggle to overcome these hurdles on their own. What is needed, therefore, is an attractive economic policy framework, especially given that companies are integrated into networks of suppliers and customers and thus need cross-company initiatives in order to make progress during the transformation process.
However, the initial conditions for accelerating the transformation to a circular economy in Switzerland in the future are encouraging. As one of the most innovative countries in the world, Switzerland has comparative advantages during the transformation process, enabling it to gain a lasting competitive edge. In addition, there are already lighthouse projects in many sectors, demonstrating that a successful transformation is certainly possible.
The subject of the circular economy is highly topical internationally: at COP 26 in Glasgow the circular economy was discussed as an integral part of the solution to combatting climate change and achieving the goals set out in the Paris Agreement. Moreover, the circular economy offers opportunities for new, innovative business models, conserves resources and strengthens regional value creation. The circular economy therefore promises great potential – especially for Switzerland, with its limited supply of resources. The parliamentary initiative entitled ‘Strengthening the Swiss Circular Economy’ is intended to create new framework conditions for a modern, environmentally friendly circular economy in Switzerland. It has been adopted by the Commission for the Environment, Spatial Planning and Energy and is in the consultation phase until 16 February 2022.
Study methodology
In 2020 the approximately 8,000 firms in the KOF Business Panel, which is representative of Switzer-land, were surveyed in writing based on a specially devised concept for mapping the circular economy at company level. The extent to which these firms achieved measurable changes during the period from 2017 to 2019 was surveyed with respect to 27 specific activities in the area of the circular economy. The data collected allows comparisons to be made between industries, regions and firms of different sizes and thus presents a representative and nuanced picture of the spread of circular activities at companies in Switzerland for the first time.
Contact
KOF Konjunkturforschungsstelle
Leonhardstrasse 21
8092
Zürich
Switzerland