{"id":45592,"date":"2021-04-09T21:00:00","date_gmt":"2021-04-10T04:00:00","guid":{"rendered":"https:\/\/www.rei.com\/blog\/?p=45592"},"modified":"2022-04-04T15:03:22","modified_gmt":"2022-04-04T22:03:22","slug":"what-is-the-circular-economy","status":"publish","type":"post","link":"https:\/\/www.rei.com\/blog\/stewardship\/what-is-the-circular-economy","title":{"rendered":"What is the Circular Economy?"},"content":{"rendered":"\n

As a co-op, we\u2019re a different kind of company. We put purpose before profits and act with the long-term interests of our members in mind. Being a co-op also means we act transparently. That\u2019s why we publish our annual <\/em>Impact Report<\/em><\/a>. It\u2019s our way to show what we did in the previous year to get more people outside, operate more sustainably, and protect and create access to our outdoor places\u2014none of which we could have done without you.<\/em><\/p>\n\n\n\n

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Editor\u2019s note: This article was originally published on April 8, 2019. It was updated on April 9, 2021, with new information about REI\u2019s Used Gear and Rentals businesses.<\/em><\/p>\n\n\n\n

Imagine a world where you could walk into a gear store and, instead of buying a tent, you could rent one for whatever kind of camping or backpacking you planned to do. If your tent developed a hole, you could bring it back to the company for repairs or an upgrade. And, after years and years of adventures, when the tent was no longer usable, a company could recycle it into a new product. Today, many organizations are working to make this world a reality by contributing to the development of the circular economy.<\/p>\n\n\n\n

Most products take a one-way trip from the Earth to the landfill\u2014what experts call a linear economy. The EPA estimates<\/a> that in 2018, the U.S. generated 17 million tons of textiles, about 5.8% of total municipal solid waste that year. But some companies are adopting the circular economy, by making products that last longer, for example, and\/or recycling products at their end of their lifetime.<\/p>\n\n\n\n

This concept can\u2019t be traced back to one single date or person. It\u2019s been gaining momentum since the late 1970s<\/a> through the work of academics, thought leaders and businesses, picking up even more steam following the 2002 publication of the book Cradle to Cradle<\/em><\/a>, a manifesto for the circular economy. Here\u2019s a deeper look at the circular economy and why REI is investing in it.<\/p>\n\n\n\n

The Circular Economy Defined<\/strong><\/h2>\n\n\n\n

Most traditional businesses that create and sell products use linear economic models that take, make, use and dispose of materials. The circular economy is a model that disrupts that process by extending the life cycle of products, increasing efficiency in how we use finite resources\u2014such as petroleum-based materials\u2014and promoting the recycling of products at the end of their life.<\/p>\n\n\n\n

\u201cOur goal is to transition from a linear take-make-waste economy to a regenerative economy,\u201d said Kate Daly, Managing Director of the Center for the Circular Economy<\/a> at Closed Loop Partners<\/a>, an investment firm and innovation center focused on building the circular economy. \u201cOur current economic system is very leaky. A circular economy keeps valuable materials in play, recapturing rather than wasting resources and bringing benefits to businesses, people and the planet.\u201d<\/p>\n\n\n\n

According to the Ellen Macarthur Foundation<\/a>, one of the leading organizations promoting these efforts, the circular economy focuses on three things: keeping products and materials in use, designing products in a way that reduces waste and pollution,<\/ins> and prioritizing the use of renewable and recyclable materials.<\/p>\n\n\n\n

This way of doing business is beginning to influence the outdoor industry. REI believes the circular economy is a promising model that can help reduce waste and increase efficiency in how we use our planet\u2019s resources. \u201cWe live in a world of finite resources,\u201d said Gregory Gausewitz, manager of product sustainability at REI. \u201cWe\u2019re a growing population. We\u2019re becoming increasingly aware of the impacts of our consumption. The ultimate goal of a circular economy is decoupling economic growth from resource consumption. How do we continue to attain a higher standard of living without continuing to deplete the planet?\u201d<\/p>\n\n\n\n

REI\u2019s Role<\/strong><\/h2>\n\n\n\n

One way the co-op is embracing the circular economy is by implementing programs that extend the life cycle of the products we make and sell. The thinking is that if we can keep outdoor gear and clothing in use for longer, we\u2019ll get the most out of the Earth\u2019s resources that we\u2019ve already made into stuff.<\/p>\n\n\n\n

But just how exactly<\/em> is REI doing this? By selling Used Gear<\/a> and Rentals<\/a>. In creating solutions to allow people the option to buy used gear or rent gear they might not take into the wilderness that often, the co-op is hoping to help reduce the environmental and economic impact of outfitting.<\/p>\n\n\n\n

And because used and rented gear is often cheaper, it also lowers the barrier to getting outside. More than half the people who purchased used gear at REI in 2019 were buying an item for a new-to-them activity at the co-op, said Laura Kelley, manager of recommerce at REI.<\/p>\n\n\n\n

\u201cWe think our rentals and recommerce offerings provide access to gear for people who may not want to pay full price,\u201d said Ken Voeller, director of circular commerce and new business development at REI. \u201cOur circular commerce-oriented offerings serve as a way to get more people introduced into the outdoors simply by lowering the price point to entry.\u201d<\/p>\n\n\n\n

Used Gear<\/strong><\/h3>\n\n\n\n

You can buy used gear from REI stores and online through the Used Gear program<\/a>. The online Used Gear program works like this: The co-op, in partnership with Trove<\/a>, inspects gently used items that have been returned and selects the best. Then, Trove helps the co-op put the items up for sale, allowing you to buy used gear at an affordable price and take it on a whole new set of adventures. By extending the life cycle of the products it sells, REI\u2019s Used Gear program helps keep gear out of landfills and makes investing in gear more accessible.<\/p>\n\n\n\n

According to a 2019 report from McKinsey & Company<\/a>, the average person buys 60% more items of clothing than they did more than 15 years ago, and they keep that clothing for half as long. The good news: younger generations are becoming more interested in buying sustainable clothing.<\/p>\n\n\n\n

So perhaps it\u2019s no surprise that circular commerce\u2014be it rented or used gear, or new items made with recycled materials\u2014is gaining more and more traction in the retail industry. And REI is leading the way in the outdoor retail space, Voeller said.<\/p>\n\n\n\n

\u201cIt’s been part of the broader conversation really for the last few years,\u201d he said. \u201cBut certainly this past year, 2020, we really saw the circularity conversation accelerate, largely because of how closely tied it is to the conversation around climate change. We kind of view our circular commerce-oriented businesses as one of the many things REI will continue to invest in to hit our 2030 climate objectives<\/a>.\u201d<\/p>\n\n\n\n

That\u2019s because not only is buying used stuff easier on people\u2019s budgets\u2014it’s easier on the planet. On average, selling a used piece of gear emits at least 50% less carbon than selling a new item, even when you consider shipping, cleaning and remerchandising.<\/p>\n\n\n\n

To extend the lifespan of its gear and apparel, REI also launched a member trade-in program<\/a> in October 2020. This allows co-op members to swap their gently used items for an REI gift card, which can be used to purchase both new and second-hand products. There are some restrictions on what can be traded in (for instance, it can\u2019t be broken or older than 6 years), but an online registry<\/a> makes it easy to check which items qualify. REI then sends the appropriate packaging to the customer, so they can ship the items hassle-free. The co-op also opened two pop-up stores in 2020 that sell only used gear. One goal is to test whether it makes sense to open additional stores that sell only secondhand items in the future.<\/p>\n\n\n\n

It\u2019s not just sustainability REI has in mind with these programs. There\u2019s also a business case, with more and more customers seeking planet-friendly options. \u201cThere\u2019s a lot out there that suggests that younger and more diverse shoppers are more concerned about shopping within their values,\u201d Kelley said. \u201cThis would include things like sustainability and being more conscientious about how they spend their money.\u201d<\/p>\n\n\n\n

Rentals<\/strong><\/h3>\n\n\n\n

REI\u2019s rentals program<\/a> is another way the co-op is seeking to extend the life cycle of its products. Most people are familiar with the way rentals work: By renting outdoor equipment, you can test gear without having to make a big investment. It\u2019s a great way to try a new activity without breaking the bank. REI rentals are handpicked by experts; you can rent car racks in addition to gear for camping and hiking, climbing, cycling, paddling and snow. The rental program was especially important in 2020, when people turned to new outdoor activities as a way to find solace during the global pandemic.<\/p>\n\n\n\n

\u201cIn a year where we saw participation really explode in the outdoors, REI was there to help customers get outside,\u201d Voeller said. \u201cThat allowed some of these newbies to get outside in a super easy and approachable manner.\u201d <\/p>\n\n\n\n

What You Can Do<\/strong><\/h3>\n\n\n\n

For the circular economy to work, we all need to be involved, Gausewitz said. But it\u2019s not as hard as it sounds. Here are a few things we all can do:<\/p>\n\n\n\n