What does closing the loop mean? It refers to the idea that currently we take, make, waste - a linear use of material goods that is wasteful and unsustainable. To close the loop, one must design systems or programs that interconnect the processes of where things come from, how will it be used, and where is it going to after the first intended use. For example, if I make silk clothing and I want to close the loop and have a thriving business, I would consider every process of my business for the long term. I’d want to support the overall environment of the silk producers so that I ensure I have silk and I know where it’s coming from. I support the people by buying from them individually or through a buyers club, maybe even get bulk shipping rates for efficient distribution. Then as a part of my sales program could offer a percentage of sales to go to reforestation or water sanitation for the area of where my silk comes from to support the ecology and the people that live there while ensuring their practices are environmentally and socially just. This could happen through direct relationships or through program management by an NGO.
To continue my choice of using silk I’m using a material that is designed for decomposition - it will decompose to dust safely. Moreover, a buy-back or credit program that allows customers to trade in their old clothes for a new piece could enhance long-term sales and customer loyalty all while the returned silk items could be shredded or refashioned into another product.
The fact that your business is thoughtful, efficient, and proactive in strategic partnerships will attract customers that will support your work. This is a quick example of how system or program design in your business or organization closes the loop through relationships, conscious business practices, and system designs that respect for where materials come from and where they will go after typical use. Join the circular economy by having programs that close the loop!