July 15: Let's Talk About Scope 3: How It Works, and How to Make it Work For You
Closing the Loop
"GreenGears Inc. implemented a "closing the loop" initiative by taking back used products, breaking them down, and reusing the materials in new production cycles. This approach not only reduced waste but also ensured that resources remained in continuous use, creating a fully sustainable and circular supply chain."
Definition
In the context of the circular economy, closing the loop refers to the practice of ensuring that materials and products are reused, recycled, or repurposed at the end of their lifecycle, rather than being discarded as waste. "The loop" represents the continuous cycle of resources within the economy, where products and materials are kept in circulation for as long as possible. When a company says they are "closing the loop," they mean they are implementing strategies to reclaim, recycle, or repurpose materials from used products, thereby reintegrating them into the production process. This approach helps reduce waste, conserve natural resources, and minimize environmental impact.
Related terms
