Circular Economy business principles

This business model focuses on designing products and services that minimise waste and maximise resource efficiency. Businesses produce goods that can be reused, remanufactured, or recycled, thus keeping resources in circulation longer. For example, when a building structure made from hempcrete is demolished, the material can be broken down and mixed with new hempcrete to be reintroduced in the new building material or returned to the earth. Using such material reduces the carbon footprint of construction. Hemp has all the prerequisites for promoting circularity. It's just important to ensure that all parts in the whole value chain are (re-)used so the businesses can minimise waste while generating multiple revenue streams. Even the hemp byproducts, which still does not find the right purpose, can be composted to create nutrient-rich soil amendments. This practice returns nutrients to the soil and supports future cultivation, thus closing the loop on nutrient cycling in agriculture. Brands can also implement take-back programs where consumers return used hemp products for recycling or repurposing. This encourages proper disposal.

Another circular approach is applied by US company Hempwood (HempWood, n.d.), which turns hemp stems by pressing it with soya glue into plywood material. They use the low-quality hemp stem bales (containing mould or weed) for heating which is needed in the production process. The ash from biomass is returned to the farmers to be applied back to the fields.