Chapter 3 — full chapter
3.4.5 Economic and Business Model Implications
Environmental and social priorities also have economic and operational implications. Circular materials, improved processes, traceability systems, repair services, reverse logistics and new recovery pathways may require upfront investment, new supplier relationships, different skills or additional infrastructure. At the same time, businesses face price pressure, low margins, uncertain demand, supply-chain volatility and changing regulatory requirements.
The relevant question is therefore not whether sustainability has a cost, but where value, cost and risk occur across the system and over time. Some interventions may increase short-term costs while reducing exposure to resource volatility, waste, compliance risk or product failure; others may require collaboration or scale before they become economically viable. For SMEs, prioritisation is therefore essential — a process explored in Section 3.6.