> For the complete documentation index, see [llms.txt](https://4revs.gitbook.io/handbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://4revs.gitbook.io/handbook/chapters/daring-design/value-compass.md). # Value Compass
The circular economy is a socio-economic model that overturns the linear economic paradigm that has accompanied the development of capitalism since the Industrial Revolution. Circular economy envisions 'closing the circle,' bringing materials considered waste back into the production cycle. According to the definition given by the Ellen MacArthur Foundation, the world’s leading organization working to spread the concept, "A circular economy is based on the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems." From this definition, we can realize how design is fundamental to a product that can genuinely be considered circular. From a circular economy perspective, a design department can lead with the following starting questions: * What materials is the product composed of? * Are they durable? Renewable? Nontoxic? * Are they recyclable or recycled? * Is the product decomposable (can it be partitioned)? * Is the product reusable? Repairable? Compostable or biodegradable? * What is expected to happen when the product reaches the end of its lifecycle? * How to avoid (planned) obsolescence? The circular economy is based on three general principles related to materials: * the hierarchy of uses; * the value of use; * the extension of the life cycle. By the hierarchy of material uses, we mean the preference in selecting a particular material, in the following order: • Prevention: Can we do without it? Replace it with something else? • Reduction: Can we reduce the quantity? • Reuse: Can we reuse circulated materials, even for other purposes? • Recycling: Can we recycle this material? • Energy recovery: Can we use the material to produce energy? • Landfill: Can we send this material to the landfill if all else fails? One of the cornerstones of the circular economy is the concept of "renewable material," understood as a new way of considering materials. The circular economy teaches us that there is no throw "away", a material paradise where products rest at the end of their lifecycle, even though the linear ‘take-make-waste’ economy has led us to believe this. A material that we have considered and treated as ‘waste’ does not disappear; it accumulates, spreads in ecosystems, and alters them. For instance, every single piece of plastic ever produced still exists, except that which has been incinerated, so that now exists as particulate air, water, and soil pollution. Treating used material as waste not only costs in terms of pollution, but also results in significant environmental footprints for the production of new products. Rather than further land degradation through extraction and land-use change required for making ‘more’, our cities and homes are full of untapped material resources, from cars that we keep parked most of the time to electrical or electronic devices that spend most of their lives collecting dust (think about how many times a year you use a drill!). They contain various minerals, metals, and extremely sophisticated circuits, which are difficult to produce and obtain. Waste through unused goods must be avoided in every possible way from the perspective of a circular economy. The third principle concerns extending the life cycle. While recycling and reusing are fundamental strategies, they cannot be an excuse to produce objects indiscriminately that break easily and cannot be repaired. If we want to build products that can be defined as circular, each of the elements that make up a product must have as long a lifespan as possible, and when combined, they must function for just as long. At the same time, it should be possible to repair individual components to avoid discarding an otherwise perfectly usable object: you wouldn't hold a funeral for a person with a broken foot, would you? So why do it with objects? A circular design must address the three fundamental principles of the circular economy and provide bold answers to as many aspects as possible.
We have already partially discussed the issue of time linked to the lifespan of materials and products. In the 4Revs value compass, long-termism is represented by innovations which illustrate long-term thinking, visionary, and which prioritize long-term gains over immediate profits. So, we refer to a temporality that concerns individual products, impacts society and the environment, and relates to the kind of future we want to inhabit. Can design also have a role in this aspect? The answer is: of course, yes. Consider takeout food, a constantly growing sector in advanced capitalist economies, which especially increased during the COVID-19 pandemic when movement restrictions were in place. The underlying concept is food that is not consumed at the production site. Approaches to take-out food can take on many forms: from how the food is collected and transported to the place of consumption, who performs this task, the type of containers used for transport (what material are they made of? are they reusable, and if so, in what way?), and the type of tools used to consume the food. All of these choices suggest that strategic design is crucial in shaping a certain type of future. Suppose we choose to produce spoons or containers from virgin plastic or compostable materials. In that case, we are communicating two very different ideas about society: one where plastic is designed as single-use that immediately ends up as waste in the landfill, or another, more relational approach where the material is designed to be re-processed, generating more jobs through processing centers, and other circular opportunities in the community such as urban gardens (which require locally-accessible compost). Similarly, instead of producing disposable chopsticks, trays, and single-use cups, if we decide to produce reusable ones made of long-lasting material that can easily be reintegrated into the same supply chain or another, we are contributing to a radically different market. For instance, recovering empty or damaged products and maintaining extended responsibility for the material as a company means that a company does not need to purchase new ones. Agreements with restaurants and corporate cafeterias to supply takeaway containers and utensils, create a reduced-cycle ecosystem at the local level, and promote cooperation among local businesses, creating economic and social value. All of this leads us to the third important value in the 4Revs value compass: systems thinking.
Systems thinking is the natural consequence and bottom line of what has been said so far, as well as another crucial element for a circular economy. Daring design needs to think holistically and consider the complexity, relationships, and dependencies of the ecosystems we live in. Systems thinking incorporates questions across the board, including materials engineering, product usability, aesthetics, trends, and international geopolitics. Indeed, many products we use daily, such as computers and cell phones, contain "rare earth minerals," minerals and metals that are [distributed ](https://www.visualcapitalist.com/rare-earth-elements-where-in-the-world-are-they/)with less [prevalence](https://www.visualcapitalist.com/cp/the-periodic-table-of-endangered-elements/) across the planet.[ What if one of the countries with the largest deposits decided to stop exporting these materials?](https://edition.cnn.com/2023/09/21/economy/china-chip-material-exports-drop-intl-hnk/index.html) Or if the moral license for certain extractive industries is revoked? We live at a time when [6 of the 9 planetary boundaries](https://www.stockholmresilience.org/research/planetary-boundaries.html) for a resilient earth have already been crossed. For daring design, it is necessary to be current with how one’s product interacts with the real world. This means getting up from the drawing board and building relationships with those who can help you understand the full life cycle and impact of your product. Don’t limit your scope to discussing solely with the design and engineering team, but interact with those in the social and STEM sciences; engage with youth; create a sustainable ecosystem with other companies, greening your supply chain and processes. We must take into account the planet's biophysical limits, the current climate and ecosystem scenario, future predictions, and have a deep understanding of what is achievable and what is wishful thinking. Finally, we also need to work on imagination and utopia, to be able to dream ideas that when made feasible through design, contribute to shaping the society we desire.