Women-led micro, small and medium enterprises (WMSMEs), which make up 60% of businesses, show a low level of awareness about the circular economy (CE) and how it can help their business grow. This underlines the need to increase mainstreaming of CE principles into this sector to achieve the government’s vision of sustainable trade, according to a new study.
This policy note issued by the Philippine Institute for Development Studies (PIDS) published the results of a survey conducted among 58 WMSMEs in Metro Manila on their awareness of CE principles and their level of CE adoption. It found that only 8.6% had a clear understanding of CE while 91.4% said they had never heard of it, did not fully understand it, or only had a basic understanding of it.
“WMSMEs in Metro Manila have a low level of awareness about CE principles. This translates to a low level of circularity in their strategy and vision, business model, post-sales services, resource recovery, waste management, resource consumption, and ecodesign,” said the report.
The circular economy is a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible in order to extend their life cycle.
Adoption of CE principles is important since the Philippines produces a staggering 61,000 million metric tons of waste daily, 24% of which is plastic waste, said study authors Jovito Jose Katigbak and Jemimah Joanne Villaruel.
“However, the country recycles only 28 percent and discards 800,000 metric tons of plastic waste annually. Businesses generate 163 million plastic sachet packets, 48 million shopping bags, and 45 million thin-film bags every day. A significant portion of these are disposed of in landfills and dumpsites (33%) or leaked into open environments and oceans (35%),” they said.
Asked about the primary obstacles to CE adoption, WMSMEs cited a lack of knowledge and awareness, limited financial resources, lack of government support and policies, lack of access to relevant networks and partnerships, and resistance to change.
On their awareness of government initiatives and policies, 65.5% were unaware of state-led programs, while only one enterprise was aware of specific government initiatives. Consequently, 43.1% shared that they did not receive any government support.
Asked about the importance of CE adoption for the sustainability and success of their businesses, 44.8% affirmed that it was vital, but other priorities may take precedence.
Moreover, 31% identified CE uptake as somewhat important but not a high priority. Only 13.8% admitted that it was extremely important and should be a top priority for business strategy, while 10.3% claimed that CE was not important.
Results were similarly discouraging in the area of resource recovery, the researchers observed. Specifically, 92.3% of respondents directly disposed of their liquid waste, 90.4% discarded their gaseous waste, and 75.8% disposed of their solid waste.
“This signifies that the majority of the firms still utilize a linear approach,” said the report.
The findings can help policymakers craft measures and policies that will advance CE and, ultimately, sustainable trade and economic growth in the country, the authors said.
The policy note recommends that the Department of Environment and Natural Resources and the Department of Trade and Industry focus on education campaigns and advocacies that will raise awareness of CE principles.
“They can build on extant programs such as the National Ecolabelling Programme-Green Choice Philippines, Kalikasan Green Productivity, Green Purchasing Towards Green Philippines, Philippine Green Pages, and Sustainable Diner Project. They can also link with the Mother Earth Foundation to expand CE-related trainings for WMSMEs across various sectors,” the report said.
The Philippine Trade Training Center, meanwhile, can develop courses and modules on CE for WMSMEs to familiarize them with the concept and effectively streamline it into their strategies, business models, and waste management.
In addition, the government can provide incentives and business support schemes to WMSMEs to address limited financial resources, concerns regarding low-cost savings, and the traditional mindset that withholds them from adopting CE principles.
The government can also use digital technologies and social media platforms to promote CE to the public, MSMEs, and the informal sector.
The study also urged the government to prioritize the formulation and implementation of a national framework on CE to harmonize existing dispersed initiatives and programs.
Source: PHILEXPORT News and Features
March 19, 2024
