Performance-based economy is an economic model that combines business performance management with the adoption of circular practices.
The main objective is to maximize the economic and environmental value generated by business activities, reducing waste and promoting the recovery and reuse of resources.
Performance-based economy includes several practices, including:
- Circular design: the design of products and services designed to be reused, repaired or recycled at the end of their life cycle.
- Circular economy: the adoption of production processes that involve the recovery and reuse of resources, through the recycling, reuse and restoration of materials and components.
- Circular services: the offer of services that allow you to use products in a shared way, through sharing, rental or the leasing.
The performance economy can be an opportunity for companies to improve their sustainability, generating economic and environmental value.
However, it is necessary that the practices adopted are actually circular and not just a greenwashing, and that they are supported by appropriate policies and regulations at national and international level.