Moa Vesterlund
Charlotta Höykinpuro
Emilia Öfverström
Rita Hänninen
Hanken School of Economics
Martin Fougere
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Ethica’s innovation lies in its focus on regenerative circular economy solutions, aimed at reducing resource depletion and waste. By implementing holistic, closed-loop systems across various industries, Ethica fosters sustainable practices that not only restore resources but also create long-term environmental resilience.
Ethica directly supports companies in tracking and improving their Environmental, Social, and Governance (ESG) efforts, which align with several of the UN's Sustainable Development Goals (SDGs). The key SDGs are goal 8 Decent Work and Economic Growth, goal 12 Responsible Consumption and Production, and goal 13 Climate Action.
The company specializes in advancing regenerative circular economy through innovative consulting services and strategic projects. Systemic change lies as the main focus, and Ethica helps corporations, cities and governments to transition from a linear “take-make-waste” model to a circular regenerative model. The regenerative circular economy strives to shift from processes that harm the environment to practices that support ecosystems and restore the natural capital. At its core, the circular economy focuses on closing the loop in production and consumption processes. Paula Fontell described this as a holistic method which integrates sustainable design, circular business models and policies to ensure resource efficiency, waste reduction and reuse of materials. To assist in this transition, Ethica uses a range of frameworks, such as the SDGs and the planetary boundaries to help guide clients and identify opportunities.
In order for Ethica’s clients to implement circular economy practices and closed loop systems, they often need to develop new innovations and technological processes. Hence, the specific innovations are client-dependent and vary based on the industry and the circular challenge the client is addressing. For instance, cases that Ethica has been working with included, circular construction guidelines, textile recycling technologies and development and identification of circular products and materials. This highlights the importance of tailored solutions and innovations, which addresses the needs of each client.
The idea for Ethica’s innovation was sparked by the urgent need for circular economy solutions. The founders observed that while the world was becoming more aware of waste and climate change issues, there was a startling lack of focus on resource depletion. As Fontell put it, “I'm still a bit puzzled by how little it actually is discussed in the media... we are very soon running out of many very essential resources that we use on a daily basis. Some of them only last for the next 10 or 20 years.” This realization highlighted the critical need for businesses to embrace circular systems to secure future resources.
Ethica’s innovation also stemmed from a deep understanding that collaboration across the entire value chain was essential to making a meaningful impact. The founder reflected on this during their pilot project in Finland, saying, “In order to really make the change happen, you need those collaboration partners. Everybody needs to be involved... from the post-consumer textile waste take-back to industrial processing, manufacturing, and retail.” This demonstrated the importance of bringing together stakeholders to create a closed-loop system that could function on a large scale.
Ethica as a consultancy drives sustainable impact through their clients by supporting them in transitioning towards circular solutions and practices. Ethica impacts the business ecosystem of its clients by aligning their products or services with circular practices. This involves identifying their strengths and opportunities to develop circular business models and set strategic goals. The impact also affects the supply chain, customers, and stakeholders, including the environment and society. In the short term, Ethica helps companies take their first step towards the circular transition, focusing on implementation. The short term impact supports the development of long term impacts, such as shifting to regenerative business models and a circular economy. This improves the circularity of the client while reducing the carbon footprint and waste through resource efficient practices.
One example of Ethica’s impact is the collaboration with VVT on the Reloop Fashion Initiative. This project focused on creating a closed loop circular textile ecosystem in Finland to optimize manufacturing processes. The impact of this project is seen through reduced emissions and water usage, increased recycling, and minimizing the use of virgin materials. Furthermore, it helps promote sustainable consumption in the textile industry. Ethica’s overall impact comes through their clients by implementing circular strategies that will improve sustainable practices and increase awareness.
In today’s complex business landscape companies are overall required to focus on sustainability and implement it in their core strategy. Ethica’s long experience and expertise in the sustainability area combined with its innovative approach helps both companies and public organizations to execute sustainable practices. Ethica guides and inspires these organizations by providing practical tools and methods which allows sustainability to play a core role in their business strategies. This involves determining and evaluating for example materials and how products can be recycled.
The life cycle approach is the key in their innovative activities. In practice, this means that Ethica advocates companies to take the whole value chain into account and simultaneously enhance their revenues. Ethica introduces new ideas for products for their clients by examining and developing each stage of it. This approach has long-term effects on the business in terms of opening and entering new markets to name a few benefits.To further illustrate the benefits, the success of Finland’s Circular Design Program project is a perfect example for showing the benefits of a sustainable strategy. Projects and initiatives like this gain further positive visibility and trustworthiness for Ethica as a consultancy, which is always beneficial for the business as it fosters a trust among clients and stakeholders. This and other successful projects lead to a positive reputation that in turn contributes to an overall growth of the business.
Ethica’s determination to build a regenerative circular economy has a big impact on society and the environment. On a societal level, the long-term goal is to help move industries from a linear to a circular economy. The founder highlights the importance of this shift, saying, “We cannot tackle climate change without a circular economy, and we run out of resources without it... It’s a societal issue—what kind of planet and environment do we want for people?.” Ethica envisions a future where circularity helps preserve the environment, reduce waste, and maintain a livable planet for future generations.
Furthermore, Ethica thinks about the circular economy in a holistic way. The founder sums that up in a powerful way saying, “Since we added the word regenerative circular economy, regenerative means that we do not only restore nature’s capability, but we create a system where nature is able to flourish, and all the living beings are able to flourish. Living beings also meaning people.” In other words, the benefits are not just for the planet but also for all living beings, including mankind.
Ethica has also developed Finlands Circular Design Programme and the Nordic Circular Design Programme together with other Nordic countries, which highlights their societal impact also on a national level. One of the missions of the company is to inspire others to join the movement, which creates a ripple effect that enhances sustainable change by collaboratively making efforts for a better tomorrow. Ethica is committed to benefit both the society and the environment in an extensive way.Get stories of positive business innovations from around the world delivered right to your inbox.
Ethica is a sustainability consulting firm that specializes in advancing the regenerative circular economy. It provides strategic guidance to corporations, helping them transition to a circular, regenerative system. Their services focus on sustainable design, circular business models, and policies, serving clients committed to long-term environmental impact.