Dive Deeper

In our continued journey through the world of impact investing and the circular economy, we've encountered new challenges and insights that have further enriched our understanding of this dynamic landscape. Building upon our previous reflections, we are excited to share our progress and learning as we delve deeper into our impact measurement consulting project. 

The Essence of Problem Definition

As consultants, our role is not just to prescribe solutions, but to truly understand the problems our clients face. While it's easy to jump to conclusions and offer quick fixes, we've come to appreciate the importance of thorough problem definition. The first and most crucial step is to stand in our client's shoes and gain a comprehensive grasp of the issue at hand. We must resist the urge to assume we know the answers and, instead, seek to understand the root causes. We need to also remind ourselves, that it is never too late to ask on this matter to the client. 

This has reinforced the importance of maintaining objectivity. As outsiders, we bring fresh perspectives, unburdened by internal biases or emotions that can cloud judgment. This detachment allows us to identify problems that the client may not even realize exist or issues that are too sensitive to discuss internally. 

The Needs for Deep Interviews

One of the most valuable tools in our problem-solving toolkit has been the deep interview. It's a careful balance between gaining insights and not alienating stakeholders. Too aggressive, and we risk losing their cooperation; too superficial, and we may not get the necessary information.

To navigate this challenge, we've learned the importance of understanding the interests and disinterests of the stakeholders. This helps us walk the fine line between probing too deeply and not deeply enough. We must always remember that the stakeholders will continue to be involved with the client even after our consulting project concludes. Building a positive and cooperative relationship is key.

Another approach to problem understanding is to explore business models in other regions or industries. By assessing governance and market landscapes in the circular economy, particularly in the reuse business model, we can draw valuable comparisons and insights.

Regulatory Analysis on Circular Economy

Our analysis of the circular economy market in the United States has revealed some interesting disparities when compared to the European Union. While the EU has a more advanced framework in place to promote circular economy business models, the US lacks a comprehensive action plan and direct incentives for the private sector to embrace circular practices.

The current regulations in the US, especially in the context of electronic waste, are relatively limited and do not exert sufficient pressure on producers to adopt circular economy principles. Our findings underscore the need for more robust regulatory support to drive circular economy initiatives.

Furthermore, we've discovered that seemingly unrelated regulations might also play a significant role, if we creative enough. Take, for example, the emissions regulations in New York City. While they may not seem directly related to the circular economy, a closer look reveals the potential to be an incentive. By implementing circular economy practices within buildings premises, businesses can offset emissions and contribute to the policy. This might create relevant business idea that fall into the realm of circular economy.

The Road Ahead

As we continue to unravel the complexities of impact measurement in the circular economy, we anticipate more insights particularly in adopting the framework to circular economy and applying it to real business case. We look forward to sharing more insights and reflections as we move forward in our exploration of the world of impact investing.