The implementation of circular practices not only reflects an ethical commitment, but can open up new business opportunities, promote continuous innovation and build a more solid foundation for a sustainable future.
The adoption of circular economy approaches, incorporated into a clear and coherent business strategy, guarantees a series of advantages:

• Reduction of operating costs Allows companies to optimize the use of resources, reducing operating costs related to the procurement and management of materials;
• Greater energy efficiency Promotes the adoption of more efficient processes and practices, cutting costs related to energy consumption and making the company's business more sustainable
• New market opportunities Allows you to focus on specific market segments, intercepting the sensitivity of consumers who are increasingly oriented towards sustainable products and services;
• Mitigation of environmental and legal risks Pushes companies to comply more stringently with environmental regulations, ensuring regulatory compliance and reducing the risk of potential sanctions;
• Enhancement of brand reputation Improves the perception of the brand on the market, both online and offline, generating greater trust and more loyalty, over medium-long term periods of time.

Knowing what is meant by circular economy and what are the most effective practices in the medium-long term, and then proceeding with concrete actions, means finding a balance between Environmental, Social and Governance (ESG) aspects.
It should not be forgotten, however, that the transition is complex and requires professional experience and specialist skills, as well as a multidisciplinary approach.
Eidos, with its consolidated experience and its team of professionals, manages to:

• Provide a set of specialist skills that may be lacking internally within the company, such as those relating to eco-design, waste management, logistics and the development of circular business models;< /li>
• Conduct product life cycle analysis , identifying improvement opportunities and proposing targeted solutions in line with business needs and available resources;
• Carry out detailed financial analyzes to evaluate the economic impact of circular transitions , identifying market risks and opportunities and building strategies to mitigate any financial risks;
• Support companies in representing virtuous actions to third parties through the implementation of the sustainability report or the introduction of the ESG rating at banking level;
• Enhance research and development activities , facilitating collaboration with other companies, suppliers and stakeholders and, more generally, facilitating networking and the search for strategic partners;
• Play a key role in staff awareness and training , ensuring that all employees are committed to the transition towards a circular model;
• Keep track of regulatory updates and the latest legal news , ensuring regulatory compliance to operate in line with the required standards and avoiding the risk of sanctions;

Every company is subject to national/international competition. This in fact, although companies are not obliged to adopt a circular model, forces them to choose whether to undergo the change and therefore the initiatives taken by other companies rather than being the driving and innovative force. In this sense, it is essential that each company at least carries out an evaluation of its current business model and an analysis to understand all the possible circular economy solutions that can be adopted also because, as the 2030 agenda or the European net zero objective of 2050, the path towards sustainable models has also been chosen on a concrete level, both large companies and consumers are increasingly attentive to these issues when choosing a specific partner or product on the market.

By adopting a circular business model, a series of negative effects are counteracted such as: waste of resources, obsolescence, wasted capacity and managing the end of life of products. Going into the details of the models, just to give some examples, we have:

• Circular inputs: or the use of materials rather than renewable energy sources. Think of artificial renewable materials (glass), bio-based materials or the more well-known renewable energies such as photovoltaic panels. Therefore materials that do not run out;
• Extension of useful life: therefore redesigning a product to be repaired or updated by replacing certain components rather than changing the entire product when it becomes outdated or damaged (and this is particularly concerning the world of smartphones which are changed and updated extremely quickly);
• Recovery of resources: which concerns the management of the end of life and therefore the recovery of resources from the products, therefore the concept of MPS is introduced, avoiding as much as possible a reduction in quality and technical characteristics compared to to virgin material (downcycle);
• Sharing model: with the classic example of shared mobility that we have all used. This allows maximization of the use of a specific product that a single individual would not be able to exploit;
• Product as a service that is, instead of selling a product that satisfies a need, a service with the same function is sold, with the difference that ownership remains with the supplier who therefore takes care of the maintenance and ensures that the product is as efficient as possible. A particular benefit of this service concerns the recovery of replaced components and therefore materials that can easily be recovered by returning to the manufacturing company;

• environmental module (Environmental): provides a mapping of the Company in terms of resources, emissions and waste by evaluating the efficiency and existence of monitoring tools as well as development plans; li>
• social module (Social): evaluates the policies adopted by the Company towards stakeholders with particular reference to the protection and enhancement of human capital;
• Governance module: evaluates the integration of ESG issues within decision-making processes and business strategies;

By nature the output of this analysis is mainly qualitative-quantitative with a prevalence of qualitative elements, and through an internal algorithm a rating is provided on a scale that differs depending on the proposing entity.

The sustainability reporting directive (EU Directive 2022/2464 of 12/14/2022) will replace the previous Non-Financial Declaration by requiring the adoption of the new ESRS reporting principles. This new reform will gradually involve companies over an apparently long time horizon:

• 2025 large listed companies, large banks and large insurance companies with more than 500 employees;
• 2026 large companies that exceed two parameters between: 40 million in turnover, 20 million in assets and 250 employees;
• 2027 listed SMEs;
• 2029 non-EU companies that generate over 150 million euros in turnover in the EU and which have a branch with certain dimensional parameters in the same;

Although SMEs that are not part of a larger group are excluded from the list, they are in a position to receive requests for information on sustainability from customers, banks, investors or other interested parties and must actively participate in the transition process towards a circular economy. Each company will have to analyze its current position and set objectives, establishing a series of monitoring and control tools similar to those that characterize the well-known economic and financial fields.