ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors
A clothing retailer redesigns its products so that garments can be collected, recycled and made into new items, reducing waste and raw material use. Which concept does this describe?
This is a circular economy approach. Products are designed so materials are collected, recycled and reused, which cuts waste and the demand for new raw materials. Planned obsolescence is the opposite idea, and vertical integration is about controlling stages of the supply chain.
- APlanned obsolescence
- BCircular economy approachCorrect
- CVertical integration
Explanation
A circular economy keeps materials in use through reuse and recycling, reducing waste and resource extraction. Planned obsolescence shortens product life deliberately. Vertical integration concerns owning supply chain stages, not recycling.
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