CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives
Bharat Appliances Ltd. redesigns its refrigerators so that compressors and panels can be dismantled, refurbished and resold, and it runs a take-back scheme for old units. Which approach is the company adopting, in contrast to a linear take-make-dispose model?
The company is following a circular economy approach. Designing products for dismantling, refurbishment and resale, plus taking back old units, keeps materials in use longer rather than discarding them after one life. Incineration and zero liquid discharge address disposal and wastewater, not product life extension.
- ACircular economy approach keeping products and materials in useCorrect
- BWaste incineration for energy recovery only
- CZero liquid discharge at the plant
- DSale and leaseback of fixed assets
Explanation
Design for dismantling, refurbishment and take-back keeps materials and components in use for longer, which is the essence of a circular economy. Incineration is a disposal method and does not retain material value. Zero liquid discharge concerns plant wastewater, which is not the issue here.
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