Circular opportunities and the future of work
Andrew Shannon, founding partner at Circularity Capital, discusses the growing popularity of remote working and explains how a new generation of pioneering businesses are helping to drive a more circular, sustainable and hybrid future for the employees of tomorrow.
During the COVID-19 lockdowns of 2020, the true potential of remote working came to the fore. Almost overnight, tens of thousands of employees all over the world were sent home from the office and many didn’t return until restrictions lifted several months later.
Technology infrastructure developed fast alongside, with some of the world’s largest tech companies investing heavily in solutions to effectively replace the requirement for face-to-face interaction. Zoom, for example, reported a 3,000% increase in usage figures, while Microsoft saw annual revenue for its Teams platform surpass $5.6bn – soaring 300% year-on-year.[1]
However, while the pandemic indeed accelerated the potential of systems, processes and infrastructure, the remote working trend has been burgeoning for far longer. In 2015, 7% of all full-time employed staff across Europe regularly worked from the comfort of their home.[2] Fast forward to 2019 and this figure hit 10%.[3] In 2023, 28% of staff reported to work from home all or most of their time.[4]
The UK is often positioned as the remote working capital of Europe, but most other countries are catching up fast. More than 40% of adults across Sweden, for example, now regularly work from home, while 25% of all men in Iceland consider themselves predominantly remote workers.[5]
As a result, research from Statista suggests that one in every ten European employees now works almost entirely from home.[6] What’s more, 80% of businesses fully support this model,[7] with numerous studies revealing the benefits of hybrid working – higher levels of motivation, better engagement, more efficient use of time and far better staff retention rates.
So, while the post-pandemic recovery is indeed seeing more businesses return to the office, it’s fair to suggest that the future of work will likely remain on a hybrid basis. This, it seems, perfectly balances the productivity benefits of remote working with the creativity and culture benefits of on-site attendance – not to mention, of course, the financial advantages of a blended model.
Ensuring suitability for the hybrid workforce of tomorrow
As hybrid working patterns become more and more commonplace, it’s becoming increasingly important for employers to identify and meet the needs of their off-site staff. While the pessimist may see this as unnecessary added expense, providing the equipment staff need to perform delivers numerous long-term benefits.
To mitigate the additional costs and administration of this model, a growing number of businesses are harnessing the circular economy to deliver more flexible access. One such example is our investee Lendis.
Headquartered in Germany, but operational across Europe, Lendis specialises in hybrid work equipment solutions, such as modular furniture and electronic devices, supplied on a fully rental basis. Delivered through its proprietary in-house workplace management software, Lendis enables businesses to take complete responsibility for equipment – both at the office and remotely.
Compared to more traditional, more linear work equipment suppliers, Lendis enables the usage of furniture and tech across multiple life cycles. What’s more, the company even develops its own solutions, which are specifically designed to last in a subscription-based business model.
As a result, the useful life of each item is prolonged and manufacturing of new equipment is effectively displaced – which could otherwise have ended up in landfill.
But why is the example of Lendis important? Well, it demonstrates how circular businesses can outperform. Indeed, circular models that are restorative and regenerative by design can achieve both profit and purpose, while alleviating many of the challenges experienced by some of the sector’s more traditional approaches.
When it comes to the rise of home working across Europe, circular thinking can dramatically reduce unnecessary waste resulting from the hybrid working model, while tackling the wider issues of affordability and product access. What’s more, it can help to create far greater resilience and drive widespread economic benefit.
Growth-stage capital funding
When we founded Circularity Capital in 2015, we did so with the firm conviction that the entrepreneurs of businesses like Lendis, who are developing the circular innovations to make this transition a reality, deserve a specialist investor with the right knowledge and network to unlock their full potential.
We have worked hard to develop a firm with the right capabilities to make this a reality and are currently deploying our second dedicated circular economy private growth-equity fund – at €215m, it is the largest of its kind globally.
Our current portfolio includes a number of leading circular businesses across Europe, but our ambition is to further grow this investment base by supporting leading, innovative, circular businesses where we can add value as a domain expert investor.
It’s clear to see that the circular economy provides a strong framework for decoupling business growth from resource constraints, enhancing resource productivity and driving competitive advantage. It also highlights a subset of business models which are enabling this transition and can generate premium returns for investors. Indeed, circular economy thinking will drive industry for years to come.
The supply chain is set to experience rapid change over the coming years. At Circularity Capital, we’re looking forward to playing a leading role in the transition towards a more resource-efficient future.
[1] https://teamstage.io/zoom-statistics/
[2] https://www.statista.com/statistics/1450450/employees-remote-work-share/
[3] https://www.europeandatajournalism.eu/cp_data_news/remote-work-in-europe-before-and-after-the-pandemic/#:~:text=If%20we%20only%20consider%20those,eastern%20part%20of%20the%20continent.
[4] https://www.statista.com/statistics/1450450/employees-remote-work-share/
[5] https://findingspress.org/article/74470-sustained-work-from-home-post-pandemic-a-swedish-case
[6] https://www.statista.com/statistics/879251/employees-teleworking-in-the-eu/#:~:text=As%20of%202022%2C%2010.2%20percent,1.4%20percent%20of%20Romanian%20workers.
[7] https://www.cnbc.com/2023/12/11/full-return-to-office-isnt-only-work-model-dying-so-is-fully-remote.html#:~:text=Fully%20remote%20work%20is%20all,34%25%20of%20companies%20were%20virtual.