Business Value Through Industrial Symbiosis

Industrial symbiosis (IS) involves collaboration among businesses to utilize each other’s wastes or byproducts, thereby reducing environmental impact and improving economic efficiency. Despite the recognition of IS’s environmental benefits, a structured understanding of its full business value is often lacking. The business value framework developed for IS identifies four key domains of benefits and sacrifices: cost implications, revenue growth and diversification, risk management and reduction, and the intangible benefits of soft values. Cost savings are evident in reduced procurement and logistics expenses through the use of secondary materials, but new cost challenges can arise from required infrastructure investments and compliance costs. Revenue opportunities emerge from selling byproducts and improved marketability due to eco-conscious practices, with regulatory incentives also providing financial attractiveness. IS strategies can reduce supply chain and market risks, although they may introduce dependencies and require quality control investments. Soft values encompass enhanced innovation, stakeholder relationships, brand reputation, and employee engagement. As global movements towards sustainability and circular economies advance, IS is gaining relevance, with technological and policy developments further facilitating its adoption. For businesses, taking a strategic approach that includes identifying synergy opportunities, forming partnerships, investing in technology, navigating regulatory landscapes, and communicating value propositions is essential for harnessing the competitive advantages offered by IS.