Circular Economy Capacity Building in the Horticulture Industry – Module 4

Welcome to the fourth module of the Circular Economy Capacity Building Program!

This week we are furthering our discussion from our last module about circular design, and we’re looking at some specific circular business models that neatly illustrate the opportunities businesses have to re-shape themselves towards circularity. One great example of this is Signify, a subsidiary of Philips, which provides lighting as a service rather than a product. Instead of buying Philips lights and fittings, you pay a service fee to Signify for lighting in your home or workplace, contingent on certain standards of efficiency and product lifespan. This has a profound effect on the incentives at Philips’ end because whereas a strong incentive exists to make light bulbs that break in order to sell more, profitability is now improved by developing longer lasting and more efficient lighting products, and ones that can be easily recovered and reused, because Signify owns its hardware through the entire product life cycle.

We’re also taking a deep dive into the regulatory environment at all levels of government, as well as the push that is emanating from parts of the private sector for greater transparency in environmental impact and metrics of circularity.

We have a recorded presentation from our delivery partner Coreo, and you can read further through the page to discover more about the regulatory shifts currently underway and a breakdown of the five key circular business models.

Understanding The Regulatory And Policy Landscape Affecting The Nursery Sector, In Order To Position Your Business For Market Success Through Circular Economy Practices 

In Australia, the movement toward a circular economy is quickly gaining momentum, with a focus on reducing waste and utilising resources more sustainably. Approximately 49.3% of Australia’s GDP relies heavily on ecosystem services, highlighting the importance of a sustainable approach for the horticultural and nursery sectors. Regulatory and policy initiatives are increasingly aligning economic activities with environmental preservation goals, which offers nurseries an opportunity to position themselves as leaders in sustainable practices. 

This article provides a summary of the current regulatory and policy landscape impacting the horticultural and nursery sectors and suggests ways businesses can adopt innovative circular economy business models to meet new regulatory demands while enhancing market positioning. 

National Priorities: Nature and Climate Resilience 

1. Strategies for Nature 

Australia’s Strategy for Nature (2019-2030) and the complementary Nature Positive Plan outline a cohesive vision for conserving biodiversity and improving ecosystem health. Key initiatives under these strategies include: 

  • Restoration and Conservation: Aiming to halt biodiversity loss by 2030, Australia’s Strategy for Nature targets restoration of degraded ecosystems, protection of marine and terrestrial environments, and invasive species control. 
  • Legislative Reforms: Integrating environmental protection into business practices through the establishment of an independent Environmental Protection Agency (EPA) and a nature repair market. Such reforms push businesses to innovate, especially in sectors like horticulture, where ecosystem health is directly tied to operational sustainability. 

For nurseries, these regulations highlight the importance of reducing plastic use, supporting ecosystem restoration, and partnering with First Nations communities to protect cultural heritage. By aligning with these targets, nurseries can contribute to sustainable outcomes and connect with environmentally conscious consumers. 

2. Climate Resilience and Adaptation 

With the National Climate Resilience and Adaptation Strategy (2021-2025) and the Disaster Ready Fund (DRF), Australia is preparing to address climate-related risks across all sectors. These initiatives emphasise the need for: 

  • Climate-Informed Decision-Making: Nurseries can benefit from improved access to climate data and risk management insights, helping them to adapt business operations to mitigate climate impacts. 
  • Disaster Preparedness: Funding is available for projects that reduce the physical and social impacts of disasters. Nurseries and horticultural businesses can leverage this funding to implement resilience strategies, particularly for heat and water management. 

Nurseries can tap into the growing market for climate adaptation & disaster resilience by adopting practices that reduce climate-related risks, such as increasing drought-tolerant stock, diversifying plant varieties, and improving water conservation methods.

Private Sector Commitments: Biodiversity and Nature-Related Disclosures 

The private sector is also moving towards sustainable practices, influenced by frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD), which requires companies to report on nature-related risks and opportunities. For the horticultural sector, this shift implies: 

  • Biodiversity Market Development: The potential AU$137 billion biodiversity market aims to incentivise biodiversity restoration efforts, providing nurseries with opportunities to receive financial support for sustainable practices. 

Nurseries can tap into the growing demand for biodiversity & natural regeneration in the private sector by developing biodiversity-focused offerings, such as native plants or pollinator-friendly species, that support their customers’ goals in meeting nature-related and biodiversity commitments. Another way the horticultural sector can participate in this growing market is by providing tools and resources for measuring ecosystem benefits, such as biodiversity impact reports or ecosystem health indicators, to help customers quantify their contributions to nature-positive outcomes.

Circular Business Models for Market Positioning in the Nursery Sector 

The World Economic Forum outlines five circular business models that can give nurseries a competitive edge as they respond to these regulatory and market demands for sustainable practices. Here’s how each of the five circular business models can be applied within the nursery sector: 

  1. Circular Supplies
    Nurseries can offer clients renewable, recycled, or biodegradable products—like compostable pots, organic fertilizers, or plants grown in sustainably managed soil—to support sustainable supply chains and reduce dependence on single-use plastics.
  2. Resource Recovery
    Provide services that allow clients to return or recycle plant containers, soil bags, or organic matter. By setting up a collection program or partnering with local composting facilities, nurseries can help clients close resource loops and reduce waste, adding circular value to landscaping and gardening projects.
  3. Product Life Extension
    Offer maintenance and care services for plants, such as pruning, pest management, and soil health consultations. This extends the life and health of clients’ plantings, reducing the need for replacement and supporting long-term green infrastructure goals.
  4. Sharing Platforms
    Create programs that allow communities or organizations to share plant resources, equipment, or nursery space. This could include shared-access greenhouses, community seed banks, or even tools for horticultural projects, reducing resource use while fostering community engagement.
  5. Product-as-a-Service
    Instead of selling plants outright, offer landscaping or plant leasing services for commercial spaces, events, or community gardens. This allows clients to enjoy seasonal or customizable plant installations without long-term ownership, with nurseries taking care of plant rotation, maintenance, and eventual repurposing. 

Adopting these circular business models can not only help nurseries comply with evolving environmental regulations but also improve their standing in a market increasingly driven by sustainability. By integrating circular principles, nurseries can differentiate themselves and appeal to the growing segment of consumers seeking to participate in natural regeneration efforts. Embracing circularity will empower nursery businesses to respond proactively to regulatory changes while fostering long-term resilience and growth in the green economy. 

That’s all for this week, catch you here for our next instalment with module 5!