September 7, 2023
Survey: 48% of people in Latvia know nothing about the circular economy
Circular economy principles help to make materials and items last longer, thus significantly reducing waste. To achieve this, people’s habits and involvement also play an important role, but a survey* conducted by the Latvian fintech company DelfinGroup and Norstat Latvija found that public knowledge of the circular economy is poor – 48% of respondents in Latvia do not know about the circular economy and haven’t even heard of it.
The circular economy is a production and consumption model that involves sharing, renting and reusing existing materials and products for as long as possible. One way is to ensure that goods still working are used for as long as possible, thus limiting new purchases.
The survey found that almost 50% of respondents were unaware of this approach. 39% of respondents say they have heard of the circular economy but do not know how it works in practice, while only 14% know about it.
During the survey, the nature of the circular economy was explained to respondents, regardless of their knowledge. When asked how they would get involved, 36% of respondents said they would mainly buy sustainable goods. Meanwhile, 29% would donate or resell pre-owned but working items, while 9% said they would purchase pre-owned goods.
Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup, whose company has brought the principles of the circular economy to society with Banknote stores, continues.
D. Ādmīdiņš: "The survey also shows that 16% of respondents do not know how they would get involved in a circular economy model, while 10% do not see the need to get involved at all. To be fair, it is often the business environment and decisions about the correct disposal of goods, as well as reusing the materials obtained as raw materials for new goods that are linked to the circular economy principles. However, anyone can get involved in the circular economy model, for example, by thinking about how to make things last longer. We are at the beginning of this approach as a society, so with Banknote we are building smart infrastructure across the country to help reinforce these new habits. We have also launched the "Lietots. Pārbaudīts" initiative, meaning that all goods for sale in the Banknote online store and branches are professionally inspected and sold with a guarantee of up to 24 months. We encourage people to buy pre-owned goods, and to sell things they no longer need. This is not only sustainable but also financially viable."
In terms of people’s involvement so far, data collected by Banknote shows that most actively from the pre-owned segment people buy household goods, mobile phones, jewellery, audio, video and TV equipment.
"Following the habits and mobility of people, this year we also introduced the possibility to sell goods remotely on the Banknote website to motivate people further to give a second life to items that are still working but are no longer used in the household. The data collected on remote purchases shows that the most popular products are computers, household goods and mobile phones," adds D. Ādmīdiņš.
Currently, there are more than 90 Banknote circular economy concept branches in Latvia.
*DelfinGroup and Norstat Latvija survey was conducted in August this year with 1009 respondents across Latvia.
About AS DelfinGroup
DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), and the sale of pre-owned goods online and at more than 90 branches across Latvia. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy. The company has been awarded the gold category in Sustainability Index 2023 of the Institute for Corporate Sustainability and Responsibility.
For further information, please contact:
DelfinGroup Head of PR
Phone: +371 28700457
E-mail: [email protected]