GreenBiz 17 Tutorial Slides: "Putting Circular Economy Principles to Work"
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The Circular Economy presents an incredible opportunity for transformative growth and change, but taking the concept from theory to implementation requires what can be a challenging exercise in rethinking systems. Join this session to explore how to put these principles into practice. Actual business case studies will set the stage for a group brainstorming session on how to apply circular models to various business scenarios. Key concepts to be covered include: How adopting a Circular Economy mindset can deliver value to your business The key drivers for a Circular Economy business How to integrate lifecycle thinking and circular economy How to select the right metrics and quantify circularity What Europe’s Circular Package means for your company GreenBiz 17 In-Depth Tutorials are intensive half-day sessions held prior to the start of the conference. These are designed to offer participants an opportunity to dive deeper into a topic of interest and develop tangible knowledge and skills. In addition, attendees will have a greater opportunity to network with their peers in these interactive sessions. Concurrent tutorials will be held the morning of Tuesday, February 14, and are available only to those who purchase an All Access Pass.
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GreenBiz 17 Tutorial Slides: "Putting Circular Economy Principles to Work"
- 1. Putting Circular Economy to Work A hands-on workshop – GreenBiz’17
- 2. Time Topic 8:30 – 9:30 Welcome Introduction to Circular Economy Circular Economy in EU How can Circular Economy create value for your business? 9:30 – 10:30 Business case studies - inspiration to apply circular models to various business scenarios 10:30 – 10:45 Break 10:45 – 11:15 Integrating lifecycle thinking and circular economy Metrics of circular economy 11:15 – 12:15 Using Circular Economy – Hands on 12:15 – 12:30 Wrap up and close 2 Agenda
- 3. • Introduction to circular economy and EU circular economy package • Drivers for business • Exploring how and where circular economy can create value for your business • Inspiration for your circular journey • How Lifecycle thinking can assess the environmental impact of their products when designed to be part of a circular solution • Hands on activities 3 Overview of the workshop
- 4. • Do you work with circular economy? • at what level? Product Corporate Question
- 8. • 1970s: Reduce Waste (e.g. EU Waste Management Framework Directive 1975) • 1980s: Waste Management Hierarchy (Reduce, Re-use, Recycle, Recover) • 1990s: Circular Economy Directive (‘Kreislaufwirtschaftsgesetz 1996’) and DSD in Germany • 2000s: Life Cycle Thinking • NOW: The Circular Economy 8 History of circular economy
- 9. Circular Economy – piece of the sustainability puzzle • Systemic thinking • Holistic approach • Can be applied at both the product and corporate level • Macro economic impacts 9
- 10. The “Take, Make, Waste” Economy 10
- 11. High level view A circular economy is one that is restorative by design, and which aims to keep products, components and materials at their highest utility and value, at all times. 1. Decouples economic growth from consumption 2. Distinguishes technical and biological materials 3. Designs optimized material flow 4. Innovates across product design, service and business models, food, farming, biological feedstocks and products 5. Establishes a framework for resilience in the longer term Source: World Economic Forum and Ellen MacArthur Foundation 11
- 12. Circular Economy and Bioeconomy The key risks and opportunities relate to recovery and material choices 12
- 13. Circular Economy and Technical The key risks and opportunities relate to recovery and material choices 13
- 14. • To achieve a circular economy, the market needs safe recycled materials of known and high quality, so that they can become an attractive alternative to virgin materials • Substances of concern ending up in recycled materials are a barrier • Understand the relevance of circular economy thinking in the context of your product and corporate sustainability activities. • Get inspired and challenge your existing strategies and practices 14 To succeed in circular economy
- 15. Reduce, Reuse, Then Recycle CE requires INNOVATION and NEW BUSINESS MODELS for meeting consumer needs – think beyond products! • Circular Inputs • Resource Recovery • Product Life Extension • Sharing Platforms • Product as a Service 15
- 16. 16 Where to start Raw materials • Secondary raw materials • Symbiosis • Reuse or recycled Production • Redesign – enhance or enable recyclability • Functionality • Surplus – energy, water, materials • Waste Use • Service • Lease • Take-back Reuse/Recycle Document the full life cycle of your product, before deciding your journey
- 17. Circular Economy EU package and regulation 17
- 18. The actions will contribute to "closing the loop" of product lifecycles through greater recycling and re-use, and bring benefits for both the environment and the economy. • Simplified and improved definitions and harmonised calculation methods for recycling rates throughout the EU • Concrete measures to promote re-use and stimulate industrial symbiosis (turning one industry's by-products into another industry's raw materials) • First batch of revised and new directives are approved Directive on electrical and electronic waste, end-of-life vehicles, batteries and accumulators, and waste batteries and accumulators EU circular economy package - overview 18 More revised and new directives are under way
- 19. EU circular economy package - targets 19 • Common EU target for recycling 65% of municipal waste by 2030 • Common EU target for recycling 75% of packaging waste by 2030 • Binding landfill target to reduce landfill to maximum of 10% of all waste by 2030 • Ban on landfilling of separately collected waste • Promotion of economic instruments to discourage landfilling • Concrete measures to promote re-use and stimulate industrial symbiosis - turning one industry's by-product into another industry's raw material • Economic incentives for producers to put greener products on the market and support recovery and recycling schemes (eg. for packaging, batteries, electric and electronic equipment, vehicles)
- 20. • A minimum of 5% packaging waste must be reused in the local area, deadline 2025 • A minimum of 10% packaging waste must be reused in the local area, deadline 2030 • A minimum of 70% packaging waste must be readily recyclable or recycled, deadline 2025. • Specific materials • 60% of plastic before 2025 • 65% of wood before 2025 and 80% before 2030 • 80% of iron based metals before 2025 and 90% before 2030 • 80% of aluminium before 2025 and 90% before 2030 • 80% for glassware before 2025 and 90% before 2030 • 90% of carton and paper before 2025 20 EU proposed new targets – packaging directive
- 21. 21 EU action plan - Consumption
- 22. Circular Economy Business value and drivers 22
- 23. Driver - Breakthrough Business Models Sustainable Exponential Social Lean Integrated Circular 23
- 24. Driver - UN Sustainable Development Goals (SDG‘s) SDG‘s agreed in Sep‘15 as part of the UN 2030 Agenda for Sustainable Development https://sustainabledevelopment.un.org/?menu=1300. Source image: www.ihrb.org 24
- 25. Driver - Exponential Organisation 25
- 26. Driver - IoT 26
- 27. • Failure of regional or global governance • Fiscal crisis 27 Business risk – WEF risk report 2017
- 28. • Risk mitigation • Decoupling from volatile raw material prices • Resource scarcity • Ever increasing population – especially middleclass wanting same standard of living as others • Legislation • Industry 4.0 • Disruptive enterprises and innovation Doing Business as usual is risky Circular economy allows businesses to mitigate risks from material (resource) price volatility and material supply dependencies. 28
- 29. Value - What are the benefits? Revenue Brand Cost Risk • Identify opportunities for innovation • Market Entry • Revenue Resilience • Increased Brand value • Ensure transparency and demonstrate progress • Reputation Management • Employee Attraction and Retention • Identify inefficiencies in the supply chain • Material Optimization • Inventory Control • Avoid Greenwashing • Supply chain volatility • Business Continuity • Climate or Environmental Risk 29
- 30. Value - Make Circular Economy tactical CE has many areas of application, including • Strategy development • Innovation • Product design • Prioritising environmental initiatives • Optimising supply chains • Influencing customers and suppliers behaviour • Evaluating technical process such as for EoL Find the path that aligns with the core values 1. Develop or adapt a strategy to match 2. Prioritize your actions 3. Redesign your business 4. Determine Indicators & measurement tools - LCA 5. Iterate Circular Economy is a powerful strategic tool supporting decision-making and communication of environmental issues 30
- 31. Think upstream and along the entire value chain – circular economy is about much more than recycling and end of life: ‘If you start by looking at the end, it’s too late because there are already a lot of things that have gone wrong’ 31 Circular Economy
- 32. • Where are you and your company on this curve? • Please spent 2 minutes reflecting and then discuss with your group 32 Circular Economy maturity curve - Exercise
- 33. Circular Economy Think! buying once and selling twice! 33
- 35. 35
- 36. 36
- 37. Case studies 37
- 39. LCA of UK bank note 39 • thinkstep LCA on bank notes made from cotton paper vs. polymer - suggested polymer as an alternative • Durability and Transport benefits • Dirt and moisture resistance • Reduced transport • Reduced environmental impact
- 41. Maintain and prolong • Google’s repairs process at the data centers enables longer life expectancy of the servers. As servers fail and fall into repairs, defective parts are replaced by refurbished parts, which enables longer usage of parts Refurbish and Remanufacture • Once servers from data centers are decommissioned, they are sent back to the central hub. At the hub servers are dismantled and de-kitted to their usable components (CPU, motherboard, Flash devices, hard disks, memory modules and other components) 41 Google In 2015, 19% of servers Google installed were remanufactured machines.
- 42. Amount of material recovered for reuse through take-back initiatives in 2015 (in lbs) • Steel 28,101,000 • Plastics 13,422,360 • Glass 11,945,680 • Aluminum 4,518,200 • Copper 2,953,360 (estimated value $6 million) • Cobalt 189,544 • Nickel 39,672 • Lead 44,080 • Zinc 130,036 • Tin 4408 • Silver 6612 • Gold 2204 (estimated value $40 million) 42 Liam Robot at Apple
- 43. • Automated sewing of garments • Sewing robot • Adidas - Speedfactory • Fully automated shoe factory 43 Robotics – apparel sector
- 44. Innovation Philips – change in business model Selling light as a service 44
- 45. Innovative solutions - Ecovative Growing a new solution 45
- 46. • Less waste • Less material used • Minimizing number of materials • Easier to recycle 46 Knitted shoe
- 47. • Take back solution • Remanufacture • Cradle to cradle certified • Minimizing chemical use and numbers • Renewable energy • Alternative sources of raw materials 47 Remake
- 48. Closed loop product • Goal: Enable consumers to keep their jeans for the decades they were designed for • Challenge: consumer behavior/ fashion, • Redesign: Revise the consumer use-phase experience, choose different materials • Outcome: Brand-appropriate message and engagement 48
- 49. • 98% organic cotton , Produced in Italy • Used jeans are reused to new denim fibre or other accessories 49 Circular Business model – MUD Jeans
- 50. Industrial Symbiosis - the exchange of materials or waste streams between companies, so that one company’s waste becomes another company’s raw materials 50
- 51. 51 Danish Ministry of Defense
- 52. Vision Skills Incentives Resources ChangeAction Plan ConfusionSkills Incentives Resources Action Plan AnxietyVision Incentives Resources Action Plan Gradual Change Vision Skills Resources Action Plan FrustrationVision Skills Incentives Action Plan False StartsVision Skills Incentives Resources Or your organization finds itself with: Source: Adapted from Knoster, T. (1991) Presentation in TASH Conference. Washington, D.C. If you don’t know where you’re going, any road will get you there – Alice in Wonderland 52
- 53. Please reflect on the behaviour change model and then discuss in the group Please use these guiding questions • Are any of the ‘roads’ familiar? • Does your company have a circular economy vision and the skills needed? 53 Circular Economy behaviour change - Exercise If you don’t know where you’re going, any road will get you there – Alice in Wonderland
- 54. • Do you use LCA and lifecycle thinking in your company? Question
- 55. Circular economy Lifecycle thinking and metrics Shutterstock
- 56. Find the path that aligns with your core values 1. Develop or adapt a strategy to match 2. Prioritize your actions 3. Redesign your business 4. Determine Indicators & measurement tools 5. Iterate 56 General Steps for your Circular Strategy
- 57. What you can Measure you can Manage… Indicators and Measurement tools “Context” matters Avoid shifting burden Consider the whole Product system …but, Not everything that counts can be counted 57
- 58. Circular Economy addresses circularity of materials (resources) with focus on economic effect – LCA addresses environmental indicators (potential risks) along life cycles • Information required for CE and LCA high level of overlap • Circular economy keep resources at the highest value • LCA is a methodology that measures the impact Complementary systems LCA complements CE by adding an environmental dimension to the decision matrix to select the best design solution (ECO-design) 58
- 59. In the context of Circular Economy, LCA • Substantiates and quantifies environmental improvements; • Identifies any potential shifts of environmental burdens; and • Ensures optimum levels of – and limits to – circularity are known from an environmental point of view • CE & Life Cycle Assessment (LCA) can guide you when trying to identify the most preferable materials, transportation methods, supply chain and business model for circular models. Complementary systems
- 60. 60 Example: LCA supports the evaluation of Circular Economy Example of a client request: - Quantify the different existing End-of-Life glass packaging scenarios in Europe: 1. Closed-loop reuse 2. Recycling into glass packaging 3. Recycling into a mix of non-packaging products 4. Losses via landfill, incineration, etc. - Understand status-quo and identify areas of improvement “The Circular Economy strategy of the European Commission entails existing and emerging regulation on eco-design, waste prevention and the reuse of recycling products...”
- 61. 61 Example: LCA supports the evaluation of Circular Economy Circular design New business models Reverse cycles Enables/fav ourable conditions LCA OUTCOME – environmental impacts of different scenarios for various European glass recycling systems based on the following aspects:
- 62. Circular Economy as a Life Cycle Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015 62
- 63. Linear product = Manufactured using only virgin feedstock and ends up in disposal/landfill at the end of use = 0% circular How does it work? Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015 Circular = Contains no virgin feedstock, is completely collected for recycling or component reuse, and where the recycling efficiency is 100% = 100% circular 63 Most products will sit somewhere between these two extremes
- 64. How is it calculated? Input in the production process – virgin vs recycled/ reused Utility during use phase Destination after use Efficiency of recycling 𝑀𝐶𝐼 = 1 − 𝐿𝐹𝐼 𝑥 0.9 𝑋 64
- 65. Putting Circular Economy to Work A hands-on workshop – GreenBiz’17 Part 4 – hands on!!
- 66. Set-up 66 • Split into groups • Work on one or more of the examples • 10 minute presentation from each group • Use • Flip chart • Post-its
- 67. Example 1 67 • Acoustic panel • Materials • Concrete • Norway spruce • Binders • Fillers • Paint • Energy • Water • Transport
- 68. Example 3 68 • Office building • 26 floors • 112 meters • On top of a central station • High energy and water usage
- 69. Example 4 69 • Waste fibre – natural or synthetic based • Cuts from textile industry and other industries • Short fibres • Low quality fibres
- 71. • Troldtekt is using locally sourced raw materials – wood and cement • Change to circular is in line with their core values and strategy to grow from nature Solution: • Take back • Reused in the biological circle as nutrient in soil 71 troldtekt
- 72. ENTRA 72
- 73. Advance Nonwoven 73 • New innovative technology • Designed as turn key • Insulation for buildings and machines • Growth media's for cultivated plants • Oil absorption mats and rolls • Furniture upholstery • Packaging
- 74. You CAN get there from here Circular Economy initiatives supports creation of business value Strategic decision making Risk management Management of future costs Market entry in B2B/B2C businesses Innovation Product design 74
- 75. Circular Economy Wrap up and questions 75