Log plot of Resource use and Economic development (2010, 166 countries)1
In today’s growth model increasing wealth is clearly linked to
increasing levels of resource consumption…
2OECD Development Centre, Working Paper No. 285, The Emerging Middle Class in Developing Countries
Re
so
urc
e u
se
Economic development
1
10
100
100 10,000 100,0001,000
GDP/Cap
USA
India
Tons/
Cap
Germany
Bangladesh
Australia
Colombia
China
Brazil
Correlation: 0,59
1SERI and Dittrich, M. (2014). Global Material Flow Database, World Bank (2014) GDP per capita in current US$ (outliers Mongolia & Bahamas remo ved)
Niger
100
10
100.00010.0001.000
Commodity price & GDP index 1975-2013
Index (2010=100)
0
50
100
150
200
197819761975 200220001998199619941992 2013201220062004 2008 2010199019881986198419821980
GDP index
Precious Metals
Commodity index
Metals & Minerals
Fertilizers
Raw Materials
Food
Energy
World Bank (2014), Accenture analysis
1975-2000
For every 1% growth in GDP commodity price index fell 0.5%
2000-2013
For every 1% growth in GDP commodity price index
rose 1,9%
…but the era of cheap and plentiful resources has come to an
end as prices have increased by close to 2% p.a. since 2000
We currently use 1.5x the resources that earth supplies us with.
2.5 billion additional consumers expected to join the middle class by 2030, so we need
4 earths in 2050. We only have 1: We need to become 4x more resource efficient.
So we need to transform our current unsustainable linear
business models …
From linear…
Take
Make
Waste
Into circular value chains, offering the ability and benefits of
environmentally responsible growth in a world of finite resource
To Circular
Asset Life Cycle
Management
Product Design Remanufacture
Repair
& ReuseCircular
Inputs
RecylceRepurpose
& Share
Return flows
Circular Economy
decoupling growth from
resource consumption
5 business
models
10 enabling
technologies
5 key
capabilities
50 executive
interviews
120
case studies
Goal: Decoupling
Not only about services
The less you loop the better
Digital customer disruption
GLOBAL VIEW ON THE
CIRCULAR ECONOMY
WASTED
EMBEDDED VALUESWASTED
LIFECYCLES
WASTED
CAPACITY
WASTED
RESOURCES
5 BUSINESS MODELS TO LEVERAGE
$1 300 billion
$1 700 billion $600 billion
$900 billionRecovery &
Recycling
WASTED
LIFECYCLES
WASTED
CAPACITY
WASTED
RESOURCES
5 BUSINESS MODELS TO LEVERAGE
$1 700 billion $600 billion
$900 billionRecovery &
Recycling
Circular
Supply-Chain
WASTED
LIFECYCLES
WASTED
CAPACITY
5 BUSINESS MODELS TO LEVERAGE
$600 billion
$900 billionRecovery &
Recycling
Circular
Supply-ChainSharing
Platform
WASTED
LIFECYCLES
5 BUSINESS MODELS TO LEVERAGE
$900 billionRecovery &
Recycling
Circular
Supply-ChainSharing
Platform
Product Life-
Extension
5 BUSINESS MODELS TO LEVERAGE
Recovery &
Recycling
Circular
Supply-ChainSharing
Platform
Product Life-
Extension
Product as a
Service
Copyright © 2014 Accenture All rights reserved.
Three types of technologies are key
20
Advanced recycling tech
Modular design technology
Life & Material sciences
Circular economy enabling technologies
Source: Circular Economy book project
Digital
Enabling entirely new ways
to access and understand
product use-phase and aid
customers in use efficiency
Hybrid
Enabling moving physical
objects back and forth from
value chains with digital
services to drive down cost
Engineering
Enabling production and
supply of new types of
resources as well as new
product designs to use
them
Copyright © 2014 Accenture All rights reserved.
Fully biodegradable and recyclable shoes, bags and clothes
21
Copyright © 2014 Accenture All rights reserved.
Three types of technologies are key
22
Digital
Enabling entirely new ways
to access and understand
product use-phase and aid
customers in use efficiency
Hybrid
Enabling moving physical
objects back and forth from
value chains with digital
services to drive down cost
Engineering
Enabling production and
supply of new types of
resources as well as new
product designs to use
them
3D Printing
Advanced recycling tech
Trace and return systems
Modular design technology
Life & Material sciences
Circular economy enabling technologies
Source: Circular Economy book project
Copyright © 2014 Accenture All rights reserved. 24
Hybrid: Trace & return systems
Eco ATM: Instant cash for phones, MP3 players and tablets
Copyright © 2014 Accenture All rights reserved. 25
Hybrid: Trace & Return systems. Tomra: sensor based
solutions to optimize resource productivity
Copyright © 2014 Accenture All rights reserved.
Three types of technologies are key
26
Social
Mobile
M2M Communication
Cloud
Analytics
3D Printing
Advanced recycling tech
Trace and return systems
Modular design technology
Life & Material sciences
Circular economy enabling technologies
Source: Circular Economy book project
Digital
Enabling entirely new ways
to access and understand
product use-phase and aid
customers in use efficiency
Hybrid
Enabling moving physical
objects back and forth from
value chains with digital
services to drive down cost
Engineering
Enabling production and
supply of new types of
resources as well as new
product designs to use
them
Copyright © 2014 Accenture All rights reserved. 27
Poshmark combines all digital technologies and realized a
personalized and active secondhand clothing market
Copyright © 2014 Accenture All rights reserved. 28
Click for the prezi!
Copyright © 2014 Accenture All rights reserved.
Accenture research show there are five circular business
models to consider
The Circular Economy options
Recovery &
Recycling
Circular
Supply-Chain
Product as a
Service
Product Life-
Extension
Sharing
Platform
29
Digital, the driver of the Circular Economy
Open Discussion
My company’s current business models
will be able to serve our customer’s
demand in 10 years from now1
Digital, the driver of the Circular Economy
Open Discussion
I can translate the ‘Circular Economy’
principles to my company’s business2
Digital, the driver of the Circular Economy
Open Discussion
I see potential for any of the CE business
model to help our company in securing a
sustainable future of our company3
Digital, the driver of the Circular Economy
Open Discussion
What does my company require to adapt
new, innovative business models to
ensure a sustainable future?4