Putting Circular Economy to WorkA hands-on workshop – GreenBiz’17

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 – 10:30Business case studies - inspiration to apply circular models to

various business scenarios

10:30 – 10:45 Break

10:45 – 11:15Integrating 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

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Agenda

• 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

• Do you work with circular economy?

• at what level?

Product

Corporate

Question

Success

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7…

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Success - Reality

Circular Economy

Overview

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• 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

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History of circular economy

Circular Economy – piece of the sustainability puzzle

• Systemic thinking

• Holistic approach

• Can be applied at both

the product and corporate

level

• Macro economic impacts

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The “Take, Make, Waste” Economy

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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 Foundation11

Circular Economy and Bioeconomy

The key risks and opportunities relate to recovery and material choices 12

Circular Economy and Technical

The key risks and opportunities relate to recovery and material choices 13

• 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

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To succeed in circular economy

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

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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

Circular Economy

EU package and regulation

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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

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More revised and new directives are under way

EU circular economy package - targets

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• 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)

• 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

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EU proposed new targets – packaging directive

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EU action plan - Consumption

Circular Economy

Business value and drivers

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Driver - Breakthrough Business Models

Sustainable

Exponential

Social

Lean

Integrated

Circular

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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

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Driver - Exponential Organisation

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Driver - IoT

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• Failure of regional or

global governance

• Fiscal crisis

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Business risk – WEF risk report 2017

• 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.

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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

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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

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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’

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Circular Economy

• Where are you and your company on this curve?

• Please spent 2 minutes reflecting and then discuss with your

group

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Circular Economy maturity curve - Exercise

Circular Economy

Think!

buying once and

selling twice!

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Circular Economy

Armstrong Flooring

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Case studies

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Find inspiration

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LCA of UK bank note

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• 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

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Upcycling and leasing

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)

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Google

In 2015, 19% of

servers Google

installed were

remanufactured

machines.

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

• Automated sewing of garments

• Sewing robot

• Adidas - Speedfactory

• Fully automated shoe factory

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Robotics – apparel sector

Innovation

Philips – change in business model

Selling light as a service

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Innovative solutions - Ecovative

Growing a new solution

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• Less waste

• Less material used

• Minimizing number of materials

• Easier to recycle

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Knitted shoe

• Take back solution

• Remanufacture

• Cradle to cradle

certified

• Minimizing chemical

use and numbers

• Renewable energy

• Alternative sources

of raw materials

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Remake

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

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• 98% organic cotton , Produced in Italy

• Used jeans are reused to new denim fibre or other

accessories

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Circular Business model – MUD Jeans

Industrial Symbiosis

- the exchange of materials or waste streams between companies, so

that one company’s waste becomes another company’s raw materials

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Danish Ministry of Defense

Vision Skills Incentives Resources ChangeAction Plan

ConfusionSkills Incentives Resources Action Plan

AnxietyVision Incentives Resources Action Plan

Gradual

ChangeVision 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

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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?

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Circular Economy behaviour change - Exercise

If you don’t know where you’re going, any road will get you there – Alice in Wonderland

• Do you use LCA and lifecycle thinking in your company?

Question

Circular economy

Lifecycle thinking and metrics

Shutterstock

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

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General Steps for your Circular Strategy

What you can Measure you can Manage…

Indicators and Measurement tools

“Context” mattersAvoid shifting

burden

Consider the whole Product

system

…but, Not everything that counts can be counted

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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

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

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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...”

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Example: LCA supports the evaluation of Circular Economy

Circular design

New business models

Reverse cycles

Enables/favourable

conditions

LCA OUTCOME – environmental impacts of different scenarios for various

European glass recycling systems based on the following aspects:

Circular Economy as a Life Cycle

Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015 62

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

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Most products will sit somewhere between these two extremes

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 𝑥0.9

𝑋64

Putting Circular Economy to WorkA hands-on workshop – GreenBiz’17

Part 4 – hands on!!

Set-up

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• Split into groups

• Work on one or more of the

examples

• 10 minute presentation from

each group

• Use

• Flip chart

• Post-its

Example 1

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• Acoustic panel

• Materials

• Concrete

• Norway spruce

• Binders

• Fillers

• Paint

• Energy

• Water

• Transport

Example 3

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• Office building

• 26 floors

• 112 meters

• On top of a central station

• High energy and water usage

Example 4

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• Waste fibre – natural or

synthetic based

• Cuts from textile industry and

other industries

• Short fibres

• Low quality fibres

Circular Economy

Solutions

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• 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

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troldtekt

ENTRA

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Advance Nonwoven

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• 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

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

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Circular Economy

Wrap up and questions

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