DESIGNERSIN A CIRCULAR ECONOMY

INTRODUCTIONThe concept of circular economy inherently calls for applying a new way of thinking about how we buy, use, and discard products. This implies opportunities for innovation focused around the design of the supply chain as well as products. A new approach to design thinking - circular design thinking - has appeared to guide this transition and circular innovation. This paper examines circular design methods currently being utilized by companies and practical ways you can begin applying it in your own.

This paper is based on the practical experience and knowledge collected over the past year and a half through Circle Economy’s numerous member projects. Secondly, interviews where conducted with designers. Finally, some information and quotes have been gathered during Project CIRCO, a joint initiative between Circle Economy, Reversed Concepts, ICE Amsterdam, Nuovalente coördinated by CLICKNL | DESIGN, and part of Nederland Circulair (circulairondernemen.nl).

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DESIGN FOR THE NEXT INDUSTRIAL REVOLUTIONIn his book ‘Die neue Rolle der Gestaltung in einer veränderten Welt’, Florian Pfeffer highlights the abilities of designers and searches for their new role in today’s world writing, ‘The idea of design as an engine for social changes is neither extravagant nor utopian. It is neither exagerated nor overstraining for design...It is time that design interferes and gets its hands dirty’ [1].

So far design has already witnessed two major revolutions. The industrial revolution was the starting point of modern design. The invention of steam machines enabled mass production and induced the profession of designers. The second revolution is marked by electrification, which caused an explosive spreading of mass media. Without this innovation, we wouldn’t have today’s form of communication design [2].

These revolutions have greatly impacted our lives and our planet - positively but also negatively. And a great part of responsibility for the change is with design decisions - 80% of a product’s costs are determined by decisions made during the design phase [3].

Michael Braungart and William McDonald argue that it’s time for the next industrial revolution - a circular revolution [4]. In this revolution, designers have the chance - and the necessary skills - to be the driving force in order to accelerate and facilitate this new economic approach. What makes designers suitable for leading this transformation process is that they:

• Trigger change• Think outside the box• Have the power of visualization• Advance innovation• Translate value amongst stakeholders.

To change requires alternatives on an institutional and individual level. The strength of design is to develop tangible and functional examples, models and prototypes. If these examples are not just isolated individual solutions, but suited to be scaled, adapted, and developed further by others, then design can play an important role in the transition towards the solution - a circular economy.

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Upstyle Industries is a social enterprise based in Rotterdam that aims at reducing waste mountains and overconsumption. They design flat-pack furniture that can be made from the waste flow of second hand shops, in collaboration with social workshops.

Their vision is to scale up reuse design by collaborating with existing businesses to turn their waste into successful products. To do this, they employ a three-fold approach:

• Research under which conditions reuse is better, the same or worse than other eco-design or waste management methods.• Test what is technically possible to produce with a waste flow, develop the right products based on material characteristics and the market.• Design attractive products that can be produced on a large scale.

The furniture can be disassembled and parts can be replaced when broken or in need of an upgrade. Furthermore the customers are invited to bring the furniture back to the second hand shop where the material comes from.

THE CIRCULAR ECONOMYCircular economy is all about closing resource loops, and mimicking natural ecosystems in the way we organize our society and businesses. In order to unleash the potential on an economic, social, and ecological level, these six principles should be taken into account [5]:

• All materials are cycled infinitely.• All energy is deriven from renewable or otherwise

sustainable sources.• Human activities support ecosystems and the

rebuilding of natural capital.• Resources are used to generate value (financial and

other forms).• Human activities support human health and

happiness.• Human activities support a healthy and cohesive

society and culture.

UPSTYLE INDUSTRIES

CIRCULAR CASE

Read more at upstyleindustries.nl

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As illustrated in the lower graphic, in a linear economy all the value that is created in the production process is usually destroyed after only one use phase or even before that. By applying some strategic shifts, as suggested in the upper graphic, we could exploit the product’s value and gain additional revenue from our products through longer use, more efficient use, or reuse of the product.

This shift towards a circular economy requires changes on the systems level, employing different business models, and product design that enables closed loops. In order to fulfill all relevant requirements, a systems perspective is needed in the product development process. Designers already have the ability to develop solutions to complex demands. For a circular system, however, their scope of influence needs to be expanded. The Great Recovery Report states that designers must be bolder and broader. New generations of system thinkers are needed [6].

THE DESIGNER’S POSITIONCommonly an innovation process starts with a vague product idea and a business concept that respond to a specific user need. Before the designer is introduced into the development, the business model is most likely finished and part of the non-negotiable requirements in the design brief are set. Because of this, the designer can only influence product related matters like material and construction.

In a circular economy, however, the innovation process needs to be a reiterative process. The choice of material, construction, and production techniques ultimately defines how valuable a product will be. And the value in turn is one of the main criteria that defines the selection of a specific business model.

Some designers already understand the benefits of a circular economy and come up with solutions that go beyond the initial brief in order to fit their circular product ideas into circular systems.

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“Designers require a change in the culture of how they work together with clients...It’s very much

appreciated by our clients that we think beyond. However, they often implement small parts of our

suggestions but never the whole circular vision. Thus it makes it hard to commercialize our knowledge on

the subject.”

- Rik de Reuver, Van der Veer Designers

‘Often designers are restricted by the design brief, sometimes made by the marketing department who doesn‘t have knowledge on sustainability.

Designers should be empowered to challenge the brief, if the company is really devoted to circular

business.’ - Miquel Ballester - Fairphone

The interaction between business models and design is crucial for circular design.

Influence on a final design’s characteristics is greatest at the early phases of innovation. Ability to change a design’s characteristics becomes more costly and difficult as the design process continues.

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This reiterative process of choosing a business model and making product design decisions needs to happen in the early phase of the innovation process, also known as the fuzzy front end (FFE), as the cost of changes becomes much higher further along in the development process. For that reason the designer needs to be already involved in the first phase where the business model is designed.

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CIRCULAR DESIGN - FROM SYSTEM TO MATERIAL

The first lesson in designing for a circular economy is there is no ‘one size fits all’ method. All relevant criteria depend on the whole system. As illustrated in the graphic at right, in order to make a circularly designed system work, the external factors, the business model setup and service packages as well as the product design need to be aligned and support the closed value loops of the circular system.

External factors:• The user need is the main driver for

product innovation. His needs and fears and the frequency and length of that need should build the starting point of the design process.

• Globalization has contributed to more complex and non-transparent supply chains. For setting up fitting recovery treatments all product details should be known.

• In order to adapt production processes and establish recovery systems, joining forces in collaborations will speed up the transition and make it economically feasible.

• Policies set the governmental framework in which our economy runs. Designers might not be able to influence them directly, but they should be taken into account as limiting factors and can be indirectly challenged (e.g. Upstyle Industries).

• Education can be utilized to create awareness for a new consumer behavior.

Business model:• Instead of applying the usual sell more products and faster method,

revenue could be created by selling repair services, product upgrades or recovery services.

• In order to make a supply chain work smoothly, everyone has to benefit. The reverse supply chain starts with the user. His take

back action needs to be incentivized in order to beat the more convenient ways to dispose waste.

• In order to retain products and materials for reuse strategies, there needs to be a take back

system.

Service:• Offering services that support the use

of your main product could create additional revenue.

• Additional services means more brand exposure which could intensify the customer relationship.

Construction:• The construction should be foremost

designed for functionality during use.• Most of the waste results out of the

production process. This could be reduced by optimizing the construction for production.

• In order to maintain as much value as possible, the construction has to be designed with the recovery

treatment in mind.

Material:• Materials should be at least recyclable and thus as pure as possible. Non-

reversable combinations should be avoided.

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water usage rise anywhere between 20 - 60 extra liters per day [10].

Negative Impact on Municipal Waste FacilityThe City of Vancover (CoV) carried out a study in 2007 on gDiapers to study their potential impact on municipal wastewater facilities and the overall sewage treatment process. The study addressed the impact of gDiapers on mechanical equipment and how they might affect sewage flow in municipal sewage systems. Results of the study raised concern for negative impacts on municipal wastewater treatment systems caused from flushing gDiaper inserts.

Impact on Treated WaterFlushing the diapers also appears to have a potentially negative effect on the final effluent - the water discharged to the environment after treatment - because part of the diaper material does not settle out during the treatment process. In the previous study it was found this suspended gDiaper material could potentially hinder the disinfection process and allow pathogens to be discharged.

These three main points from the case of disposable gDiapers demonstrate the importance of recognizing the implications of products and their system impacts, especially downstream. Even though the diaper inserts may be out of sight once flushed, it does not mean their effect on municipal waste treatment facilities should be out of mind when it comes to their design. As the CoV concluded, flushable does not mean treatable. The toilet isn’t magic!

G-DIAPERSTHE NEED FOR SYSTEMS THINKING

Babies and small children are not normally associated with environmental issues. However, they generate large amounts of waste - disposable diapers are one of the largest waste streams in the United States [7].

With an increasing number of parents in recent years wanting to ensure the healthiest start for their baby while also being environmentally responsible, there has been new demand for better, less wasteful diapers. The result has been a resurgence in reusable cloth diapers, as well disposables made out of biodegradable materials, organic cottons, bamboo, etc. One such popular diaper is gDiaper, a Cradle to Cradle certified diaper. Like many diapers on the market, gDiaper’s design consists of a combi-model with disposable inner liners and outer reusable shells. The outer shell is reusable while the inner insert must be removed and disposed of after each use. The disposable inserts are compostable and, in North America, deemed as flushable [8].

As these are C2C certified, the materials in the diapers should ‘generate no toxic waste [and] use safe, healthful materials’ [9]. Studying the flushed diaper insert from a systems point of view, however, illustrates the importance of systems thinking. Even a ‘non toxic’ material can be ‘toxic’ or have negative impacts if it is in the wrong place. In the case of the flushable gDiapers, three main areas of negative impact have been identified when taking a holistic perspective.

Negative Impact on HouseholdgDiapers do warn parental users that the diapers are not compatible to all sewage systems and can cause blockages. One item that is not apparent, however, is potential increased water usage (and cost) from additional flushings. Babies can use between 3.3 - 10 diapers a day, while a toilet can easily use 6 liters per flush, meaning households switching from normal disposable diapers to flushable inserts could see their

Flicker: Jen_Rab (2008)

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“For a circular economy it’s important to have the whole company on board...At the beginning of our workshops we often take the participants

into nature and inspire them to apply theprinciples they observe in their own company.”

- Nicolas Buttin from Whiitaa

“In my experience a multi professional team is more convincing.”

“When taking on a new project it is important for us that the problem definition allows re framing and therefore a design thinking

approach.” -Svenja Bickert from Future Flux

The circular design process starts with assessing the user need: what is his desire, how long and how frequent does that need occur. The need then should be translated into a value proposition. After that the (re-)design of the business model, the service set up and the product begins.

It is helpful to use a design thinking approach to identify key criteria, create ideas, and facilitate the co-working among the required professions. The following sections provide some helpful frameworks that can be used when applying circular theory to a project. These frameworks are the result of Circle Economy’s experience working with industry, building off of research by TU Delft in the project ‘Products that Last.’

CIRCULAR BUSINESS MODELS

There are two types of circular business models. Companies can either produce and trade materials, components or products that enable circular use, or they can create revenue through providing services that support the longer or more efficient use or recovery of products.

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Circular product trader:

• Circular supplier: Provides renewable energy, bio based or fully recyclable input material to replace single-lifecycle inputs.

• Long life products trader: Sells high-grade products with a long useful life.• Hybrid products trader: Sells consumables, spare parts and add-ons to

support the lifecycle of long lasting products.• 2nd hand trader: Refurbishes and maintains used products if necessary

and re-sells them.• Cascade material supplier: Sells recaptured materials and components

to substitute the use of virgin or recycled material.

Circular service provider:

• Repair service: Extends the working lifetime of products and components by repairing or upgrading.

• Access provider: Enables an increased utilization rate of products by enabling or offering shared use/access/ownership.

• Performance provider: Delivers product performance rather than the product itself. Primary revenue stream results from payments for performance delivered.

• Recovery provider: Provides take back systems and collection service to recover useful resources out of disposed products or by-products.

• Recycling facility: Transforms waste into raw materials. Additional revenue can be created through pioneering work in recycling technology.

The companies that apply these business models as well as the user or customers of their products can benefit equally by these circular changes. Producers or suppliers retain ownership over their materials or products and thus have a reduced amount of waste and less costs for disposal. Through the closed material loops they are independent from resource market conditions, like price fluctuation or shortages.

Their new business models may address a different target group and lead to new market shares and additional customers and profits. In general circularity is a sustainability strategy and will improve the companies reputation. In addition, offering holistic services such as providing access through leasing products with long term contracts, offers a chance to improve the customer relationship.

The user in turn benefits by being offered to buy or use better quality products and services that will simplify their use. Products do not necessarily need to be owned anymore. The user has less responsibility and less risk of suddenly being confronted by high costs for repair or replacement of products.

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CIRCULAR DESIGN PRINCIPLES & STRATEGIESEven if products are returned, much value is unable to be recaptured in most cases unless they have been designed in a way that allows recapturing resource efficiency. Therefore it’s crucial to match your business model and product’s design/construction (and visa versa).

Some circular design principles that are applicable to all products in a circular economy have been identified. Additionally, some design strategies and techniques can be applied as needed to increase the circularity of their business model.

Circular Design Principles - Design for All

Supply Chain Stages:

• Design for Health and Safety of Nature and Humans: Health and safety of both nature and humans should be considered throughout a product’s lifecycle. Not only what is embodied in products (such as non-toxic materials) should be taken into account, but also the health and safety of the ecosystem around the product (such as the working conditions of the producers) should be considered.

• Design for Standardization: Standardizing products and components increases ability for replacement or reuse of components. It can also enable collaborative recovery of products and components.

• Design for Energy Efficiency: Products should be designed to be energy efficient in production, use, logistics, and recovery. Weight and volume should especially be considered as their reduction

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Better Future Factory (BFF) is a multi-disciplinary design, environmental, and engineering company which is incorporating the underlying principles of the circular economy to close loops, cycle materials, increase value and develop businesses that contribute to a better future.

BFF aims to make a global impact and start a revolution through the application of intelligent, creative and innovative design and engineering.

With their latest project - Refil - BFF closes the loop for 3D printer refilament. The production process starts with old car dashboards

and PET bottles. These materials are thoroughly cleaned and shredded into tiny plastic flakes. Next the plastic is filtered

from all contaminants, melted and extruded to be winded onto recycled cardboard spools. The final quality is

as good as virgin non-recycled filament.

REFILby the

BETTER FUTUREFACTORY

CIRCULAR CASE

Read more at betterfuturefactory.com

generally reduces material usage and increases transportation efficiency. • Design for Use: Circular products consider how the customer will be using

the product and design accordingly. For example, adaptations in the product’s design might be needed when changing from an ownership use model to an access model.

• Design for Reverse Logistics: Reverse logistics after a product‘s use needs to be considered during its design. Material choice and construction should be suited for intended collection mechanisms.

• Design for Disassembly: To enable reuse products or product parts in a cost and time-effective manner, a product‘s ability to be disassembled needs to be considered during design. This ensures material/component quality is maintained and the product or product parts can be reassembled or reused.

• Design for Recycling: As the circular economy aspires for all materials to be cycled, products should be suited for recycling and recovery of materials. Recycling materials reduces impact from virgin production.

Circular Design Strategies - Design for Circular Business Models:

• Design for Attachment and Trust: Product‘s design encourages the user to become attached to a product which extends product life.

• Design for Adaptability and Upgradability: Product construction incorporates possibilites to change the product during time of use and keep it up to date in terms of technology and/or fashion.

• Design for Ease of Maintenance and Repair: Construction enables easy repair by the customer, manufacturer, or repairer. This means less durable components (those most likely to fail) must be designed to be accessible for repair and exhange.

• Design for Easy Use: The product is only being used and not owned by by the user. Therefore the design should be as self-explanatory as possible.

• Design for Durability: The product design ensures optimum product reliability. Ideally the durability should match its intended lifespan.

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Looking at the material condition now, a lot of its initial material value is lost. Even a more careful end of life treatment would not change much as the additional value gained would be eaten up by higher costs for the treatment. But what if, in order to have more value left at the end of life, changes happened at the beginning of the product’s life? What would that look like?

The beginning is marked by the design phase, where the firstaction would be to optimize the material and construction for the end of life. Some might question the impact if only one company was to take this approach because a lot of value would still be lost. And yes, eventually the only way to truly make an impact is to have the whole system change.

However, this bottom up approach can still be a success: If one company goes through all this trouble of optimizing the design of their products, why don’t they simply make sure they get them back in the end, or even better retain ownership during the whole time?

If the product, for example, is just leased, additional services like repair and upgrades could be included. This would create even more touchpoints with the customer and give direct feedback that could help improve the product and service to better match the customer’s need. The customer also benefits; he can be sure to always have a working refrigerator without the responsibilities of ownership.

THE END OF A FRIDGE’S LIFE USING THE END TO INFORM REDESIGN

Location: Van Gansewinkel’s Coolrec facility in Dordrecht Subject of observation: RefrigeratorsThe mission: Regain as much valuable material as possible

In a large hall multiple conveyor belts move old refrigerators from one disassembly station to the next. Some fridges show remains of creatively attached comic stickers, magnets, and drawings from their former owners’ children. Some still even contain food. On the disassembly line, the food is the first to be taken out of the fridge, along with even more hazardous materials such as a fridge’s cooling liquid.

Next, the fridges snake along the conveyor belt until reaching a shredder which transforms the fridges into bite-sized, manageable pieces for the subsequent sorting processes. Here the actual value extraction begins.

By the time the fridges reached the facility, most of their functional value was used up. But what about their material value? Most of the materials, mainly plastics, metals and glass, are recycled. Currently an astounding 85% of a refrigerators material content is recovered as a material! However, the remaining 15% is only suitable for energy recovery, which means materials are not used again. This leaves room for improvement. Some examples of this are:

• The rubber seals on the doors, which contaminate the plastics that are recovered. This requires further sorting steps… in which the rubber cannot be recovered for recycling.

• The insulation is ground to a powder in the shredding process. This powder is used in producing cement, but cannot be turned back into a foam.

• The frame of a refrigerator is made of a coated steel. When the steel is recycled in a smelter, this coating burns up and is lost.

• The trays and drawers are made of polycarbonate plastic, which is not recycled as a material but as energy.

• The top smaller refrigerators often consists of a Formica panel. These have to be manually removed and can only be used for energy recovery.

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References

[1] Pfeffer, F. (2014). To Do: Die neue Rolle der Gestaltung in einer veränderten Welt Strategien, Werkzeuge, Geschäftsmodelle (1. Aufl. ed.). Mainz: Schmidt (p.29).

[2] Pfeffer, F. (2014). To Do: Die neue Rolle der Gestaltung in einer veränderten Welt Strategien, Werkzeuge, Geschäftsmodelle (1. Aufl. ed.). Mainz: Schmidt (p.21).

[3] Kronenberg, J. 2007. Ecological Economics and Industrial Ecology: A case study of the Integrated Product Policy of the European Union, Routledge, Oxon.

[4] McDonough, W., & Braungart, M. (2010). Cradle to cradle: Remaking the way we make things. MacMillan.

[5] Circle Economy. 2012. Six Principles to Change the System. www.circle-economy.com/circular-economy.

[6] The Great Recovery. 2013. ‘Investigating the role of design in the circular economy’.

[7] Lifset, R. J. 1992. War on Waste: Can America win its battle with garbage? by Louis Blumberg and Robert Gottlieb. Washington, DC: Island Press.

[8] McDonough, W. and M. Braungart 2003. The Cradle-to-Cradle Alternative. Retrieved September 21, 2015, from http://www.mcdonough.com/speaking-writing/the-cradle-to-cradle-alternative/#.Vf_yF2SqpBd

[9] Wise, D. and L. Longshore. 2007. Study of the Treatability of gDiaper Disposable Diapers and their Impact on Sewer and Wastewater Systems. City of Vancover.

[10] http://www.conserveh2o.org/toilet¬water¬use

A special thanks to our CIRCO colleagues and participants! (http://www.clicknl.nl/circo)

This is the second whitepaper in a series of two about circular design.

LEAD AUTHOR & GRAPHIC DESIGNChristina Mertenswww.christinamertens.de

CONTRIBUTING AUTHORKatherine Whalen@whalenka

ABOUT CIRCLE ECONOMY

PUBLICATION DATENovember 2015

Circle Economy is a nonprofit cooperative organization based in the Netherlands with the aim to accelerate the transition to a circular economy. Our team uses a systems thinking approach to identify circular opportunities and bring together partners to implement. We also conduct independent research on key areas related to the circular economy. We are an action platform and work to make sure our research and work is relevant for our members and other stakeholders to put into practice

CONTACTCircle EconomyNieuwe Herengracht 951011RX AmsterdamThe Netherlands

+31 88 4040440circle-economy.cominfo@circle-economy.com