Circular Econ. Awards Debate: 1. Why bother with the Circular Economy?

john obinna

Thanks Again For The Great Things

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Gino Schiona

Dear Peter, resources on this planet are not infinite. Certainly their availability time is different and therefore should be evaluated the pros and cons of each material flow in terms of matter and energy. Undoubtedly if energy costs necessary to make the circular economy are greater than those that would be obtained by a linear system would be better to wait. The example of the aluminum industry is striking; collect and recycle aluminum saves 95% of energy compared to the production from ore (bauxite). The aluminum is in fact a permanent material that, downstream of the first production, can be used before and reused, then collected and recycled without losing its chemical-physical characteristics, and so back into the circulation.

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Diane Booth

IMO it's simple - cost, value and impact. It is costing increasingly more for materials to manufacture and build what we need, the it costs us money to disassemble for disposal of them at end of life. Using virgin materials reduces the value we can add to society because it causes negative impacts. Keeping materials in the use phase reduces the whole life cost of using the materials because of life extension and if we're clever we can design and manufacture materials that we can reuse repeatedly and components and kit we can disassemble easily. This reduces the negative impacts on the environment and society which means we may continue to use the environment free for clean air, clean water and land upon which we can grow crops and raise feedstock.

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Brad Parsons

The Earth is flat, why sail ships to the edge when you might fall off? Moving away from the linear economy might be scary but it is also necessary. I'm building a business that expands the value on existing assets by providing visibility, improving availability, driving higher utilisation and finally rejuvenation (to look for circular economy opportunities). This can then feed the design of these assets. By driving better usage we can get more from existing rather than building new. Brad

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Oliver Campbell

When something has worked for a very, very long time like the Linear Economy there is a natural skepticism, and justifiable questioning, to suggestions of change. Natural resources are reaching a tipping point in many areas of the world due to increasing trends of: global urbanization; global population - 1B more people by 2025; and global consumerism. So, in our view at Dell, it's no surprise that the circular economy is now gaining the attention of business, governments, and the next generation as the model to transform today’s “take-make-dispose” economy into one that is restorative by design. The successful company of the next decade will be defined by how well it adapts to the challenge of developing materials and processes for holistic lifecycles that recognize the economic shift that is occuring. I think we'll see more programs like Dell's Legacy of Good for 2020 that focus on innovation, recycling, re-use, partnerships to build sustainability into products and processes.

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Andy Hall

As is often quoted "The stone age didn't end because we ran out of stones"....there was simply a better option. This is the case for Circular Economy where value creation and retention within managed systems provides the framework for economic growth while decoupling it from environmental impact. No one has to do it, it just makes smart business sense by providing integral services, recurring revenue and reducing end of the pipeline costs. Everything that is new is initially seen as complex. 10 years ago most people said that they had no need for a smartphone. Solar energy is due to reach grid parity within the next 10 years so the energy companies will be less reliant on fossil fuels...their biggest worry should be customers going off grid! Circular Economy principles can be applied in many areas to add value and unlock new markets. That means business growth which is surely the number one priority for all companies.

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Alice Cahill

Increasingly, the Circular Economy has become the focus of industry and Government partnerships to help businesses invest, compete and grow more sustainably. The business case is clear – cut costs, manage risks, build business resilience, create stronger supply and value chains, get a competitive edge, expand markets and importantly help and hopefully restore the environment. While there might be some initial start up costs – we believe the benefits in the longer turn will outweigh these costs. We believe there is an important role that government can play in reducing those costs and assisting organisations – sometimes even competitors - work collaboratively together. At Sustainability Advantage we are committed to creating a community of like-minded organisations in NSW South Wales, Australia – a circular community – and have been acknowledged for our work as finalists in the City/Regions category.

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Peter Lacy

Now for the next question... which I think some of you and particularly Iris van Wanrooij may have already started to answer! Will post Question 2 in a new post now

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Peter Lacy

I also noted the recurrent theme of whether short-term oil prices in recent months change the game. I would agree with Christian Lanng comments around 'volatility'. That is as pernicious to investment and strategy at times as whichever side of the benefit / cost you sit of falling or rising prices. And that volatility has become more and more of a concern in recent years. So one of the key advantages of Circular Economy is a stability premium versus those trapped in linear models.

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Peter Lacy

Thank you to all of you for the great debate on the first question. Woke up this morning in Shanghai and took me an hour just to read them all properly! Some great themes coming through on why it is worth bothering long-term and short-term.

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