Circular Economy Awards Debate (Q2) - Hard Numbers & the Business Case

In the case of Ecotech our Active Rubber is less expensive than the equivalent to Synthetic Rubber, ensuring a higher profit margin and a constant flow of the resource for the manufacturing at a long term known cost - thus ensuring over all economic stability and security. The obvious fact of depleting and limited resources, with the understanding that market prices change faster than predictions , especially in such a vulatil world , business must secure the raw materials to ensure production and profitability. To this I may add that country's too must secure the essential resources for their industries as a strategic goal to secure growth, development and employment. Thus only by the full adoption with tangible incentives for Circular Economic transformation will they meet that goal.

8y

Parag G.

Inspiring thoughts! The Circular Economy should be thought of as an opportunity rather than a responsibility. For example, Waste Capital Partners is able to turn the 70% of waste that is organic and would otherwise fester in dumpsites releasing methane gas and polluting ground water - into nutrient-rich compost we then sell to farmers to bolster crop yields. We call this a "table-to-farm" approach and one that has a competitive advantage in receiving "free" cost of goods in the form of waste.

8y

Brock Macdonald

The National Zero Waste Council is near completion of a project aimed at showcasing Canadian circular economy examples. These results will soon be launched on the Council website and featured in a webinar on January 30 – if interested, the registration details can be found on our homepage. Together, the case studies are intended to begin documenting and profiling the range and diversity of circular activity in Canada. We used Accenture’s Circular Advantage report as a framework to complete case studies in each of the five areas of circular supplies, resource recovery, product life extension, sharing platforms, and products as a service. A secondary piece looking specifically at textiles in the Metro Vancouver region was also completed by the Beedie School of Business at Simon Fraser University Here are some highlights…in the area of resource recovery, Enterra Feed Corporation diverts recycled food products and converts it into ingredients for food production. A local cabinetry maker, Nico Spacecraft, offers an example of circular supplies by using urea, formaldehyde-free, plywood which allows the wood to be used again as well as composted. Generally, the presence of chemicals restricts manufactured wood from being composted. With respect to sharing platforms, the Toronto Tool Library lends specialized tools to community members with the long-term goal of creating resource sharing hubs with more than one single class of items. Expansion plans include opening up a third location, rent free, by co-locating in a Toronto Public Library branch. And in textiles, Boardroom Eco-Apparel is closing the loop on the manufacture of corporate clothing by introducing its own apparel recycling initiative and taking back its clothing made of 100 % recycled polyester to be made again into new fabric. An additional 10 textile case studies were also completed. In doing this research, we found that there were many more examples of resource recovery and circular supplies as opposed to product as a service – this, by far, remained the most emergent business model and the one that we get the most questions on. The National Zero Waste Council’s Circular Economy Working Group will be launching these case studies as part of an online a resource hub in February – and is looking in the long-term to building a Circular Economy Business Innovation Hub in Canada. The Council is a cross-sector leadership initiative aimed at addressing waste generation in Canada and we see the circular economy as a comprehensive framework to address the systemic factors driving waste generation.

8y

Diane Booth

Balfour Beatty's CE journey began in 2011 when the company officially launched the new 117,000 sq ft Modular Systems + facility in Wednesbury, West Midlands. This manufacturing facility allowed the company to use designed production to reduce, and often eliminate, waste at every point of the manufacturing process. It offered greater control of feedstock materials and avoided the wastage normally experienced on construction sites due to lack of good quality storage space. It also gained other sustainability outcomes by building this facility including outstanding levels of safety, productivity, product quality, cost control and programme certainty to our partners and customers. • The emphasis on recycle and re-use driven through local business collaboration has resulted in an 80% reduction in landfill materials produced through the factory over the last 4 years. • Modular systems + achieved an AFR 0.010 with 2 reportable LTMI over 10 years of working at 1,750,000 man hours. • The right first time ethos demonstrated by the fact that our factories procure all materials via drawing “call offs”. This creates a high degree of confidence in the drawings/scope of works which creates a robust approach to the quantity of materials we buy. Through the confidence in these call offs and the systems within the factory, material wastage is minimised. It also locked design preventing the wasteful behaviour of redesign. Traceability is important in a CE world, so we make sure every piece of equipment and material can be traced back to ensure our quality is right first time, every time. The company also focussed on local sourcing to support local economic development and reduce processing times. Through this approach the company has achieved its target to spend £1b with SMEs by end 2014. Using modular+ for multi serviced risers, plant and wiring installed in HMP Oakwood saved over 200,000 man hours of traditional install and the one cell approach packaging saved 4,000 cardboard boxes from going to landfill and supplier cost savings in the region of 47%. Our other factories, for example in Aberdeen are constantly taking Circular Economy (CE) decisions by making choices that dematerialise – such as our aluminium towers – and focussing performance on mass balance efficiency, comparing materials in to product out to minimise wastage. Balfour Beatty's first venture in delivering a building capable of being deconstructed will be at St James’s Market development, Regent Street, London. This work is particularly challenging as it merges CE thinking to a listed building façade. Working closely with the client, Balfour Beatty is employing an enhanced procurement approach to sourcing materials so that timber comes from within the Crown Estate and products that the company cannot manufacture itself have high recyclate content. In addition, the specification for lighting, heating and water systems will result in a highly efficient energy and utility demand when the building is in use. The project itself will provide 31,600m2 of premium office and retail accommodation spread over two urban blocks and 3,500m2 of new public realm. Through this project we are building our competency to design for deconstruction and employing BIM to store component details including, maintenance and ownership – an innovation we plan to use elsewhere.

8y

Peter Lacy

Thank you for all the great comments on question two of WEF YGL Circulars Q&A debate around the business case. In a few moments I will post the third question. Before I do let me take a moment to thank my co-chairs and importantly The Circulars sponsors and partners Andy Wales Niall Dunne Christophe Beck respectively from SABMiller @BT Ecolab and my own team Accenture Quentin Drewell Wesley Spindler Tina Senior et al. As well as Fortune Magazine All of whom have been amazing along with the John Dutton Katherine Brown Johnson Yeh Dominic Waughray Nathalie Chalmers at the WEF & YGL teams. Lots I'm sure I'm missing. But on behalf of Ida Auken David Rosenberg I thought a good moment to recognise you guys as well as all the amazing companies that submitted to 'The Circulars'. Do feel free to chime in too.

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8y

Rod Clare

Businesses understand that the circular economy can build reputation and give them a competitive edge but often cite costs and delays as the main barriers. On closer examination, these costs and delays are usually due to lack of infrastructure (technology, systems, processes), lack of facilitated networks, inability to quantify the value of a project, need for research and commercial testing, resource security and regulatory blockages. Sustainability Advantage helps build business capacity through moral, financial and other channels of support to overcome these barriers. Sustainability Advantage’s role as an incubator - connecting businesses, building relationships - is key to accelerating circular economy synergies. When businesses ask “show me the money” we point to our case studies, independently verified, that have already resulted in 700,000 tons of waste diverted from landfill, saving US$20 million, creating 79 jobs and leveraging almost US$40 million in infrastructure investment by the private sector. Sustainability Advantage is a finalist in the Cities and Regions category of the Circulars.

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Peter Lacy

Great points Rod, and impressed with what you guys are doing in NSW. In particular, I'd highlight the importance of infrastructure and 'facilitated networks' (like the term). I think for circular economy 'at scale' these become very important factors. In most cases where we see companies creating real advantage it is within an ecoystem of partners around circular economy

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8y

Dorte Vigsø

For three great cases from Regions finalist Denmark have a look at our Circular Economy Award videoblog. It features Vigga, a small company with the circular business model of subscribtions for childrens clothes. The triggering number for Vigga was the realisation that their organic childrens clothes on was used on average only 6 times in it's lifetime. Good quality clothes can easily stand being used and washed lots lots more. In the first two years alone Vigga expect that their subscribtion model will save 128.000 kilos of chemicals and 44 million liters of water. The video also features inspiration from the global shipping company Maersk Line and the company ReMatch. https://www.youtube.com/watch?v=p1ZC6JcgmYg

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8y

Marcel Peters

Now Andy, hope you're triggering some comments! Let me provide the example of the Bundles laundry solution: Consumers want to be serviced, but still they have to take care of everything when doing laundry at home. While monitoring the use of the Bundles washing machines with our Bundles Buddy SmartPlug we interact with the user via our Bundles Insights app to help them do the laundry better, cleaner and more economically. Adoption means growth. We can use one appliance for at least 5000 cycles and with each cycle use less energy, less water and less detergent and still get the same washing result. Bottom line this means that with one recyclable appliance we produce 50-75% more clean laundry than with the average (disposable) washing machine sold today in the Netherlands and we use 30% less detergent, 15% less water and 15% less energy. And without maintenance. How can this not be profitable? While growing the customer base and bottom line results we work towards the end-goal: to recover the water and detergent, to run it solely on renewable energy, upgrade the appliance locally and have a single appliance used my multiple users instead of leaving the valuable resources it is made of standing still. And why just washing machines? Tumble dryers are in the portfolio and more appliances can follow. http://youtu.be/i9PfvNT4MPo Bundles Infomercial www.bundles.nl

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8y

Peter Lacy

Great example

8y

john obinna

GREAT WORLD

8y

Andy Hall

Hi Peter, everyone is continuously asking for examples and case studies but there must also be someone prepared to step in and do it to provide the numbers. The biggest hurdle to moving the circular economy forward at the moment is that companies are not prepared to invest in developing the market. There is no golden goose and every case is different so examples are often difficult to apply elsewhere. The real question is why this is being seen as a risk rather than an opportunity. What has happened to the entrepreneurial spirit?

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8y

Andy Hall

Hi Peter, you say that it is a relatively small pool of companies and I agree there. The SMEs are restricted by lack of access to finance and there needs to be action on that front. However, coming back to examples..we all know the example of leasing cars. The cars are then sold on (into the next loop) at their highest economic resale value to the second owner. Eventually cars are scrapped, or rather dismantled, for recovery of parts. Nearly every auto manufacturer has an own brand pre-used sales network and also a refurbishment business for transmissions, starter motors and alternators. This is not new, or 100% perfect, but is a great example of a circular system that has been in action for years. Many existing business operate in a circular way but linear businesses do not see how it can be applied to them.

8y

Peter Lacy

One additional thought which I've discussed with some of the co-chairs Ida Auken & David Rosenberg and team Quentin Drewell Wesley Spindler would be to try and get permission from some of the finalists to share their case studies. Probably need to get past the awards next week! But after that will look into it. So thanks Andy, good prompt

8y

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Circular Economy Awards Debate (Q2) - Hard Numbers & the Business Case

Peter Lacy

Accenture Global Sustainability Services Lead; Chief Responsibility Officer, Global Mgmt Committee Member, plus Non-Exec at AeroFarms & WEF YGL…

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