CIRCULAR ECONOMY

AGENDA

• What is circular economy?

• What is its benefit?

• Why move in that direction?

• How to get there?

• Examples of circular economy

WHAT IS CIRCULAR ECONOMY?

A industrial economy that is restorative by intention

renewable energy

eliminate the use of toxic chemicals eradicate waste

biological nutrients

technical nutrients

reenter the biosphere safely

circulate at high quality without entering the biosphere

WHAT IS ITS BENEFIT?

• Linear pattern of “take-make-dispose” increases exposure to risk – most notably price volatility and resource disruption

Overcome limitations of linear consumption

• Systematically, throughout the life cycles and uses of products and their components

Eradicate waste

• Sharp price increases in commodities since 2000 have erased all the real price declines of the 20th century

Offset sharp price increases

• Companies adapting circular economy gain a great advantage from efficiency, integration and effective use of resources

Competitive advantage

WHY MOVE IN THAT DIRECTION?

• Finite resources, finite space reaching the critical tipping point

• Financially it just makes sense Circular concept fosters wealth and employment opportunities

• World Economic Forum (Jan 2014)*• The materials saving potential alone is estimated at over a trillion dollars a year• In Europe alone the job creation for re-engineering/manufacturing will create over 1

million jobs this year

• Moving towards a global circular economy is the only option for long-term sustainability

*World Economic Forum (Jan 2014). “Towards the Circular Economy: Accelerating the scale-up across global supply chains”. Source: <http://www3.weforum.org/docs/WEF_ENV_TowardsCircularEconomy_Report_2014.pdf>

HOW TO GET THERE?

• During the design phase, consider all the steps in the product life including raw material inputs, production, transportation & storage, retailing, consumer use and the 3Rs

Solutions from the World Economic Forum

1. Set up global reverse networks for products & components

2. Innovate demand-focused business models

3. Focus on pure materials stock management at the outset

EXAMPLES OF CIRCULAR ECONOMY

PRODUCT AS SERVICE : PHILIPS

EXAMPLES OF CIRCULAR ECONOMY

NEXT LIFE SALES: TATA

EXAMPLES OF CIRCULAR ECONOMY

COLLABORATIVE CONSOMPTION

EXAMPLES OF CIRCULAR ECONOMY

RECYCLING 2.0 : SOUTHWEST AIRLINE

QUESTIONS?

Thank you!