circularity assessment tool
TRANSCRIPT
CIRCLEASSESSMENT
tool for companies to evaluateand improve their circularity
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THE LINEAR ECONOMY RESULTS IN SYSTEM-WIDE RISKS
Continued focus on a linear economy results in system-wide impacts and risks
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FISHERIES EXPLOITED
WATER USE
NORTHERN HEMISPHEREAVERAGE SURFACETEMPERATURE
SPECIES EXTINCTION
OZONE DEPLETION
FOREIGN INVESTMENT
CO2 CONCENTRATION
GDP
MOTOR VEHICLES
PAPER USE
LOSS OF TROPICALRAINFOREST & WOODLAND
POPULATION
1750
1800
1850
1900
1950
2000
2050
THE LINEAR MODEL IS UNSUSTAINABLE
These linear risks have adverse long-term effects on the economy, society and environment
The circular economy is an economic system that is waste-free and resilient by design, mimicking natural ecosystems in the way we organise our society and businesses.
By following circular strategies and principles, companies can ensure the highest level of economic and societal value is attained while minimisingplanetary impacts.
THE CIRCULAR ECONOMY OFFERS A SOLUTION
GROWING MOVEMENT OF CIRCULAR BUSINESSES
Numerous companies - from sustainable start-ups to major commercial ventures - are increasingly interested in introducing and further developing circular and sustainable solutions into their business:
Major corporations such as Philips, DSM, Renault, Nike, etc.
Companies such as Patagonia, Rabobank, Bruynzeel Storage Systems, Desso, etc.
Growing startups such as Black Bear Carbon, Inashco, Fairphone, etc.
THERE IS A NEED TO QUANTIFY CIRCULARITY
A variety of tools exist for measuring and quantifying sustainability topics and Environmental, Social, and Governance (ESG) factors - CO2 emissions, generation of waste, occupational health and safety, business ethics, etc.
However, no tool currently exists that provides a comprehensive framework for circularity and specifically quantify how circular organisations are
Circle Economy’s CIRCLE Assessment tool assesses the strategic factors that determine how well organisations are meeting circular economy objectives, and it provides recommendations to capitalise on circular opportunities, enable long-term growth, and reduce linear risk
CIRCLE ASSESSMENT: OPERATING MODEL
Banking and Financing
Engage with clients and partners to improve circularity and create value
Institutional Investors
Assess portfolios on circularity to reduce risk, enable long-term growth
City Sustainability Funds
Assess potential investments on circularity to generate returns
Company Self-Assessment
Identify strategic business opportunities to create value and track performance
The CIRCLE Assessment evaluates companies on circular economy objectives and provides internal and external stakeholders with an overview of their strategic improvement areas
CIRCLE ASSESSMENT: BENEFITS FOR COMPANIES
The CIRCLE Assessment is the first ever self-assessment tool that allows companies to evaluate their level of circularity through an automated online survey with a tailored set of questions depending on business type
With the tool, companies can understand the extent to which they are pursuing and implementing various circular business strategies within six specific categories, and identify areas in which the company can improve its overall circularity performance
The results from the tool can be used for internal strategic discussions to develop a circular strategy as well as shared externally with key investors
CIRCLE ASSESSMENT: COMPANY RESULTS
The results from the CIRCLE Assessmentwill eventually be displayed in an interactive web interface with the ability to download a more detailed PDF report
Through the interface, companies can identify areas of improvement and new business opportunities to create long-term value; track their progress of circular objectives internally and with investors; and reduce exposure to long-term risks
COLLABORATORS OF THE CIRCLE ASSESSMENT
The CIRCLE Assessment tool is being developed in collaboration with:
The following companies have been involved in the development and testing of the tool:
APPENDIX:
Details on the results and outcomes of the assessment
ASSESSMENT CATEGORIES
The Circle Assessment measures circularity around 6 key areas:
SAMPLE COMPANY RESULTS
Reporting Year:2014Annual Turnover:8 billion euros
Assessment Time:2.5 hours
SAMPLE COMPANY RESULTS
Responses Company Comments
INDUSTRY COLLABORATION
50
• Participate in working groups with competitors and industry peers on the circular economy
• Do not engage in cross-industry collaboration
• Participate in industry association working groups to increase awareness of circularity among competitors and peers
SUPPLIERCOLLABORATION
76
• Formal agreements with suppliers to integrate circular economy principles into operations
• Prefer suppliers that are aware of the concept of the circular economy
• 60% of suppliers are regularly engaged with regards to the circular economy with ambitions to make this 80% by 2020
• With raw material suppliers, we prefer suppliers who implement circularity and provide circular products where possible for our operations
SAMPLE COMPANY RESULTS
Responses Company Comments
CUSTOMERCOLLABORATION
50
• Mention the circular economy in communications with our customers and clients
• Less than 25% of customers engaged on circular economy
• Have some European customers who have a high standard with their sustainability requirements and request circular products
GOVERNMENT AND OTHER COLLABORATION
81
• Actively engage in public-private partnerships and circular projects with local, national, or international governments
• Exploring membership with organizations aimed at circular transition
• Work closely with European municipalities to develop more circular infrastructure projects
• In discussions with Circle Economy regarding membership to their platform
SAMPLE COMPANY RESULTS
Responses Company Comments
DISRUPTIVE TECHNOLOGY AND INTELLIGENT SYSTEMS
40
• 25-50% of operationsimplement innovative technologies and processes to become more circular
• 25-50% of operations use analytics and intelligent systems to make operations circular
• Use sensors and analytics to monitor operations in some facilities in Europe
INNOVATIVE DESIGN AND OPERATING MODELS
23
• Do not currently procure any assets through pay-per-use, sharing, or leasing models
• 25-50% of products use circular design principles
• Do not currently deliver any products through pay-per-use, sharing, or leasing models
• Some products sold in the European market have bio-plastic as a key material
SAMPLE COMPANY RESULTS
Responses Company Comments
REDUCING INPUTS 74
• 50-75% of operations implement measures to reduce resource inputs
• Water and energy reduction have been implemented across many of our production facilities in Europe with ambitions to implement such systems across all of our production centers globally
REPLACING INPUTS 31
• Exploring pilots to substitute non-renewable materials with renewable
• 25-50% of operations replace toxic/hazardous substances for bio-basedsubstances
• 0-25% of grid energy inputs have been substituted for on-site renewable energy inputs
• On-site solar panels have been piloted at one factory in Spain with success. Plans to implement on-site solar at production facilities where economically feasible
• Piloted using bio-based plastic for some European products and have integrated it within some of our European offerings
SAMPLE COMPANY RESULTS
Responses Company Comments• 75-100% of inputs are sourced
by reusing or recycling wastes from own operations
• 75-100% of inputs come from reused or recycled sources externally
• Exploring pilots to recover and redirect our wastes and byproducts for other uses
• Waste from operations is used in combined heat and power plants to generate heat and electricity across the majority of our operations
• Exploring pilots with the food industry to reuse organic wastes as feedstock for our CHP systems
• Wastewater is treated and reused across the majority of our operations
• Exploring pilots to reuse chemical byproducts from operations
SAMPLE COMPANY RESULTS
Responses Company Comments
STRATEGIC LEADERSHIP 100
• Circular economy is part of the sustainability, business, innovation, marketing, and production strategy
• Only have anecdotal evidence of the implications of the circular economy for business
• Have clear future targets to be more circular
• Circular economy is a key part of strategy with strong ambitions to improve circularity in the future
• Exploring methodologies to determine the implications of the circular economy on the core business and company profits
• Target to be 80% circular by 2025
ORGANISATIONALLEADERSHIP
95
• Have roles for circular economy across all levels
• Strong employee awareness of circular economy objectives
• Key incentives provided to middle and upper management to achieve circular principles
• All of our employees are actively engaged to help achieve our circular economy targets by 2025
• Implemented policies to tie financial incentives and bonuses for management levels based on helping the company achieve circular economy goals
SAMPLE COMPANY RESULTS
Responses Company Comments
EXTENDING ASSETS 62
• 50-75% of operations fully utilize or extend the lifetime of some or all of our existing assets
• 50-75% of operations ensure that assets reaching end-of-use are reused, refurbished, or remanufactured to provide a second life
• Engage in end of life services for some of our assets in Europe and North America, including regular repair and maintenance and refurbishment and remanufacturing of assets nearing end-of-life
• Ambitions to increase this across all operations globally
EXTENDING PRODUCTS & SERVICES
96
• 50-75% of operations enable extension of lifetime of our own or another company’s products while in-use
• Greater than 75% of operations enable extension of lifetime of own or another company’s products at end-of-use
• Offer maintenance warranties and servicing contracts with the majority of our products while customer is using them
• Offer take-back programs to refurbish and remanufacture our products for second-hand market
