thriving in the circular economy: product design and business practices for “circular tech” and...

Thriving in the Circular EconomyProduct Design and Business Practices for “Circular Tech” and Other Industries

Pamela J. Gordon, Senior Consultant, Antea Group

Author of Lean and Green: Profit for Your Workplace and the Environment

Our Journey Together

ENABLERS & BARRIERS to thriving

in the Circular Economy

FACILITATE DIALOGUE with product

designers, suppliers, and customers

CIRCULAR ECONOMY EXPECTATIONS emerging globally

GAIN EXECUTIVE SUPPORT in making this critical and

comprehensive change

Circular Maturity Curve

First Poll

Our Journey Together

ENABLERS & BARRIERS to thriving

in the Circular Economy

FACILITATE DIALOGUE with product

designers, suppliers, and customers

CIRCULAR ECONOMY EXPECTATIONS emerging globally

GAIN EXECUTIVE SUPPORT in making this critical and

comprehensive change

From the Linear Economy…

The electronics in front of you

Story Box

The Circular Economy

Source: Ellen MacArthur Foundation

Supply-chain risks

Global expectations

Product costs

Denial about shortages

Resistance to change

Insufficient executive drive

Enablers & Barriersto Thriving in the Circular Economy

People

ProfitPlanet

Enablers

Barriers

Circular “Value”

1. Move away from ‘selling’ products.

2. Offer customers 'a better way to get

what I need.'

3. Offer more capability with existing

assets.

4. Specify non-toxic materials as feedstock.

Ken Webster,Feb. 17, 2016Ellen MacArthur Foundation

-------------------------------------------------------EXAMPLES------------------------------------------------------

©By ProhibitOnions at English Wikipedia

Circular Economy

Asset Mgt/ Maintain

Refurbish/ remanufacture

Recycle

Reuse/ redistribute

Linear |

Mining/ materials

manufacturing

Collection

Materials/ parts manufacturer

Product Mfr./ construction

Retail/ service provider

Energy Recovery

Landfill

User The value in front of you

Story Box

Our Journey Together

ENABLERS & BARRIERS to thriving

in the Circular Economy

FACILITATE DIALOGUE with product

designers, suppliers, and customers

CIRCULAR ECONOMY EXPECTATIONS emerging globally

GAIN EXECUTIVE SUPPORT in making this critical and

comprehensive change

Prevent waste, delay recycling, and dramatically reduce carbon emissions starting at product concept

Leverage your current role –metrics for waste reduction, recycling, carbon footprints, etc. –to…

Getting a Seat at the Circular Table

Draw a larger circle

Story Box

From Product Design to Value Design

Design Your Products for the

Circular Economy

Apply the Circular Economy to Your

Company

Align Your Suppliers to Your Circular Strategy

Competitive Advantage Supply Chain SupportRevenue Growth

Photo by Michael Kirschner

Antea Group Design for Circularity

Workshop, Nov. 2016

More Key InfluencersCEO CFO

VP Operations VP HR

VP R&D VP Supply Chain

Product Launch Marketing

Your TitlesEHS Engineer Sustainability Leader

CSO Product Stewardship

Technical Leader, Global Environment

Corporate Environmental Compliance

Paths to Enter and Widen the Circle

Sustainability TeamsEarth DayExecutive SponsorA Regional TeamThought Leaders

Industry Groups- Ellen MacArthur Foundation- NAEM - EICC - Pilots- EICC - iNEMI - Others

Enter & Widen the Circle of Influence

Challenging to get onboard

Second Poll

Internal

Our Journey Together

ENABLERS & BARRIERS to thriving

in the Circular Economy

FACILITATE DIALOGUE with product

designers, suppliers, and customers

CIRCULAR ECONOMY EXPECTATIONS emerging globally

GAIN EXECUTIVE SUPPORT in making this critical and

comprehensive change

Supply Interruption

Brand ExposureCustomer Disloyalty

Regulatory Risks

The Linear Economy’s Business Issues

Ferrous Metals

Precious Metals

Meet that Revenue Goal

Story Box

Circular Economy Package

Circular Economy Strategy (December 2015)

EC adopted a “Circular Economy Package” that includes revised legislative proposals on waste.

More then 50 key actions included

Progress report: 5 years after adoption

EUROPEAN COMMISSION LEGISLATIVE OVERVIEW

1

3

4

2

Stimulate EU transition to a

circular economy

Boost global competitivenessFoster

sustainable economic

growth

Generate new jobs

Purpose

Package TargetsEUROPEAN COMMISSION LEGISLATIVE OVERVIEW

Recycling 65% of municipal waste by 2030

Recycling 75% of packaging waste by 2030

Reduce landfill to maximum of 10% of all waste by 2030

A ban on landfilling of separately collected waste

Promotion of economic instruments to discourage landfilling

Clearer definitions and consistent calculation methods across the EU for recycling rates

Measures to promote re-use and stimulate industrial symbiosis (“waste = food” concept)

Economic incentives for Producers to put greener products on the market and support recovery and recycling schemes

Waste Reduction Targets from Revised Proposals

Proposed Directives on WasteEUROPEAN COMMISSION LEGISLATIVE OVERVIEW

Waste

Packaging & Packaging

Waste

The Landfill of Waste

Electrical and Electronic equipment

End-of-life Vehicles

Batteries and accumulators

Remade, funded by USA D.O.E.Reducing Embodied-Energy and Decreasing Emissions Institute

$140 million (public & private funds) Finding new & less expensive ways to reuse,

recycle, & remanufacture materials Metals, fibers, polymers, e-waste Aim: achieve a 50% improvement in overall

energy efficiency in U.S. manufacturing by 2027

Led by Rochester Institute of Technology’s Golisano Institute for Sustainability. Research and expertise contributed by:

- 26 universities - 44 companies (including Antea Group)- 7 national labs - 26 trade associations

Our Journey Together

ENABLERS & BARRIERS to thriving

in the Circular Economy

FACILITATE DIALOGUE with product

designers, suppliers, and customers

CIRCULAR ECONOMY EXPECTATIONS emerging globally

GAIN EXECUTIVE SUPPORT in making this critical and

comprehensive change

Anticipate Objections

Challenges are easier to meet with executive commitment to profitable Circular solutions.

“The recycling stream is

contaminated.”

“Finite materials? We have a steady stream of

supply.”

“My customers hesitate to enter into long-term

leases.”

“We’ll wait until forced by

regulations.”

Executives Recognize these Drivers

4. Supply Chain Disruptions

6. Regulatory Risks

1. Customer Loyalty

2. Brand Advantage

3. Product Reliability

5. Cost of Goods Sold

and how they increase shareholder value

When the CEO is ready

Story Box

Change the Questions

Questions to Pose at Executive Meetings

Instead of Asking… Ask Instead…How shall we improve our next-

generation product?

How can we deliver greater customer benefit with

few to no physical resources and minimal cost?

How can we sell more? How can we maximize revenues through leasing?

How can we get more from our

supply-chain, cheaper?

How can we leverage the products/materials our

customers’ already access, and add value locally?

How can we tightly control the

materials we buy?

How can we tightly control our products’ raw

materials forever?

How can we beat our competitors

this quarter?

How can we be first to offer circular solutions for

greatest profit, responsibility, and brand value?

Designing in circularity

Keeping materials in the economy

Detecting & plugging leaks into the natural environment

Preventing material from escaping collection systems

Upcycling

Achieving not only efficiency, but also effectiveness

Increasing revenue and profit through Circular models

“We need multidisciplinary teams… If we want to succeed, then we need to broaden collaboration.”

–Katia Hansen

Reward Teams for…

B E T T E R B U S I N E S S , B E T T E R W O R L D℠

Antea Group Offices

USA Headquarters5910 Rice Creek Parkway, Suite 100St. Paul, MN 55126, USAUSA Toll Free: +1 800 477 7411 International: +1 651 639 9443

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www.anteagroup.com

Thank You!

Pamela J. GordonSenior Consultant, Antea Group

Author of Lean and Green: Profit for Your Workplace and the

Environment

Pamela.Gordon@AnteaGroup.comSilicon Valley, +1-510-406-9460