future proofing business · 2020. 7. 20. · recycle maintain/ repair reuse truconnect® materials:...

FUTURE PROOFING BUSINESS WITH THE CIRCULAR ECONOMY CONCEPT

Satu Kaivonen, Environmental Specialist May 29th 2018

The international maritime sector today

accounts for 4% of GHG emissions

globally

GHG emissions of shipping are

estimated to increase by 40% by 2030

Metals will be increasingly expensive in

the future

– Group of metals known as rare

earths market price jumped in by

2000% in a year

SELL VALUE INSTEAD OF MATERIAL

Circular economy aims to get more value from the existing products, while

decoupling value creation from resource consumption

Take Make Dispose Make

Use

Recycle

Linear Economy

Circular

economy

18/6/18 © 2018 Konecranes. All rights reserved.3

• Digitalization

• Demand of low-carbon

products

• Growing interest towards

rental services

• Product-as-a-service

• Mobility as a service

• Resource scarcity

• Emission reporting and

control

• Circular economy

• Development of second hand

markets for products

PULL

• New taxation models:

increasing the cost of natural

resources

– Lower VAT on labor-

intensive services

incentivizes repairs and

reduces waste

• Legislation

– Ecodesign

– NFI directive: disclosing

information about corporate

responsibility

– circular economy in the

pipeline

PUSH


PIONEERS PAVING THE WAY

The pioneers in circular economy

are not only about resource

supply and eco-efficiency, but

more about evolving their

business models

According to recent research*

circular economy could generate

~1,5x higher profit potential

*Deloitte

• Rebuild programs -

product updates for a

fraction of the cost of

buying a new machine -

and a like-new machine

warranty.

• Helping dealers make

decisions on which parts

to reuse in order to

achieve long life of rebuilt

components

Trucking companies and

airlines can choose to be

billed based on:

• the number of

kilometers travelled

• the number of tons

transported

• the number of

landings

carried out using tires

supplied and

maintained by

Michelin


RECYCLE

MAINTAIN/REPAIR

REUSE

TRUCONNECT®

Materials: supply chain,

raw material

manufacturers

Product

manufacturer

Distribute

Service provider

REMANUFACTURE

Customer

Biochemical

feedstock

Renewable energy

• Lifecycle care

• Modernizations, retrofits

• Rental and leasing, RENTALL© concept

• Agilon material handling – leasing model

• Rebuilt parts & reverse engineering

• Remanufactured lift trucks

• Design for disassembly

• Recyclable materials

(avoid/minimize landfill)

OUTLINE OF THE CIRCULAR ECONOMY MODEL


• Circular economy aims at optimizing resource use within

industries. Working together as an industry, we can

enable more efficient use of raw materials, increase

energy efficiency and create value for our customers.

• SDGs are also supporting circular economy. They offer a

clearer framework for discussing and solving global

challenges making it more likely for us to achieve results.

• All the correct incentives have to be in place: the model

has to make both economic and environmental sense.

HOW CAN PORTS SUPPORT CIRCULAR ECONOMY?CHANGE THE GAME BEFORE IT CHANGES YOU


HOW CAN PORTS SUPPORT CIRCULAR ECONOMY? RECIPE FOR CIRCULAR ECONOMY TRANSFORMATION (DELOITTE)


• The purpose of the project is to conceptualize,

develop and validate a set of tools and approaches

that will enable accelerate the transition towards

circular economy.

• With the CIRCit project Konecranes wishes to seek

new solutions and business models based on

customer needs and future trends that support

circular economy.

KONECRANES POWERING THE CIRCULAR ECONOMY


THANK YOU!

MEET US AT OUR

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future proofing business · 2020. 7. 20. · recycle maintain/ repair reuse truconnect® materials:...

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