thriving in the circular economy: product design and business practices for “circular tech” and...
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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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France29 avenue Aristide Briand - CS 1000694117 Arcueil Cedex
NetherlandsMonitorweg 291322 BK Almere
www.anteagroup.com
Thank You!
Pamela J. GordonSenior Consultant, Antea Group
Author of Lean and Green: Profit for Your Workplace and the
Environment
[email protected] Valley, +1-510-406-9460