The third and final whitepaper, 6 Guidelines to Empower Financial Decision-Making in the Circular Economy, in our finance reporting series, 3 Essential Steps to Financing Circular Business Models, is finally out! The whitepaper, authored by, Sustainable Finance Lab and Circle Economy and powered by Nederland Circulair!, provides financiers with practical guidelines to prepare for their new role in the circular economy.
The paper aims to outline the new role financiers have to play to accelerate the transition towards a circular economy. How can they change their own operations to better align with those of circular entrepreneurs? How should they judge the risks and opportunities that are presented by circular business models? What new dangers and securities do these new business models bring? What role can they play in this new economy?
“Circular business provides a great opportunity to the sustainable investment community, but to reap the benefits of this opportunity, the financial sector needs to take a different perspective.”
– Anne-Marie Rakhorst, Entrepreneur and Founder of Search Ingenieursbureau Agency and Duurzaamheid.nl
In the first two steps of the series we provided an understanding of circular business models and helped companies find their place on the Value Hill while the second report in the series walked businesses through a 10 step guide to creating a financeable circular business. Now it’s time for the financial sector to act!
The system shift to the circular economy fundamentally changes the role of both the entrepreneur as well as the financier. In order to overcome this change, entrepreneurs and financiers need to find each other in this new economy. Interested to learn how financiers can play a role in the circular economy?
“The circular economy requires a different vision on security. For example, for increased risks you get a stable cash flow in return.”– Richard Piechocki, Sustainable Business Strategist at Rabobank
[cta link="http://www.circle-economy.com/financing-circular-business" ]Download the 6 Guidelines[/cta]
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Master: Circular Business with the Value Hill & Create: a Financeable Circular Business in 10 Steps
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Our mission is to realign the current financial system with the real economy by identifying financial barriers to circular business practices and developing solutions to overcome them. Over the last few decades the financial economy has taken on a life of its own. Money has become disconnected to the real world and this realisation has been manifested through an accumulation of capital, rapid growth of inequality, leakage of money into the virtual economy, and reliance on international markets. Contradicting core elements of the circular economy, our current financial cycles need to be restored. Having the ability to alter human behaviour, and human activity, money and the way we manage it can be a major catalyst in the transition towards a circular society.
Circle Economy is honoured to be a finalist for the 2017 Circulars in the category Governments, Cities and Regions!
Additionally our members, Fairphone (Young Global Leader Award for SME), Black Bear Carbon and CRS Holland (People's Choice Award) are joining us as finalists in their respective categories.
The Circulars is an initiative of the World Economic Forum and the Forum of Young Global Leaders. It is the world’s premier circular economy award, offering recognition to individuals and organisations, across the globe, that have made notable contributions to the circular economy in the private sector, public sector and society. The winners will be announced during the World Economic Forum Annual Meeting in Davos in January 2017.
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[cta link="http://www.circle-economy.com/programs/" ]Circle Economy's Programs[/cta]
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On Monday 14 November Ben Kubbinga, Circle Economy's Lead Partnerships and Collaborations was invited to speak at the Sustainability in the Marine Industry Conference organised by METSTRADE and ICOMIA's Amsterdam chapter. Read his blog about the insights of the day below. The hot topic of the day was how the circular economy could work for boat designers, builders, owners, recyclers and other marine industry stakeholders. It quickly became apparent how relatable Circle Economy’s current work in the automotive industry could easily translate to the trends that are starting to emerge in the marine industry as well.[embed]https://www.youtube.com/watch?v=e9auMJauR4Y[/embed]Susie Tomson, Sustainability Manager for Landrover BAR, for instance, showed how the Land Rover BAR sailing team actively looks for ways to recycle carbon fiber reinforced plastics and closely collaborate with material experts from Land Rover. Enrico Benco from GS4C, inspired the audience with his dream to build a boat made entirely of recyclable materials, like basalt fiber. Additionally, a few speakers touched on the fact that the next generation of boat users don’t want the burden of owning a boat, instead they just want access to floating comfort while going from point A to point B. These trends share many similarities with those that are starting to emerge in the automotive industry. In both industries, the results of this trend could be that:
As these trends are coming to the surface the key question for future fleet owners and automotive manufacturers alike becomes: how can they get as much as value out of their products as possible?Circular strategies provide an answer. With circular strategies the aim is to preserve the value of a product, its parts, its materials and labour and energy that went into producing and transporting it, for as long as possible. By applying this overarching goal to their manufacturing and operating processes, fleet owners of the future - together with their supply chain - can develop a longer lasting, more sustainable business that will not be affected by material scarcity and price volatility. . When seeking to achieve this goal there are three key strategies they should consider:
As the momentum and need to apply circular strategies continues to build, the potential of the circular economy, to innovate and disrupt the marine industry shines a spotlight on the opportunities that exist for new business models and designs in this field.
Blogpost by Ben Kubbinga, Lead Partnerships and Collaborations at Circle Economy. Ben holds MSc degrees in Biology and Environment & Resource Management. His professional life started in Italy as a consultant within Food and Agriculture and as EU funding advisor. Later he worked for the Dutch government as funding advisor on environmental projects. This is when he became aware of the potential of the circular economy. He believes in a world that works like an ecosystem, where offer and demand depend on infinite resources, and where prosperity is based on profoundly fulfilling lives - his ambition is to implement the ideas of a circular economy around the world.[hr]Interested in how the learnings from the automotive industry could easily translate to the trends that are starting to emerge in the marine industry? Read our Circular Car report, published in collaboration with ABN AMRO. Within the report we have investigated the trends in consumer demands and how car component suppliers can stay ahead of the curve by applying circular strategies to meet them. Download the full report below.[cta link="http://www.circle-economy.com/case/on-the-road-to-the-circular-car/" ]Download[/cta]
Ioniqa, HomeBiogas and Steama.co were finalists at this year's Dutch Postcode Lottery Green Challenge and have created unique technologies and business models that help to accelerate the circular economy. As new members of Circle Economy's member community, we are thrilled to be able to support and accelerate their journey.
The Dutch Postcode Lottery Green Challenge is the largest annual, international, green business plan competition. The first edition took place in 2007 and since then, sustainably-driven companies have been rewarded financially by the Dutch Postcode Lottery. Circle Economy has been supported by the Dutch Postcode Lottery since 2013 and we know how important not only the financial impulse is, but also the endorsement of such a worldwide renowned organisation. We are thrilled that we are now in a position to be able to pay it forward. Read more about our three latest members below.Ioniqa - Infinite PET Recycling Ioniqa has launched a unique circular recycling process that can infinitely recycle all kinds of coloured PET bottles, textiles and carpets. The recycled materials can compete with oil-based 'virgin' PET, both in terms of cost and quality. Ioniqa Technologies is a Dutch, high tech, chemical company founded in 2009 as a spin-off from the Technical University Eindhoven. Ioniqa is currently upscaling their PET-recycling process in close cooperation with their industrial partners and testing the recyclability of other plastics with their patented 'platform technology'.Circle Economy is convinced that Ioniqa's unique, infinite, PET recycling technology will greatly contribute to tackling the issue PET poses worldwide.HomeBiogas - Fuel your stove, right from your own backyardHomeBiogas has developed and fielded the most efficient, affordable, user-friendly and cost effective household biogas system. Their appliance converts organic waste into clean cooking gas and liquid natural fertiliser, all while maintaining the highest safety and health standards. In the past year, this Israeli firm sold more than 300 systems and will now be mass producing the systems to be sold worldwide.Circle Economy sees HomeBiogas' technology as a valuable waste management resources that empowers citizens to generate their own bio-energy while playing a role in the reduction of greenhouse emissions.Steama.co - Connecting the world's most remote 1.3 billion people, who are not connected to power grids, pay a high cost to power their lives with kerosene lamps, batteries and generators. Many companies wish to serve this market, however they have no viable means to retail electricity in the remote, off-grid places where these people live. At the moment there are no internet connections, power purchase agreements or banking services available in these areas.Specially designed for off-grid utilities, steama.co's universal smart meter and data analytics platform enables retail electricity, even in the world's remotest locations. steama.co enables its clients to collect cash-less mobile payments conveniently, operate utility projects remotely, and communicate with consumers on their terms, from anywhere without needing an internet connection.Circle Economy believes that this British company will keep improving the lives of those living in the most remote areas in the world by reducing the digital gap through their retail electricity services.[hr]Our member community is an active group of businesses and institutions that have a shared ambition to make the circular economy a reality. As a member you will gain access to a powerful global network of change makers, thought leaders, peers, and stakeholders that share in our ambition to make the circular economy a reality.Are you a changemaker? Learn more about our global network of innovators by clicking the link below.[cta link="http://www.circle-economy.com/membership/" ]I'm a changemaker![/cta][hr]
On Friday the 11th of October, our Director of Programmes, Klaske Kruk, together with Dutch mayors, government officials, knowledge centres and businesses, signed the City Deal: Circular City during the Dutch National Summit on Circular Economy, organised by VNG (an association for Dutch Municipalities).
The City Deal's ambition is to move all participating cities towards circularity no later than 2050, an ambition echoed by the Dutch Government Wide Programme on the Circular Economy. The deal has now been signed by eight cities, but many more are eager to join. The signatories have agreed to first pinpoint the current barriers that stand in the way of successful implementation of circular projects. Once identified, they are committed to implementing concrete pilot projects and create a monitoring system to track each project’s progress and gain insights. A key to the success of their mission, the cities have agreed to enhance collaboration and knowledge sharing between them, through the creation of living labs.The eight cities who have already signed the City Deal aim to become frontrunners within the circular economy space. The city of Amsterdam has already demonstrated its ambition by being the world's first municipality to perform Circle Economy's City Circle Scan in 2015. The scan provided the city with insights into how it can create impact, now, with the help of Circle Economy and local government agencies, research centres and businesses.With Circle Economy's experience in creating implementable, action plans for cities and regions, our Circle Cities Team will be able to play a pivotal role in making the City Deal a reality.
The City Deal: ‘Circulaire Stad’ (Circular City) is one pillar of a nation wide government programme focused on transitioning to a circular economy. This deal was co-initiated by the Ministry of Internal Affairs, the Dutch national government, The European Commission, the Ministry of Foreign Affairs, several Dutch cities, social partners and businesses who are cooperating to stimulate healthy growth, liveability and innovation within Dutch and European cities. The City Deal: 'Circulaire Stad' has been signed by:
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The Circle Cities program identifies opportunities and aids in the creation of practical and scalable solutions to implement circular systems throughout a city. The programme developed the Circle Scan technique and several teaching and monitoring tools to accelerate the transition to a circular economy.
Interested in becoming a circular city?
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On the 28th of October, in partnership with the Amsterdam Fashion Institute, we held our signature circular textiles event, Beyond Green, at the beautiful Pakhuis de Zwijger. Read the full event recap and the four key learnings that emerged from the day below.
https://vimeo.com/191341921
The topic of the day was zero waste and the role that design, technology, businesses, and consumers play in achieving this in the fashion industry.
A palpable excitement and energy filled the room, where students and industry rubbed shoulders and exchanged ideas, during a day of inspiration and collaborative problem solving. Two words can summarise the prevailing atmosphere; hopeful and urgent.
“The one thing we cannot waste anymore is time. We have a window of opportunity, to change the way we work on this planet” - Gwen Cunningham, Lead of the Circle Textiles Programme at Circle Economy and Coordinator for Sustainability at AMFI
Most notably, the day did not dwell on the problem, but rather, focussed on concrete solutions that are bubbling below the surface and asked 'what next?'. Key learnings that emerged from the day included:
Isaac Nichelson, Chief Sustainability and Marketing Officer at Recover, one of the world's leading mechanical upcyclers, with 70 years of experience recycling cotton and textile waste, schooled us on the immediate potential of closed loop textile recycling. He stressed that huge synergies exists between mechanical and chemical recyclers and highlighted how they will both play a critical role to achieve a zero waste future.
“Finally I feel momentum, after 20 years of trying to convince people. Linear, meet Circular... This is where we’re heading” - Isaac Nichelson, Chief Sustainability and Marketing Officer at Recover
It was made clear that solutions, including the FIBERSORT technology and the 'tinder for textiles', Circle Market, exist and are scaleable however, what is needed is an increase in demand for them.
Gwen Cunningham, Lead of the Circle Textiles Programme at Circle Economy and Coordinator for Sustainability at AMFI, got straight to the heart of the issue by calling out the culprits: planned and perceived obsolescence and our unfaltering pursuit of 'growth for growth's sake.'
By looking to the past, Gwen helped us to imagine a zero waste future. She pointed to the ingenuity of war-time Britain, when fantastical measures were introduced with remarkable success, in order to safeguard raw materials. If we were faced with similar rations, as our war stricken predecessors, how would we cope?
Indeed, constraint drives genius and the genius is already bubbling up around is. In fact, Circle Economy’s Circle Textile's Programme is already paving this new path with the advent of an exciting new partnership with the C&A Foundation that will continue to push innovative projects like the FIBERSORT technology and Circle Market.
Solutions for reducing the amount of waste produced during the sampling stage of designing a fashion line were brought to light by recent AMFI graduates Tamara Koch and Zil Vostalova. They introduced us to the concept of working “phygitally'. The love affair between the physical and digital world, that can be perfectly married using softwares like Clo3D and Lectra to enable virtual prototyping.
“We have to stop thinking of products as static, stationary objects, we have to think of them as journeys” -Dr.Kate Goldsworthy, Design Researcher at the Textiles Futures Research Center
Self confessed ‘trash lady’ Jessie Kroon of A New Zero, taught us how she mastered a zero waste lifestyle, and invited us to join her on her quest. While through continued research and prototyping, Dr. Kate Goldsworthy showed the audience how she is building a powerful menu of design strategies for a zero-waste, circular world.
Technology and general consumer awareness are in tow to help realise a zero waste fashion industry. As a result of this the industry must prepare for a future where the consumer has the potential to be the supplier of raw materials.
“In a circular future, consumers will be the raw materials suppliers”and play a critical role in the supply chain.” - Cyndi Rhoades, Founder and CEO of Worn Again
The packed auditorium heard from leading minds on the topic including the current innovations of Worn Again's chemical recycling technology, the was presented by founder and CEO, Cyndi Rhoades. She explained that while upcycling is a good solution in the interim, it simply extends the lifetime of materials, which will ultimately end up in landfill anyway.
The bold and brave voice of the next generation echoed in our ears as a powerful battle-cry came from the student-led AMFI activist group Hello-Goodbuy. They are fed up with the current fashion industry and have joined forces to come to terms with their addiction. In a heartfelt launch, this no-nonsense collective voiced their frustrations with the industry and implored us all, students and industry, to #GETYOURSHITTOGETHER.
Additional learnings were discovered during an intense 2.5 hour circular fashion hackathon at which a lucky number of AMFI students and hand selected industry collaborated with four pioneering companies, Orta Anadolu, Boer Group, Mud Jeans and The Next Closet. These forward-thinking companies were brave enough to put their real-life, zero waste challenges on the table seeking circular solutions.
“We came here today to find a solution for this problem of waste, globally “ - Gulfem Santo, Marketing Team Leader at Orta Anadolu
Details about the challenges presented and the solutions that emerged can be found in the case studies below.
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https://vimeo.com/189638719
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ACtronics is a Dutch automotive supplier that remanufactures automotive car electronic components to provide high-quality components and spare parts. The company’s remanufacture process ensures that each product is inspected for common faults as well as future problem areas. These are corrected and, as a result, each of the products that are remanufactured by ACtronics are expected to work and look like new, with a lifetime equal to, if not beyond, the original manufacturer specifications. The success of ACtronics lies in their thorough understanding of the latest communication systems within the automotive industry and their innovative business approach.
"The ACtronics Group is committed to remanufacturing. We are innovators focussed on creating quality end products that help people save money, improve profitability of garages while at the same time improving their levels of customer satisfaction and decreasing their environmental footprint. We believe the future of the automotive industry will be circular, that is why we joined Circle Economy's membership."
- Thijs Jasink, COO ACtronics
The Dutch automotive industry, characterised by a dynamic mix of innovative part and component suppliers like ACtronics, is well-positioned to play a leading role in the transition to a circular economy.
ACtronics is one of those companies that is - in many ways - already circular by nature. So we are very pleased to have them on board! They are a driver of change and an inspiring example of how remanufacturing can make an industry more circular.”
- Ben Kubbinga, Lead Partnerships and Collaboration at Circle Economy
Curious to learn more about the vision of ACtronics on the future of the car industry? Read the report: 'On the road to the circular car', featuring ACtronics COO, Thijs Jasink.The report, co-created by ABN AMRO and Circle Economy, presents the future of the automotive industry, the role consumer trends play and how car part suppliers can future-proof their business by adopting circular business models.Other expert's interviews in the report are from Ralph Ramaekers DSM Engineering Plastics,Jasper IJsenbrandt - ARN, Jan-Paul Kimmel - CLAUT, Wim Simons - Timmerije, Martijn Lopes Cardozo - Black Bear Carbon.
C&A Foundation has dedicated €250,000 to Circle Economy to expand the Circle Textiles Programme. Over the past 1.5 years, Circle Economy has developed extensive expertise and hands-on experience in the field of circular fashion, through their vanguard Circle Textiles Programme.
Thanks to C&A Foundation’s generous grant, we can push this ambitious program to the next level and take the bold steps necessary to scale our zero waste mission. We plan to build on the success and expertise of the Circle Textiles Program to date, but also develop new tools for the industry that are critical in engaging companies in closed loop strategies.- Gwen Cunningham, Lead Circle Textiles at Circle Economy
Launched in 2014, the Circle Textiles Programme’s mission is to ‘close the loop’ for textiles and create a zero waste industry. With a unique focus on end-of life and systems redesign, the programme aims to achieve a zero-waste industry by developing and establishing a commercial and scalable model for closing the loop on post-industrial, pre-consumer and post-consumer textiles.Circle Economy approaches these issues facing the world's second most polluting industry through practical, on the ground tools and services. To date, the Circle Textiles Program core projects include:
With the support of C&A Foundation, Circle Economy will expand their efforts to ensure the continued growth of the programme and support the development of the 'Circle Fashion’ tool. The tool will be designed to facilitate decision-making for brands who want to understand the business case and environmental impacts behind closed-loop recycling and sourcing. By using the tool, a brand will be able to evaluate the practical end-of-life options for textile waste (eg. incineration vs. downcycling vs. high-value recycling) and weigh both the environmental and economic impacts of these scenarios. Circle Economy is looking to develop this tool with global brands who wish to implement innovative new solutions in the textiles industry.
"At C&A Foundation, we believe that fashion can be a force for good. Circle Economy’s pragmatic, tool-based approach will make it easier for the global apparel industry to transition to new, restorative business models.- Leslie Johnston , Executive Director, C&A Foundation
Transitioning to a circular textiles industry will enable continued fibre consumption without the depletion or destruction of our earth’s natural resources and ecosystems. With the C&A Foundation’s funding Circle Economy will have the ability to build on the success and expertise of the Circle Textiles Program and accelerate the transition to a closed-loop textiles industry.
C&A Foundation is a corporate foundation here to transform the fashion industry. We give our partners the financial support, expertise and networks so they can make the industry work better for every person it touches. We do this because we believe that despite the vast and complex challenges, we can work together to make fashion a force for good.
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