The Circulars, an initiative of the World Economic Forum and Forum of Young Global Leaders, is the world’s premier circular economy award program. It is held annually, in January at the World Economic Forum Annual Meeting in Davos, and run in collaboration with Accenture. The Awards engage individuals and organisations from across business and civil society across 7 award categories, ranging from multinationals to entrepreneurs, with winners receiving the opportunity to attend the ceremony in Davos. Circle Economy is a supporter of this year's Circulars Awards and very proud Black Bear and CRS Holland are nominated!
The Dell Circular Economy People’s Choice Award is for early-stage innovators and entrepreneurs at the forefront of the circular economy, demonstrating innovation and market disruption. The winner and runners up for this award are chosen by public vote which opens on the 24th October till the 11th November. Please make sure to vote for Black Bear or CRS Holland now!
Black Bear brings the circular economy to tires and has developed innovative technology to extract high quality carbon black from waste tires, allowing for industries to move away from the ‘polluting’ carbon black that is currently produced from crude oil. Carbon black is used in tires and rubber, and as pigment in coatings, plastics and inks.
Black Bear’s circular solution, which tackles the issues posed by the 1 billion end of life tries produced globally each year, has the potential to unlock a huge environmental impact. Each ton of carbon black produced by Black Bear saves 2.5 tons of oil and 5 tons of CO2. For each installation, that’s more CO2 than 1 million trees can consume. Moreover, there are enough waste tires to build over 800 installations!
Black Bear has formed over 30 customer relationships, including ones with tire giants such as Michelin and GoodYear and paint companies such as AkzoNobel. These companies have tested the Black Bear product with good results and are incorporating it in their production processes.
In summary, Black Bear is solving the issue of waste tires and at the same time reducing oil consumption through their circular innovative solution for carbon black users.
CRS Holland has developed a circular economy solution to a unique environmental and economic challenge hidden under the sea.
Since 1850, an estimated 1.7 million km of cables have been installed underneath our sea, cables which are made of nearly 800.000 metric tons of metals and 800.000 metric tons of plastics, and can be worth several billion USD. Many of these cables have gone out of service and still 94% of unused cables are lying on the seabed together with 72.000 repeaters, some of which contain traces of radioactive materials. Recovering and recycling these unused cables could save over 4 million metric tons of CO2 emissions.
CRS Holland is committed to cleaning up the oceans and to recovering this value and provide Telecom companies with deep sea cable recovery services, giving them an opportunity to turn their retired cables from liability into an asset by selling the recovered materials.
To date, CRS Holland have completed 8 projects and recovered 30,000km of cable from under the sea.
[cta link="https://thecirculars.org/peoples-choice-entrepreneur-award" ]Vote Now![/cta]
After years of development, testing and tireless innovation, the FIBERSORT consortium has received funding support from the European Commission INTERREG NWE programme to optimise, validate and launch the FIBERSORT technology in the global market. The FIBERSORT technology is the world's first automated sorting technology that is able to sort large volumes of mixed post-consumer textiles based on fiber composition of fabric. Commercialisation of the new technology will bring us one step closer to the closed-loop textiles industry that we so desperately need.
In November 2015, the FIBERSORT partner consortium, led by Circle Economy, submitted a phase 1 proposal for the ‘Market demonstration and validation of FIBERSORT technology’. Almost a year later, on Thursday September 15th, the FIBERSORT project was announced as one of the few projects that will be funded by the INTERREG NWE programme for the next three years. With the support of INTERREG in the form of EUR 2 million, the consortium will further optimise the machine and demonstrate and validate this pioneering technology in the market. The project partners will add an additional EUR 1.5 million in funding to the project.
"This funding is an essential to bringing the FIBERSORT technology to the next level.We are thrilled to be able to bring a key, enabling technology, for a closed loop textile industry, to the market” - Gwen Cunningham, Lead Circle Textiles, Circle Economy
The textiles industry is the second most polluting industry in the world and second largest consumer and polluter of water. That is why, over a year ago, Wieland Textiles, Valvan Baling Systems, Worn Again, Salvation Army ReShare and Circle Economy joined forces to address these issues through the Textile Sorting Project.In North-West Europe alone, 4.650 kt of textiles are discarded every year. That is the equivalent of 700 times the weight of the great pyramid of Giza! Of these discarded textiles a meagre 30% is collected, of which 40% is not suitable for re-wear and currently being downcycled. An initial analysis shows that 50% of the textiles collected ,that are not suitable for re-wear, could be diverted from downcycling into high-value recycling routes as a result of the FIBERSORT technology.To enable large scale, high-value recycling of textiles, there is a need for an effective technology that can sort textiles based on fiber composition; is capable of dealing with the complexity of the materials in circulation; and is able to process large volumes quickly. The FIBERSORT technology delivers exactly that. This unique technology is positioned to deliver two things. First, it reduces the need for virgin textile materials by enabling high-value (textile to textile) recycling. This will alleviate the environmental pressure of producing virgin materials. Second, it creates additional market value and business opportunities by developing a business case out of waste that currently would go to landfill, be incinerated or downcycled.
"We started the FIBERSORT after a visit to India, where I witnessed firsthand the incredible amounts of landfill, chemicals and child labour involved in dealing with our waste, I decided we needed to change the way we handle our discarded textiles. The FIBERSORT offers us the solution to find an alternative, high-value destination for our waste"- Hans Bon, Director, Wieland Textiles
Image: Hans Bon, Denim bleaching in Panipat, India - 2008
Essential to the success of this project is the collaboration between the various stakeholders in the textile value chain. Within the partner consortium, the three value chain stakeholders that are needed to achieve the main objective and outputs are represented:
Always keeping in mind their motto, "The End of Trash!", RePack tackles packaging waste associated with e-commerce. It offers returnable and reusable packaging that rewards its users for every order. RePack sleeves are designed to be used for at least 20 times. Comparing one RePack to 20 disposable packages showed that RePack has a 50 % lower carbon footprint then throw away packages.
“Circularity and reuse are core values of RePack. We hope that together with Circle Economy we will be able to connect and partner with other like-minded companies that have circularity at the heart of their organisation. As a company based in Helsinki we sometimes feel removed from Europe's hotspots. That is why we look to partner with forward thinking organisations like Circle Economy to share our message about reusable packaging."- Jonne Hellgren, CEO RePack
Deliveries are packaged and shipped in reusable RePack sleeves and consumers return the sleeves by simply dropping them into any mailbox, anywhere in the world, free of charge. Once returned, customers are rewarded with a discount voucher to use at any company that uses RePack's sleeves.
“We are very happy to welcome RePack to our Membership! In addition to reducing packaging waste, their beautiful and simple designs are perfectly suited to support circular business, take-back schemes and reverse logistics models. In particular, we see these types of solutions as key to enabling a circular fashion industry. We look forward to working with RePack through the Circle Textiles Program and beyond.”- Gwen Cunningham, Lead Circle Textiles
Around 25 retailers are already using RePack! All participating stores, including our member MUD Jeans, can be found here. To learn more about RePack visit their website or watch their company video below.https://www.youtube.com/watch?v=arA_fGLh74g
The 2015 Paris Agreement united 195 countries behind a commitment to limit the rise of the earth’s average temperature to no more than 1.5C. In order to achieve this, global emissions must be cut by 26bn tonnes annually by 2030, according to UNEP. Unfortunately, the climate policy packages proposed thus far can only deliver about half the emission reductions that are needed. However, a recent report published by Circle Economy and Ecofys, illustrates how implementing the circular economy globally can help to reduce the remaining emissions by half.There is no doubt that climate change poses a significant risk to society, our planet and the ability for future generations to thrive. Increasingly, investors are moving funds and implementing mitigation strategies but in order to truly alleviate climate change, new paradigms must be explored. We must move beyond incremental improvements and reimagine the ways we generate and deliver goods and services. The focus on climate change and the reduction of emissions so far has rightfully been on renewables and efficiency improvements, yet the circular economy shifts our attention to retaining value and making efficient use of the resources we already have by re-entering them into a system that is continuous and long lasting. The shift away from fossil fuels to renewables has engaged investors, industry players and pioneering entrepreneurs. The next step requires a similar transition. One which addresses our material use and draws inspiration from companies like Spotify, Zipcar and Peerby.Here are the top five ways the circular economy can play a part in fighting climate change.
Roughly 60bn tonnes of raw materials are extracted from the earth annually. That is the equivalent of 22kgs per person per day. Half of these materials are the fuels we burn and the food we eat and a significant portion of the other half is used to build our homes, offices and roads. The remainder is used for a variety of products from cars and clothing to cleaning agents and personal care products. Of all these raw materials used by the global economy only 7% are reused. The circular economy, as a principle, promotes the reusing of materials through repair, refurbishment and upgrading. If a car engine can be taken out, upgraded, and installed back into the car as good as or even better than new, the opportunities for saving on materials is significant.
The cement industry alone is responsible for approximately 5% of current emissions globally. In order to incentivise energy efficiency measures, typical climate policies focus on reducing emissions per tonne of cement produced. This mentality only lessens the amount of emissions instead of finding a safe alternative for the product and too often ignores other solutions such as substituting concrete or designing modular buildings.An example of this forward thinking approach is Park 20|20, a business estate in Amsterdam that strives for closed material, energy, waste and water cycles. During the construction of the building, modular materials were used so that they can be reused indefinitely. Alternatively the use of low-carbon alternative building materials like Cross-Laminated Timber (CLT) are being used to construct skyscrapers such as the proposed 35-storey Baobab tower in Paris designed by Vancouver architect Michael Green.If cement and construction companies can take these innovative approaches into account, they can engage in the circular economy while future-proofing their business.
In developed countries, 55% to 65% of greenhouse gas emissions are related to the extraction, transport and processing of raw materials, according to the OECD (pdf). Increasing circularity means reducing our dependence on raw materials and results in a reduction in the amount of energy needed to extract, transport and process these materials. As energy needs in these stages decrease so too does the need for energy infrastructure, pipelines, coal terminals and refineries. Although we’re far from ending our reliance on fossil fuels, this would free up material embedded in our fossil energy infrastructure for other purposes and create a positive domino effect from one sector into another.
An often heard counterargument is that although improved efficiency reduces costs it also leads to increased demand. This rebound effect has been studied in detail in regards to energy efficiency and it has been found that only 5% to 30% of the efficiency gains are lost through greater use. This rebound effect is likely to be similar for resource efficiency.
Established business models are beginning to be replaced and the circular economy is adding to the increased momentum of this new, disruptive age. Physical services are being replaced by online equivalents, effectively dematerialising services. For example, in the music industry, compact discs have essentially been replaced by unlimited access to music online, thanks to iTunes, Spotify, and even now obsolete websites such as Myspace. This reduction in material use due to service delivery is optimising resource use and maximising value.This article was originally published on The Guardian.
Although the opportunities for investing in circular business models are widely available, current investment methods do not match the needs of these unique businesses.
To finance these business models, companies as well as the financial sector need to adapt. Businesses need to create an attractive business model for financiers, and financiers need to change the way they perceive the risks and opportunities associated with these models.
To help businesses position themselves in a circular context and develop future strategies for doing business in a circular economy, Sustainable Finance Lab, Circle Economy, Nuovalente, TUDelft, and het Groene Brein got together to create the Value Hill.
“The Value Hill framework gives us insight in how to keep on building our business model for the circular economy: extracting maximum value of our modular long-lasting product and insight in collaborations we need to engage in to succeed”– Miquel Ballester, Operator Relations, Fairphone
The Value Hill proposes a categorisation based on the lifecycle phases of a product: pre-, in- and post- use. This allows businesses to position themselves on the Value Hill and understand possible circular strategies they can implement as well as identify missing partners in their circular network. The Value Hill provides an overview of the circular partners and collaborations essential to the success of a circular value network.
“The Value Hill provides a great graphic to support storytelling on circular business strategies” - Stephan Sicars, Director Environment Department, UNIDO
Interested in learning more about the Value Hill and how it can help guide you to a successful circular business strategy?
[cta link="http://www.circle-economy.com/financing-circular-business" ]Download the report[/cta]
This report is the first in a series of three reports that will help you to finance a successful circular business model:
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The emergence of digital technology and social media has given consumers more power than ever before. With smart devices connecting every aspect of their lives, they are increasingly controlling how and where they engage with companies. With increased access to information and transactions occurring in real time, consumers have come to expect more, making it harder for businesses to keep up. Greater trust, convenience, and a sense of community are pushing the adoption of the sharing economy forward. Lower entry barriers for technology are resulting in rapid innovation and this is expected to speed up in the future. These trends are having an significant impact on the automotive industry.
"Private ownership of cars will disappear - though not completely - and cars will be owned by the manufacturer in the next 10-15 years. This will result in fewer cars, due to the fact that cars will be more heavily utilised through sharing."- Thijs Jasink - COO, ACtronics
The growing role of consumers is transforming the function of cars, making them smarter and more connected. The ever more rapid development cycles of new products and services and increasing technological complexity, require a complete restructuring of the automotive supply chain. As a result, car manufacturers are pursuing new differentiation strategies and engaging with their supply chains in order to meet these new, consumer demands.
"Suppliers need to be able to adapt to these changes quickly in order to stay relevant and avoid becoming the ‘Kodak’ of the automotive industry."- Ralph Ramaekers - Marketing Director Automotive, DSM Engineering Plastics
The report On the Road to the Circular Car, published by ABN AMRO and Circle Economy argues that car parts manufacturers are in a unique position to answer to these rapidly changing and increasingly dominant consumer demands by adopting circular strategies.
"Together with ABN AMRO and industry leaders we have created a vision for the automotive sector, showing them that by introducing circularity into their manufacturing practices and business models they can become future proof and stay successful in a fast paced, ever-changing industry".- Marc de Wit - Director of Strategic Alliances, Circle Economy
Circular strategies include using materials that can be easily reused, integrating modularity into the design of the car in order to make quick and affordable repairs and upgrades and shifting ownership so that car manufacturers remain owners of the cars themselves.
"Consumer needs require new business models that radically alter the traditional automotive chain. We have to redesign the car completely and reorganise the chain". - Jan-Paul Kimmel, CLAUT
To drive successful innovation, the automotive industry needs to collaborate across the entire value chain; this is where bottom-up, circular innovation from parts and component suppliers will play a crucial role.
Read the full report featuring examples of leading circular innovators and recommendations on how to future proof the Dutch automotive industry with circular business strategies through the link below.
As the global economic system has evolved over the last 150 years, technical innovation, during the second half of the 20th century, has helped to drive down the cost of resources and significantly improve our society’s welfare. However, the predictions of the 1972 Club of Rome “Limits to growth” report became reality early in the 21st century. Economic growth no longer outpaces the increase of material cost, and with the acceleration of digital technologies new revenue models have emerged.Leading businesses in the Netherlands are taking up the challenges these growth limitations have created. Businesses, collaborative platforms, innovators, governments and joint initiatives throughout the country, see the circular economy as the next business opportunity. The Netherlands now claims the title of “Circular Hotspot” due to the fact that these key economic players have set their focus on creating circular awareness.
The Netherlands is taking a leadership position in the establishment of circular principles. As a circular hotspot, we need to continue to expand our efforts, providing proof points to support our proposal for Next Level investment to the new Dutch cabinet. Our progress will also provide concrete support to the European policy for the development of a circular economy. And the ultimate prize: when we succeed in the realisation of more circular business cases, our exports will get a boost – that creates jobs and a future for all Dutch people that we can be proud of!Hans de Boer Chairman VNO-NCW
To understand the current status of the circular economy within the Netherlands’ largest organisations, as well as to trigger awareness and educate companies on the economic advantages of this new way of thinking, Accenture, Circle Economy, Duurzaambedrijfsleven and MVO Nederland have initiated the Circular Economy Index. As the first index of its kind, we aim to conduct this research on a regular basis, continually improving, and using it to drive awareness and document our collaborative progression towards a circular economy. Because what is not measured, is not managed.We invite you to read the report and become inspired to discover your own circular advantages! On behalf of the Circular Economy Index Research Group,
[cta link="http://www.circle-economy.com/circulareconomyindex" ]Download the report[/cta]
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Today at the London Business & Climate Summit, Circle Economy and international consultancy Ecofys have called for a rapid transition to a global circular economy to meet the ambitious Paris climate agreement. According to an estimate by the two organisations, circular economy strategies may deliver emissions reductions that could cut the 1.5 °C emissions gap in half.
Graphic: Circular economy can contribute to reducing the emissions gap, source: Ecofys/Circle EconomyThe emissions reduction commitments made by 195 countries at the COP 21 Paris Agreement, are not sufficient to limit global warming to 1.5 °C. To reach the 1.5 °C ambition it is estimated that additional emissions reductions of 15 billion tonnes CO2e per year need to be achieved by 2030. Circle Economy and Ecofys estimate that circular economy strategies may deliver emissions reductions that could basically bridge the gap by half.
“The momentum from a circular economy can provide a basis for the transition to a low carbon economy with secure sustainable economic growth and prosperity for all. To reduce the risk, companies need to find new ways of doing business. The sooner this is accomplished, the less disruptive and more cost-effective the transition will be,” - Preeti Srivastav, Project Director of Corporate Climate Action at Ecofys
Circle Economy and Ecofys have issued a white paper that informs on key strategies to move to a circular state. It also highlights existing circular examples in the world today. The white paper will form part of a further comprehensive analysis of the new climate agreement and targets and circular economy’s contribution to the same. The white paper and initiative were launched today at The Business & Climate Summit in London where institutional Business and climate leaders are working together to deliver real climate action.
“The research clearly shows that there is a massive role for the circular economy. Not only as the ‘missing part of the puzzle’ to make our Paris targets achievable, but also as a practical and scalable approach to decouple unsustainable material use from prosperity. This makes the circular economy a vital addition to the mix of solutions to address climate change. We urge companies and governments to embed the circular economy in their climate strategies and policies, and prompt the next wave of climate action through circularity.” - Andy Ridley, CEO, Circle Economy
Circle Economy and Ecofys will support both companies and governments to amplify the circular economy contribution to climate change and in translating the Paris Agreement from a diplomatic settlement between countries into a catalytic instrument for the real economy.
[cta link="http://circle-economy.com/climatechange" ]Download the report[/cta]
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