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Thriving in the Circular Economy: Product Design and Business Practices for “Circular Tech” and Other Industries

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With current and upcoming resource constraints, plus society's growing disapproval of "disposable" products, it's time to design and offer products to leverage existing resources and keep them in the economy after use. This webinar will walk participants along the path from the make-and-waste Linear Economy to the use-and-reuse Circular Economy.

The Circular Economy sounds good financially and environmentally, but how does one actually transform an industry from the Linear to the Circular Economy? This presentation (given by Pamela Gordon as part of the NAEM 2017 webinar series) will provide specific ways of implementing Circular Economy design and business practices at manufacturing companies, with examples from the tech industry that will inspire all industries.

Published in: Environment
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Thriving in the Circular Economy: Product Design and Business Practices for “Circular Tech” and Other Industries

  1. 1. Thriving in the Circular Economy Product 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
  2. 2. 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
  3. 3. 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
  4. 4. From the Linear Economy… The electronics in front of you Story Box
  5. 5. The Circular Economy Source: Ellen MacArthur Foundation
  6. 6. Supply-chain risks Global expectations Product costs Denial about shortages Resistance to change Insufficient executive drive Enablers & Barriers to Thriving in the Circular Economy People ProfitPlanet Enablers Barriers
  7. 7. 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, 2016 Ellen MacArthur Foundation -------------------------------------------------------EXAMPLES------------------------------------------------------ ©By ProhibitOnions at English Wikipedia
  8. 8. CircularEconomy 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. More Key Influencers CEO CFO VP Operations VP HR VP R&D VP Supply Chain Product Launch Marketing Your Titles EHS Engineer Sustainability Leader CSO Product Stewardship Technical Leader, Global Environment Corporate Environmental Compliance Paths to Enter and Widen the Circle Sustainability Teams Earth Day Executive Sponsor A Regional Team Thought 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
  13. 13. 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
  14. 14. Supply Interruption Brand Exposure Customer Disloyalty Regulatory Risks The Linear Economy’s Business Issues Ferrous Metals Precious Metals Meet that Revenue Goal Story Box
  15. 15. 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
  16. 16. Package Targets EUROPEAN 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
  17. 17. Proposed Directives on Waste EUROPEAN COMMISSION LEGISLATIVE OVERVIEW Waste Packaging & Packaging Waste The Landfill of Waste Electrical and Electronic equipment End-of-life Vehicles Batteries and accumulators
  18. 18. 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
  19. 19. 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
  20. 20. 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.”
  21. 21. 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
  22. 22. 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?
  23. 23. 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…
  24. 24. B E T T E R B U S I N E S S , B E T T E R WO R L D℠ Antea Group Offices USA Headquarters 5910 Rice Creek Parkway, Suite 100 St. Paul, MN 55126, USA USA Toll Free: +1 800 477 7411 International: +1 651 639 9443 Belgium Rodeveldlaan 1 2600 Antwerpen Colombia Calle 35 No. 7-25, Piso 12 Bogota, DC France 29 avenue Aristide Briand - CS 10006 94117 Arcueil Cedex Netherlands Monitorweg 29 1322 BK Almere www.anteagroup.com Thank You! Pamela J. Gordon Senior Consultant, Antea Group Author of Lean and Green: Profit for Your Workplace and the Environment Pamela.Gordon@AnteaGroup.com Silicon Valley, +1-510-406-9460

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