Implementing the circular economy Stuart Clouth and Dan Wright

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Stuart Clouth of Resource Futures and Dan Wright of Phineas Products Ltd explained the practicalities and benefits of implementing the circular economy. TSB funding enabled research into a feasibility study for Phineas Products to move to a circular economy business model.

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Implementing the circular economy Stuart Clouth and Dan Wright

  1. 1. Implementing the Circular Economy in the South West A Case Study Stuart Clouth, Resource Futures Dan Wright, Phineas Products 22nd April 2014 |Engine Shed |Bristol
  2. 2. Engine Shed, Bristol | 22nd April 2014 Welcome Introduction to Resource Futures, and background to the project and the circular economy Introduction to Phineas Products Circular Economy Case Study Summary and next steps
  3. 3. Engine Shed, Bristol | 22nd April 2014 Who we are An independent Bristol-based environmental consultancy 30 years’ experience in resource management Pioneered recycling collections in the 1980s focused on collecting materials to meet market demand Led on developing understanding of waste composition in relation to developing markets Engagement of industry, public and communities in developing circular economy thinking www.resourcefutures.co.uk
  4. 4. Engine Shed, Bristol | 22nd April 2014 Global Material Demand Source: UNEP
  5. 5. Engine Shed, Bristol | 22nd April 2014 Commodity Prices Source: McKinsey Consultants
  6. 6. Engine Shed, Bristol | 22nd April 2014 The Circular Economy Ellen MacArthur Foundation “an industrial economy that is, by design or intention, restorative and in which materials flows are of two types, biological nutrients, designed to reenter the biosphere safely, and technical nutrients, which are designed to circulate at high quality without entering the biosphere.”
  7. 7. Engine Shed, Bristol | 22nd April 2014 Source: Ellen MacArthur Foundation
  8. 8. Key facts We are a family owned business with our HQ in South Bristol We supply all the major high street retailers including Marks and Spencer, Next and Walmart / Asda Our global sales is GBP 5 million or 60+ million units per annum Our average Product Carbon Footprint is approx. 17,000 tonnes Our 3 year plan includes a number of programmes to reduce our carbon footprint which includes: -Increasing the use of recycled plastic 80% reduction on virgin -Investment in renewables to supplement power generation -Investment in further energy efficient machinery -Implementation of a range of reusable products
  9. 9. Phineas is a truly global organisation, with facilities strategically located around the globe to meet our customers requirements Sales Offices in: • Hong Kong • United States • India • United Kingdom Manufacturing facilities in: • China • India • United Kingdom Global Reach
  10. 10. Products We supply products for hanging any type of footwear from flip flops to wellington boots.
  11. 11. Current recycling model is based on granulation of product after a single use We manufacture as close to the shoe factory as is possible to reduce transportation costs Approximately 90% of our UK manufacturing uses recycled materials
  12. 12. Our key challenges for a circular economy 1. Design products which are robust enough for multiple uses and which minimise handling time 2. Design a service which is cost effective for our clients 3. To quantify the commercial and environmental benefits of a re-use system
  13. 13. Engine Shed, Bristol | 22nd April 2014 New Designs for a Circular Economy TSB – New Designs for a Circular Economy Up to £25,000 funding available Feasibility Study Three months Allocated a project assessor
  14. 14. Engine Shed, Bristol | 22nd April 2014 Life Cycle Thinking Life Cycle Assessment A technique to assess environmental impacts associated with all the life cycle stages of a product's life from-cradle- to-grave Life Cycle Costing A technique to assess the most cost-effective option among different competing alternatives
  15. 15. Engine Shed, Bristol | 22nd April 2014 Life Cycle Stages
  16. 16. Engine Shed, Bristol | 22nd April 2014 Models 1. Baseline (existing system) Single use, virgin material produced in China, disposed of in the UK 2. Closed Loop Recycling Re-circulated for closed-loop recycling in the UK 3. Reuse Single use in-store, redistributed to Phineas for reuse
  17. 17. Engine Shed, Bristol | 22nd April 2014 1. Baseline model Single use, virgin material Raw material processing from virgin polystyrene / polypropylene Hanger manufacture in China Distribution of hangers to customers throughout Asia, and then to the UK Single use in store Disposed of through landfill, incineration or recycled (open loop)
  18. 18. Engine Shed, Bristol | 22nd April 2014 2. Recycling model Re-circulated for recycling in the UK Material sourcing from 90% recycled polystyrene / polypropylene Single use in store Hangers captured in store, distributed to Phineas UK & recycled Hanger manufacture UK Distribution within UK
  19. 19. Engine Shed, Bristol | 22nd April 2014 3. Reuse Single use in-store, redistributed to Phineas for reuse Distribution within UK Material sourcing to cover shortfall/growth Hanger manufacture UK Single use in store, then captured for reuse Redistributed to Phineas Sorted and repacked Reject waste (Phineas recycled) Reuse cycle
  20. 20. Engine Shed, Bristol | 22nd April 2014 Results - CO2 Emissions per hanger 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Baseline Recycling Model Reuse Model CarbonEmissions(kgCO2eperhanger) Raw Material Production Shoe Hanger Manufacture Distribution Use Disposal 80% 42%
  21. 21. Engine Shed, Bristol | 22nd April 2014 Results - Life Cycle Costing 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Baseline Recycling Model Reuse Model NormalisedCost Raw Material Production Shoe Hanger Manufacture Distribution Use Disposal
  22. 22. Engine Shed, Bristol | 22nd April 2014 Sensitivity analysis Additional Handling Time in store – cost Number of reuse cycles – cost Number of reuse cycles – CO2
  23. 23. Engine Shed, Bristol | 22nd April 2014 Additional Handling Time – in store 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.5 1 1.5 3 5 10 NomalisedCostperhanger Handling time Baseline Reuse Model
  24. 24. Engine Shed, Bristol | 22nd April 2014 Number of reuse cycles – cost per hanger 0% 20% 40% 60% 80% 100% 120% 1 2 3 5 10 NormalisedCostperhanger Number of cycles Baseline Reuse Model
  25. 25. Engine Shed, Bristol | 22nd April 2014 Number of reuse cycles – CO2 per hanger 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 1 2 3 5 10 CarbonEmissions(kgCO2eqperhanger) Number of cycles Baseline Reuse Model
  26. 26. Engine Shed, Bristol | 22nd April 2014 Summary – Resource Futures Analysis indicating value of both alternatives in de-risking materials and supply chain dependency Great example of re-shoring manufacture in the South West Circular Economy in action for a low cost packaging product Provides basis for discussion with retailers on sustainability/ supply chain costs
  27. 27. Engine Shed, Bristol | 22nd April 2014 Summary – Phineas Products Demonstrates Phineas commitment to sustainability Innovation & competitive advantage Longer term supply chain security Provides model for future Indian and China manufacturer Quantification as basis for negotiation with clients

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