Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SPLC 2018 Summit: The Circular Procurement Playbook

135 views

Published on

Slides from Formerly Director Sustainability & Responsible Sourcing, Hilton, presented at the Sustainable Purchasing Leadership Council's 2018 Summit in Minneapolis, MN.

Published in: Government & Nonprofit
  • Be the first to comment

  • Be the first to like this

SPLC 2018 Summit: The Circular Procurement Playbook

  1. 1. A Circular Procurement Playbook Cuno van Geet, Rijkswaterstaat, Netherlands & Mervyn Jones, SGR Ltd, UK 23 May 2018
  2. 2. Introduction to Circular Economy Mervyn Jones
  3. 3. Why the need for a change? 80 100 120 140 160 180 200 1996 1998 2000 2002 2004 2006 2008 2010 2012 Input prices Output prices Manufacturing input (energy & commodities) and output prices 2000 = 100 90% 30% Source: ONS; World Economic Forum (2014) Towards the Circular Economy: Accelerating the scale-up across global supply chains
  4. 4. Why a circular economy?
  5. 5. Why economy?
  6. 6. Measuring economic outcomes • Makes the business case to stakeholders: link to Morning Session https://www.sustainablepurchasing.org/summit18/sessions/making-the-business-case-measuring-the-economic-outcomes-of-sustainable-purchasing • Builds the evidence base for future activity and policy • Forecasting as well as backcasting • Reporting return on investment Payback typically 2-3 years +ve NPV ROI >100:1
  7. 7. Rethinking our approach Use DisposeBuy Waste Products Circular procurement Waste contracts Resources Waste User Waste manager Supplier Product as a service Buy – sell back Buy - resell
  8. 8. Revenue models • Lease • Rental • Pay-per-use • Sell-buy-back • Product-service combination + Risk-benefit sharing SOURCE: IMSA (2015)
  9. 9. Five circular revenue models HIGH(ER) RESIDUAL VALUE SELL-BUY BACK (B2C) LOW(ER) RESIDUAL VALUE PRODUCT/SERVICE COMBINATION SHORT(ER) TECHNICAL LIFESPAN LONG(ER) TECHNICAL LIFESPAN PAY- PER-USE LEASE ‘USE’ CAN BE EASILY DEFINED ‘USE’ CANNOT BE EASILY DEFINED SELL-BUY BACK (B2B) RENT SOURCE: COPPER8 (2017)
  10. 10. EU benefits of circular economy Sources: EU, Welsh Governemnt, Ellen McArthur Foundation, Club of Rome, TNO, WRAP European Union € 324 ($385) billion (www.rebus.eu) The Netherlands €7,3 billion 54,000 jobs Sweden 3% trade balance 15,000 jobs United Kingdom ~€30 billion 200,000 jobs Denmark  GDP 0.8–1.4% 7,000-13,000 jobs Finland GDP 0.33-0.66% 15,000 jobs France GDP 0.33-0.66% 100,000 jobs Spain GDP 0.33-0.66% 100,000 jobs Wales ~€2 billion 30,000 jobs
  11. 11. Your views on the circular economy Ice breaker
  12. 12. ‘The ‘best’ circular option? Exercise or C2C Lifespan
  13. 13. ‘The ‘best’ circular option? or Low Energy Asphalt Asphalt with high % recycled materials Exercise
  14. 14. ‘The ‘best’ circular option/ or Mushrooms cultured on local collected coffee grounds Organic/EKO mushrooms Exercise
  15. 15. Circular value creation Four main types of value creation: • Sourcing value Direct - financial Indirect – resource efficiency • Environmental value • Customer value • Informational value …but also other types including social value
  16. 16. Circular procurement is.. an approach to delivering sustainability goals that recognises the role that public bodies can play in supporting the transition towards a circular economy. Circular procurement can be defined as the process by which public authorities purchase works, goods or services that seek to contribute to closing energy and material loops within supply chains, whilst minimising, and in the best case avoiding, negative environmental impacts and waste creation across their whole life-cycle.
  17. 17. Multiple policy drivers Drivers Categories Sustainable materials management Waste prevention Design & materials choice Utilisation & lifetime optimisation Repair, reuse & remanufacturing Recycling & end-of-life Business Cost reduction Servicisation Value networks Collaborative Strategies Textiles & clothing Electrical & ICT Furniture Food Construction Transport Packaging Environmental Carbon, conservation, waste, raw materials, emissions, energy efficiency Production & consumption Process efficiency, consumption patterns Economic Cost savings, growth Social Employment, skills, civil society Health Toxicity, risk, well- being, quality of life Circular business models sourcing use disposal
  18. 18. Circular procurement depends on policy translated into practice through clients and budget holders. Circular clients Circular procurement needs circular clients!
  19. 19. Circular procurement opportunities OPTIMISE PRODUCT LIFETIMES REDUCE PROCESS WASTE ENCOURAGE RECYCLINGIMPROVE COLLECTIONS ENCOURAGE REUSE INVEST IN INFRASTRUCTURE DESIGN BETTER PRODUCTS DEVELOP MARKETS FOR RECYCLED MATERIALS
  20. 20. Circular procurement case studies Cuno van Geet
  21. 21. Caterpillar remanufacturing Cat REMAN | The Remanufacturing Process
  22. 22. 22 The Netherlands • 16,7 million Inhabitants • 40.000 km2 • 12 provinces • 410 Municipalities • $87 (€73) billion public procurement • Downstream large European rivers • Surrounded by industrialized areas of Belgium and Germany
  23. 23. 23 20 March 201423 10-05-2012 Rijkswaterstaat, Netherlands Main road network 1925 miles Main waterways 4970 miles Main watersystem 40390 miles founded in 1798
  24. 24. Workwear & textiles Sustainable Global Resources Ltd 24 • Encourages innovation in design • Reduces carbon impacts • Reduces toxicity • Increases durability • Increases reuse and recycling at end of life • Rawicz Hospital, Poland – nurses Uniforms • Herning, Denmark – emergency services uniforms • Rijkswaterstaat, Netherlands – lock-keepers uniforms • Nurses uniforms – Wales, UK
  25. 25. ICT & electricals Sustainable Global Resources Ltd 25 • Design for repair • Recycled content • Multiple REBMs - e-recovery, take-back, pass/sell on • Lifetime optimisation • CO2 reduction • End of Life – resource security • Utrecht, Netherlands – IT take- back; secure reuse • Schiphol Airport, Netherlands – lighting as a service • BZK, Netherlands – e-recovery, IT-donations • UniGreenScheme, UK - Lab equipment re-sale and re-use
  26. 26. Construction Sustainable Global Resources Ltd 26 • Design for deconstruction • Recycled content • Multiple REBMs • Public private partnerships • CO2 reduction • End of Life - closing material loops • Refurb & maintenance • Cost savings • Brummen, Netherlands - circular Town Hall • Netherlands – DBFM, Rapid circular contracting • BAR HQ, Portsmouth, UK – Whole Life Costing & BIM • Viaduc de Millau, France - BFOT
  27. 27. Transport Sustainable Global Resources Ltd 27 • Bremen, Germany - public / private car sharing scheme • Barcelona, Spain - electric vehicles • Dutch Government – car sharing & leasing models • REBM - Mobility as a service • Lower carbon footprint • Improved air quality • Innovation – public-private partnerships
  28. 28. Food & catering Sustainable Global Resources Lt • Waste prevention • Storage & preparation • Plate waste • Reuse • Recycling - composting • Nutritional & healthy diets • Ghent, Belgium - catering contracts • Torino, Italy - healthy sourcing • Copenhagen, Denmark - organic • UK Public sector catering, waste prevention, HAFS • Rijkswaterstaat, Netherlands - food waste recycling
  29. 29. Packaging • Performance as a priority • Packaging contains, protects, transports, labels, markets and preserves • Grocery accounts for around 60% of UK packaging usage • Substantial improvements of primary product packaging by right-weighting in metal, glass and plastic containers • Specify recycled content in packaging where appropriate
  30. 30. 30 Furniture & FM Sustainable Global Resources Ltd 30 • Cambridge NHT, UK – hospital beds • ProRail, Netherlands – furniture and carpeting • London, UK – office mobile asset management • Public Health Wales, UK – desk reuse & repurposing • REBM – furniture as a service • Resource efficient design • Circular products & C2C • Lifetime optimisation • Reuse opportunities • SME opportunities • Community benefits
  31. 31. Furniture – 486 items Carpets – 1213 m2 – 44% reuse & recycling Impacts – 33 tonnes CO2e • 20kg saving per chair – 10.5 tonnes landfill diversion – 6 new jobs 3 temporary jobs – Transportation ↓77% Circular furniture procurement - PHW
  32. 32. Procurement & products Mervyn Jones
  33. 33. Maximising impact
  34. 34. Why? • Helps to select product groups for circular procurement pilots with high opportunities for success • A successful pilot helps scaling up to more pilots Various ways • How to determine high-potential product group: o complexity - lifetime o spent - risk o risk - scope o Scope - influence Selecting high-potential product groups
  35. 35. Well-suited products for circular procurement: o Average product complexity o Average technical lifetime Product complexity and technical lifetime PRODUCT COMPLEXITY TECHNICAL LIFETIME THE HIGHER THE PRODUCT COMPLEXITY, THE HARDER TO RE- USE EXISTING MATERIALS AND COMPONENTS LOW COMPLEXITY AND LOW TECHNICAL LIFETIME? RE-USE ON A MATERIAL LEVEL THE LONGER THE TECHNICAL LIFETIME, THE HARDER TO CLOSE THE CIRCLE AFTER THE PRODUCT LIFETIME
  36. 36. Exercise What are the high-potential product groups for your organisaton? Spend • How big is your market? Risk • What level of risk does this category pose? Scope • What scope have you to improve sustainability? Influence • What influence have over this amrket and supply chain?
  37. 37. PRODUCT COMPLEXITY TECHNICAL LIFETIME Well-suited for circular procurement: o Average product complexity o Average technical lifetime Product complexity and technical lifetime
  38. 38. The categories shown represent 42% of embodied product emissions. 7% 22% Designing out waste hotspots Product groups circled green scale well and are significant Product groups circled red indicate impact and require more research All product groups shown contribute more than 5% to UK hotspots.
  39. 39. Products – summary of options • Waste prevention options • Design of products - recycled content - ease of repair, reuse & recycling • Utilisation and functional life optimisation - repair and reuse options - failure rates • Disposal - take back, remanufacture - sell-on - recycling
  40. 40. Discussion & next steps
  41. 41. What next? 41 Curtis Bok house by Wharton Esherick. Gulph Mills, Pennsylvania, 1935
  42. 42. Mervyn Jones Sustainable Global Resources, UK mervyn@sustainableglobalresources.co.uk Cuno van Geet Rijkswaterstaat, Netherlands cuno.van.geet@rws.nl Thank you Further information from:

×