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Circular economy
Possibilities and limitations as strategy for
sustainable development and business
innovation
UFRJ – 20 July 2015
Michael Søgaard Jørgensen
msjo@plan.aau.dk
Center for Design, Innovation and Sustainable
Transition (DIST)
Department of Development and Planning
Aalborg University Copenhagen
Overview of presentation
• Introduction to circular economy
– Ellen MacArthur Foundation and European
Environmental Bureau
• A more critical perspective on circular
economy
• Three types of re-design needed in companies
for more circular business strategies
• Introduction to the Sustainable Production 3.0
project
2
The limits of the linear ‘take-make-dispose’
economy reaching its limits
• Relies on large quantities of cheap, easily accessible
materials and energy
• 2025: Growing world population(1.1 bn) and growing
middle class (3 bn)
– 24% higher food consumption
– 47% more packaging
– 41% more end-of-life materials (waste)
• Resource-related challenges to businesses and economies
also growing:
– Pressure on natural resources intensifying
– Low and poor recycling => Unable to keep up stock of quality
materials
– Higher price volatility => higher business investment uncertainty
– Commodity prices increased 150% during 2002-2010 (metals,
food and non-food from agriculture)
3
4
Total EU resource consumption - not only national – measured in terms of mass
Source: European Environmental Bureau, 2015
5
Source: European Environmental Bureau, 2015
6
Circular economy – a new concept with
high political attention
• Distinguishing between technical and biological circles
• Circular design
– Modular products, purer material flows, easier
disassembly
• More and more people living in urban areas make sharing,
repairing and recycling easier
• Innovative business models: from ownership to performance
and access based service systems
• Core competences and technologies along reverse cycles and
cascades: RFID tags for easier identification and recycling; 3D
printing for spare parts
7
8
Findings from
Ellen MacArthur
case study about
circular economy
opportunities
in Denmark
Conducted
together
with Danish
stakeholders
A step back: 4+1different strategies for
environmental protection
1) Treatment of emissions from manufacturing
2) Recycling of waste from manufacturing and products
3) Cleaner production – preventing waste from industrial
production
4) Cleaner products – prevention through development of
more effective and less polluting products
5) Circular economy – making flows circular and extending
product life time and use
9
Four sources of value-creation for businesses
• The power of the inner circle
– Small change during re-use, refurbishment and
remanufacturing
– Faster return to further use => higher savings
• The power of circling for longer time
– Maximum time in each circle
– Maximum number of cycles
• The power of cascaded use
– Clothes => second hand => fibre in furniture =>
insulation material => return fibre to the biosphere
• The power of the pure inputs
– Uncontaminated material streams increases efficiency
in collection and re-distribution of materials
10
Claimed results of a circular economy
• Keeping products, components, and materials
at their highest utility and value at all times
• Controlling stocks of finite materials and
balancing renewable resource flows
• Decoupling global economic development
from finite resource consumption
11
Decoupling economic development, ressource
consumption and environmental impacts
12
Source: European Environmental Bureau, 2015
13
14
Assumptions in modeling?
No losers?
A critical perspective on circular economy (A)
• The idea about a circular economy NOT new
– Friends of the Earth Europe developed in the mid 1990’ies
Environmental space as concept
– Limited resources and ‘room’ for pollution + social justice =>
higher resource efficiency through changes in consumption
• Can and will the same businesses that created the
globalized linear economy develop a more circular
sustainable economy?
• EU: Business Europe lobbying against circular economy plan
=> plan with higher recycling targets and eco-design
guidelines withdrawn => “A more ambitious plan will be
developed”
• Rules against waste export and its social and environmental
bad conditions seen as barrier to circular economy
15
16
Source: European Environmental Bureau, 2015
A lot of technical possibilities not implemented
17
Source: European Environmental Bureau, 2015
Basic hypotheses about sustainable
transition: from vision to transition
• Technical opportunities – like circular economy - not
‘working solutions’ until specified within an
institutional and regulatory context
– Bioenergy
– Smart homes
– LED lighting
• Innovation and change is governed by a complexity of
interpretations and conflicts
– Should be seen as necessary parts of process of change
• Transitions occur based on actors becoming aligned
and interconnected while maintaining different
interests
Case: The co-evolutionary history of
renewable energy transition in Denmark
Source: Elle et al , 2015
20
What is produced?
Why is waste generated?
Globalised cheap production
challenges repair and upgrading
A critical perspective on circular economy (B)
• We need to look more at
– What is produced? Why is waste generated?
• Compare with identified opportunities in Danish
case studies:
• Focus on food waste minimisation and processing
of waste in biorefineries into ‘valuable
components’
– Not focus on the big production of animal food
products which in itself creates a lot of waste –
compared with plant products
• Not focus on fast fashion and ongoing new
generations of non-repairable and non-
upgradeable consumer products
21
Impact of production AND consumption of products
22
Source: European Environmental Bureau, 2015
23
Source: European Environmental Bureau, 2015
Policy-maker kit for national circular economy strategy
24
Source: Ellen MacArthur Foundation, 2015
Sustainable Production 3.0: from concept to
development of business strategies
Overall objectives:
• Develop and implement new sustainable business
strategies based on the concept of circular economy
– as cooperation between business, municipality,
customers, waste management companies, etc.
• Disseminate the experiences and results from the
develoment projects
– for other companies, business networks,
municipalities, consultants, universities, etc.
25
Areas of case companies so far
• Healthcare equipment
• Electrical and electronic installations
• Furnitures
• Textiles and clothing
• Textile service
• Professional laundry and cleaning machines
• Food and drinking water
• Emergency equipment
• Waste treatment
26
Three necessary types of re-design
towards a more circular business strategy
1. Re-design of products and services
• Considering changes in roles of products, users,
context etc.
2. Re-design of value chains
• Up-stream and down-stream
3. Internal re-design of business
• Integrating environmental concerns in product and
strategy development
27
Local network 1:
Workforce, supply,
regulation etc.
Supplier A Supplier B Customer1 USE: DE-
SCRIPTION <=>
SCRIPT?
Regulatory network X:
Government,
Civil society organisations:
Env., work env., quality etc. –
demands and possibilities
Regulatory network 1
Government,
Civil society organisations
Local network X:
Workforce, supply,
regulation etc.
Company in focus
Developmental network– here with
supplier and customer
SCRIPT: ASSUMPTIONS
Final user USE: DE-
SCRIPTION <=>
SCRIPT?
Four types of network of a company:
Product chain, innovation network, regulatory
networks and local networks
Flows of materials, knowledge and capital: product chain
(Re-)Design and social practices:
Design, use and adaptation
Inscription:
delegation af
roles to actors,
products and
infrastructure
=>
(Manu)script
med
inscribed
actors etc.
=>
Use?
Accept?
Users
adapting
products or
practice?
User
participation?
Configuring
af potential
future users:
Hard or soft
script?
Stabilisation?
(‘black
boxing”)
Learning from
experience?
Improved
design?
Business strategies’ influence on
social practices: fashion
Production and sale
• Fast fashion => shorter time
from fashion show to shop
• 2 => 4 => 8 => 50 seasons a
year
• ‘Greener’ product strategies
– Use of recycled material
– Demands to suppliers?
– Eco-labelling of single products
– Eco-labelling of product areas
(kids)
Clothing practices of young Danish
women
• Frequently buying clothes you
don’t need – ”it is so cheap”;
• Forgotten clothes; ”safe
choices”; 30-50% of clothes in
wardrobe not in use
• Imagining expectations from
your social network for
frequent changes of clothes
• Eco-labelling not interesting:
”limiting our choices”
• Questionning the actual
greening of consumption
• Relation to service solutions
(sharing etc.)?
31
Re-designing the value chain: Feasibility of circular
environmental business strategy
Source: Sanchez, Wenzel and Jørgensen, 2004
Case: Equipment for health care: service delivery
contracts as part of public procurement?
• Change of CT scanners difficult => On the spot up-grading
attractive
• From product sale to service delivery contracts (no. of CT
scans) => manufacturer optimise use of equipment
– New development in public procurement in some
countries
• Re-manufacturing attractive for manufacturer and customer:
• Re-manufactured health care equipment cheaper solution for
developing countries and other health care systems under
economic pressure
32
33
One of the global partners of
Ellen MacArthur Foundation
Case: The upgradeable electrical and electronic
installation: control and monitoring of temperature,
ressource consumption, telephone and IT grids etc.?
• Costly to upgrade
installations
• No longer value for the
customer after some
years
• => A lot of waste
recycled as down-cycled
materials after 5-6 years
(cables, equipment)
• Will it be possible to
develop upgradeable
electrical and electronic
installations
– Combined with
service contracts?
34
Internal re-design of business: Business practice: Translating signals in
the context - based on the history of the organisation
•What can initiate changes in strategy?
Source: Howard-Grenville, J., Nash, J. & Coglianese, C.: Constructing the License to Operate:
Internal Factors and Their Influence on Corporate Environmental Decisions. Law & Policy,vol 30, no.1. 2008, pp. 73–107
Information network for integration of
environmental concerns in innovation
processes
Knowledge
resource
Communication
linkage
Source: Lenox & Ehrenfeld 1997: Environmental Design Capability
Interpretive structure?
36
Elements in environmental
design capability
(Lenox & Ehrenfeld 1997: Environmental Design Capability)
• Knowledge resources:
– Expertise (internal and external) on environmental
impacts and strategies for abatement and prevention
• Communication linkages between knowledge resources and
(product) development activities, e.g.:
– Gatekeepers as mediators in design team
– EHS personnel in cross function design team
– Transfer of design tools: ICT-network, checklists
• Interpretive structures supporting the development of
mutual E&W understanding and language =>
environmental information is understood and valued, e.g.:
– EHS training for gatekeepers and designers
– Gatekeepers part of cross function design team
– Gatekeepers permanent member of design team 37
Coloplast’s process
for medical device development
Product knowledge
Room for innovation
Economic
investment
Environmental
involvement
User
needs
Idea Concept Product
Coloplast: Integrating Environmental concerns
in Product Development (A)
Ideas/customer needs
Stage 0
Idea formulation
Stage 1
Concept formulation
Stage 2
Gate 1
Gate 2
Gate 3
Environmental screening
• Highlight environmental hotspots
• Suggest possible improvement areas
Specific solutions, e.g.:
• Possibilities of recycling
• Elimination of unwanted emissions
• Environmental assessment of
alternative materials, chemicals and
processes.
39
Product
development
Stage 3
Test marketing
Stage 4
International
marketing
Stage 5
Gate 4
Gate 5
Life cycle assessment
1. Quantify and assess
significant environmental impacts
2. Customer oriented information +
documentation
Coloplast: Integrating Environmental
concerns in Product Development (B)
40
20 specific business development projects (A)
• 2 year cooperation with each company
• Part 1: Mapping and development of action plan
• Initial mapping of each company
– Important environmental aspects of company and its
products and services
– Business strategy and environmental strategy
• Assessment of potentials and challenges from circular economy
principles
• Development of action plan aiming at considering a business
strategy integrating principles of circular economy
– Proposals for further internal analyses and external dialogues
– Proposals for experiments with changes in products and
services and business model
41
Initial mapping and analysis
• Environmental mapping of company in life cycle perspective
• Analysis competitive position based on Michael Porter’s
”Five Forces” model
• Resource consumption and environmental aspects in life
cycle
• Aspects of power and learning in relation to suppliers,
customers, and users
– The roles of environmental concerns
– Analyses of competitors’ environmental strategies
• Threats from new (more environmental friendly) varieties of
competiting products and services entering the market?
• Relation to existing and future environmental regulation –
local, national and international
• Relations to citizens and environmental organisations –
locally, nationally and internationally 42
Analysis of forces shaping the
competitive position of a company
43
Source: Michael Porter, 2008
Life cycle perspective:
life cycle screening /assessment
Nanospeed
racket
Raw material
extraction
Production Use Disposal
Materials Fossil fuels Waste resin
Energy Vacuum pump Melting and
curing
Chemicals Chlorinated and
other solvents
Nanoparticles
released from
waste?
Other aspects,
including
occupational
health and
safety
Occupational
handling of
nanoparticles
Table1: Presentation of the Materials, Energy, Chemicals and Others (MECO) matrix for
the different life cycle stages of a “nanospeed” badminton racket
Identifying environmental aspects through literature, databases and dialogues
DESIGN IMPORTANT FOR
CIRCULAR ECONOMY
Design for end-of-life
• Avoid substances that make
recycling expensive / problematic
• Product take-back + organise
waste streams to avoid down-
cycling
• Reuse of components
Business models
• Leasing
• Product-service systems
• Extended guarantee (spare parts)
• Service agreements to ensure
durability
Design and materials
•Avoid heavy metals as cadmium, lead, and
dangerous substances (RoHS)
•Use of recycled materials (metals, etc.)
•Recyclability and recoverability
•Reduction of weight (dematerialisation)
Design, durability and repair
•Modular design, standard component, easy
to repair and to up-grade
•Easy to dismantle with common tools
•Bill of Material (BoM)
•Mono-materials and few different materials
45
20 specific business development projects (B)
• Part 2: Implementation of action plan
• Researchers facilitate dialogues with suppliers, customers,
users, etc. about possibilities and limitations to a more
circular business strategy
– Including dialogues with public authorities, waste
management companies, civil society organisations, etc.
– In relation to environment, quality, occupational health
and safety, etc.
• Open and internal workshops for development for
development of possible solutions
• Involvement of students for course projects and thesis
projects
46
Prolonging product life time through repair
• Western countries:
– Many local repair sshops closed
– Repair through conventional retailers often expensive
compared to new product
– ‘Bad’ product design part of background for expensive repair
• Community-based repair activities
– Denmark: repair network initiated by NGO + waste
management company
– Local repair cafés + dissemination about professional repair
shops
– International Repair Café network (750 cafées) – initiated
from the Netherlands – 10-15 cafés in some Dutch cities
• Commercial activities in developing countries and newly
industrialized countries?
Circular clothing initiatives in Denmark (A)
• Civil-society based initiatives and entrepreneurial initiatives:
• Small clothing store as ‘sharing economy’ with bi-yearly
subscription allowing you to exchange as many dresses you want
– Require you provide some of your own dresses to be part of the
‘shared closet’
• Share Your Closet: ‘sharing economy’ without a physical store
– Subscribers make photos of clothes they put into the virtual
wardrobe => other subscribers borrow
• High fashion clothing library developed by Red Cross Center:
subscribers borrow high fashion clothing provided by designers
– Mostly run by volunteers => surplus for social work among
refugees
• Waste management company organises local clothes swapping
events
Circular clothing initiatives in Denmark (B)
• Clothing businesses – fighting back?
• Large-scale commercial clothing retail chain
encourage to bring back old, used items for
material re-cycling in return for a small gift-
certificate offering a 15% discount on one piece
of new clothes
• Danish Fashion Institute: annual public
‘swapping-market’
• Joint project with waste management company,
social organisations and fashion retailers about
material recycling of not re-usable clothes
Activity 3: Developing methods, concepts
and inspiration from case studies
• Evaluating aspects of changes in environmental impacts,
business economy, innovation and network relations
– The roles of internal and external actors during the development
project
• Case report from each business development projects
– Internal version
– External version for inspiration and teaching material
• Systematising experiences from development projects into
methods and concepts for circular business analysis and
development
50
Activity 4: Dissemination and embedding of
results and experiences among multipliers
• Train-the-trainer workshops based on materials from
Activity 3
– For consultants, business organisations, public authorities,
business incubators, waste management companies etc.
• Workshops for university teachers for development of
education strategies and elements
• Advisory group, website, newsletter
• Workshops for members of two regional environmental
business network
51

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Circular economy MSJ at UFRJ 20 07 2015-final

  • 1. Circular economy Possibilities and limitations as strategy for sustainable development and business innovation UFRJ – 20 July 2015 Michael Søgaard Jørgensen msjo@plan.aau.dk Center for Design, Innovation and Sustainable Transition (DIST) Department of Development and Planning Aalborg University Copenhagen
  • 2. Overview of presentation • Introduction to circular economy – Ellen MacArthur Foundation and European Environmental Bureau • A more critical perspective on circular economy • Three types of re-design needed in companies for more circular business strategies • Introduction to the Sustainable Production 3.0 project 2
  • 3. The limits of the linear ‘take-make-dispose’ economy reaching its limits • Relies on large quantities of cheap, easily accessible materials and energy • 2025: Growing world population(1.1 bn) and growing middle class (3 bn) – 24% higher food consumption – 47% more packaging – 41% more end-of-life materials (waste) • Resource-related challenges to businesses and economies also growing: – Pressure on natural resources intensifying – Low and poor recycling => Unable to keep up stock of quality materials – Higher price volatility => higher business investment uncertainty – Commodity prices increased 150% during 2002-2010 (metals, food and non-food from agriculture) 3
  • 4. 4 Total EU resource consumption - not only national – measured in terms of mass Source: European Environmental Bureau, 2015
  • 6. 6
  • 7. Circular economy – a new concept with high political attention • Distinguishing between technical and biological circles • Circular design – Modular products, purer material flows, easier disassembly • More and more people living in urban areas make sharing, repairing and recycling easier • Innovative business models: from ownership to performance and access based service systems • Core competences and technologies along reverse cycles and cascades: RFID tags for easier identification and recycling; 3D printing for spare parts 7
  • 8. 8 Findings from Ellen MacArthur case study about circular economy opportunities in Denmark Conducted together with Danish stakeholders
  • 9. A step back: 4+1different strategies for environmental protection 1) Treatment of emissions from manufacturing 2) Recycling of waste from manufacturing and products 3) Cleaner production – preventing waste from industrial production 4) Cleaner products – prevention through development of more effective and less polluting products 5) Circular economy – making flows circular and extending product life time and use 9
  • 10. Four sources of value-creation for businesses • The power of the inner circle – Small change during re-use, refurbishment and remanufacturing – Faster return to further use => higher savings • The power of circling for longer time – Maximum time in each circle – Maximum number of cycles • The power of cascaded use – Clothes => second hand => fibre in furniture => insulation material => return fibre to the biosphere • The power of the pure inputs – Uncontaminated material streams increases efficiency in collection and re-distribution of materials 10
  • 11. Claimed results of a circular economy • Keeping products, components, and materials at their highest utility and value at all times • Controlling stocks of finite materials and balancing renewable resource flows • Decoupling global economic development from finite resource consumption 11
  • 12. Decoupling economic development, ressource consumption and environmental impacts 12 Source: European Environmental Bureau, 2015
  • 13. 13
  • 15. A critical perspective on circular economy (A) • The idea about a circular economy NOT new – Friends of the Earth Europe developed in the mid 1990’ies Environmental space as concept – Limited resources and ‘room’ for pollution + social justice => higher resource efficiency through changes in consumption • Can and will the same businesses that created the globalized linear economy develop a more circular sustainable economy? • EU: Business Europe lobbying against circular economy plan => plan with higher recycling targets and eco-design guidelines withdrawn => “A more ambitious plan will be developed” • Rules against waste export and its social and environmental bad conditions seen as barrier to circular economy 15
  • 17. A lot of technical possibilities not implemented 17 Source: European Environmental Bureau, 2015
  • 18. Basic hypotheses about sustainable transition: from vision to transition • Technical opportunities – like circular economy - not ‘working solutions’ until specified within an institutional and regulatory context – Bioenergy – Smart homes – LED lighting • Innovation and change is governed by a complexity of interpretations and conflicts – Should be seen as necessary parts of process of change • Transitions occur based on actors becoming aligned and interconnected while maintaining different interests
  • 19. Case: The co-evolutionary history of renewable energy transition in Denmark Source: Elle et al , 2015
  • 20. 20 What is produced? Why is waste generated? Globalised cheap production challenges repair and upgrading
  • 21. A critical perspective on circular economy (B) • We need to look more at – What is produced? Why is waste generated? • Compare with identified opportunities in Danish case studies: • Focus on food waste minimisation and processing of waste in biorefineries into ‘valuable components’ – Not focus on the big production of animal food products which in itself creates a lot of waste – compared with plant products • Not focus on fast fashion and ongoing new generations of non-repairable and non- upgradeable consumer products 21
  • 22. Impact of production AND consumption of products 22 Source: European Environmental Bureau, 2015
  • 24. Policy-maker kit for national circular economy strategy 24 Source: Ellen MacArthur Foundation, 2015
  • 25. Sustainable Production 3.0: from concept to development of business strategies Overall objectives: • Develop and implement new sustainable business strategies based on the concept of circular economy – as cooperation between business, municipality, customers, waste management companies, etc. • Disseminate the experiences and results from the develoment projects – for other companies, business networks, municipalities, consultants, universities, etc. 25
  • 26. Areas of case companies so far • Healthcare equipment • Electrical and electronic installations • Furnitures • Textiles and clothing • Textile service • Professional laundry and cleaning machines • Food and drinking water • Emergency equipment • Waste treatment 26
  • 27. Three necessary types of re-design towards a more circular business strategy 1. Re-design of products and services • Considering changes in roles of products, users, context etc. 2. Re-design of value chains • Up-stream and down-stream 3. Internal re-design of business • Integrating environmental concerns in product and strategy development 27
  • 28. Local network 1: Workforce, supply, regulation etc. Supplier A Supplier B Customer1 USE: DE- SCRIPTION <=> SCRIPT? Regulatory network X: Government, Civil society organisations: Env., work env., quality etc. – demands and possibilities Regulatory network 1 Government, Civil society organisations Local network X: Workforce, supply, regulation etc. Company in focus Developmental network– here with supplier and customer SCRIPT: ASSUMPTIONS Final user USE: DE- SCRIPTION <=> SCRIPT? Four types of network of a company: Product chain, innovation network, regulatory networks and local networks Flows of materials, knowledge and capital: product chain
  • 29. (Re-)Design and social practices: Design, use and adaptation Inscription: delegation af roles to actors, products and infrastructure => (Manu)script med inscribed actors etc. => Use? Accept? Users adapting products or practice? User participation? Configuring af potential future users: Hard or soft script? Stabilisation? (‘black boxing”) Learning from experience? Improved design?
  • 30. Business strategies’ influence on social practices: fashion Production and sale • Fast fashion => shorter time from fashion show to shop • 2 => 4 => 8 => 50 seasons a year • ‘Greener’ product strategies – Use of recycled material – Demands to suppliers? – Eco-labelling of single products – Eco-labelling of product areas (kids) Clothing practices of young Danish women • Frequently buying clothes you don’t need – ”it is so cheap”; • Forgotten clothes; ”safe choices”; 30-50% of clothes in wardrobe not in use • Imagining expectations from your social network for frequent changes of clothes • Eco-labelling not interesting: ”limiting our choices” • Questionning the actual greening of consumption • Relation to service solutions (sharing etc.)?
  • 31. 31 Re-designing the value chain: Feasibility of circular environmental business strategy Source: Sanchez, Wenzel and Jørgensen, 2004
  • 32. Case: Equipment for health care: service delivery contracts as part of public procurement? • Change of CT scanners difficult => On the spot up-grading attractive • From product sale to service delivery contracts (no. of CT scans) => manufacturer optimise use of equipment – New development in public procurement in some countries • Re-manufacturing attractive for manufacturer and customer: • Re-manufactured health care equipment cheaper solution for developing countries and other health care systems under economic pressure 32
  • 33. 33 One of the global partners of Ellen MacArthur Foundation
  • 34. Case: The upgradeable electrical and electronic installation: control and monitoring of temperature, ressource consumption, telephone and IT grids etc.? • Costly to upgrade installations • No longer value for the customer after some years • => A lot of waste recycled as down-cycled materials after 5-6 years (cables, equipment) • Will it be possible to develop upgradeable electrical and electronic installations – Combined with service contracts? 34
  • 35. Internal re-design of business: Business practice: Translating signals in the context - based on the history of the organisation •What can initiate changes in strategy? Source: Howard-Grenville, J., Nash, J. & Coglianese, C.: Constructing the License to Operate: Internal Factors and Their Influence on Corporate Environmental Decisions. Law & Policy,vol 30, no.1. 2008, pp. 73–107
  • 36. Information network for integration of environmental concerns in innovation processes Knowledge resource Communication linkage Source: Lenox & Ehrenfeld 1997: Environmental Design Capability Interpretive structure? 36
  • 37. Elements in environmental design capability (Lenox & Ehrenfeld 1997: Environmental Design Capability) • Knowledge resources: – Expertise (internal and external) on environmental impacts and strategies for abatement and prevention • Communication linkages between knowledge resources and (product) development activities, e.g.: – Gatekeepers as mediators in design team – EHS personnel in cross function design team – Transfer of design tools: ICT-network, checklists • Interpretive structures supporting the development of mutual E&W understanding and language => environmental information is understood and valued, e.g.: – EHS training for gatekeepers and designers – Gatekeepers part of cross function design team – Gatekeepers permanent member of design team 37
  • 38. Coloplast’s process for medical device development Product knowledge Room for innovation Economic investment Environmental involvement User needs Idea Concept Product
  • 39. Coloplast: Integrating Environmental concerns in Product Development (A) Ideas/customer needs Stage 0 Idea formulation Stage 1 Concept formulation Stage 2 Gate 1 Gate 2 Gate 3 Environmental screening • Highlight environmental hotspots • Suggest possible improvement areas Specific solutions, e.g.: • Possibilities of recycling • Elimination of unwanted emissions • Environmental assessment of alternative materials, chemicals and processes. 39
  • 40. Product development Stage 3 Test marketing Stage 4 International marketing Stage 5 Gate 4 Gate 5 Life cycle assessment 1. Quantify and assess significant environmental impacts 2. Customer oriented information + documentation Coloplast: Integrating Environmental concerns in Product Development (B) 40
  • 41. 20 specific business development projects (A) • 2 year cooperation with each company • Part 1: Mapping and development of action plan • Initial mapping of each company – Important environmental aspects of company and its products and services – Business strategy and environmental strategy • Assessment of potentials and challenges from circular economy principles • Development of action plan aiming at considering a business strategy integrating principles of circular economy – Proposals for further internal analyses and external dialogues – Proposals for experiments with changes in products and services and business model 41
  • 42. Initial mapping and analysis • Environmental mapping of company in life cycle perspective • Analysis competitive position based on Michael Porter’s ”Five Forces” model • Resource consumption and environmental aspects in life cycle • Aspects of power and learning in relation to suppliers, customers, and users – The roles of environmental concerns – Analyses of competitors’ environmental strategies • Threats from new (more environmental friendly) varieties of competiting products and services entering the market? • Relation to existing and future environmental regulation – local, national and international • Relations to citizens and environmental organisations – locally, nationally and internationally 42
  • 43. Analysis of forces shaping the competitive position of a company 43 Source: Michael Porter, 2008
  • 44. Life cycle perspective: life cycle screening /assessment Nanospeed racket Raw material extraction Production Use Disposal Materials Fossil fuels Waste resin Energy Vacuum pump Melting and curing Chemicals Chlorinated and other solvents Nanoparticles released from waste? Other aspects, including occupational health and safety Occupational handling of nanoparticles Table1: Presentation of the Materials, Energy, Chemicals and Others (MECO) matrix for the different life cycle stages of a “nanospeed” badminton racket Identifying environmental aspects through literature, databases and dialogues
  • 45. DESIGN IMPORTANT FOR CIRCULAR ECONOMY Design for end-of-life • Avoid substances that make recycling expensive / problematic • Product take-back + organise waste streams to avoid down- cycling • Reuse of components Business models • Leasing • Product-service systems • Extended guarantee (spare parts) • Service agreements to ensure durability Design and materials •Avoid heavy metals as cadmium, lead, and dangerous substances (RoHS) •Use of recycled materials (metals, etc.) •Recyclability and recoverability •Reduction of weight (dematerialisation) Design, durability and repair •Modular design, standard component, easy to repair and to up-grade •Easy to dismantle with common tools •Bill of Material (BoM) •Mono-materials and few different materials 45
  • 46. 20 specific business development projects (B) • Part 2: Implementation of action plan • Researchers facilitate dialogues with suppliers, customers, users, etc. about possibilities and limitations to a more circular business strategy – Including dialogues with public authorities, waste management companies, civil society organisations, etc. – In relation to environment, quality, occupational health and safety, etc. • Open and internal workshops for development for development of possible solutions • Involvement of students for course projects and thesis projects 46
  • 47. Prolonging product life time through repair • Western countries: – Many local repair sshops closed – Repair through conventional retailers often expensive compared to new product – ‘Bad’ product design part of background for expensive repair • Community-based repair activities – Denmark: repair network initiated by NGO + waste management company – Local repair cafés + dissemination about professional repair shops – International Repair Café network (750 cafées) – initiated from the Netherlands – 10-15 cafés in some Dutch cities • Commercial activities in developing countries and newly industrialized countries?
  • 48. Circular clothing initiatives in Denmark (A) • Civil-society based initiatives and entrepreneurial initiatives: • Small clothing store as ‘sharing economy’ with bi-yearly subscription allowing you to exchange as many dresses you want – Require you provide some of your own dresses to be part of the ‘shared closet’ • Share Your Closet: ‘sharing economy’ without a physical store – Subscribers make photos of clothes they put into the virtual wardrobe => other subscribers borrow • High fashion clothing library developed by Red Cross Center: subscribers borrow high fashion clothing provided by designers – Mostly run by volunteers => surplus for social work among refugees • Waste management company organises local clothes swapping events
  • 49. Circular clothing initiatives in Denmark (B) • Clothing businesses – fighting back? • Large-scale commercial clothing retail chain encourage to bring back old, used items for material re-cycling in return for a small gift- certificate offering a 15% discount on one piece of new clothes • Danish Fashion Institute: annual public ‘swapping-market’ • Joint project with waste management company, social organisations and fashion retailers about material recycling of not re-usable clothes
  • 50. Activity 3: Developing methods, concepts and inspiration from case studies • Evaluating aspects of changes in environmental impacts, business economy, innovation and network relations – The roles of internal and external actors during the development project • Case report from each business development projects – Internal version – External version for inspiration and teaching material • Systematising experiences from development projects into methods and concepts for circular business analysis and development 50
  • 51. Activity 4: Dissemination and embedding of results and experiences among multipliers • Train-the-trainer workshops based on materials from Activity 3 – For consultants, business organisations, public authorities, business incubators, waste management companies etc. • Workshops for university teachers for development of education strategies and elements • Advisory group, website, newsletter • Workshops for members of two regional environmental business network 51