This document discusses the growth of the circular economy and its potential business implications. It analyzes 120 case studies of circular pioneers to identify 5 emerging circular business models: circular supply chain, recovery and recycling, product life extension, sharing platforms, and product as a service. Digital technologies are enabling entirely new ways to access and understand product use and aid in efficiency. Hybrid technologies enable moving physical objects between value chains with digital services. Engineering technologies enable new types of resources and product designs. The circular economy represents an opportunity for dramatic environmental and resource efficiency gains, unprecedented transparency, and growth beyond resource constraints.

1. Growth of the
Circular Economy:
The next business
revolution
Peter Lacy
Global Managing Director Accenture Strategy, Sustainability services

2. Digital is creating both greater stakeholder pressures and
new technology solutions for sustainability
Mobility
Analytics
Cloud
Online/
e-commerce
Connected
devices
Social &
collaboration Digital Supply
Chain &
Operations
Digitally-enabled
Business Models
Digital
Stakeholders
Digital Disruption Business Implications
• Dramatic environmental & resource efficiency
gains
• Unprecedented transparency & visibility of
operations, supply chains etc.
• Growth beyond resource constraints as we
see the squeeze in certain industries from
hyper growth
• Disrupted value chains
• More informed consumers who have access
not just to price & quality, but responsibility &
sustainability of companies
• Growing lack of trust in business

3. Accenture and WEF YGL have studied 120 successful
circular pioneers
50Executive
Interviews 120Case
Studies
Circular Supply-
Chain
Recovery &
Recycling
Product Life-
Extension
Sharing Platform Product as a
Service
Business Models
Capability Shifts
Strategy
Innovation & Product Development
Sourcing And Manufacturing
Sales & Product Use
Return Chains
Enabling Technologies
Life & Material Sciences
Modular Design Technology
Cloud
Analytics
Mobile
Social
M2M Communication
3D Printing
Trace and Return Systems
Advanced Recycling Tech
5
10 5

4. Our research identified 5 circular economy business models
Circular Supply-Chain
Recovery & Recycling
Product Life-Extension
Sharing Platform
Product as a Service
Path
Direction> > > >

5. Three types of technologies are key
1 Takeshi Hirano, ‘Japanese mobile flea market app Mercari raises $ 14 million, will expand to US market’, The Bridge, March 31, 2014, http:// thebridge.jp/ en/ 2014/ 03/ mercari-fundraises-14-million.
2 Barry Levine, ‘Verizon plans to create a sharing platform for virtually anything – not just cars’, Venture Beat, September 8, 2014,
http://venturebeat.com/2014/09/08/verizon-plans-to-create-a-sharing-platform-for-virtually-anything-not-just-cars/
3 Cisco, ‘Corporate Social Responsibility Report’, 2013, accessed November 24, 2014, http://www.cisco.com/assets/csr/pdf/CSR_Report_2013.pdf.
Digital
Enabling entirely new ways to
access and understand product
use-phase and aid customers in
use efficiency
Hybrid
Enabling moving physical
objects back and forth from value
chains with digital services to
drive down cost
Engineering
Enabling production and supply
of new types of resources as well
as new product designs to use
them
Logistics
Product
Use
End of Life
Disposal
Reverse
Logistics
Sourcing
Manufacturing
Marketing
& SalesProduct
design
CloudLife & Material sciences
Modular design technology
Analytics
Mobile
Social
M2M Communication
3D Printing
Trace and return
systems
Google
380m supporters for $50 modular handset
to be released in 2015
Verizon
Launching a share anything
platform starting with cars2CISCO
$400m refurbished
equipment take back
and remarketing3
Advanced recycling tech
Waste
eliminate
Mercari
A resale shopping app
downloaded 1.5 million times

6. More information? Get the book!
@peterlacy
www.accenture.com/wastetowealth