ceil printed paper and packaging rapid labcirculareconomylab.com/wp-content/.../printed-paper...the...

Join us in Evolving Ontario’s Economy!

Learn more at www.circulareconomylab.com.

CEIL Printed Paper and Packaging Rapid Lab FINAL REPORT

PREPARED BY:

CHRIS LINDBERG,

CIRCULAR ECONOMY INNOVATION

LAB DIRECTOR

THE NATURAL STEP CANADA

MARCH 2017

http://www.circulareconomylab.com/

2

CIRCULAR ECONOMY INNOVATION LAB

TABLE OF CONTENTS Acknowledgements............................................................................................................................ 3

Introduction ......................................................................................................................................... 5

The Circular Economy Opportunity ............................................................................................... 6

The Opportunity for Ontario ....................................................................................................... 9

The Circular Economy and Climate Change .......................................................................... 12

A Circular Economy for Printed Paper and Packaging............................................................. 13

Collection and diversion ............................................................................................................. 13

The Evolving Tonne ...................................................................................................................... 14

Challenges for the Circular Economy ...................................................................................... 15

Results of the Rapid Lab ................................................................................................................. 17

A Shared Vision ............................................................................................................................. 19

Innovation Pathways ................................................................................................................... 21

Collaborative Initiatives ............................................................................................................... 23

Lessons Learned .......................................................................................................................... 26

Next Steps .......................................................................................................................................... 28

Appendix A: About CEIL .................................................................................................................. 29

Appendix B: A Circular Economy Primer..................................................................................... 33

Why Now? Circular Economy Drivers ...................................................................................... 34

Defining the Circular Economy ................................................................................................. 36

Circular Economy Strategies ..................................................................................................... 40

Government Policy Levers ......................................................................................................... 44

Business Strategies...................................................................................................................... 45

Circular Economy Leadership ................................................................................................... 48

Endnotes ............................................................................................................................................ 50

3


Acknowledgements The Printed Paper and Packaging Rapid Lab is the first major activity of the Ontario Circular

Economy Innovation Lab (CEIL), a new program dedicated to accelerating the transition to a

circular economy in Ontario.

CEIL is convened by The Natural Step Canada with support from the organizations listed

below. For additional information please visit http://circulareconomylab.com/.

The Natural Step (TNS) was founded in 1989 and now operates in 12 countries on 4

continents. Its use of science, systems-thinking and collaboration have helped solve complex

socio-economic and environmental problems and have been at the heart of strategic decision-

making, innovation and sustainability planning for countless organizations including IKEA, Nike,

Starbucks, Pratt & Whitney Canada, Interface, The Co-operators, and many more.

This Final Report was prepared by Chris Lindberg, the Director of CEIL based on the work of

the Rapid Lab participants as well as submissions and guidance from CEIL’s Steering

Committee and Technical Advisory Committee.

http://circulareconomylab.com/

4


CEIL DESIGN TEAM

Chris Lindberg, CEIL Director, The Natural Step Canada

Matt Mayer, CEIL Facilitator, The Natural Step Canada Associate

Danielle Perreault, CEIL Manager, The Natural Step Canada

Chad Park, Chief Innovation Officer, The Natural Step Canada

Tyler Seed, Interim Director of Marketing & Communications, The Natural Step Canada

Mark Cabaj, Developmental Evaluation Specialist, Here to There Consulting

CEIL STEERING COMMITTEE

Brendan Seale, Sustainability Leader, IKEA Canada

Brian Zeiler-Kligman, Vice President, Sustainability, Canada’s National Brewers

Dan Pio, President, Progressive Waste Solutions Ltd.

Jim Johnston, Director, Environmental Sustainability & Compliance, BMO Financial Group

Joanne McMillin, Associate Vice President, Enterprise Sustainability, Canadian Tire

Corporation

Jim Nordmeyer, Vice President, Global Sustainability, Owens Illinois Inc.

John Coyne, Vice President Legal and External Affairs, Unilever Canada Inc. and

Executive Chair, Canadian Stewardship Services Alliance, Inc.

John Vidan, Director, Partnerships Branch, Ministry of Environment and Climate Change

Mike Wilson, Executive Director, Smart Prosperity Institute

Nadine Gudz, Director, Sustainability Strategy, Interface

Norman Lee, Director, Waste Management, Region of Peel and Chair of the Board,

Ontario Waste Management Association

Todd Melendy, Vice President of Compliance and Sustainability, Celestica

Usman Valiante, Senior Policy Analyst, Corporate Policy Group (CEIL Technical Advisory

Committee Co-Chair)

Wendy Ren, Director, Resource Recovery Policy Branch, Climate Change and

Environmental Policy Division, Ministry of the Environment and Climate Change

CEIL TECHNICAL ADVISORY COMMITTEE

Usman Valiante, Senior Policy Analyst, Corporate Policy Group (Co-Chair)

Meg Ogden, Senior Research Associate, Smart Prosperity Institute (Co-Chair)

Coro Strandberg, Principal, Strandberg Consulting

Hamid Karbasi,, NSERC Industrial Research Chair in Advanced Recycling Technologies for

Waste Electrical and Electronic Equipment (WEEE)

Jo-Anne St. Godard, Executive Director, Recycling Council of Ontario

Peter Hargreave, Chief Executive Officer (acting), Ontario Waste Management

Association (OWMA)

Vanessa Timmer, Executive Director, One Earth and Board Member, National Zero

Waste Council

Special Advisor on Printed Paper and Packaging Materials:

Rachel Morier, Director of Sustainability, PAC NEXT, Packaging Consortium

5


Introduction The circular economy is an approach to maximize value and

eliminate waste by improving (and in some cases transforming) how

goods and services are designed, manufactured and used. It touches

on everything from material selection to business strategy to the

configuration of regulatory frameworks, incentives and markets.

This economic shift will provide significant benefits to Ontario and to

Canada as a whole: it will create thousands of jobs, generate billions

in additional GDP, drive innovation and reduce megatonnes of

greenhouse gas emissions and other pollutants.

However, capturing these benefits requires a collaborative approach: No one actor –

whether public or private – can deliver this change on their own.

Consequently, the Natural Step Canada and its partners have launched the Circular Economy

Innovation Lab (CEIL) to bring together private and public sector leaders and innovators to co-

generate, test and implement circular economy solutions that can accelerate this transition.

The Printed Paper and Packaging Rapid Lab was CEIL’s first major initiative and ran from

October 5 to December 6, 2016. The purpose of the Rapid Lab was to identify opportunities to

accelerate the transition to a circular economy for printed paper and packaging in Ontario.

This document presents a summary of the key results of the Rapid Lab. It includes three

sections:

The Circular Economy Opportunity for Ontario.

A Circular Economy for Printed Paper and Packaging

Results from the Rapid Lab

“Transitioning to the

circular economy may be

the biggest revolution and

opportunity for how we

organize production and

consumption in our global

economy

in 250 years.”

Accenture Strategies, Waste

to Wealth1

6


The Circular Economy Opportunity In the conventional economy, materials move through a linear process of

extraction, production, consumption and eventual disposal (“take-make-

waste”). Fueled by large amounts of cheap, easily accessible materials, energy

and disposal sites, this model has powered the past century of industrial

development and generated unprecedented levels of economic growth.1

However, this economic model has also generated unprecedented levels of

resource consumption and waste, including the greenhouse gas emissions

that are driving global climate change.2 If current trends continue then by the

2030s we will need two Earths’ worth of ecological goods and services to fuel

our economy each year.3

The linear economic model is no longer affordable, effective or sustainable.

We are systematically undermining the ability of natural systems to provide the

resources and services that are needed to meet human and ecological needs

both now and in the future. This model is also unrealistic because it assumes

that we can infinitely increase growth and resource consumption in a finite

world.

The circular economy has emerged as a viable alternative that delivers

significant social, economic and ecological benefits. It addresses the issues

above by working to decouple the relationship between economic growth and

resource consumption.

In contrast with the linear “take-make-

waste” model, a circular economy

eliminates waste and delivers value

through the redesign, reduction,

extended use, reuse, recycling and

composting of products and materials in

interconnected systems, biological cycles

and markets (“make-use-return” or “take-

make-take-make-take-make”).

“Ontario’s economy is

currently built on a linear

pattern of production,

consumption and

disposal... Little emphasis

is placed on the value of

the resources we dispose

of every year.

…As a result, for the last

two decades, our

province’s waste diversion

rate has essentially "flat-

lined" at less than 25%.

This linear approach is

neither sustainable given

our finite supply of

resources, nor is it in our

economic interests. The

good news is change is

obtainable.”

- OWMA, ReThink Waste

2015: Evolution towards a

circular economy.

Source: European Environment Agency

7


A circular economy maximizes value and eliminates waste by improving (and in some cases transforming) how

goods and services are designed, manufactured and used. It touches everything from material selection to business

strategy to the configuration of regulatory frameworks, incentives and markets.

In a circular economy, governments and businesses seek to generate the highest utility and value (social, economic and

ecological) from materials and products over their entire lifecycle. This challenges all stakeholders in the economy to:

Eliminate the concept of waste and the disposal of products and materials,

Minimize the use of finite, non-renewable resources except in closed-loop cycles,

Optimize the use of renewable resources at levels that can be sustained by natural ecosystems, and

Align market and policy incentives in support of these goals.

The CEIL Circular Economy Framework diagram above presents a high-level map of how products and materials move

through a circular economy. It is divided into three parts: 1) the inner circles present the key stages in the lifecycle or

value chain, 2) the green loops present the various pathways for closing the cycle after consumption or use, and 3) the

outer circle presents the broader market and policy context that shapes decision-making (e.g. Product research, design

and development, etc.).

8


A Generational Opportunity…

Accelerating the shift towards a low-carbon, circular economy represents

a multi-billion dollar opportunity for Canada and Ontario. For example,

increasing waste diversion rates in Ontario would support more than 13,000 new

jobs in the province and boost GDP by more than $1.5 billion.4 Globally, Accenture

Strategy predicts a $4.5 trillion reward for circular economy businesses by 2030.5

Ontario is already moving in this direction with the passage of the Resource

Recovery and Circular Economy Act in 2016.

Studies from around the world have consistently shown that circular economy

measures create jobs, enhance GDP, and reduce costs and greenhouse gas

emissions. Economic and business opportunities include greater innovation in

product design, energy and materials efficiency, and logistics, the creation of new

and improved products, unlocking new domestic end markets, as well attracting

and retaining engineers, designers and entrepreneurs interested in tackling the

challenges and opportunities of the circular economy.

…that Requires an Innovative Approach

Making the transition from a linear to a circular economy is a massive

undertaking. The linear model is deeply entrenched in the structure (and culture)

of most businesses, markets, policies and value chains. To capture the full benefits

of a circular economy requires the evolution of the system as a whole and the

adoption of new processes, policies, business models and metrics.

New approaches to collaboration are required to catalyze this transition. No

one actor – whether public or private – can deliver this change on their own. New

processes are needed to bring Ontario’s diverse economic stakeholders together

to chart the path towards the low-carbon, circular economy of the future.

The Ontario Circular Economy Innovation Lab (CEIL) has been developed to fill

this gap. Launched in 2016 by The Natural Step Canada, CEIL’s mission is to

accelerate the transition to circular economy in Ontario, and beyond. Our work

brings together private and public sector innovators from across the province to

co-generate, test and implement circular economy solutions.

“Transitioning to the

circular economy

may be the biggest

revolution and

opportunity for how

we organize

production and

consumption in our

global economy in

250 years.”

Accenture Strategies,

Waste to Wealth

“The Ontario Circular

Economy Innovation

Lab will be critical in

bringing together

the leaders needed

to accelerate

Ontario’s transition

to a circular

economy.”

Brian Zeiler-Kligman, VP

Sustainability, Canada’s

National Brewers

For more

information see

Appendix A: About

CEIL and Appendix B:

A Circular Economy

Primer.

9


The Opportunity for Ontario

Accelerating the shift towards a circular economy represents a

multi-billion dollar opportunity for Ontario.

Residents and businesses currently produce over 12 million tonnes of

waste and send most of it (approximately ~77% or more than 8 million

tonnes) to landfills each year.6 This activity generates over 9 million

tonnes of greenhouse gas emissions from landfills along with other

negative environmental impacts such as land and water pollution. 7 It

also represents foregone opportunities for resource recovery and value

capture.

Moving to a more circular economy could support more than 13,000

new jobs in the province and boost Ontario’s GDP by more than $1.5

billion.8 It’s estimated that more than seven jobs are created in Ontario

for every 1,000 tonnes of waste diverted, and the economic benefits of

mandated waste diversion programs are four times greater than the net

cost to recycle.9

Economic and business opportunities include greater innovation in

product design, energy and materials efficiency, and logistics, the

creation of new and improved products, unlocking new domestic end

markets, as well attracting and retaining engineers, designers and

entrepreneurs interested in tackling the challenges and opportunities

brought about by the circular economy. Studies from jurisdictions as

diverse as Ontario, Metro Vancouver and Denmark have consistently

shown that circular economy measures create jobs, enhance GDP, and

reduce waste disposal costs.

“Ontario’s economy is currently

built on a linear pattern of

production, consumption and

disposal... With rare exception,

little emphasis is placed on the

value of the resources we dispose

of every year.

…As a result, for the last two

decades, our province’s waste

diversion rate has essentially "flat-

lined" at less than 25% with over 3

million tonnes of waste exported

to U.S. disposal facilities annually.

This linear approach is neither

sustainable given our finite supply

of resources, nor is it in our

economic interests.

The good news is change is

obtainable and some progress

has been made.”

- Ontario Waste Management

Association, ReThink Waste 2015:

Evolution towards a circular

economy.

10


Potential Benefits For Ontario from the Circular Economy10

Economic Benefits Benefits for Businesses

Economic gains and job growth

estimated at >13,000 new jobs and a

>$1.5 billion boost to Ontario’s GDP

Cost savings and productivity gains

from improved materials

management, reduced need for

landfills and increased resource

reutilization

Stimulating innovation in new

products, services, business models

and market segments.

Mitigating reputational and operational risks

from price volatility, supply risks, resource

scarcity and climate impacts

Increased cost savings from resource and

energy efficiency and product life extension (in

some cases)

New revenue streams from new service areas

and sales of reused, recycled and composted

materials

Enhanced reputation and brand capital,

improving customer loyalty while attracting new

ones.

New marketing opportunities and potential

first mover advantages, both within and across

economic sectors and jurisdictions

Getting ahead of government and investor

requirements, such as corporate social

responsibility and government regulatory curves

Ecological Benefits

Reduced greenhouse gas emissions

and energy use from efficiency gains,

reuse, recycling and composting

Reduced pressure on natural

ecosystems and resources from

extraction, harvesting and disposal

Improved land productivity from

composting returning nutrients to

soils

Reduced waste disposal and

associated environmental and social

impacts

Consumer Benefits

Reduced costs and obsolescence as built-to-

last products improve budgets and quality of

life.

Reduced externalities such as negative health

benefits and lost productivity

Reduced tax burden as public-sector waste

management costs decrease

This transition has already started.

Many businesses have already adopted circular economy approaches and reaped the benefits.

Provincially, the 2016 Waste Free Ontario Act and Strategy for a Waste-Free Ontario: Building

the Circular Economy lay the foundation for a radical transformation of production and

materials management in the province. The Act outlines an ambitious vision for a circular

economy which would enhance Ontarians’ quality of life by protecting the environment,

growing the economy, and generating well-paid jobs.

http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=3598

https://www.ontario.ca/page/strategy-waste-free-ontario-building-circular-economy


11


Key elements of the Act include: a statement of the provincial interest

(including environmental protection and human health, reducing

greenhouse gas emissions (GHGs), and reducing waste), restructuring

Waste Diversion Ontario into the Resource Productivity and Recovery

Authority, the establishment of an individual producer responsibility

(IPR) regime, and granting the Ministry of Environment and Climate

Change (MOECC) the authority to issue policy statements to further

these provincial interests.

The MOECC’s Strategy for a Waste Free Ontario identifies high-level

strategies towards the aspirational goal of generating zero waste and

zero greenhouse gas emissions from the waste sector. The Strategy

highlights priority economic sectors (e.g. industrial, commercial and

institutional – or, IC&I) and material streams (e.g. organic waste) for

policy targeting and consultations, as well as policy measures to kick-

start the circular economy, including public procurement.

Objectives and actions to achieve Ontario’s vision. Excerpt from Strategy for a Waste Free Ontario.

The vision for Ontario is one where

waste is seen as a resource that

can be recovered, reused and

reintegrated to achieve a circular

economy.

The goals are to achieve a zero

waste Ontario and zero

greenhouse gas emissions from the

waste sector.

We have set three interim goals:

30% diversion rate by 2020, 50%

diversion rate by 2030 and 80%

diversion rate by 2050.

- Strategy for a Waste Free Ontario



12


The Circular Economy and Climate Change

The circular economy also provides a tremendous opportunity to reduce the greenhouse

gas (GHG) emissions that contribute to climate change. The Ontario government has taken

leadership in this area by incorporating the circular economy into its Climate Change Strategy,

which establishes a cap-and-trade policy alongside other regulations aimed at reducing GHG

emissions by 37% below 1990 levels by 2030. As outlined in the Ontario Climate Change Action

Plan, achieving these ambitious emissions reductions will require concerted action from every

economic sector and supply chain. The circular economy can reduce emissions through a

variety of mechanisms, such as:

Encouraging the use of low-carbon, renewable energy sources,

Encouraging closed-loop, resource and energy efficient processes

Encouraging product life-extension, reuse, refurbishment and recycling, and

substituting the use of recovered materials for virgin materials in manufacturing,

Reducing greenhouse gas emissions from landfills by diverting organic materials for

composting and capturing residual landfill gases.

For example, it generally requires much less energy to reuse or recycle paper and

packaging materials than it does to produce virgin materials. Recycling aluminum reduces

almost 10 metric tonnes of carbon dioxide

equivalent emissions (MT eCO2) per tonne while

recycling plastic bottles made with PET

(Polyethylene Terephthalate) saves more than 1.5

MT eCO2/tonne.11

Similarly, increasing the reuse of packaging offers

significant GHG savings. For example, Ontario’s

voluntary beer bottle-deposit return program

recovers almost 2 billion beverage containers

annually, including more than 96% of beer bottles

which are then washed and reused or recycled. This

diverts more than 400,000 tonnes of material from

landfill and avoids more than 200,000 tonnes of

greenhouse gas emissions each year.12

Differences in greenhouse gas emissions between

recycled and virgin materials

Measured in equivalent metric tonnes of Carbon Dioxide

emissions (MTCO2E) per short ton produced. Graphic

reproduced from the 2015 Rethink Waste report by the Ontario

Waste Management Association using data from the United

States Environmental Protection Agency.11

https://www.ontario.ca/page/climate-change-strategy

http://www.applications.ene.gov.on.ca/ccap/products/CCAP_ENGLISH.pdf

http://www.applications.ene.gov.on.ca/ccap/products/CCAP_ENGLISH.pdf

13


A Circular Economy for

Printed Paper and Packaging Printed paper and packaging (PPP) materials are everywhere and impact every sector and level

of the economy; every Ontarian interacts with these materials many times per day.

Consequently they are a natural starting point for the conversation around the circular

economy. It is also a sector with high policy-relevance as PPP materials transition into a new

regime under the 2016 Waste-Free Ontario Act.

For the purposes of the Rapid Lab, printed paper and packaging (PPP) materials include

paper, primary packaging and convenience and transport packaging such as:

Paper that is printed at point of sale materials (e.g. bills, newsprint, magazines)

Paper that is blank at point of sale (e.g. printer/copier paper, notebooks)

Paper packaging (e.g. cardboard and box board)

Plastic packaging (e.g. bags, wrap, beverage and food containers, polystyrene

foam)

Glass and metal packaging (e.g. beverage and food containers, aluminum foil)

Composite packaging made of more than one type of material (e.g. multi-layer

laminated packaging, juice boxes)

Collection and diversion

Ontario has two distinct systems for the collection and management of PPP materials:

Residential (Blue Box) and Industrial, Commercial and Institutional (IC&I). Ontario’s residential

PPP diversion rates are relatively high at ~63% and ~95% of Ontario residents have access to

household collection. However, waste diversion rates for Ontario’s IC&I sector are much lower,

hovering at around 12% overall.13 The weaker performance of the IC&I sector has caused

Ontario to be in the middle of the provincial pack for overall resource recovery performance,

with overall waste diversion rates stalled at around 26%.14

Of the PPP collected for recycling, as much as 25% is lost during processing or is too cross-

contaminated to market. Of the portion that is processed and shipped to market, around 53%

14


is used by Ontario markets, with the rest exported to markets outside of Ontario. From the

tonnes of recyclable materials lost to disposal, approximately 64% of Ontario’s PPP is disposed

of in Ontario, whereas the remaining 36% is exported for disposal to other jurisdictions such

as Michigan and New York.15

The Evolving Tonne

Societal and lifestyle changes are

affecting the composition and quantity

of materials collected in recycling

programs. 16 The key factors include:

Reductions in printed paper (e.g.

newsprint),

Increasing demand for

convenience packaging (e.g. ready-

to-go meals),

Material substitution as producers

shift from glass to plastic,

aluminum or other flexible

packaging options (such as multi-

layer laminate pouches)

“Light weighting” by producers to

reduce costs (e.g. transportation,

materials) and improve

environmental performance (e.g.

the weight of PET plastic bottles

has decreased by ~50% over the

past five years).

The evolving tonne has significant implications for the recyclers and the waste management

system as a whole, as recycling programs need to adapt their equipment and sorting systems,

reassess strategies for maximizing commodity revenue and recalculate net costs. Furthermore,

the materials that are becoming more prevalent are the ones that are most difficult (and

expensive) to recycle. For example, the net cost (collection plus processing costs minus

revenues) for a flexible plastic pouch is close to $2,000/ tonne whereas declining materials

such as glass, steel and paper cost $100-$130/ tonne.17

Composition of a metric tonne of Ontario

recyclables in 2012

Graphic reproduced from The Evolving Ton Explained by C. Morawski, M.

Kelleher and S. Millette and printed in the May 2015 edition of Resource

Recycling (May 2015). Data from Stewardship Ontario.

15


Challenges for the Circular Economy

There are a number of system-wide, product design and material-specific challenges for PPP

materials that complicate the transition to a circular economy.

System Challenges

The diverse (and sometimes conflicting) interests of actors at every stage of the product lifecycle

and value chain

Fragmented collection and sorting systems. Each municipality and contractor has their own

system resulting in a lack of consistent requirements with different materials accepted across the

province and processing systems designed for local circumstances that are not flexible or

interchangeable.

Broken financial models such as low landfill fees, high recycling costs and payments per tonne

that reward contamination.

Lack of requirements and incentives for downstream solutions (e.g. IC&I waste diversion)

Regulatory framework for waste which fosters inefficiencies (subject to change with the Waste-

Free Ontario Act)

Lack of data, measures and definitions for some sectors and systems

Lack of standards for processing and selling diverted materials, such as end-of-waste criteria (e.g.

upcycling versus downcycling)

Lack of demand for many diverted materials due to immature markets and sourcing/

procurement practices that prioritize virgin materials

Lack of systems for reverse logistics and accessible infrastructure for reuse and recycling,

particularly for small businesses (e.g. source separation, matching buyers and sellers)

Ontario versus global markets. Materials and products move in a global marketplace where

Ontario’s policies and priorities have limited influence.

Awareness and compliance challenges, such as users placing contaminants in collection systems.

Design Challenges

Competing design priorities. Packaging has a number of primary functions that drive its design

(e.g. protection, marketing, convenience, cost) and waste diversion functions are secondary (e.g.

design for reuse or recycling) if considered at all.

A culture of short-term thinking and programmed obsolescence in some industries that carries

over to packaging

Limited/ misaligned incentives for upstream solutions (e.g. designing products for reuse and

recycling).

Absence of an end-of-life cost and cost driver feedback loop for producers in most sectors.

16


Material Challenges

Competition with virgin materials which may be of higher quality and lower price in part due to

direct or indirect subsidies

Changing composition of waste resulting in less dense loads and higher waste collection and

recycling costs

Volatile markets for recycled materials. In particular, periodic low crude oil prices can make

plastics processing and value-add industries financially challenging

Declining revenue streams from high-value products (such as paper)

Increasing plastics and convenience packaging products that are more costly to sort and have

no (or less viable) end markets, such as plastic packaging containing multiple resins.

Challenges with glass such as breakage, cross-contamination, varying quality and viable end-

markets

Introduction of new materials that:

o Cannot be recycled with today’s technology, such as laminates and composite packaging

o Are more recent add-ons to recycling streams, leading to greater sorting challenges and

cross-contamination (e.g. polystyrene foam)

o Inadvertently contaminate the recycling system, such as biodegradable/compostable

plastics products and paper packaging with food residue.

Sustainable Materials Management (SMM)

Hierarchy

The SMM hierarchy is a framework that drives

highest and best use. It is structured around

lifecycle thinking, which considers the full range of

environmental impacts during a product’s life to

determine the best end-of-life management

option. Waste prevention and reduction are the

highest ranked options, followed by reuse,

recycling, recovery (material and energy), and final

disposal which includes landfill and incineration

with no energy recovery as the last resort. Source:

OWMA ReThink Waste 2015

17


Results of the Rapid Lab

In October 2016 the Circular Economy Innovation Lab launched its first major initiative: the

Printed Paper and Packaging (PPP) Rapid Lab. This dynamic, innovative process brought

together twenty-five leaders and innovators to answer a key question: How can we accelerate

the transition to a circular economy for printed paper and packaging materials in Ontario?

The PPP Rapid Lab ran from October 5 – December 6, 2016 and engaged individuals from

across the value chain. Over the course of three workshops the participants:

Came to a shared understanding of the circular economy and the current state of PPP

in Ontario

Developed a shared vision, framework and set of innovation pathways for the future

of PPP in a circular economy.

Developed a portfolio of >70 ideas for advancing the circular economy

Collaboratively tested and refined a set of priority initiatives.

This section presents the primary outputs of their work and includes: 1

A Shared Vision: A desired future for PPP that aligns with sustainability and the

circular economy.

The Innovation Pathways: The key areas where collective efforts are needed to

accelerate the transition to a circular economy for PPP.

Collaborative Initiatives: The collaborative initiatives explored by the Rapid Lab

participants.

Lessons Learned: Key insights and lessons learned from the Rapid Lab process.

The shared vision is ambitious and will not be achieved overnight. It will require a sustained

commitment from both the public and private sector and the strategic investment of

resources and ideas. We need to work both on practices that mitigate risks and capture

opportunity in the short-term and on transformational initiatives that help shape the future.

The vision and innovation pathways were jointly developed by the twenty-five participants in

the Rapid Lab and reflect their thinking and discussions. They are a working draft that will be

used to:

1 The Printed Paper and Packaging Vision and Innovation Pathways have also been published as a

stand-alone document and are available at http://circulareconomylab.com.

http://circulareconomylab.com/

18


Demonstrate the value of cross-sector collaboration in moving towards a circular

economy, and highlight the need for innovative engagement processes such as CEIL to

identify and act on issues and solutions.

Stimulate discussion around the future of printed paper and packaging in

Ontario through strategic communications and engagement activities and network

building.

Inspire public and private sector action towards achieving the vision, such as by

providing a platform for convening groups of leading organizations, innovators, and

thought leaders.

Rapid Lab Participants The following individuals participated in the Rapid Lab and contributed to the vision and innovation pathways:

Albino Metauro, Executive Vice President, Cascades

Recovery Inc.

Angela Dennis, Director, Technical Packaging &

Environmental Officer, Nestle Canada Inc.

Arlene White, Senior Business Development

Manager, WP Warehousing Inc.

Brendan Seale, Sustainability Leader, IKEA Canada

Brian Zeiler-Kligman, Vice President, Sustainability,

Canada’s National Brewers

Catherine McVitty, Manager, Sustainable Living,

Unilever Canada

Charlotte Ueta, Project Lead Waste Management

Planning, Solid Waste Management Services, City of

Toronto

Das Soligo, Manager of Solid Waste Services, County

of Wellington

Erwin Pascual, Manager, Waste Planning, Region of

Peel

Francis Veilleux, President, Bluewater Recycling

Association

Frank Coschi, Senior Engineer, Resource Recovery

Policy Branch, MOECC

Frank Mazzone, Vice President of Global Sales, Know

Charge Inc.

Ian Ferguson, Vice President, Chantler Packaging Inc.

Isabelle Faucher, Managing Director, Carton Council

of Canada

Izzie Abrams, Vice President Government & External

Affairs, Progressive Waste Solutions

Jake Westerhof, Vice President Corporate Strategy,

Canada Fibers/Urban Resource Group

Jean-Claude LeBlanc, Environmental Sustainability,

Celestica

Jim Nordmeyer, VP, Global Sustainability, Owens

Illinois Inc

John Baldry, Manager Processing Operations, Solid

Waste Management Services, City of Toronto

Nate Van Beilen, Candidate, M.Sc. (Sustainability

Management), University of Toronto

Norman Lee, Director, Waste Management, Region of

Peel

Oksana Lapierre, Senior Packaging Optimization

Consultant, Canadian Tire

Paulina Leung, VP, Corporate Strategy & Business

Development, Emterra Group

Rachel Morier, Director of Sustainability, Packaging

Consortium (PAC)

Tony Moucachen, President, Merlin Plastics

19


A Shared Vision

The Vision below presents a desired future for printed paper and packaging that aligns with

sustainability and the circular economy. It is deliberately ambitious and reflects the Rapid Lab

participants’ thinking on how these products and materials need to evolve over the coming

decades.

In our vision, printed paper and packaging in Ontario, and the entire system that supports it,

are designed for:

1. Sustainability: Maximizing value and utility by supporting multiple cycles of use,

refurbishing, re-purposing and recycling in closed loop systems; reducing materials

where possible; re-integrating biological materials to the biosphere; respecting social

equity; and aligning with science-based principles of sustainability; and,

2. Functionality: Meeting market and regulatory requirements for function, branding,

efficiency, safety, performance and cost throughout the PPP lifecycle.

In our vision, we have competitive, circular economy value chains for PPP that result in

tremendous social, environmental and economic prosperity for all of Ontario’s citizens.

Ontario, as such, serves as a leader for a circular economy in PPP.

Description of Success

To us, achieving this vision means that by 2030 Ontario’s PPP system has:

Established prosperous resource markets that reflect the true costs and value

of materials: Strong and stable commodity markets exist for PPP materials to support

multiple lifecycles; the true value created (i.e. social, environmental and economic) is

reflected in pricing.

Eliminated and re-conceptualized waste: PPP materials previously disposed of are

now seen as valuable commodities and flow in closed loop cycles. In doing so, resources

are used to their highest utility and value during their multiple lifecycles and reduced as

much as possible.

Radically reduced emissions: Greenhouse gas emissions from developing, managing

and processing PPP materials throughout their multiple lifecycles are reduced enough to

make significant progress on provincial, federal and global science-based reduction

targets to combat climate change.

http://naturalstep.ca/four-system-conditions

20


An aligned and level playing field: Policies, incentives and financing

mechanisms encourage circular economy solutions and reflect the

true value and cost of PPP resources.

Been collaboratively designed: Manufacturers, brand-owners,

service-providers, industry associations and policy-makers contribute

to the design of a PPP system that supports a circular economy.

Educated, aligned and engaged consumers: Consumers are

actively engaged in moving towards a circular economy, including

driving change; learning resources and engagement opportunities on

the circular economy for PPP are prevalent and accessible.

Enabled and amplified circular economy leadership: Innovative

circular economy business models and leaders are recognized,

amplified and enabled.

Transparent reporting by all actors: Progress towards a circular

economy for PPP is regularly reported against established circular

economy metrics and baselines by all relevant stakeholders in the

system.

Highly effective resource management: Efficient, innovative

collection and sorting systems exist that support the circular economy

and promote, enable and encourage the maximum recovery of value

from resources for future lifecycles of PPP materials.

Optimized processes and lifecycles: Processes at every stage of

the PPP lifecycle (e.g. manufacturing, transportation, use) are highly

efficient at eliminating waste, energy and materials and leveraging

technology.

Improved social equity: Stakeholders at all points in the value chain

support the conditions for social equity and inclusiveness in their

operations and procurement practices.

“The work of the Rapid

Lab is significant in its

ability to engage range

of interests involved in a

product’s lifecycle…It’s

not often that

manufacturers,

municipalities, retailers

and waste management

businesses to have the

opportunity to work

collaboratively like this.”

Catherine McVitty,

Sustainable Living

Manager, Unilever

“The vision is very

ambitious, but it reflects

where we need to go as

an industry to thrive in

the future,”

Ian Ferguson, Vice-

President, Chantler

Packaging Inc.

The 2016 PPP

Rapid Lab

Participants

21


Innovation Pathways

The Rapid Lab identified four broad Innovation Pathways that represent the key areas where

collective efforts are needed to accelerate the transition to a circular economy for printed

paper and packaging.

These innovation pathways can be used at multiple levels: they can guide the transition for the

system as a whole and can also be applied to develop detailed road maps for specific products

and materials.

1. Rethink waste and create a circular economy culture. This innovation pathway is

concerned with investing in outreach, education, training and collaboration across the

value chain from producers to consumers. This includes:

a. Engage consumers to build their awareness and understanding of the circular

economy.

b. Engage businesses and their associations around the business case for the circular

economy and how to identify, develop and act on circular economy opportunities.

c. Enable collaboration through innovative processes that engage stakeholders across

different sectors and value-chains.

2. Optimize circular design and production processes for PPP. This innovation pathway

is concerned with changing how PPP is designed and manufactured to reflect the circular

economy and the waste hierarchy. This includes:

a. Product life-extension: Designing PPP so that it can be repaired, repurposed and/or

reused multiple times. This can enable product sharing and business models such as

“product-as-service” where manufacturers sell a packaging service rather than the

package itself.

b. Circular supply chains: Designing PPP products that i) use recycled and/or renewable

materials and ii) can be readily recycled, composted or used as a bio-feedstock at end-

of-life.

c. Package optimization: Reducing the amount of PPP required for a product

(dematerialization) and eliminating waste disposal from production processes.

d. Energy, water and carbon efficiency. Using PPP materials with low embedded

energy, energy and water-efficient production process and low-carbon, renewable

energy sources.

22


3. Strengthen province-wide material recovery systems for all PPP. This innovation

pathway is concerned with improving circular supply chains and systems for collection,

sorting, redistribution, processing and reverse logistics. This includes:

a. Create standard PPP collection requirements across Ontario.

b. Invest in advanced processing technology to increase the quality and quantity of

recovered materials.

c. Adopt alternative collection systems that optimize value (e.g. return to retail).

4. Adopt public and private sector policies that support the circular economy. This

innovation pathway is concerned with aligning standards, policies, metrics and incentives

with the circular economy imperative. This includes:

a. Adopt metrics that reflect the circular economy and the highest and best use of

materials.

b. Develop industry standards and guidelines that support circular design and

production.

c. Invest in circular economy innovation by providing financing, investment and

grants to enable research, development and innovation around the circular economy.

d. Align procurement practices to support circular supply chains and markets.

e. Align government policies and regulations with the circular economy.

23


Collaborative Initiatives

A key element of the Rapid Lab was to identify and test collaborative initiatives that could help

to accelerate the transition to a circular economy for printed paper and packaging.

During the Rapid Lab, the participants identified a portfolio of seventy potential collaborative

initiatives to help advance the vision and innovation pathways. Participants then short-listed

eighteen priority initiatives and then formed working groups to further test and explore six

priority projects to determine their feasibility and utility.

Note that these initial six projects were intentionally scoped to be smaller initiatives that

could be explored during the time constraints of the Rapid Lab process. Each working group

concluded that their idea was worth evolving and moving towards implementation, and the

majority of participants have committed to continuing to work on these initiatives in 2017. The

six projects and their status are summarized below:

Innovation

Pathway

Project Description

1. Rethink

waste and

create a circular

economy

culture

Catalyzing

Culture Change

A project to develop case studies, best practices and guidance

materials for fostering a circular economy culture within an

organization. This project was inspired by the innovative, cost-

effective practices and processes adopted by some of the

companies participating in the Rapid Lab (e.g. Celestica, Canadian

Tire) in their facilities.

Guidance will be developed based on these practices and piloted

by other interested participants.

Status: CEIL and this Working Group are seeking funding to

deliver this project in 2017.

2. Optimize

circular design

and production

processes for

PPP

Expanding the

reuse of glass

beverage

containers

A project to explore the feasibility of expanding the reuse of glass

containers from beer bottles to other types of bottles covered by

a deposit return program

Status: This project is moving forward as a collaborative

commercial venture, with CEIL providing convening support as

needed to advance the initiative and promote its results.

24


Innovation

Pathway

Project Description

2. Optimize

circular design

and production

processes for

PPP

Popularizing

and

normalizing

reusable water

bottles

A project to look at opportunities to popularize and normalize the

use of reusable water bottles in Ontario. Working group

members engaged the Blue W (http://www.bluew.org/) to explore

options for promoting, expanding and scaling up its work.

Status: Working group members have identified a number of

individual activities to test with the Blue W (e.g. registering their

facilities, launching a pilot project). The Working Group will

convene in April to review progress with CEIL secretariat support.

2. Optimize

circular design

and production

processes for

PPP

Enabling

circular supply

chain

collaboration

A project to develop a framework and guidance for how supply

chains can effectively collaborate to design and recover circular

packaging products and materials.

Status: The working-group is planning to organize a 1-2 day

forum on this topic in 2017. CEIL and PAC are exploring funding

opportunities to deliver this alongside a series of case studies

and webinars.

3. Strengthen

province-wide

material

recovery

systems for all

PPP

Enhancing

municipal-

producer

collaboration

A project to create a collaborative forum to develop best

practices for how producers, municipalities and waste

management companies can work effectively together under an

Extended Producer Responsibility (EPR) regime for PPP.

Status: This project has migrated out of CEIL as it did not fit with

CEIL’s mandate or priorities. The OWMA is working with PAC and

the Carton Council to move this initiative forward independently

of CEIL.

4. Adopt public

and private

sector policies

that support

the circular

economy.

Activating the

Circular

Economy

A research project to look at packaging material flows and

identify policy best practices (e.g. EPR) for enabling these flows to

become more circular.

Status: This project was divided into two separate initiatives: 1) a

research project on EPR best practices for the circular economy

to be led by the Smart Prosperity Institute and 2) a project on

mapping potential material flows in a circular economy to be led

by CEIL. Both organizations are currently exploring funding

options.

http://www.bluew.org/

25


Rapid Lab participants identified a wide arrange of other strategic initiatives with the

potential to accelerate the transition to a circular economy for printed paper and

packaging. Some of the ideas that were flagged for further exploration include:

1. Formal circular packaging design standards, protocols and certification processes.

2. Formal procurement standards, guidelines and practices for advancing the circular

economy.

3. Identifying and scaling promising opportunities to increase packaging reuse in Ontario

(e.g. Retail food packaging; Electronics packaging; Pallets and wrapping materials).

4. A Circular Economy Champions program to engage businesses and industry

associations around the opportunities offered by the circular economy.

5. A Circular Economy design challenge and awards program to recognize leadership and

innovation.

6. A province-wide industry materials exchange program building on the work of Partners

in Project Green (https://www.materialexchange.ca/).

7. Exploring and piloting alternative collection methodologies or systems (e.g. return to

retail, reverse supply chain) to optimize the value chain from curb to consumer to

recovery, processing, end market in major population centres.

8. Identifying and scaling promising practices for Industrial, Commercial and Institutional

(IC&I) PPP management (e.g. Reducing unsold product waste; Palletisation practices).

9. Launching a Circular Economy Centre of Excellence and online resource portal, online

training centre and information clearing house.

10. Targeted Rapid Labs (or similar processes) for tackling challenging PPP materials (e.g.

coffee pods, multi-layer packaging, compostable plastics).

All Rapid Lab participants also reported taking on individual actions as a result of the Rapid

Lab, ranging from having conversations with colleagues and peers to launching new circular

economy initiatives. Moving forward, CEIL will profile these actions and their impacts on its

website at www.circulareconomylab.com.

https://www.materialexchange.ca/


26


Lessons Learned

Through the Rapid Lab, we have learned a tremendous amount about the nature of the

circular economy opportunity in Ontario, the need for collaboration and the effectiveness of

the Lab process. It has confirmed that:

1. The time is

right.

Businesses and governments are interested in the circular economy and

keen to move forward, particularly given the provincial legislative context.

2. The

opportunity

for Ontario is

significant.

Research by the Conference Board of Canada, the OWMA and the

MOECC illustrate the potential financial and ecological benefits for

Ontario from the circular economy. Rapid Lab participants shared many

provincial examples of innovation that demonstrate the “triple-bottom-

line” benefits of the circular economy.

3. A systemic,

collaborative

effort is

needed to

make this

shift.

The PPP Rapid Lab confirmed that transitioning to a circular economy is a

massive, complex undertaking that requires fundamental shifts to the

policy and business context in Ontario. This requires a significant and

sustained investment. Rapid Lab participants highlighted the urgent need

for “system stakeholders” to work together on new practices and policies

to generate innovation and overcome inertia in the industry.

4. CEIL has a key

role to play as

a trusted

convener,

mobilizer

and catalyst

This first phase of CEIL and the PPP Rapid Lab were in many ways a pilot

project to assess the efficacy and value of the Lab approach for the

circular economy. The broad consensus is that The Natural Step and CEIL

can play a key role in accelerating the transition by:

Convening public and private sector leaders in a positive, safe

space that generates innovative ideas and dialogue.

Facilitating an action-oriented process in an unbiased way, with

parallel work on short and long-term opportunities.

Inspire leadership and foster a collective, cross-sector voice for the

circular economy through initiatives such as the shared vision,

innovation pathways, framework and projects.

Brokering new and enhanced relationships and partnerships

among key innovators and stakeholders

Making the circular economy accessible to businesses, governments

and other stakeholders by accessing global best practices and

translating them into the Canadian context.

27


Feedback on the Rapid Lab

Overall

“I came to the lab with few expectations and quite frankly a lot of skepticism about the

whole process. I leave the lab rejuvenated knowing that we have individuals committed

to tackling the changes we face, free of personal preconception and open to new

concepts that will benefit all of society in the end. “

“It's been a great experience and everyone has advanced significantly from the start of

the process. It's been an experiment and I think largely a successful one”

“In my view, CEIL and the Rapid Lab were very well prepared and delivered. I really liked

the techniques and process that were used to get the group to come up with such a

rich and diverse portfolio of ideas.”

On Collaboration

“Bringing together decision makers who affect and are affected by a circular economy

and allowing these people to collaborate directly with each other rather than through

traditional "intermediaries"

“The atmosphere of the workshop was collaborative, no finger-pointing to say that the

government has to do this, waste-management has to do that. Ultimately more

collaborative than previous stakeholder discussions”

“The process that you put us through is an excellent format for problem-solving and

bringing divergent thoughts and perspectives closer”

On Next Steps

“The possibilities and opportunities have gone from “I wish it would happen” to “Now I

know who I can work with to make it happen.”

“I see success in other areas that I can implement immediately in my organization; this

broader thinking could definitely impact Ontario for the better.”

“To keep momentum and to get additional support, we need to demonstrate to the

general public what we have accomplished to this point and what we think it will lead

to.”

“The Rapid Lab is just the beginning and the process we have gone through is one we

all can use in our everyday job to build a path to the vision of a circular economy and a

sustainable future for the planet.”

28


Next Steps The shared vision and innovation pathways developed by the Rapid Lab outline where the

industry needs to go and the types of changes that are needed to get there. However, the

work to make this transition has only just started. Achieving a circular economy for printed

paper and packaging will require significant and sustained leadership and investment from

both the public and private sector.

As we move forward into the next phase of CEIL, we will continue to bring together leaders

from different sectors and value chains to co-develop and implement circular economy

solutions that eliminate waste, reduce greenhouse gas emissions and foster value-creation

and innovation.

Over the coming years, CEIL will continue to build on the work of the Rapid Lab by:

Convening: Convening Rapid Lab participants and a broader circle of stakeholders to

network, collaborate on joint projects and identify strategic actions for CEIL and the

group as a whole.

Supporting Projects: Supporting 5-6 of the most strategic initiatives that have come

out of the Rapid Lab through secretariat support, partnership brokering and assisting

with action items as appropriate and as resources are available.

Promotion: Promoting the work of the Rapid Lab through our website, a PPP-focused

webinar series, joint communications with Rapid Lab members and relevant

publications.

Integration: Integrating the work of the Rapid Lab with CEIL’s other signature activities

such as the Fellowship.

We welcome Ontario’s public and private sector leaders and innovators to join us in

accelerating the transition to a low-carbon, circular economy. Visit our website for more

information and to get involved: www.circulareconomylab.com.


29


Appendix A: About CEIL

Launched in 2016 by The Natural Step Canada, CEIL’s mission is to accelerate the transition

to a low-carbon, circular economy in Ontario and beyond.

Our unique process brings together leaders from different sectors and value chains to co-

develop and implement circular economy solutions that eliminate waste, reduce

greenhouse gas emissions and foster value-creation and innovation. We work

collaboratively to:

Define the

opportunity

We help governments and businesses understand the opportunities,

barriers and strategies for advancing the circular economy within their

organizations, their value chains and the province as a whole.

Accelerate

promising ideas

We work with our partners to identify, incubate and scale circular economy

initiatives. These include:

Strategic, collaborative initiatives to address systemic barriers that

individual organizations can’t tackle alone

“Innovation moonshots” with the potential to transform the economy,

New or improved circular products, services, policies, business models

and strategies.

Build

momentum for

change

We build circular economy awareness, understanding and commitment

through strategic research, communications, education and engagement

activities for stakeholders across Ontario’s economy.

Convene Leaders & Innovators

Develop Shared Vision &

Understanding

Support Strategic Initiatives

Enable Innovation in Organizations

Build Awareness & Commitment

30


Why now?

Ontario (and Canada) can become a leader in the circular

economy but we have to act now. Succeeding in the circular

economy requires a shift in how businesses and governments

design, manufacture and use products, infrastructure and services.

Strategic, systemic changes are needed, and that requires new

forms of collaborative planning and action. No one organization –

whether public or private – can deliver this change on their own.

CEIL is working to fill this gap by aligning and amplifying existing

efforts in Ontario that foster economic innovation, uniting a cohort

of leaders capable of working together to address current and

emerging issues, and generating opportunities to identify, test and

scale new initiatives and collaborations.

Delivering Results

CEIL catalyzes the development and implementation of tangible

initiatives that shift the economy towards circularity.

CEIL enables coordinated action across a broad range of

organizations that generate tangible breakthrough results that

support the transition towards a low-carbon, circular economy.

These may include new or improved:

Initiatives, programs,

products or services

Business models or

strategies

Regulations, codes or

standards

Partnerships, networks or

value-chains

Policies or processes

Research, insights and

case studies

Mechanisms for

ongoing dialogue and

collaboration

“The Circular Economy

Innovation Lab’s work to

facilitate a collaborative and

cooperative forum for

dialogue across the entire

supply chain is a key feature

of Canada’s journey towards

a circular economy.”

John Coyne, VP Legal and

External Affairs, Unilever

Canada

“I applaud the Circular

Economy Innovation Lab as it

continues to work towards

reducing waste and

recovering resources in all

sectors. Through continued

partnerships, I am confident

our vision for a circular, low-

carbon economy can be

achieved.”

Glen Murray, Ontario Minister

of Environment and Climate

Change

“The Circular Economy

Innovation Lab will be critical

in bringing together the

leaders needed to accelerate

Ontario’s transition to a

circular economy.”

Brian Zeiler-Kligman,

VP Sustainability, Canada’s

National Brewers

31


Our Activities

We deliver activities to three main audiences:

Leaders: Working with public and private sector leaders and innovators to co-generate,

test, and implement circular economy solutions,

Organizations: Delivering education and training activities to key stakeholders and

organizations to build capacity and inspire action, and

Stakeholders and the Public: Delivering outreach activities to build levels of

awareness, understanding and support for the circular economy.

The majority of our work revolves around delivering the CEIL Fellowship and Rapid Labs:

Rapid Labs are intensive, 2-6 month processes focused on a specific topic or issue

related to the circular economy. Our first Rapid Lab focused on Printed Paper and

Packaging. (Future Rapid Lab topics will be determined in 2017).

The CEIL Fellowship is a longer, 12-month process focused on the big picture

strategies for Ontario’s economy as a whole. CEIL will recruit a cohort of Fellows to start

work in September 2017.

Both processes use The Natural Step Canada’s Sustainability Transition Lab approach. We

start by assembling a diverse group (or cohort) of motivated, knowledgeable and influential

leaders from different sectors, value-chains and regions. Participants then move through a

multi-month process of workshops, group activities and experiential learning to:

Develop a shared understanding of the current reality and vision for the future,

‘Backcast’ from this vision to identify key innovation pathways and strategies,

Identify, ‘prototype’ and implement circular economy solutions, and

Advocate for the vision and innovation pathways within their organizations and

networks.

For more information and to get involved, please contact CEIL at:

[email protected]

www.circulareconomylab.com


32


Sustainability Transition Lab 101

CEIL uses the proven Sustainability Transition Lab (STL) approach developed by The Natural Step

Canada. This approach is used to tackle complex social and environmental challenges that no one

organization can address on their own (e.g. climate change, affordable housing, circular economy). These

large, systemic issues require public, private and not-for-profit organizations to work together on

solutions.

An STL works by engaging diverse stakeholders with both the will to act and the capacity to influence the

system. We call them “labs” because the process involves developing, testing and prototyping new ideas,

just as in a conventional science lab. The STL approach combines systems thinking, change lab

methodology and leading-edge engagement strategies to catalyze business, government and social

innovation.

The purpose of an STL is to generate tangible breakthrough results that shift a system toward

sustainability. Results may take the form of, for example, changes in public policy, new or improved

programs or products, new networks or partnerships, or innovative business strategies and models.

Many organizations are experimenting (and succeeding) with different types of social and economic

innovation labs. One central difference between STLs and other labs is that STLs are designed as a

platform for stakeholders to “backcast” as a system.

Backcasting is a way of

planning that starts by

establishing a vision for

success and then works

backwards from that

vision to identify

strategies and actions for

achieving it. It is guided

by the question: “what

do we need to do today

to reach our vision of

success?”

To backcast as a system,

representatives from the

entire system – e.g.

printed paper and packaging – start by working together to define the current reality and then develop a

shared vision for the future.

Once operating from this vision, lab participants are able to begin the real business of working toward it.

The creative tension generated by the gap between the current reality and the desired future is essential

to driving innovation and collaboration.

33


Appendix B: A Circular Economy Primer

In the conventional economy, materials move through a linear process of

extraction, production, consumption and eventual disposal (“take-make-waste”).

Fueled by large amounts of cheap, easily accessible materials, energy and disposal

sites, this model has powered the past century of industrial development and

generated unprecedented levels of economic growth.18

However, this economic model has also generated unprecedented levels of

resource consumption and waste, including the greenhouse gas emissions that

are driving global climate change.19 Over the past 40 years our global demand on

the environment (e.g. our Ecological Footprint) has steadily increased to the point

that we are now consuming >50% more resources that the world’s ecosystems can

produce each year. At the same time, the health of the planet’s ecosystems (e.g. the

Living Planet Index) has been in steady decline since the 1980s.20

Yet despite consuming more resources than ever before, we are not meeting the

most basic human needs of more than a billion people: half of the world’s

population lives on less than $2 a day and more than 800 million people go to bed

hungry each night.21

Ultimately, the “take-make-waste” economic model is unsustainable: it

systematically undermines the ability of natural systems to provide the resources

and services that are needed to meet human and ecological needs both now and in

the future. This model is also unrealistic because it assumes that we can infinitely

increase growth and resource consumption in a finite world.

The circular economy has emerged as a

viable alternative that delivers significant

social, economic and ecological benefits.

It addresses the issues above by working

to decouple the relationship between

economic growth, resource consumption

and ecological degradation.

Source: European Environment Agency

“Ontario’s economy is

currently built on a linear

pattern of production,

consumption and

disposal... Little

emphasis is placed on

the value of the

resources we dispose of

every year.

…As a result, for the last

two decades, our

province’s waste

diversion rate has

essentially "flat-lined" at

less than 25%.

This linear approach is

neither sustainable given

our finite supply of

resources, nor is it in our

economic interests. The

good news is change is

obtainable.”

- OWMA, ReThink Waste

2015: Evolution towards

a circular economy.

34


Why Now? Circular Economy Drivers

Shifting away from the linear, “take-make-waste” model can be complicated and

challenging. This model is deeply entrenched in the structure (and culture) of most

businesses, markets, economic policies and value chains. However, various factors are

driving industry and policy-makers to rethink how they source and use materials and

energy, such as:22

Recognition of the economic benefits from recovering undervalued,

underutilized and discarded products and materials. Accenture Strategy

predicts a $4.5 trillion reward for circular economy businesses models by 2030

(see figure below). This is driving businesses to look for efficiencies and mine

their waste streams for value.

Volatility, uncertainty and risks in commodities, energy and waste disposal

markets. For example, the decreasing availability of virgin materials (such as

rare earth minerals) is driving businesses to source conflict-free, recycled

materials as a long-term risk management strategy.

Increasing negative economic and social impacts from ecological issues (e.g.

land, air and water pollution) and the urgent need to reduce greenhouse gas

emissions to limit the effects of climate change. This is leading to:

o Increasingly stringent policies and regulations to reduce and price

ecological externalities (negative impacts) using tools such as carbon

taxes, disclosure, liability, and extended producer responsibility.

o Increasing expectations from stakeholders, investors, consumers and

the general public for businesses and governments to be ecologically

and socially responsible and sustainable.

Disruptive technologies and business models that generate value while

reducing waste such as 3D printing, product-as-service, renewable energy,

mobile communications, autonomous vehicles and the sharing economy.

Changing patterns of consumption, driven by an evolving consumer class

(particularly in rapidly urbanizing areas) that is creating new demands for

sustainable products and services.

Increasingly, leaders are turning to circular economy approaches to address these

types of issues, manage risk and build stronger, more sustainable and competitive

businesses and economies. For many it represents the future - an opportunity to

transform our economy and the way we do business.

“Today, we tend

to extract raw

materials and

process them

into parts. We

assemble those

components into

a product, which

is marketed, sold

and then

eventually thrown

away.

This ‘linear’

approach has led

to huge economic

growth

worldwide, but it

is no longer

sustainable. It

relies on cheap,

readily available

energy and

resources - metal,

water, agricultural

products,

polymers and so

on - which are

becoming

increasingly

scarce.”

- Jamie

Butterworth, Ellen

MacArthur

Foundation

35


Global growth potential to 2030 in four linear economy waste streams

Graphic copied from the National Zero Waste Council’s 2016 Circular Economy Business Toolkit.

Originally adapted from Accenture Strategy’s 2015 book Waste to Wealth: The Circular Economy Advantage.

http://www.nzwc.ca/Documents/CircularEconomyBusinessToolkit.pdf

https://www.accenture.com/us-en/insight-creating-advantage-circular-economy

36


Defining the Circular Economy

The circular economy is an approach to maximize value and

eliminate waste by improving (and in some cases transforming) how

goods and services are designed, manufactured and used. It

touches on everything from material selection to business strategy

to the configuration of regulations, incentives and markets.

In contrast with the linear “take-make-waste” model, a circular

economy eliminates waste through the redesign, reduction,

extended use, reuse and recycling of products and materials in

interconnected systems, biological cycles and markets (“make-use-

return” or “take-make-take-make-take-make”).

The overarching goal of the circular economy is to generate the

highest utility and value from materials and products over their

entire lifecycle. This includes economic, social and ecological value.

Achieving this goal requires that all stakeholders in the economy

strive to:

Eliminate the concept of waste and the disposal of products

and materials,

Minimize the use of finite, non-renewable resources except

in closed-loop cycles,

Optimize the use of renewable resources at levels that can

be sustained by natural ecosystems, and

Align market and policy incentives in support of these goals.

The concept of the circular economy goes back many decades and

has its roots in the sustainability movement. It is aligned with The

Natural Step Framework for Strategic Sustainable Development

and schools of thought such as Cradle-to-Cradle, Zero Waste,

Biomimicry, Natural Capitalism, The Blue Economy, The Performance

Economy, Industrial Ecology and Factor Five. In 2010 the Ellen

MacArthur Foundation popularized the term “circular economy”

and launched a global program advance its adoption by businesses

and government.

Circular Economy Definitions

A circular economy is restorative

and regenerative by design, and

aims to keep products, components,

and materials at their highest utility

and value at all times, distinguishing

between technical [finite materials]

and biological [renewable materials]

cycles… This economic model seeks

to ultimately decouple global

economic development from finite

resource consumption.

(Source: Ellen MacArthur

Foundation)

An economy in which participants

strive:

a) to minimize the use of raw

materials,

b) to maximize the useful life of

materials and other resources

through resource recovery, and

c) to minimize waste generated at

the end of life of products and

packaging;

(Source: Bill 151 Waste Free Ontario

Act, 2016)

Circular economy - where the value

of products, materials and

resources is maintained in the

economy for as long as possible,

and the generation of waste

minimized.

(Source: European Action Plan on

the Circular Economy)

http://www.naturalstep.ca/sustainability

https://www.ellenmacarthurfoundation.org/


37


In the conventional

economy, materials move

through a linear process of

extraction, production,

consumption and eventual

disposal (“take-make-

waste”).

In contrast, a circular

economy eliminates waste

through the redesign,

reduction, reuse and

recycling of products and

materials in interconnected

systems, biological cycles

and markets (“make-use-

return”).

Source: Circular Economy

Innovation Lab

38


Key Shifts

Some of the key shifts in transitioning to a circular economy are:

From… To…

Disposing the majority of waste Minimizing or eliminating the disposal of waste

Waste is designed in (e.g. the

production of disposable, single-use

products, infrastructure and

packaging)

Waste is designed out (e.g. the production of

durable, repairable, reusable, upgradable and

easily disassembled and recyclable products,

infrastructure and packaging

Sourcing virgin (raw) materials Sourcing recovered and recycled materials

Focus on end-of-life waste

management at the lowest cost

Focus on demand and life-cycle management at

the highest value

Linear, one-way supply chains Circular, cascading, multi-path supply webs

Consumption and disposal of finite,

non-renewable resources

Controlled, well-managed use of finite, non-

renewable resources in closed loop cycles

Physically degrading ecosystems

through overharvesting, habitat

destruction and pollution

Drawing renewable resources from well-

managed ecosystems at rates that can be

sustained over the long term

Disconnected and siloed design,

manufacturing, purchasing and waste

management systems

Connected and aligned design, manufacturing,

purchasing and material recovery systems

Use of rare, non-renewable, synthetic

and toxic materials

Substitution with abundant, renewable, natural

and non-toxic materials

Inefficient, wasteful designs,

processes and systems

De-materialization, efficient, lean, closed-loop

designs, processes and systems

Beyond Efficiency and Recycling

Increasing efficiency and recycling rates are critically important but they are not enough

to address the sustainability challenge. By 2030, Accenture Strategies projects that a

business as usual approach will result in a gap of 8 billion tonnes between the supply of and

demand for constrained natural resources, nearly equaling the total resource use of North

America in 2014. To address this we need to increase resource productivity by a factor of

five.23

In some cases this may involve going back to tested and proven ideas (e.g. washing and re-

using bottles) while in others it may involve completely new solutions (e.g. compostable

bioplastics) and business models. Currently much of what we term ‘recycling’ is actually

“downcycling” to a lower value use. The true benefits of the circular economy come from

multiple cycles of use and re-use at equal or higher values (“upcycling”).

39


Ultimately, the circular economy goes beyond efficiency and incremental change: it’s

about transforming the system itself: changing how we design, manufacture, sell,

consume, use and manage materials, products and services.

Making this transition requires public and private sector leadership. Businesses can lead

the way with innovative products, services and solutions but they can’t deliver this change

without the right regulatory and market structures and signals.

Circular Economy System Diagram (Ellen MacArthur Foundation) A Circular Economy seeks to rebuild capital, whether this is financial, manufactured, human, social or natural. The diagram illustrates

the continuous flow of technical and biological materials through the ‘value circle’. Two types of material flows are distinguished:

biological materials, designed to re-enter the biosphere safely, and technical materials, which are designed to circulate at high quality

without entering the biosphere. Source: https://www.ellenmacarthurfoundation.org/circular-economy/interactive-diagram

https://www.ellenmacarthurfoundation.org/circular-economy/interactive-diagram

40


Circular Economy Strategies

The CEIL Circular Economy

Framework diagram was

developed to illustrate the key

steps in the value-chain and

the strategies for closing the

loop. It presents a high-level

map of how products and

materials move through a

circular economy and is

divided into three parts:

1) The inner circles

present the key

stages in the

lifecycle or value

chain of paper and

packaging products;

2) The green loops

present the various

pathways for closing

the cycle after first

consumption or use;

and

3) The outer circle presents the broader market and policy context that shapes

decision-making within the system (Product research, design and development;

Purchasing, standards and certification; Sustainable consumption and demand-

side management; and materials and resource management).

41


Value Chain

The value chain is divided into several stages, each of which may

involve multiple steps and actors. Vertically integrated organizations

may be involved with (and/or control) multiple steps in the chain.

The natural resources box represents all of the renewable and non-

renewable resources (materials, services) from the Earth’s crust and

ecosystems.

Materials are conventionally sourced by extracting (e.g. mining,

drilling) or harvesting (e.g. logging, framing) them from natural

resources; in the circular economy, many of these materials would

instead come from the various feedback loops (e.g. recycling,

composting etc.).

Source materials are manufactured into products and packaging and

then distributed to publishers, brand owners, retailers and other

organizations for sale. Following consumption and use they are then

collected, processed and sorted for reuse, recycling, composting or

other treatment.

Any residuals are sent for energy recovery (as appropriate) and then

disposal. The diagram presents this as a dashed black line because it

is the least desirable option and would ideally be phased out and

eliminated in a circular economy.

Common actors in the PPP value chain include:

Materials, parts, packaging and product manufacturers

Producers, brand owners and fillers

Distributors, suppliers, wholesalers

Retailers and other vendors

Consumers, end users (e.g. residential, industrial, office commercial/ institutional,

food service, etc.)

Collectors, haulers and transfer facilities

Primary and secondary processing facilities (e.g. material recovery, composting)

Recyclers, re-furbishers, remanufacturers

Landfills and waste to energy facilities

Stage

Natural Resources

Sourcing,

Extraction and

Harvesting

Manufacturing and

Production

Distribution,

Packaging and

Logistics

Sales, Marketing,

Retail and Service

Consumption and

Use

Collection and

Sorting

Energy Recovery

and Disposal

42


A number of other actors are involved in setting the market and policy context for the value

chain, such as:

Regulators, policy makers and certifying bodies

Financiers and investors

Professional services (Legal, accounting, engineering, design)

Circular Pathways

The diagram presents four broad pathways for closing the cycle and keeping products and

materials in the economy and out of disposal.

Maintain, Repair and/or

Upgrade

Extending the life of the product through maintenance and repair. Ideally,

products are designed to allow for upgrading with better components over

time (e.g. computers, bicycles, cars can all be upgraded). This keeps the

product in good condition for reusing, sharing or redistributing (below).

Reuse, Share and/or

Redistribute

Extending the life and utility of a product by sharing or otherwise passing it

along to other users. This can be facilitated by new technology and service

providers to help connect owners and new users (e.g. Airbnb, material

exchange networks).

Recycle,

Remanufacture and/or

Repurpose

Returning the product to the manufacturing and production stage through:

Recycling: Breaking it down into its component parts and then

reprocessing them into new forms in one of two ways:

o Upcycling transforms it into something of equal or higher value

than the original product (e.g. turning a plastic bottle back into a

plastic bottle)

o Downcycling transforms it into something of lesser value (e.g.

turning a glass bottle into pavement)

Remanufacturing: Processing the product to return it to “as new or

better” performance.

Repurposing: Processing the product so it can be used for a different

purpose and function.

Compost and/or

Biochemical Feedstocks

Organic materials can be composted or processed into a feedstock such as

a fuel through biochemical processing or thermochemical conversion.

Composted materials support a circular economy by enabling the growth

of new renewable organic source materials.

43


Market and Policy Context

The outer circle represents the broader market and policy context that shapes and

regulates the production of goods and services. It includes everything from government

policies (e.g. regulatory, financial and voluntary instruments) to research, education, market

conditions, cultural norms and values, technological development and business trends, best

practices and strategies.

Four areas are highlighted in the diagram because of their strategic importance in shaping

the circular economy: i) Product Research, Design and Development, ii) Purchasing,

Standards and Certification, iii) Sustainable Consumption and iv) Material and Resource

Management.

Product design is arguably the most important lever for advancing the circular economy.

Many products (including packaging) are designed for single use with little attention to

maintenance, reuse, refurbishment, remanufacture or recycling. Businesses can use

practices and tools such as Design for Environment and Cradle-to-Cradle® design to

eliminate waste and maximize utility.

Product

Research,

Design and

Development

Purchasing policies can be a barrier to the circular economy as they tend to prioritize the

lowest purchase price rather than the highest lifecycle value. Purchasers can also be risk

averse which can slow the adoption of innovations.

However when leveraged properly – such as through a sustainability purchasing policy or

value-based contracting process –procurement can be a powerful lever for change.

Purchasers can specify the use of recycled or remanufactured materials and use standards

and certification to ensure vendor compliance.

Purchasing,

Standards

and

Certification

Sustainable consumption is an umbrella term for a number of practices that look at i)

reducing the consumption of materials and energy and ii) adopting more holistic measures

of progress and well-being that reflect quality of life.24

It focuses on four interconnected approaches: consuming more efficiently, consuming

differently, sufficient consuming, and moving beyond consuming to thriving. It uses

reduction strategies such as demand-side management and resource efficiency.

Sustainable

Consumption

Sustainable material management approaches promote the selection and use of

materials that reduce negative environmental impacts and preserve natural capital

throughout their life-cycle, taking into account economic efficiency and social equity. Tools

such as lifecycle assessment can be used to source materials with the lowest impact and

highest value over their life.

Materials and

Resource

Management

44


Government Policy Levers

Governments in particular are in a unique position to advance the circular economy

through their various roles as regulators, service providers and purchasers. Some of the

tools available to governments to shape the context are:

Create more accountability for waste diversion. Governments can use policies to

make specific actors more accountable for reducing and diverting waste. This can be done

through Extended Producer Responsibility or other tools (such as requiring IC&I

generators to register, report and adhere to standards, or setting licensing requirements

for facilities and haulers).

Limit disposal options. Limit where, how or what materials can be disposed, such as

through waste disposal bans or transportation restrictions.

Align financial incentives. Governments can use fees, taxes and charges to encourage

waste reduction and diversion. They can use tools such as full-cost accounting to set the

cost of services and incentivize diversion (e.g. differential tipping fees for waste

management). They can also use financial tools to impose a cost on environmental

externalities and support the use of recovered materials, such as virgin material levies.

Strengthen markets through investment. Governments can strengthen markets and align

incentives by funding or financing infrastructure, research and development. Options

include providing grants or loans, tax credits for capital investments, risk-pooling fund

models for waste service providers, soft loans, energy performance contracts and green

bonds.

Improve performance through codes and standards. Governments can use codes

and standards to set requirements for performance and facilitate the use of recovered

materials (e.g. green building codes, environmental product labelling and standards). They

can also leverage third party certifications (e.g. Forest Stewardship Council, ECOLOGO).

Lead by example through procurement. Government have enormous influence as

purchasers and can wield that influence to support (or even establish) markets for

recovered materials (see Market and Policy Context above).

Build awareness, increase capacity and foster a circular economy culture.

Governments can build capacity and increase compliance through education programs,

data collection and reporting.

45


Business Strategies

Circular economy strategies leverage the power of the circular loops (e.g. maintenance,

reuse, refurbishment, remanufacture, recycling, etc.) to increase value and utility. This

section presents a selection of common strategies and models for governments and

businesses.

Accenture Strategy Business Models25

In their book Waste to Wealth Accenture Strategy presents five business models to advance

the circular economy. They note that these require a significant change in mindset,

organization and strategy to implement at scale:

1. CIRCULAR

SUPPLY

CHAINS

Shifting to use recycled, recyclable, or renewable materials as inputs, lessening

dependence on scarce resources and reducing waste. For maximum value,

companies identify materials that can be used in consecutive lifecycles to replace

single-lifecycle inputs and support circular production.

2. COLLECTION

(RECOVERY)

AND

RECYCLING

Creating production and consumption systems in which everything that used to

be considered waste is revived for other uses. For example recovering useful

resources out of disposed products or by-products. Some companies already re-

use 100 percent of the waste generated at their manufacturing plants.

3. PRODUCT

LIFE-

EXTENSION

Extending the useful working lifecycle of products and components by repairing,

upgrading, remanufacturing and reselling. By maintaining and improving

products, this model elongates their life and keeps them economically useful for

as long as possible.

4. SHARING

PLATFORMS

Enable an increased utilization rate of products by making possible shared

use/access/ownership and collaboration among partners, consumers and other

product users. This is increasingly facilitated by digital technology. This model

helps consumers save and make money while more effectively using assets.

5. PRODUCT AS

SERVICE

A strategy to shift from selling products to selling the services they offer. For

example, HP is experimenting with selling printing services instead of printers

and Phillips is piloting selling lighting services instead of light fixtures. The idea is

that manufacturers shift to selling access to their products and retain ownership

(e.g. pay-for-use, leasing). This allows them to shift their focus to longevity,

reliability, repair-ability, reusability and upgrading. Sellers generate revenue from

the long-term performance of a product rather than from sales margins

46


Five Circular Business Models (Accenture Strategy)

47


The RESOLVE Framework26

The Ellen MacArthur Foundation has identified a set of six broad actions that businesses

and governments can take in order to transition to a circular economy: Regenerate, Share,

Optimise, Loop, Virtualise, and Exchange (the ReSOLVE framework). In different ways, each

of these actions increase the utilisation of physical assets, prolong their life, and shift

resource use from finite to renewable sources.

The ReSOLVE Framework (Ellen MacArthur Foundation)

48


Circular Economy Leadership

The shift towards a circular economy is a global movement that is being driven by public

and private sector leaders from around the world. Case studies and examples of circular

economy leadership can be found on sites such as the Ellen MacArthur Foundation, the

Circular Economy Awards and the National Zero Waste Council.

Examples of business circular economy leadership from both within Ontario and beyond

are provided below. These examples are at varying levels of ambition and scale and

illustrate the range of circular economy activities businesses are undertaking:

Unilever

Global consumer goods leader Unilever has committed to halving the environmental footprint of

the making and use of their products by 2030 and ensuring all of its plastic packaging is fully

reusable, recyclable or compostable by 2025. Unilever has already converted all of its global

manufacturing facilities to send zero non-hazardous waste to landfill, reducing the waste disposed

per tonne of production by 97% and contributing to avoided costs of >$850 million since 2008.27

Unilever is also a core partner in the global New Plastics Economy initiative to apply circular

economy principles to rethink and redesign the future of plastics.28

Interface

Global carpet manufacturer Interface has adopted a “Mission Zero” program to eliminate any

negative impact the company has on the environment by 2020. This includes commitments to

eliminating all waste and “closing the loop” using recycled and biobased materials. They have

achieved a 91% decrease in total waste to landfills since 1996 and are piloting a number of

innovative projects including Net-Works which collects and recycles used, discarded fishing nets

into new yarn for carpets.29

Ice River

Springs

In Ontario, beverage company Ice River Springs has created a closed-loop manufacturing process

that makes new PET water bottles from 100% post-consumer waste (recovered plastic bottles and

plastic grocery shells). The company also saves energy and reduces emissions by picking up bales

of recovered plastic from municipalities using empty trucks that have just delivered bottled water

to customers.30

Renault

Renault’s plant in Choisy-le-Roi, near Paris, remanufactures automotive engines, transmissions,

injection pumps, and other components for resale. The plant’s remanufacturing operations use

80% less energy, 90% less water and generate 70% percent less oil and detergent waste than

comparable new production. The plant also delivers a higher than average operating margin.31

Safety-

Kleen

Canada Inc.

Safety-Kleen Canada Inc. collects and re-refines more than 191 million litres of used engine oil and

other lubricants back into highly quality lubricants each year. Reusing lubricants avoids more than

530,000 tonnes of greenhouse gas emissions that would otherwise be generated were the engine

oils used only once and then disposed.32


https://thecirculars.org/

http://www.nzwc.ca/focus/circular-economy/

49


Canadian

Liquids

Processors

At a specialized material recovery facility located in Hamilton, Ontario, the Emterra Group’s

Canadian Liquids Processors Limited (CLP) receives waste beverages and pharmaceuticals and

converts them first into ethanol and then into a non-toxic, windshield washer fluid branded

“Transformations™” in honour of its waste origins. CLP also recycles the packaging the products

come in, achieving an overall recovery rate that is better than 96%.33

Progressive

Waste

Progressive Waste recently opened a facility at its Complexe Enviro Progressive in Terrebonne,

Quebec, near Montreal, to convert landfill gas into pipeline-quality natural gas. The facility is the

largest of its kind in North America and processes approximately 10,000 cubic feet per minute of

incoming landfill gas. The gas generated at the site is the equivalent of fueling 1,500 trucks for 20

years. The plant will also result in the avoidance of greenhouse gas emissions of approximately 1.2

million tonnes of carbon dioxide over a 10-year period.34

Canadian

Tire

Canadian Tire’s Loan-a- Tool program loans out more than 60 specialized tools for automotive

repair. Customers simply put down a deposit on the loaner tool and receive a full refund as long as

they return the tool in the original condition. Or they can just keep it as the deposit is the purchase

price.35 Similarly, Toronto’s Tool Library and Sharing Depot serve as community hubs where

members have access to a wide range of tools and equipment without having to own or store

them.36

The Beer

Store

The Beer Store operates Ontario’s voluntary beer bottle-deposit return program, recovering

almost 2 billion beverage containers annually. This recovery includes more than 96% of beer

bottles which are then washed and reused or recycled. To increase efficiencies there is an industry

standard bottle, 99% of which are recovered across Canada annually and which can be used by any

of the more than 45 brewers that sell in this container. This highly-efficient program saves brewers

money by avoiding the purchase price of new bottles, while diverting more than 400,000 tonnes of

material from landfill and avoiding more than 200,000 tonnes of greenhouse gas emissions each

year.37

IKEA Group

The IKEA Group’s People & Planet Positive Sustainability Strategy includes commitments to the

circular economy, renewable energy, waste reduction and sustainable sourcing. In 2016, IKEA

diverted more than 88% of all waste and approximately 98% of their home furnishing products

were made from renewable, recyclable or recycled materials. IKEA also helps its customers to

reduce their impact by selling efficient products (e.g. LED lighting) and offering in-store take-back

programs to recover and recycle used products such as mattresses, light-bulbs and batteries.38

Phillips and

HP

Companies such as Phillips and HP Inc. are shifting from selling products (e.g. printers, light bulbs)

to selling services (e.g. printing, lighting) to their clients. Clients pay for the services used while the

vendors retain ownership of the products themselves and use the “Internet of Things” to provide

better service. This business model improves efficiency and encourages the design and use of

higher quality, efficient, durable, and repairable products. For example, HP's Instant Ink service

saves up to 50 percent on ink and generates up to 67 percent less packaging per printed page

than their conventional business model.39

50


Endnotes 1 Ellen MacArthur Foundation. 2015. Towards a Circular Economy: Business Rationale for an

Accelerated Transition 2 These reports include:

- Millennium Ecosystem Assessment. (2005). www.millenniumassessment.org

- Intergovernmental Panel on Climate Change. (2007). www.ipcc.ch/

- Stern, N. (2006, October). The Stern Review on the Economics of Climate Change.

www.sternreview.org.uk

- United Nations. (2008). Human Development Reports. http://hdr.undp.org/en/

- World Wildlife Federation Living Planet Report 2016

http://awsassets.wwf.ca/downloads/wwf_living_planet_report_2016___summary.pdf 3 Global Footprint Network.

http://www.footprintnetwork.org/en/index.php/GFN/page/world_footprint/ 4 Ontario Waste Management Association. 2015. ReThink Waste 2015: Evolution towards a circular

economy. 5 Peter Lacy and Jakob Rutqvist. 2015. Waste to Wealth. Accenture Strategy

https://www.accenture.com/ca-en/insight-creating-advantage-circular-economy 6 Ontario Waste Management Association. 2016. State of Waste in Ontario: Landfill

Report. Available at: http://www.owma.org/Publications/OWMAReportsandPolicies.aspx 7 Ontario Waste Management Association. 2015. ReThink Waste 2015: Evolution towards a circular

economy. Available at: http://www.owma.org/Publications/OWMAReportsandPolicies.aspx 8 Ontario Waste Management Association. 2015. ReThink Waste 2015: Evolution towards a circular

economy. Available at: http://www.owma.org/Publications/OWMAReportsandPolicies.aspx 9 AECOM. The Economic Benefits of Recycling in Ontario, 2009, Available at

https://archive.org/details/theeconomicbenef00snsn21841 10 Adapted from various sources:

Ellen MacArthur Foundation. 2015. Towards a Circular Economy: Business Rationale for an

Accelerated Transition. Available at:

https://www.ellenmacarthurfoundation.org/publications/towards-a-circular-economy-

business-rationale-for-an-accelerated-transition

National Zero Waste Council. 2016. Circular Economy Business Toolkit. Available at:

http://www.nzwc.ca/focus/circular-economy/toolkit/

Peter Lacy and Jakob Rutqvist. 2015. Waste to Wealth. Accenture Strategy. Available at:

https://www.accenture.com/ca-en/insight-creating-advantage-circular-economy 11 References:

Data from Sound Resource Management Group, Inc. 2009. Environmental Life Cycle

Assessment of Waste Management Strategies with a Zero Waste Objective: Study of the Solid

Waste Management System in Metro Vancouver, British Columbia.

Graphic reproduced from page 16 of the Ontario Waste Management Association. 2015.

ReThink Waste 2015: Evolution towards a circular economy using data from the United

States Environmental Protection Agency.

http://www.millenniumassessment.org/

http://www.ipcc.ch/

http://www.sternreview.org.uk/

http://hdr.undp.org/en/

http://awsassets.wwf.ca/downloads/wwf_living_planet_report_2016___summary.pdf

http://www.footprintnetwork.org/en/index.php/GFN/page/world_footprint/

https://www.accenture.com/ca-en/insight-creating-advantage-circular-economy

http://www.owma.org/Publications/OWMAReportsandPolicies.aspx



https://archive.org/details/theeconomicbenef00snsn21841

https://www.ellenmacarthurfoundation.org/publications/towards-a-circular-economy-business-rationale-for-an-accelerated-transition


http://www.nzwc.ca/focus/circular-economy/toolkit/

https://www.accenture.com/ca-en/insight-creating-advantage-circular-economy

51


12 The Beer Store Bag-it-Back program. http://www.thebeerstore.ca/about-us/environmental-

leadership/bag-it-back-odrp 13

Reliable information on PPP waste diversion rates is difficult to obtain, so the general IC&I waste

diversion rate was used instead. 14 Conference Board of Canada. 2014. Opportunities For Ontario’s Waste: Economic Impacts of

Waste Diversion in North America. Available at: http://www.conferenceboard.ca/e-

library/abstract.aspx?did=6233 15 Recycling Council of Ontario. 2016. Unpublished data (Personal communication). 16 This section is adapted from C. Morawski, M. Kelleher and S. Millette. 2015. The Evolving Ton

Explained. Resource Recycling (May 2015). The graphic is reproduced from the same article. Available

at http://www.cmconsultinginc.com/wp-content/uploads/2015/04/EvolvingTonMayRRFinal.pdf 17 Ibid. 18 Ellen MacArthur Foundation. 2015. Towards a Circular Economy: Business Rationale for an

Accelerated Transition. Available at: https://www.ellenmacarthurfoundation.org/publications/towards-

a-circular-economy-business-rationale-for-an-accelerated-transition 19 These reports include:

- Millennium Ecosystem Assessment. (2005). www.millenniumassessment.org

- Intergovernmental Panel on Climate Change. (2007). www.ipcc.ch/

- Stern, N. (2006, October). The Stern Review on the Economics of Climate Change.

www.sternreview.org.uk

- United Nations. (2008). Human Development Reports. http://hdr.undp.org/en/

- World Wildlife Fund. (2016). The Living Planet Report 2016. Available at:

http://wwf.panda.org/about_our_earth/all_publications/lpr_2016/ 20 World Wildlife Fund. (2016). The Living Planet Report 2016. Available at:

http://wwf.panda.org/about_our_earth/all_publications/lpr_2016/ 21 World Bank. (2008). PovertyNet Statistics. http://web.worldbank.org/poverty 22 Adapted in part from the Ellen MacArthur Foundation. 2015. Towards a Circular Economy:

Business Rationale for an Accelerated Transition. Available at:

https://www.ellenmacarthurfoundation.org/publications/towards-a-circular-economy-business-

rationale-for-an-accelerated-transition 23 Peter Lacy and Jakob Rutqvist. 2015. Waste to Wealth. Accenture Strategy 24 USDN. N.d. The Sustainable Consumption Concept

http://sustainableconsumption.usdn.org/concept-overview/ 25 Peter Lacy and Jakob Rutqvist. 2015. Waste to Wealth. Accenture Strategy 26 Ellen MacArthur Foundation. 2015. Towards a Circular Economy: Business Rationale for an

Accelerated Transition 27 See https://www.unilever.com/sustainable-living/the-sustainable-living-plan/reducing-

environmental-impact/ 28 See http://newplasticseconomy.org/about 29 See http://www.interfaceglobal.com/Sustainability/Interface-Story.aspx 30 See http://stewardshipontario.ca/case-study/ice-river-springs/ 31 See https://group.renault.com/en/commitments/environment/competitive-circular-economy/ 32 See http://www.safety-kleen.com/products-services/oil-solutions/oil-re-refining/re-refining-process 33 See http://www.emterra.ca/news/news-release/transformations-windshield-washer-fluid-closing-

recycling-loop

http://www.thebeerstore.ca/about-us/environmental-leadership/bag-it-back-odrp


http://www.conferenceboard.ca/e-library/abstract.aspx?did=6233

http://www.conferenceboard.ca/e-library/abstract.aspx?did=6233

http://www.cmconsultinginc.com/wp-content/uploads/2015/04/EvolvingTonMayRRFinal.pdf



http://www.millenniumassessment.org/

http://www.ipcc.ch/

http://www.sternreview.org.uk/

http://hdr.undp.org/en/

http://wwf.panda.org/about_our_earth/all_publications/lpr_2016/

http://wwf.panda.org/about_our_earth/all_publications/lpr_2016/

http://web.worldbank.org/poverty



http://sustainableconsumption.usdn.org/concept-overview/

https://www.unilever.com/sustainable-living/the-sustainable-living-plan/reducing-environmental-impact/

https://www.unilever.com/sustainable-living/the-sustainable-living-plan/reducing-environmental-impact/

http://newplasticseconomy.org/about

http://www.interfaceglobal.com/Sustainability/Interface-Story.aspx

http://stewardshipontario.ca/case-study/ice-river-springs/

https://group.renault.com/en/commitments/environment/competitive-circular-economy/

http://www.safety-kleen.com/products-services/oil-solutions/oil-re-refining/re-refining-process

http://www.emterra.ca/news/news-release/transformations-windshield-washer-fluid-closing-recycling-loop

http://www.emterra.ca/news/news-release/transformations-windshield-washer-fluid-closing-recycling-loop

52


34 See http://www.progressivewaste.com/en/progressive/sustainability/creating-clean-renewable-

energy-from-waste 35

See http://www.canadiantire.ca/en/automotive/loan-a-tool.html 36 See http://torontotoollibrary.com/ and https://sharingdepot.ca/. 37 See http://www.thebeerstore.ca/about-us/environmental-leadership/bag-it-back-odrp 38 See http://www.ikea.com/ms/en_CA/this-is-ikea/people-and-planet/ 39 See

http://www.sustainablebrands.com/news_and_views/business_models/coro_strandberg/circular_econ

omy_action_hp_leading_way

http://www.progressivewaste.com/en/progressive/sustainability/creating-clean-renewable-energy-from-waste

http://www.progressivewaste.com/en/progressive/sustainability/creating-clean-renewable-energy-from-waste

http://www.canadiantire.ca/en/automotive/loan-a-tool.html

http://torontotoollibrary.com/

https://sharingdepot.ca/


http://www.ikea.com/ms/en_CA/this-is-ikea/people-and-planet/

http://www.sustainablebrands.com/news_and_views/business_models/coro_strandberg/circular_economy_action_hp_leading_way

http://www.sustainablebrands.com/news_and_views/business_models/coro_strandberg/circular_economy_action_hp_leading_way