DEFINITIONS LIST

This Definitions List is copyright of the Ellen MacArthur Foundation. The definitions within this list have been created for use within the Question Indicator List of which they form part and should not be taken out of context.

DEFINITIONS IN ORDER OF APPEARANCEGENERAL INFORMATION

PPE assets (property, plant, and equipment): Tangible, long-term (use period of one year or more), fixed assets of a company. This includes, but is not limited to: buildings, land, machinery, vehicles, furniture, and office equipment.

Materials (renewable and non-renewable) suitable for the technical cycle: That can be used, reused/redistributed, maintained/prolonged, refurbished/remanufactured, or recycled. This includes all non-renewable materials such as metals, plastics, and synthetic chemicals, as well as renewable materials that are designed to be part of the technical cycle, such as wood and cotton. Note that this category also includes materials of biological origin that are used as reactants in chemical processes (e.g. vegetable oil for plastics) and that form the basis of another materials or products that behave as technical material (e.g. pulp for paper).

Materials (renewable) suitable for the biological cycle that are ‘consumed’ or otherwise degraded during use. This category mainly pertains to food and feed, but also includes detergents, ornamental plants, medicine from renewable sources, and biomass used in energy production.

Service based company: A company that does not have material inflow or outflow. A company that provides a dematerialised service that does not involve tangible materials or products directly, such as accounting, consulting, legal advice, software development but still manages assets. In parallel, a company that provides a product as a service such as car sharing (involves cars directly), travel agency with operations (involves transportation and accommodation), refurbishing services (involves products to be refurbished).

THEMES 1 - 7. INDICATOR QUESTIONSTHEME 1. STRATEGY AND PLANNING

Strategy: The current strategy of your company for a 5 year (or similar) period.

Strategic priorities: The next level of detail within the overall strategy, usually 3-5 priorities in total. Please mention if your strategy is formulated differently in your response if necessary.

Measurable circular economy targets: Targets that are quantifiable (i.e. target is expressed with a number) and have a clear deadline (i.e. limited by a date). SMART target defined below.

SMART targets: Refers to targets that are Specific (clearly defined), Measurable (expressed with a number), Achievable (ambitious but not unrealistic), Relevant (the target talks about circular economy concepts) and Time-bound (there’s a deadline to achieve it).

Implementation plan: For each strategic priority, a plan that breaks it down all the way to individual action items that are SMART, and have individuals responsible.

THEME 2. INNOVATION

Circular economy principles: • Design out waste and pollution

• Keep products and materials in use

• Regenerate natural systems

Design: In the context of a circular economy, materials, products, or business model design should be aligned with at least one of the circular economy principles and remain neutral towards the other two. Examples of this are:

Materials: A material that is not harmful to people or the environment

Products examples: A product that is designed to be refurbished (e.g. outer shell of the product is easy to change), repaired (e.g. modular product where single parts are easy to remove and repair), dismantled for recycling eventually, etc.

Business model example: Product as a service, is a business model where the ownership of the product remains with the manufacturer to incentivise longer product life, easier refurbishment and closed loop re-use/cycling/furbishment etc. of products. Also included here are models that increases the intensity of use of a product (e.g. a car-sharing platform).

A broad case study library is available at: www.ellenmacarthurfoundation.org/case-studies.

THEME 3. PEOPLE AND SKILLS

Incentives: The means to motivate people to work on circular economy. This can be anything from compensation (e.g. raises, bonuses), recognition (e.g. promotion, public announcements), rewards (e.g. employee awards), to appreciation (e.g. non-compensation perks).

Circular economy implementation: All efforts towards putting the circular economy strategy into practice. Executing the ‘Implementation plan’.

THEME 4. SYSTEMS, PROCESSES AND INFRASTRUCTURE

Systems: Software that is needed to support a circular way of doing business (e.g. ability to track materials, components, and products; ability to simulate alternative designs and materials for existing products). Note: The software does not necessarily need to be purpose built. Existing software is acceptable if it is capable of supporting a circular way of doing business. Example case studies can be found in Appendix 1.

Circular business model: Business model that has been designed in a way that is aligned with one or more of the circular economy principles. For example, ‘Product as a service’, where ownership of the product remains with the manufacturer to incentivise longer product life, easier refurbishment, and re-use/cycling/furbishment etc. of products. Examples are available at https://www.ellenmacarthurfoundation.org/case-studies.

Processes: Manufacturing process (e.g. manufacturing process allows for using cycled material inputs), procurement process (e.g. circular economy supplier requirement sheet), customer engagement process (e.g. advise customers on the benefits of using your more circular products) and any others that are relevant to running your company. Note: The processes do not necessarily need to be purpose built. Existing processes are acceptable if they are capable of supporting a circular way of doing business. Example case studies can be found in Appendix 1.

Infrastructure: All PPE assets (property, plant, and equipment). The physical infrastructure with a use period of one year or more that allows for circular way of doing business (e.g. reverse logistics, factory assets that collect by-products/waste, assets that allow for alternative materials to be used). For a product manufacturer this could mean reverse logistics infrastructure; for a food manufacturer a modified production plant to allow for different packaging methods. Note: The infrastructure does not necessarily need to be purpose built. Existing infrastructure is acceptable if it is capable of supporting a circular way of doing business. Example case studies can be found in Appendix 1.

THEME 5. EXTERNAL ENGAGEMENT

Suppliers: Any company you procure from (can be more than one step upstream).

Ongoing programme: Regular engagement with relevant stakeholders oriented around a formal agreement between parties to realise pre-defined objectives.

Customers: Any company or individual you sell, lease, or rent to (can be more than one step downstream).

Policymakers: Any relevant governing body (national, regional, local government); central bank; industry association involved in making policies and policy decisions.

THEME 6. INPUT

Materials (renewable and non-renewable) suitable for the technical cycle: at can be used, reused/redistributed, maintained/prolonged, refurbished/remanufactured, or recycled. This includes all non-renewable materials such as metals, plastics, and synthetic chemicals, as well as renewable materials that are designed to be part of the technical cycle, such as wood and cotton. Note that this category also includes materials of biological origin that are used as reactants in chemical processes (e.g. vegetable oil for plastics) and that form the basis of another materials or products that behave as technical material (e.g. pulp for paper).

Materials (renewable) suitable for the biological cycle that are ‘consumed’ or otherwise degraded during use. This category mainly pertains to food and feed, but also includes detergents, ornamental plants, medicine from renewable sources, and biomass used in energy production.

Non-virgin: Material that has been previously used, including reused, refurbished, repaired, remanufactured, and recycled products, components, and materials.

Renewable: Material that can be continually replenished.

Materials sourced from regeneratively managed resources: Materials grown in ways that improve whole ecosystems, including by increasing soil health and carbon content, water quality, and biodiversity. The concept goes beyond retaining the status quo of natural systems and extends to improving their health and capacity to regenerate themselves.

Material sourced from sustainably managed resources: The material was grown in a way that preserves the ecosystem status quo without degrading it further, but falls short of being regenerative. Sustainable sourcing is considered a transition stage towards a regenerative way of managing renewable materials sourcing.

By-products: An inevitable secondary result of materials processing, while recognising all by-products can be feedstock for another production.

Waste: Unwanted or unusable materials or substances, while recognising all waste can be feedstock for another production.

Renewable energy sources: Energy (electricity, heat, and fuel) is renewable if it is:

• Non-biomass based renewable sources:

◦ Solar

◦ Wind

◦ Hydro (land-based, tidal, and wave)

◦ Geothermal

• Biomass based energy that is 1) from a regeneratively grown source and derived from residues and/or by-products when using virgin material, or 2) processed from by-products/waste streams. This excludes incineration for energy recovery, except when all of the following conditions are met:

◦ Other end of life options for the material, besides landfill, has been demonstrably exhausted;

◦ The material is from a biological source;

◦ The biological material is demonstrably traceable to a source of renewable and regenerative production;

◦ The biological material is completely uncontaminated by technical materials, (including coatings, preservatives, and fillers except when these are demonstrably inert and non-toxic), and other biological materials which do not adhere to these restrictions;

◦ Energy recovery is optimised to extract the maximum practical net energy content from the material and is usefully employed to displace non-renewable alternatives;

◦ The by-products of the energy recovery are themselves 100% biologically beneficial (e.g. as a soil conditioner), and are not detrimental to the ecosystems to which they are introduced.

THEME 7. OUTPUT

Recirculating materials (renewable and non-renewable) suitable for technical cycle (or products): Recirculation is the action of keeping materials and products in use after their initial use. Any loop on the right hand side of the ‘circular economy system diagram’: maintain/prolong, reuse/redistribute, refurbish/remanufacture, recycle.

Recirculating materials (renewable) suitable for biological cycle that are ‘consumed’ or otherwise degraded during use: Recirculation is the action of keeping materials and products in use after their (initial) use. Use a process, such as composting (see ‘Composting’ definition below), to recirculate materials within the biological cycle.

Making new food products: Use by-products as ingredients for food products for human consumption (e.g. beer made out of bread cuttings).

Inputs for agriculture: Examples include organic fertilisers, animal feed, and fish feed.

New materials and bioenergy: Non-food materials that have value.

Bioenergy: Examples include biogas, biodiesel. Excludes energy from incineration, except when it meets all the conditions described under ‘renewable energy sources’.

Composting: Microbial (bacteria and fungi) breakdown of organic matter in the presence of oxygen to produce soil with high organic (humus) content. In commercial composting, the process can be carried out using a variety of methods including ‘in-vessel’ for post-consumer food waste and ‘open-windrow’ for non-food ‘green waste’.

Programme to prolong initial use or increase the intensity of use: Any programme that aims to prolong use or increasing intensity of use. Examples are: product re-design for durability, maintenance and repair; business model that increases intensity of use (e.g. lease vs sell).

Prolong initial use or increase the intensity of use: product re-design for durability, maintenance and repair; business model that increases intensity of use (e.g. lease vs sell).

Reuse/redistribute: Technical products and materials can be reused multiple times and redistributed to new users in their original form with little enhancement or change.

Refurbish/remanufacture: When a product is remanufactured it is disassembled to the component level and rebuilt (replacing components where necessary) to as-new condition with the same warranty as a new product. Refurbishment is largely a cosmetic process whereby a product is repaired as much as possible, usually without disassembly and the replacement of components.

Recycle: Recycling is the process of reducing a product all the way back to its basic material level, thereby allowing those materials to be remade into new products.

Lending: Any type of lending to an individual or organisation. This includes raising debt capital for corporate clients.

Equity Investments: Investment of own capital in public or private companies, directly or through dedicated funds.

Asset Management: Advising and management of individual or institutional clients’ assets, also through proprietary funds.

PPE assets (property, plant, and equipment): Tangible, long-term (use period of one year or more), fixed assets of a company. This includes, but is not limited to: buildings, land, machinery, vehicles, furniture, and office equipment.

Company/project

Systems, Processes and Infrastructure examples Link to Case Study

Active Disassembly

Design practices that incorporate smart materials and processes to enable the rapid and non-destructive disassembly of products and components (Processes).

www.emf.org/case-studies/techniques-for-rapid-non-destructive-disassembly

Aquafil

‘Econyl’ system, enables Polyamide or Nylon waste to be manufactured into new Nylon with no loss of quality (Processes). Reclaiming Programme, to facilitate a reverse supply chain (Infrastructure) and for reliable materials input.

www.emf.org/case-studies/production-of-nylon-yarn-from-waste-materials

Belo Horizonte Computer Reconditioning Centre

Electronics remanufacturing facility (Infrastructure), where citizens from low income communities receive extensive training to restore IT equipment (Processes).

www.emf.org/case-studies/combining-resource-recovery-skills-training-and-digital-inclusion

Biopolus Effective water systems (Infrastructure) for urban circularity

www.emf.org/case-studies/a-new-operating-system-for-urban-living-1

BundlesApplying Internet of Things technology (Systems) to enable product monitoring

www.emf.org/case-studies/internet-enabled-pay-per-wash-a-model-offering-multiple-benefits

Caterpillar’s ’Product Link’ Tracking criteria (Systems) related to

the general status of an item

www.emf.org/case-studies/design-and-business-model-considerations-for-heavy-machinery-remanufacturing

Appendix 1CASE STUDY EXAMPLES FOR “SYSTEMS, PROCESSES AND INFRASTRUCTURE”

Jump to Definitions: Systems, Processes, Infrastructure

CoreCentrics Solutions

A repair programme (Processes) and distribution network (Infrastructure) for defective or returned products

www.emf.org/case-studies/a-second-life-returns-management-parts-recovery-and-product-repairs

eStocks Alternative reverse logistics model (Infrastructure)

www.emf.org/case-studies/pre-consumer-waste-a-gbp-1-9-billion-opportunity-awaits

FLOOW2

B2B sharing marketplace (Systems) that for overcapacity of equipment (Infrastructure), knowledge and skills of personnel

www.emf.org/case-studies/business-to-business-asset-sharing

GEMChinaComprehensive industrial chains for resource collection (Infrastructure) and recycling (Processes)

www.emf.org/case-studies/avoiding-3-million-tonnes-of-waste

HP Instant InkIoT enabled (Systems) subscription model that increases cartridge recovery and recycling (Processes)

www.emf.org/case-studies/bringing-printing-as-a-service-to-the-home

Ostara

Technology (Infrastructure) that can be incorporated into treatment plants allowing phosphorus and other nutrients to be recovered (Processes) from industrial and municipal wastewater streams

www.emf.org/case-studies/closing-the-nutrient-loop

REEP

Erasable paper (Processes) and a device resembling a printer, contains a laser that can erase the page (Processes). This also saves the contents of the page (Systems)

www.emf.org/case-studies/reep

Renault

Establishing a closed short-loop recycling (Processes) for plastics maintained wholly within the local automotive industry (Infrastructure)

www.emf.org/case-studies/short-loop-recycling-of-plastics-in-vehicle-manufacturing

Teemill

Software platform (Systems) for all fashion brands, allows the positive impact of the circular supply chain to be scaled up (Infrastructure)

www.emf.org/case-studies/an-open-access-circular-supply-chain-for-fashion

The Plant Synergistic food production (Processes) place (Infrastructure)

www.emf.org/case-studies/synergistic-food-production-space

Winnow

Collecting data (Systems) on food waste in commercial kitchens (Infrastructure), leading to better decision making in food preparation

www.emf.org/case-studies/data-backed-stories-that-drive-change

Yerdle Recommerce

A platform (Systems) that makes it easy for brands to buy back and resell used items

www.emf.org/case-studies/the-online-platform-for-scaling-reuse