CEO GUIDE TO THE CIRCULAR ECONOMY 2CIRCULARECONOMY
The future of business is
circular
FOREWORDWHAT IS THE CIRCULAR ECONOMY
HOW CAN COMPANIES GET STARTED
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
WHY COMPANIES
CALL TO ACTION18
6
4
22
10
14
JOIN FACTOR10
CONTENTS
This Guide has been produced in collaboration with Accenture Strategy Some information in this Guide has been produced by and used with the permission of Accenture Strategy including references from lsquoWaste to Wealthrsquo (2015) Information can be found at wwwaccenturecomstrategy
CEO GUIDE TO THE CIRCULAR ECONOMY 3CIRCULARECONOMY
Paul PolmanCEO Unilever and Chairman WBCSD
Jean-Marc Ollagnier Group CEO ndash Resources
Accenture
Peter BakkerPresident amp CEO WBCSD
Ton Buumlchner CEO AkzoNobel
Emmanuel FaberCEO Danone
Francesco StaraceCEO Enel
Kurt BockCEO BASF SE
Andreas FibigChairman and CEO
International Flavors amp Fragrances
Feijke Sijbesma CEO Royal DSM
Frans van Houten CEO Royal Philips
Jean-Pierre ClamadieuCEO Solvay
Karl-Henrik SundstroumlmCEO Stora Enso
Dr Mukund RajanChairman Tata Global Sustainability Council
Antoine Freacuterot Chairman and CEO Veolia
Itrsquos time to get into the circular mindset
Carlos GhosnCEO amp Chairman The Alliance
CEO GUIDE TO THE CIRCULAR ECONOMY 4CIRCULARECONOMY
FOREWORDThe circular economy is a $45 trillion opportunity1 It presents huge potential for global economic growth and will also accelerate society towards a sustainable future
The concept of the circular economy isnrsquot widely understood by business Mobilizing this opportunity will remain a challenge until many more business leaders adopt a ldquocircular mindsetrdquo
This is the biggest opportunity to transform production and consumption since the First Industrial Revolution 250 years ago By unleashing circular innovation we can boost the global economyrsquos resilience support people and communities around the world and help fulfill the Paris Agreement and the UN Sustainable Development Goals
FOREWORD
The circular economy is a new way of looking at the relationships between markets customers and natural resources
CEO GUIDE TO THE CIRCULAR ECONOMY 5CIRCULARECONOMY
By moving towards the circular economy business can capture significant benefits including
bull increased growth
bull innovation and competitive advantage
bull cost reduction
bull reduced energy consumption and CO
2 emissions
bull increased supply chain and resource security
Strong and visionary CEO leadership is essential for implementing the circular economy and for reaching new levels of sustainable economic growth
It leverages innovative new business models and disruptive technologies to transform the linear economic model
FOREWORD
CEO GUIDE TO THE CIRCULAR ECONOMY 6CIRCULARECONOMY
WHAT IS THE CIRCULAR ECONOMYBusinesses are keen to take action but arenrsquot sure where or how to start This guide is a call to action that will help you get into a circular mindset
Companies who implement the circular economy concentrate on rethinking products and services using principles based on durability renewability reuse repair replacement upgrades refurbishment and reduced material use
By applying these principles companies can design out waste increase resource productivity and decouple growth from natural resource consumption
The circular economy moves away from the traditional ldquotake-make-disposerdquo economic model to one that is regenerative by design The goal is to retain as much value as possible from resources products parts and materials to create a system that allows for long life optimal reuse refurbishment remanufacturing and recycling2
The circular economy is a $45 trillion business opportunity
WHAT IS THE CIRCULAR ECONOMY
Veolia a global leader in optimized resource management revolutionized its plastics strategy to guarantee the
quality of recycled plastics to meet clientsrsquo specifications and to be comparable
to virgin materials Veolia implemented Liquisortcopy ndash an advanced sorting
technology ndash for PP materials and a patented process to produce CleanPETcopy
high-quality free flowing recycled PET flakes that can be used to produce
new bottles Veolia establishes strong partnerships with companies to improve
recyclability of products and utilization of secondary raw materials by coming in
early in the design phase
CEO GUIDE TO THE CIRCULAR ECONOMY 7CIRCULARECONOMY
Figure 1 Outline of the circular economy
Transitioning to the circular economy will
catalyze the most transformational economic social
and environmental changes since
the First Industrial Revolution
Adapted from EMF httpswwwellenmacarthurfoundationorg
TECHINICAL MATERIALS
BIOLOGICAL MATERIALS
Farming amp Collection
Soil Restoration
Biogas
Leakage
Anaerobic Digestion amp Composting
Extraction of Biochemical Feedstock
Recycle
Mining amp Materials Manufacturing
Refurbish amp Remanufacture
Reuse amp Redisribute
Landfill
Energy Recovery
Consumer User
Retails amp Services Provider
Product Manufacture
Materials amp Parts Manufacture
Collection
Maintain
Cascades
Collection
Biochemical Feedstock
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
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Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
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CEO GUIDE TO THE CIRCULAR ECONOMY 3CIRCULARECONOMY
Paul PolmanCEO Unilever and Chairman WBCSD
Jean-Marc Ollagnier Group CEO ndash Resources
Accenture
Peter BakkerPresident amp CEO WBCSD
Ton Buumlchner CEO AkzoNobel
Emmanuel FaberCEO Danone
Francesco StaraceCEO Enel
Kurt BockCEO BASF SE
Andreas FibigChairman and CEO
International Flavors amp Fragrances
Feijke Sijbesma CEO Royal DSM
Frans van Houten CEO Royal Philips
Jean-Pierre ClamadieuCEO Solvay
Karl-Henrik SundstroumlmCEO Stora Enso
Dr Mukund RajanChairman Tata Global Sustainability Council
Antoine Freacuterot Chairman and CEO Veolia
Itrsquos time to get into the circular mindset
Carlos GhosnCEO amp Chairman The Alliance
CEO GUIDE TO THE CIRCULAR ECONOMY 4CIRCULARECONOMY
FOREWORDThe circular economy is a $45 trillion opportunity1 It presents huge potential for global economic growth and will also accelerate society towards a sustainable future
The concept of the circular economy isnrsquot widely understood by business Mobilizing this opportunity will remain a challenge until many more business leaders adopt a ldquocircular mindsetrdquo
This is the biggest opportunity to transform production and consumption since the First Industrial Revolution 250 years ago By unleashing circular innovation we can boost the global economyrsquos resilience support people and communities around the world and help fulfill the Paris Agreement and the UN Sustainable Development Goals
FOREWORD
The circular economy is a new way of looking at the relationships between markets customers and natural resources
CEO GUIDE TO THE CIRCULAR ECONOMY 5CIRCULARECONOMY
By moving towards the circular economy business can capture significant benefits including
bull increased growth
bull innovation and competitive advantage
bull cost reduction
bull reduced energy consumption and CO
2 emissions
bull increased supply chain and resource security
Strong and visionary CEO leadership is essential for implementing the circular economy and for reaching new levels of sustainable economic growth
It leverages innovative new business models and disruptive technologies to transform the linear economic model
FOREWORD
CEO GUIDE TO THE CIRCULAR ECONOMY 6CIRCULARECONOMY
WHAT IS THE CIRCULAR ECONOMYBusinesses are keen to take action but arenrsquot sure where or how to start This guide is a call to action that will help you get into a circular mindset
Companies who implement the circular economy concentrate on rethinking products and services using principles based on durability renewability reuse repair replacement upgrades refurbishment and reduced material use
By applying these principles companies can design out waste increase resource productivity and decouple growth from natural resource consumption
The circular economy moves away from the traditional ldquotake-make-disposerdquo economic model to one that is regenerative by design The goal is to retain as much value as possible from resources products parts and materials to create a system that allows for long life optimal reuse refurbishment remanufacturing and recycling2
The circular economy is a $45 trillion business opportunity
WHAT IS THE CIRCULAR ECONOMY
Veolia a global leader in optimized resource management revolutionized its plastics strategy to guarantee the
quality of recycled plastics to meet clientsrsquo specifications and to be comparable
to virgin materials Veolia implemented Liquisortcopy ndash an advanced sorting
technology ndash for PP materials and a patented process to produce CleanPETcopy
high-quality free flowing recycled PET flakes that can be used to produce
new bottles Veolia establishes strong partnerships with companies to improve
recyclability of products and utilization of secondary raw materials by coming in
early in the design phase
CEO GUIDE TO THE CIRCULAR ECONOMY 7CIRCULARECONOMY
Figure 1 Outline of the circular economy
Transitioning to the circular economy will
catalyze the most transformational economic social
and environmental changes since
the First Industrial Revolution
Adapted from EMF httpswwwellenmacarthurfoundationorg
TECHINICAL MATERIALS
BIOLOGICAL MATERIALS
Farming amp Collection
Soil Restoration
Biogas
Leakage
Anaerobic Digestion amp Composting
Extraction of Biochemical Feedstock
Recycle
Mining amp Materials Manufacturing
Refurbish amp Remanufacture
Reuse amp Redisribute
Landfill
Energy Recovery
Consumer User
Retails amp Services Provider
Product Manufacture
Materials amp Parts Manufacture
Collection
Maintain
Cascades
Collection
Biochemical Feedstock
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
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CEO GUIDE TO THE CIRCULAR ECONOMY 4CIRCULARECONOMY
FOREWORDThe circular economy is a $45 trillion opportunity1 It presents huge potential for global economic growth and will also accelerate society towards a sustainable future
The concept of the circular economy isnrsquot widely understood by business Mobilizing this opportunity will remain a challenge until many more business leaders adopt a ldquocircular mindsetrdquo
This is the biggest opportunity to transform production and consumption since the First Industrial Revolution 250 years ago By unleashing circular innovation we can boost the global economyrsquos resilience support people and communities around the world and help fulfill the Paris Agreement and the UN Sustainable Development Goals
FOREWORD
The circular economy is a new way of looking at the relationships between markets customers and natural resources
CEO GUIDE TO THE CIRCULAR ECONOMY 5CIRCULARECONOMY
By moving towards the circular economy business can capture significant benefits including
bull increased growth
bull innovation and competitive advantage
bull cost reduction
bull reduced energy consumption and CO
2 emissions
bull increased supply chain and resource security
Strong and visionary CEO leadership is essential for implementing the circular economy and for reaching new levels of sustainable economic growth
It leverages innovative new business models and disruptive technologies to transform the linear economic model
FOREWORD
CEO GUIDE TO THE CIRCULAR ECONOMY 6CIRCULARECONOMY
WHAT IS THE CIRCULAR ECONOMYBusinesses are keen to take action but arenrsquot sure where or how to start This guide is a call to action that will help you get into a circular mindset
Companies who implement the circular economy concentrate on rethinking products and services using principles based on durability renewability reuse repair replacement upgrades refurbishment and reduced material use
By applying these principles companies can design out waste increase resource productivity and decouple growth from natural resource consumption
The circular economy moves away from the traditional ldquotake-make-disposerdquo economic model to one that is regenerative by design The goal is to retain as much value as possible from resources products parts and materials to create a system that allows for long life optimal reuse refurbishment remanufacturing and recycling2
The circular economy is a $45 trillion business opportunity
WHAT IS THE CIRCULAR ECONOMY
Veolia a global leader in optimized resource management revolutionized its plastics strategy to guarantee the
quality of recycled plastics to meet clientsrsquo specifications and to be comparable
to virgin materials Veolia implemented Liquisortcopy ndash an advanced sorting
technology ndash for PP materials and a patented process to produce CleanPETcopy
high-quality free flowing recycled PET flakes that can be used to produce
new bottles Veolia establishes strong partnerships with companies to improve
recyclability of products and utilization of secondary raw materials by coming in
early in the design phase
CEO GUIDE TO THE CIRCULAR ECONOMY 7CIRCULARECONOMY
Figure 1 Outline of the circular economy
Transitioning to the circular economy will
catalyze the most transformational economic social
and environmental changes since
the First Industrial Revolution
Adapted from EMF httpswwwellenmacarthurfoundationorg
TECHINICAL MATERIALS
BIOLOGICAL MATERIALS
Farming amp Collection
Soil Restoration
Biogas
Leakage
Anaerobic Digestion amp Composting
Extraction of Biochemical Feedstock
Recycle
Mining amp Materials Manufacturing
Refurbish amp Remanufacture
Reuse amp Redisribute
Landfill
Energy Recovery
Consumer User
Retails amp Services Provider
Product Manufacture
Materials amp Parts Manufacture
Collection
Maintain
Cascades
Collection
Biochemical Feedstock
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
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CEO GUIDE TO THE CIRCULAR ECONOMY 5CIRCULARECONOMY
By moving towards the circular economy business can capture significant benefits including
bull increased growth
bull innovation and competitive advantage
bull cost reduction
bull reduced energy consumption and CO
2 emissions
bull increased supply chain and resource security
Strong and visionary CEO leadership is essential for implementing the circular economy and for reaching new levels of sustainable economic growth
It leverages innovative new business models and disruptive technologies to transform the linear economic model
FOREWORD
CEO GUIDE TO THE CIRCULAR ECONOMY 6CIRCULARECONOMY
WHAT IS THE CIRCULAR ECONOMYBusinesses are keen to take action but arenrsquot sure where or how to start This guide is a call to action that will help you get into a circular mindset
Companies who implement the circular economy concentrate on rethinking products and services using principles based on durability renewability reuse repair replacement upgrades refurbishment and reduced material use
By applying these principles companies can design out waste increase resource productivity and decouple growth from natural resource consumption
The circular economy moves away from the traditional ldquotake-make-disposerdquo economic model to one that is regenerative by design The goal is to retain as much value as possible from resources products parts and materials to create a system that allows for long life optimal reuse refurbishment remanufacturing and recycling2
The circular economy is a $45 trillion business opportunity
WHAT IS THE CIRCULAR ECONOMY
Veolia a global leader in optimized resource management revolutionized its plastics strategy to guarantee the
quality of recycled plastics to meet clientsrsquo specifications and to be comparable
to virgin materials Veolia implemented Liquisortcopy ndash an advanced sorting
technology ndash for PP materials and a patented process to produce CleanPETcopy
high-quality free flowing recycled PET flakes that can be used to produce
new bottles Veolia establishes strong partnerships with companies to improve
recyclability of products and utilization of secondary raw materials by coming in
early in the design phase
CEO GUIDE TO THE CIRCULAR ECONOMY 7CIRCULARECONOMY
Figure 1 Outline of the circular economy
Transitioning to the circular economy will
catalyze the most transformational economic social
and environmental changes since
the First Industrial Revolution
Adapted from EMF httpswwwellenmacarthurfoundationorg
TECHINICAL MATERIALS
BIOLOGICAL MATERIALS
Farming amp Collection
Soil Restoration
Biogas
Leakage
Anaerobic Digestion amp Composting
Extraction of Biochemical Feedstock
Recycle
Mining amp Materials Manufacturing
Refurbish amp Remanufacture
Reuse amp Redisribute
Landfill
Energy Recovery
Consumer User
Retails amp Services Provider
Product Manufacture
Materials amp Parts Manufacture
Collection
Maintain
Cascades
Collection
Biochemical Feedstock
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
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CEO GUIDE TO THE CIRCULAR ECONOMY 6CIRCULARECONOMY
WHAT IS THE CIRCULAR ECONOMYBusinesses are keen to take action but arenrsquot sure where or how to start This guide is a call to action that will help you get into a circular mindset
Companies who implement the circular economy concentrate on rethinking products and services using principles based on durability renewability reuse repair replacement upgrades refurbishment and reduced material use
By applying these principles companies can design out waste increase resource productivity and decouple growth from natural resource consumption
The circular economy moves away from the traditional ldquotake-make-disposerdquo economic model to one that is regenerative by design The goal is to retain as much value as possible from resources products parts and materials to create a system that allows for long life optimal reuse refurbishment remanufacturing and recycling2
The circular economy is a $45 trillion business opportunity
WHAT IS THE CIRCULAR ECONOMY
Veolia a global leader in optimized resource management revolutionized its plastics strategy to guarantee the
quality of recycled plastics to meet clientsrsquo specifications and to be comparable
to virgin materials Veolia implemented Liquisortcopy ndash an advanced sorting
technology ndash for PP materials and a patented process to produce CleanPETcopy
high-quality free flowing recycled PET flakes that can be used to produce
new bottles Veolia establishes strong partnerships with companies to improve
recyclability of products and utilization of secondary raw materials by coming in
early in the design phase
CEO GUIDE TO THE CIRCULAR ECONOMY 7CIRCULARECONOMY
Figure 1 Outline of the circular economy
Transitioning to the circular economy will
catalyze the most transformational economic social
and environmental changes since
the First Industrial Revolution
Adapted from EMF httpswwwellenmacarthurfoundationorg
TECHINICAL MATERIALS
BIOLOGICAL MATERIALS
Farming amp Collection
Soil Restoration
Biogas
Leakage
Anaerobic Digestion amp Composting
Extraction of Biochemical Feedstock
Recycle
Mining amp Materials Manufacturing
Refurbish amp Remanufacture
Reuse amp Redisribute
Landfill
Energy Recovery
Consumer User
Retails amp Services Provider
Product Manufacture
Materials amp Parts Manufacture
Collection
Maintain
Cascades
Collection
Biochemical Feedstock
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
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- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 7CIRCULARECONOMY
Figure 1 Outline of the circular economy
Transitioning to the circular economy will
catalyze the most transformational economic social
and environmental changes since
the First Industrial Revolution
Adapted from EMF httpswwwellenmacarthurfoundationorg
TECHINICAL MATERIALS
BIOLOGICAL MATERIALS
Farming amp Collection
Soil Restoration
Biogas
Leakage
Anaerobic Digestion amp Composting
Extraction of Biochemical Feedstock
Recycle
Mining amp Materials Manufacturing
Refurbish amp Remanufacture
Reuse amp Redisribute
Landfill
Energy Recovery
Consumer User
Retails amp Services Provider
Product Manufacture
Materials amp Parts Manufacture
Collection
Maintain
Cascades
Collection
Biochemical Feedstock
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
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CEO GUIDE TO THE CIRCULAR ECONOMY 8CIRCULARECONOMY
Figure 2 Addressing risks and opportunities
WHAT IS THE CIRCULAR ECONOMY
Waste
bull Customersbull Employeesbull Providers
Opportunities
Risks
Circular economy principles
Higher commodity prices
Resource scarcity
Environmental impact
Earth overuse
Reduce operating costs
Improve competitiveness
Strengthen relationships
Durability
Renewability
Reuse
Repair
Replacement
Upgrades
Reduced material use
Refurbishment
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
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- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
Eight materials are responsible for
Of these materials
Source Circular economy environmental benefits Ecofys amp WBCSD
20 34
3395
global GHG emissions
go into shelter
go into food
of water use88
of land use
Implementing circular economy measures in these areas can help address climate change water and land use challenges
Steel aluminium plastic cement glass wood primary crops and cattle
WHAT IS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 9CIRCULARECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
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CEO GUIDE TO THE CIRCULAR ECONOMY 10CIRCULARECONOMY
ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Resource scarcity and fluctuating commodity pricesPopulation and economic growth drive resource demand and consumption4 Over the last 40 years annual extraction of materials has more than tripled5
As the population grows and more consumers enter the middle class the total demand for resources is expected to reach 130 billion tons by 2050 up from 50 billion in 2014 Thatrsquos an overuse of the Earthrsquos total capacity by more than 4006
Even factoring in run-of-the-mill technological improvements and resource efficiency wersquoll still be overusing around 40 billion tons of natural resources every year by 20507
Resource price volatility is the new normal The scale and speed of demand growth coupled with short-term but frequent price fluctuations could lead to higher long-term prices and greater supply insecurity
WHY COMPANIES
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
Risk mitigation
The risks of inaction are high
Danonersquos ambition on packaging is to co-build the circular economy by creating a second-life for all plastics To support this pledge the Danone
Ecosystem Fund is developing inclusive and sustainable business models
for instance the Novo Ciclo Project is training waste pickers in Brazil and
helps them set up waste management centers as well as sale and resale
cooperatives At the same time the project is allowing Danone Brazil to
develop its rPET industry
CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
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Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
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CEO GUIDE TO THE CIRCULAR ECONOMY 11CIRCULARECONOMY
Figure 3 The gap between sustainable resource availability and demand
Solvay a specialty chemical company uses its Sustainable Portfolio
Management tool to address social and environmental risks and opportunities
across value chains and to steer its portfolio towards a circular economy
So far 100 of Solvayrsquos Group revenue is future-proofed because risks have
been systematically identified and 30 is delivering circular product solutions
by moving towards increased durability material efficiency and renewable
inputs These solutions also deliver better economic value to Solvay and have higher growth- 9 year-on-year
instead of the 3 for ldquobusiness as usualrdquo solutions
Rising costs for materials energy
land water
Extreme volatility in commodity markets
Economic and social risk of supply
disruptions
Availability Demand
Resource supplydemand imbalance 2015-2050
205020402020
Bn Tons
2025 2030 2045
Business as usual supply
gap
20352015
30
0
60
90
80
70
50
40
20
10
Source Accenture Strategy ldquoCircular Advantagerdquo
International Flavors amp Fragrances Inc a leading innovator of sensory experiences that move the world
integrated circular economy thinking into its sustainability strategy and
vision to lead positive transformational changes toward a regenerative
healthy and abundant world Driven by this new approach they pioneered PuraVitatrade a bio-based degradable fragrance manufactured with 100 clean electricity minimal waste and water creating the worldrsquos first ever
Cradle to Cradle Certifiedreg fragrance The principles learned are now being
embedded in IFFrsquos approach to its other products and processes
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
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CEO GUIDE TO THE CIRCULAR ECONOMY 12CIRCULARECONOMY
Policy readiness Moving towards a circular economy can help companies get ahead of upcoming policy regulation pricing of externalities and potential shifts in taxation models
Companies delivering economic and sustainability benefits through successful circular transformations serve as proof points for policy makers and encourage them to make new policies that level the playing field
Circular economy measures can help achieve the Paris Climate Agreement and the UN Sustainable Development Goals
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
GDP GrowthTransitioning to a circular economy can unlock global GDP growth of $45 trillion by 2030 and will enhance the resilience of global economies
Figure 4 More GDP with fewer resources
Source ldquoWaste to Wealthrdquo Accenture Strategy 2015
205020402020
Resource overuse(billion tons)
Additional GDP growth($trillion)
2025 2030
Opportunities
2045203520150
1020
0
2040
3060
Resource overuseAdditional GDP growth
15 2745
78
162
115
253
Hundreds of billions of plastic sachets are thrown away globally every year
To tackle this problem Unilever has developed a new technology
CreaSolvreg Process with the Fraunhofer Institute for Process Engineering and Packaging IVV and is inspired by an innovation used to recycle TV sets
During the process the plastic is recovered from the sachet and the plastic is then used to create new
sachets for Unilever products - creating a full circular economy approach
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
- Button 25
- Button 26
- Button 27
- Button 28
- Button 29
- Button 30
- Button 31
- Button 32
- Button 33
- Button 34
- Button 35
- Button 36
- Button 37
- Button 38
- Button 39
- Button 40
- Button 41
- Button 42
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- Button 44
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- Button 69
- Button 70
- Button 59
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- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 13CIRCULARECONOMY
Business and societal benefits Job creation through circular principles up to 500000 additional jobs created in France alone8
Reduced energy consumption circular economy solutions could offer a 37 reduction in energy consumption in the EU9
Reduced greenhouse gas emissions in India implementing circular solutions presents the opportunity to reduce emissions by about 4010
Increased resource security sustainably managed forests ensure long-term availability of renewable resources for producing bio-based materials
applying circular economy principles to water management can contribute to greatly reducing water stress in key regions11
Innovation driver the potential revenue of selected circular economy business models for automotive companies could more than double by 2030 growing by $400-600 billion12
Adopting a ldquocircular mindsetrdquo captures new economic opportunities to future-proof your business
Stora Enso invested euro32 million to transform its pulp-based Sunila Mill in Finland into the worldrsquos first integrated lignin extraction plant which produces dry kraft lignin and uses it to directly fire
its lime kilns in place of fossil-based fuels Lignin has many potential uses including replacing phenols used in adhesive resins
for plywood and veneer applications By utilizing more of the incoming wood
Stora Enso is improving resource efficiency and can generate a new revenue stream by selling lignin to
external customers
WHY COMPANIES ARE MOVING TOWARDS THE CIRCULAR ECONOMY
CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
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- Button 10
- Button 5
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- Button 14
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CEO GUIDE TO THE CIRCULAR ECONOMY 14CIRCULARECONOMY
Accenture identified five business models and three technologies that will help you implement the circular economy
CIRCULAR SUPPLIES Use renewable energy and bio-based or fully recyclable inputs
RESOURCE RECOVERY Recover useful resources out of materials by-products or waste
PRODUCT LIFE-EXTENSION Extend product lifecycles by repairing upgrading and reselling as well as through innovation and product design
SHARING PLATFORM Connect product users to one another and encourage shared use access or ownership to increase product use
PRODUCTS AS A SERVICE Move away from product ownership and offer customers paid access to products allowing companies to retain the benefits of circular resource productivity or ownership to increase product use
DIGITAL TECHNOLOGIES such as Internet of Things (IoT) big data blockchain and RFID help companies track resources and monitor utilization and waste capacity
PHYSICAL TECHNOLOGIES such as 3D printing robotics energy storage and harvesting modular design technology and nanotechnology help companies reduce production and material costs and reduce environmental impact
BIOLOGICAL TECHNOLOGIES such as bio-energy bio-based materials biocatalysis hydroponics and aeroponics help companies move away from fossil-based energy sources
HOW CAN COMPANIES GET STARTED
HOW CAN COMPANIES GET STARTED
FIVE BUSINESS MODELS THREE DISRUPTIVE TECHNOLOGIES
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
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- Button 21
- Button 22
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- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 15CIRCULARECONOMY
Figure 5 Five business models and three disruptive technologies
CIRCULAR VALUE CHAIN
DIGITAL
PHYSICALBIOLOGICAL
CIRCULAR SUPPLIES Use renewable energy bio-based or fully recyclable input material to replace toxic and single-lifecycle inputs
PRODUCT AS A SERVICE Offer product access and retain ownership to internalize benefits of circular resource productivity
RESOURCE RECOVERY Recover materials resources and energy from disposed products or by-products
SHARING PLATFORM Enable increased utilization rate of products by making possible shared useaccessownership
PRODUCT LIFE-EXTENSION Extend working lifecycle of products and components by reselling repairing remanufacturing and upgrading
RESTORE amp RE-PROCESS
TAKE BACK
REPAIR amp REPURPOSE
MANUFACTURE amp REMANUFACTURE SELL amp
RESELL
USE amp SHARE
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
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CEO GUIDE TO THE CIRCULAR ECONOMY 16CIRCULARECONOMY
HOW CAN COMPANIES GET STARTED
BASF developed the innovative ldquobiomass balance methodrdquo in which
fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or
biogas derived from organic waste or vegetable oils In this process renewable
raw materials are used as feedstock at the very beginning of production in the
Verbund and allocated to the respective sales products using a novel certification
method The formulation and quality of the end products remain the same
DSMrsquos new Niagareg technology gives carpet designers the freedom to make carpets fully recyclable These carpets
are made from a single material or from two materials married together by a
reversible glue The technology uses 90 less energy and zero water during manufacturing and allows full material
recovery after use without losing material quality This helps reduce the
amount of carpets that ends up in landfill estimated at 18 billion kg per year in the US alone The DSM-Niaga
technology can be applied to other products
In 2001 Tata Steel and the Steel Authority of India Ltd established the joint venture Mjunction as an e-marketplace for by-products
(eg secondary steel) and idle business assets Buyers and sellers have price
transparency and what would be waste is now feedstock for companies
saving money while bringing environmental benefit Mjunction has become the worldrsquos largest e-market
for steel is Indiarsquos biggest e-commerce company with nearly 30 waste streams
and volumes have increased from $138M in 2002 to $945B in 2016
CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM
FIVE BUSINESS MODELS
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
- Button 25
- Button 26
- Button 27
- Button 28
- Button 29
- Button 30
- Button 31
- Button 32
- Button 33
- Button 34
- Button 35
- Button 36
- Button 37
- Button 38
- Button 39
- Button 40
- Button 41
- Button 42
- Button 43
- Button 44
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- Button 49
- Button 50
- Button 51
- Button 52
- Button 53
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- Button 55
- Button 56
- Button 57
- Button 58
- Button 62
- Button 63
- Button 64
- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 17CIRCULARECONOMY
Renaultrsquos leadership in European electric vehicle sales is based on circular
economy principles and life-cycle thinking The company extends and
optimizes the life cycle of EV batteries by selling them as a service Since the
beginning of its EV offerings Renault has promoted battery leasing preferred by
more than 90 of its customers Renault has further extended the lifetime of its
EV batteries by using them for stationary energy storage
Philips is transforming its business model to enable value-based healthcare moving from selling equipment alone to a long-term solutions model to hospitals
and other care providers The new model enables care providers to reduce costs share risks and access state-of-the-art solutions and service at a more
predictable cost By doing so Philips delivers better customer value and shifts
its innovation focus much closer to customers By moving away from
a purely transactional sales approach Philips has achieved 50-90 material
reuse (depending on the product) through its refurbishing activities including its
reuse of 940 tons of refurbished medical imaging equipment in 2016 Currently
9 of Philips total revenues (in 2016) are categorized as circular and the aim is to
reach 15 in 2020
PRODUCT LIFE-EXTENSIONPRODUCTS AS A SERVICE
Enel one of the worldrsquos largest energy utilities is capturing circular opportunities not only through investment in new capacity from
renewables but also in the way it is managing old thermal plants With its Futur-e project Enel is managing 23 old thermal plants in Italy as a
single portfolio and upcycling economic activity on these sites to benefit local communities stakeholders and preserve the environment
AkzoNobel a leading paints and coatings company and major producer of specialty
chemicals is developing a new coating made from plant-based oils and recycled PET
bottles The technology ndash EvCotetrade Water Barrier 3000 ndash allows restaurants for example
to select more sustainable paper cups for serving cold drinks By treating the cups with
EvCotetrade the paper fiber remains intact during recycling which means the paper can
be reused for other paper products
HOW CAN COMPANIES GET STARTED
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
- Button 25
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- Button 61
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- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 18CIRCULARECONOMY
CALL TO ACTION
Set a circular vision Choose your circular model Work in teams
Start small and scale
Move beyond waste and recycling to leverage the full suite of circular business
models Use disruptive technologies to make the most of your circular
transformation
To get started start small and pilot innovative programs that
could lead to long-term strategies Celebrate successes re-evaluate
failures and work on scaling up
Leadership can create the business imperatives cultural changes and
governance to promote the circular mindset objectives and integrated
goalsmetrics
Achieving a circular transformation requires teamwork across functional
areas (ie RampD procurement supply chain manufacturing and marketing)
CollaborateJoin forces across value chains in forums
like Factor10 Engage with other companies and stakeholders to remove barriers and work on solutions that will create growth
while reducing impact
CALL TO ACTION
Track progressUse financial environmental and
social metrics to measure and track the impact circular innovation has
on business
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
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- Button 5
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- Button 63
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- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 19CIRCULARECONOMY
GET INFORMED
GET INFORMED
Waste to WealthA book by Peter Lacy and Jakob RutqvistPublished by Palgrave Macmillan
Executive Summary
Sudipta GhoshKevin Eckerle Harry Morrison
TURNING WASTE INTO VALUE WITH YOUR SUPPLY CHAIN
FULL CIRCLE
Circular Advantage Innovative Business Models and Technologies to Create Value in a World without Limits to Growth
Founding Partners of the Ellen MacArthur Foundation
2013
CIRCULAR ECONOMYTOWARDS THE
Economic and business rationale for an accelerated transition
1
ACHIEVING lsquoGROWTH WITHINrsquo
A euro320-BILLION CIRCULAR ECONOMY INVESTMENT OPPORTUNITY AVAILABLE TO EUROPE UP TO 2025
Towards the Circular Economy Accelerating the scale-up across global supply chains
January 2014
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey amp Company
Exports from
China
Southeast Asia
Central amp North Asia
South Asia
South America
Europe
North America
CaribbeanCntrl America
East Asia
Oceania
MENA
Sub-Saharan Africa
Caribbean amp Central America
Sub-Saharan
Africa
NorthAmerica
SouthAmerica
Europe
MENA
China
Central ampNorth Asia
South Asia
East Asia
SoutheastAsia
Oceania
50 billion $ 250 billion $
wwwchathamhouseorg
Resources FuturesA Chatham House Report
Bernice Lee Felix Preston Jaakko Kooroshy Rob Bailey and Glada Lahn
DTI1974PAISBN 978-92-807-3554-3
16-00169
GLOBAL MATERIAL FLOWS AND RESOURCE PRODUCTIVITY
Assessment Report for the UNEP International Resource Panel
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Un
it
ed
na
ti
on
s e
nv
ir
on
me
nt
Pr
og
ra
mm
e
United Nations Environment ProgrammePO Box 30552 Nairobi 00100 Kenya
Tel (254 20) 7621234Fax (254 20) 7623927
E-mail uneppubuneporgweb wwwuneporg
www unep o r g
Read up on some of the latest circular economy research
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
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- Button 24
- Button 25
- Button 26
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- Button 42
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- Button 57
- Button 58
- Button 62
- Button 63
- Button 64
- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 20CIRCULARECONOMY
1 Lacy Peter Rutqvist Jakob (2015) Waste to Wealth ndash The Circular Economy Advantage New YorkLondon Palgrave Macmillan
2 Kenniskaarten httpskenniskaartenhetgroenebreinnlenknowledge-map-circular-economydefinition-circular-economy
3 Research conducted by Ecofys with WBCSD to be released in 2017 Eight materials include steel aluminium plastic cement glass wood primary crops and bovine cattle
4 Accenture analysis based on data from SERI and Dittrich M (2014) Global Material Flow Database 2014 version and World Bank GDP data http dataworldbankorg
5 UNEP International Resource Panel (2016) Global Material Flows and Resource Productivity Assessment Report httpsmahbstanfordedulibrary-itemglobal-material-flows-resource-productivity
6 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
7 Accenture Strategy ldquoCircular Advantagerdquo httpswwwaccenturecomus-eninsight-circular-advantage-innovative-business-models-value-growth20
8 Club of Rome (2016) The Circular Economy and Benefits for Society ndash Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency httpswwwclubofromeorgwp-contentuploads201603The-Circular-Economy-and-Benefits-for-Societypdf
9 Accenture ldquoTaking the European Chemical Industry Into the Circular Economyrdquo httpswwwaccenturecomus-eninsight-circular-economy-european-chemical-industry
10 Ellen MacArthur Foundation (2016) Circular Economy in India Rethinking growth for long-term prosperity httpsitesellenmacarthurfoundationorgindia
11 ING Less is more circular economy solutions to water shortages httpswwwingwbcommedia1909772circular-economy-solutions-to-water-shortages-report_march-2017pdf
12 Accenture Strategy ldquoAutomotiversquos latest model Redefining competitiveness through the circular economyrdquo httpswwwaccenturecomus-eninsight-redefining-competitiveness-through-circular-economy
ENDNOTES
ENDNOTES
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
- Button 25
- Button 26
- Button 27
- Button 28
- Button 29
- Button 30
- Button 31
- Button 32
- Button 33
- Button 34
- Button 35
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- Button 37
- Button 38
- Button 39
- Button 40
- Button 41
- Button 42
- Button 43
- Button 44
- Button 45
- Button 46
- Button 47
- Button 48
- Button 49
- Button 50
- Button 51
- Button 52
- Button 53
- Button 54
- Button 55
- Button 56
- Button 57
- Button 58
- Button 62
- Button 63
- Button 64
- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 21CIRCULARECONOMY
Check out our Circular Economy Guide
Keep track of the latest tools and strategies for implementing the circular economy in your business
wwwceguideorg
Stay informed
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Strategies amp Examples
CEO GUIDE for the Circular Economy
DOWNLOAD FILE
Resources and tools Check out the latest sustainability news
Dispose FinanceSell
Sed ut perspiciatis unde Sed
May 6 2016RESOURCE
Nemo enimi psam voluptatem
Apr 27 2016TOOL
WBCSDl aunches new
Apr 11 2016RESOURCE
Design Buy Make
SearchBusiness CaseHomepage Strategies amp ExamplesResources amp ToolsG lossary UploadCircularEconomyGuide
STAY INFORMED
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
- Button 25
- Button 26
- Button 27
- Button 28
- Button 29
- Button 30
- Button 31
- Button 32
- Button 33
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- Button 35
- Button 36
- Button 37
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- Button 39
- Button 40
- Button 41
- Button 42
- Button 43
- Button 44
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- Button 46
- Button 47
- Button 48
- Button 49
- Button 50
- Button 51
- Button 52
- Button 53
- Button 54
- Button 55
- Button 56
- Button 57
- Button 58
- Button 62
- Button 63
- Button 64
- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67
CEO GUIDE TO THE CIRCULAR ECONOMY 22CIRCULARECONOMY
Elena GiottoAssociate Circular Economy
giottowbcsdorg
Join Factor10
Factor10 is WBCSDrsquos circular economy program It brings companies together to reinvent how business finds uses and disposes of the resources and materials that make up global trade It will bridge the gap between theory and practice to help companies identify and remove barriers and create scalable solutions
By collaborating on solutions that go beyond business as usual Factor10 will help deliver high-impact large-scale results where resources are used wisely processes create the greatest possible value and nothing is wasted
It is the global business collaboration delivering innovative scalable solutions for the circular economy
We must do more with lessJOIN FACTOR 10
Brendan Edgerton Manager Circular Economy
edgertonwbcsdorg
Key WBCSD contacts
Maria MendiluceManaging Director
Senior Management Team mendilucewbcsdorg
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
- Button 25
- Button 26
- Button 27
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- Button 29
- Button 30
- Button 31
- Button 32
- Button 33
- Button 34
- Button 35
- Button 36
- Button 37
- Button 38
- Button 39
- Button 40
- Button 41
- Button 42
- Button 43
- Button 44
- Button 45
- Button 46
- Button 47
- Button 48
- Button 49
- Button 50
- Button 51
- Button 52
- Button 53
- Button 54
- Button 55
- Button 56
- Button 57
- Button 58
- Button 62
- Button 63
- Button 64
- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67
World Business Councilfor Sustainable DevelopmentMaison de la PaixChemin Eugegravene-Rigot 2B CP 2075 1211 Geneva 1Switzerland
wwwwbcsdorg | wbcsd CircularEconomy
- Button 11
- Button 12
- Button 13
- Button 8
- Button 9
- Button 10
- Button 5
- Button 6
- Button 7
- Button 14
- Button 15
- Button 16
- Button 17
- Button 18
- Button 19
- Button 20
- Button 21
- Button 22
- Button 23
- Button 24
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- Button 26
- Button 27
- Button 28
- Button 29
- Button 30
- Button 31
- Button 32
- Button 33
- Button 34
- Button 35
- Button 36
- Button 37
- Button 38
- Button 39
- Button 40
- Button 41
- Button 42
- Button 43
- Button 44
- Button 45
- Button 46
- Button 47
- Button 48
- Button 49
- Button 50
- Button 51
- Button 52
- Button 53
- Button 54
- Button 55
- Button 56
- Button 57
- Button 58
- Button 62
- Button 63
- Button 64
- Button 68
- Button 69
- Button 70
- Button 59
- Button 60
- Button 61
- Button 66
- Button 67