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Leveraging an Eco-Design Foundation to Enable Circular Value Creation Megann Head September 5, 2017 LCM

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Page 1: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Leveraging an Eco-Design Foundation to Enable Circular Value Creation

Megann Head

September 5, 2017

LCM

Page 2: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Who We Are. What We Do.

Page 3: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

110,000+companies served in the last 5 years

$3.1 billionannual revenue (fiscal year 2016)

1912company established

15manufacturing locations

800+dealer partners around the world

1,700+patents worldwide

12,000+employees worldwide

No. 1global market

Page 4: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

We’re in the people business.

Our purpose is to unlock human promise.

Page 5: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

…by creating the social,

environmental and economic

conditions that allow people,

organizations, and communities to

thrive.

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Where We’ve BeenON THE PATH TO CIRCULAR ECONOMY

Page 7: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Three pillars guide our efforts to innovate, improve, and deliver on our product

promises.

Life cycle thinking & LCA

Materials chemistry

Reuse and Recycle

Page 8: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

➔ Healthy materials for safe and continuous cycles

Materials Chemistry

Page 9: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

2000+ materials assessed

24 human and environmental health criteria

100 parts per million

50+ Cradle to Cradle certifiedTM products

Materials chemistry

Page 10: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

➔ Identify the innovation opportunities along the life cycle

Life cycle thinking & LCA

Page 11: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Life cycle thinking & LCA

Integrated life cycle & eco-design approach

Continuous LCA calculations to guide product development choices

40+ product LCAs and EPDs published

Product life cycle assessment:

to assess the product‘s

impacts

Life cycle assessments:

to guide decision-making

Page 12: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Build products inspired by a closed loop

Reuse and Recycle

Page 13: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Prefer recycled & recyclable materials

Rapid and easy disassembly of materials

Guiding material recovery

Reuse and Recycle

BFree cube®

Page 14: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

A “Take. Make. Dispose.” Linear Economy

productionmaterials install use removal Estimated percentage of commercial furniture landfilled each year

??%

Page 15: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

A “Take. Make. Dispose.” Linear Economy

productionmaterials install use removal Estimated percentage of commercial furniture landfilled each year

70%

Page 16: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

production

materials

install

use

removal

In a linear economy, the best we can do is close the loop on products…

Page 17: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

We have been exploring circular business model concepts.New business model innovations emerged.

Page 18: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

How does our business model change in a circular economy?

Production

Materials

Install

Use

End of Use

End of Need

Redistribute

Repair +

Refurbish

Remanufacture

Recycle Subscribe

Page 19: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

If we’re pursuing a Circular Economy that is

“restorative and regenerative by design,

and aims to keep products, components and materials at

their highest utility and value

at all times…”

it requires new capabilities

and a shift in thinking…

Page 20: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

DESIGN

SENSIBILITY

BUSINESS MODEL

INNOVATION

HARNESS THE POWER

OF IOT

REMAKE +

REMANUFACTURE

MANAGE THE

FLOW OF ASSETS

Capabilities needed to enable a Circular Economy

Page 21: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

From designing for…

Disassembly

Recycling

One customer, one use

Purchase

Refurbishment and remanufacturing

Harvesting parts to feed new products

Many customers over its lifecycle

Enabling subscription, pay-per-use and

other business models

Page 22: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the
Page 23: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Shift in the way we think…

shift our actions from business optimization to

business transformation?

drive new value creation through embedded technology?

unleash culture to drive new design capabilities and

business models?

leverage existing models & achievements to pivot into

new circular economy opportunities?

build on our existing capabilities to grow new ones?

How do we...

How can we…

Page 24: Leveraging an Eco-Design Foundation to Enable Circular Value …lcm-conferences.org/wp-content/uploads/2017/presentations... · 2017. 11. 29. · 110,000+ companies served in the

Thank you.