CIRCULAR ECONOMY

AGENDA

• What is circular economy?

• What is its benefit?

• Why move in that direction?

• How to get there?

• Examples of circular economy

 WHAT IS CIRCULAR ECONOMY?
A industrial economy that is restorative by intention

renewable energy

 eliminate the use of toxic chemicals

 eradicate waste

biological nutrients reenter the biosphere safely

technical nutrients circulate at high quality without entering the biosphere

 WHAT IS ITS BENEFIT?
Overcome limitations of linear consumption

•Linear pattern of “take-make-dispose” increases exposure

to risk – most notably price volatility and resource disruption

Eradicate waste

•Systematically, throughout the life cycles and uses of

products and their components

Offset sharp price increases

•Sharp price increases in commodities since 2000 have

erased all the real price declines of the 20th century

Competitive advantage
•Companies adapting circular economy gain a great
advantage from efficiency, integration and effective use of
resources
 WHY MOVE IN THAT DIRECTION?
• Finite resources, finite space  reaching the critical tipping point

• Financially it just makes sense  Circular concept fosters wealth and

employment opportunities

• World Economic Forum (Jan 2014)*

• The materials saving potential alone is estimated at over a trillion dollars a year
• In Europe alone the job creation for re-engineering/manufacturing will create over 1
million jobs this year

• Moving towards a global circular economy is the only option for long-term
sustainability

*World Economic Forum (Jan 2014). “Towards the Circular Economy: Accelerating the scale-up across global supply chains”. Source:
<http://www3.weforum.org/docs/WEF_ENV_TowardsCircularEconomy_Report_2014.pdf>
 HOW TO GET THERE?
• During the design phase, consider all the steps in
the product life including raw material inputs,
production, transportation & storage, retailing,
consumer use and the 3Rs

Solutions from the World Economic Forum

1. Set up global reverse networks for products &
components
2. Innovate demand-focused business models
3. Focus on pure materials stock management at
the outset
 EXAMPLES OF CIRCULAR ECONOMY

PRODUCT AS SERVICE :
PHILIPS
 EXAMPLES OF CIRCULAR ECONOMY
NEXT LIFE SALES:
TATA
 EXAMPLES OF CIRCULAR ECONOMY

COLLABORATIVE
CONSOMPTION
 EXAMPLES OF CIRCULAR ECONOMY

RECYCLING 2.0 :
SOUTHWEST AIRLINE
 QUESTIONS?

Thank you!