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The - CEO - Guide - To - Circular - Economy - 1694927712 2023-09-17 05 - 15 - 22
The - CEO - Guide - To - Circular - Economy - 1694927712 2023-09-17 05 - 15 - 22
4 FOREWORD
6 WHAT IS THE CIRCULAR ECONOMY?
10 WHY COMPANIES ARE MOVING TOWARDS
THE CIRCULAR ECONOMY
14 HOW CAN COMPANIES GET STARTED?
18 CALL TO ACTION
22 JOIN FACTOR10
The future of
business is
circular
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 ‘Waste
to Wealth’ (2015). Information can be found at www.accenture.com/strategy
Emmanuel Faber Francesco Starace Andreas Fibig Feijke Sijbesma Frans van Houten
CEO, Danone CEO, Enel Chairman and CEO, CEO, Royal DSM CEO, Royal Philips
International Flavors & Fragrances
Carlos Ghosn Jean-Pierre Clamadieu Karl-Henrik Sundström Dr Mukund Rajan Antoine Frérot
CEO & Chairman, The Alliance CEO, Solvay CEO, Stora Enso Chairman, Tata Global Chairman and CEO, Veolia
Sustainability Council
FOREWORD
The circular economy is a $4.5 trillion opportunity.1
It presents huge potential for global economic growth
and will also accelerate society towards a sustainable future.
Figure 1:
Outline of the circular economy*
TECHINICAL
Mining & Materials MATERIALS
Farming & Manufacturing
Collection
Transitioning to the
Refurbish &
Restoration Remanufacture
Retails & Services Provider
Reuse &
Redisribute circular economy will
Cascades catalyze the most
transformational
Biogas
Maintain
Consumer User
Anaerobic
Digestion & economic, social
and environmental
Composting
Collection Collection
changes since
Extraction of
Biochemical
Feedstock
Energy Recovery Leakage
the First Industrial
Revolution
Landfill
Figure 2:
Addressing risks and opportunities
Opportunities
Reduce operating costs
Improve competitiveness
Durability Replacement
Risks Renewability Upgrades
Higher commodity prices Reuse Refurbishment
Waste Repair Reduced material use
Environmental impact
Earth overuse
Resource scarcity
Of these materials
34%
20% 95% 88% go into shelter
global GHG
emissions
of water use of land use
33%
go into food
Figure 3:
The gap between sustainable resource
availability and demand
Resource supply/demand imbalance 2015-2050
Availability Demand
Solvay, a specialty chemical company, International Flavors & Fragrances
uses its Sustainable Portfolio
Bn Tons Inc., a leading innovator of sensory
Management tool to address social and
90
80
experiences that move the world,
environmental risks and opportunities 70 integrated circular economy thinking
Business
across value chains and to steer its
60 as usual into its sustainability strategy and
50 supply vision to lead positive transformational
portfolio towards a circular economy. 40 gap
So far, 100% of Solvay’s Group revenue 30 changes toward a regenerative,
is future-proofed because risks have
20 healthy and abundant world. Driven
been systematically identified, and 30%
10 by this new approach, they pioneered
0
is delivering circular product solutions 2015 2020 2025 2030 2035 2040 2045 2050 PuraVita™, a bio-based, degradable
by moving towards increased durability, fragrance, manufactured with 100 %
material efficiency and renewable clean electricity, minimal waste and
inputs. These solutions also deliver water, creating the world’s first ever
better economic value to Solvay, and Cradle to Cradle Certified® fragrance.
Rising costs for Extreme volatility in Economic and
have higher growth- 9% year-on-year, materials, energy,
The principles learned are now being
commodity markets social risk of supply
instead of the 3% for “business as usual” land, water disruptions embedded in IFF’s approach to its other
solutions. products and processes.
Source: Accenture Strategy, “Circular Advantage.”
Opportunities
GDP Growth Policy readiness
Transitioning to a circular economy Moving towards a circular economy
can unlock global GDP growth of can help companies get ahead of
$4.5 trillion by 2030 and will enhance upcoming policy, regulation, pricing
the resilience of global economies. of externalities and potential shifts
in taxation models. Hundreds of billions of plastic sachets
Figure 4:
are thrown away globally every year.
More GDP with fewer resources
Companies delivering economic To tackle this problem, Unilever
Resource overuse
(billion tons)
Additional GDP growth
($trillion) and sustainability benefits through has developed a new technology,
CreaSolv® Process, with the Fraunhofer
60
25.3
30
successful circular transformations Institute for Process Engineering and
serve as proof points for policy Packaging IVV and is inspired by an
16.2
40 20
makers, and encourage them to make innovation used to recycle TV sets.
11.5 During the process, the plastic is
new policies that level the playing field. recovered from the sachet, and the
20 7.8 10
2.7
4.5 plastic is then used to create new
1.5
Circular economy measures can help sachets for Unilever products - creating
0
2015 2020 2025 2030 2035 2040 2045 2050
0
achieve the Paris Climate Agreement a full circular economy approach.
Additional GDP growth Resource overuse and the UN Sustainable Development
Source: “Waste to Wealth,” Accenture Strategy 2015 Goals.
Increased resource security: new economic efficiency and can generate a new
revenue stream by selling lignin to
sustainably managed forests ensure opportunities to external customers.
long-term availability of renewable
resources for producing bio-based future-proof your
materials; business
Figure 5:
Five business models and three disruptive technologies
DIGITAL
RESTORE & CIRCULAR
RE-PROCESS
VALUE CHAIN USE &
SHARE
PRODUCT AS
A SERVICE:
Offer product
access and TAKE BIOLOGICAL PHYSICAL
BACK
retain ownership REPAIR &
REPURPOSE
to internalize
benefits of SHARING PLATFORM:
circular resource Enable increased
productivity utilization rate of
products by making
possible shared use/
RESOURCE RECOVERY: access/ownership
Recover materials, resources and
energy from disposed products
or by-products
CALL TO ACTION
GET INFORMED
Read up on some of the latest circular economy research
2013
1
TOWARDS THE
CIRCULAR ECONOMY
Executive Summary Circular Advantage Economic and business rationale
for an accelerated transition
Innovative Business Models and
Waste to Wealth Technologies to Create Value in
a World without Limits to Growth
A book by Peter Lacy and Jakob Rutqvist
Published by Palgrave Macmillan
FULL
CIRCLE TURNING WASTE INTO
VALUE WITH YOUR
SUPPLY CHAIN
Sudipta Ghosh
Kevin Eckerle
Harry Morrison
Founding
Partners of the
Ellen MacArthur
Foundation
GLOBAL MATERIAL
Towards the Circular
FLOWS AND
Economy: RESOURCE
Accelerating the scale-up Resources Futures PRODUCTIVITY
across global supply chains
A Chatham House Report
Bernice Lee, Felix Preston, Jaakko Kooroshy, Rob Bailey and Glada Lahn
Assessment Report for the
UNEP International Resource
Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey & Company Panel
January 2014
Central &
North Asia
China
MENA East Asia
Caribbean
& Central South Asia
America
Southeast
Asia
Sub-
Saharan
Africa
South
America
Oceania
DTI/1974/PA
Exports from:
ISBN: 978-92-807-3554-3
North America South America MENA Central & North Asia China East Asia
Caribbean/Cntrl America Europe Sub-Saharan Africa South Asia Southeast Asia Oceania 16-00169
www.chathamhouse.org
ENDNOTES
1
Lacy, Peter; Rutqvist, Jakob (2015): 6
Accenture Strategy, “Circular Advantage,” 11
ING Less is more: circular economy
Waste to Wealth – The Circular Economy https://www.accenture.com/us-en/insight- solutions to water shortages, https://
Advantage, New York/London: Palgrave circular-advantage-innovative-business- www.ingwb.com/media/1909772/circular-
Macmillan. models-value-growth%20 economy-solutions-to-water-shortages-
report_march-2017.pdf
2
Kenniskaarten: https://kenniskaarten. 7
Accenture Strategy, “Circular Advantage,”
hetgroenebrein.nl/en/knowledge-map- https://www.accenture.com/us-en/insight- 12
Accenture Strategy, “Automotive’s
circular-economy/definition-circular- circular-advantage-innovative-business- latest model: Redefining competitiveness
economy/ models-value-growth%20 through the circular economy,” https://www.
accenture.com/us-en/insight-redefining-
3
Research conducted by Ecofys with 8
Club of Rome (2016): The Circular competitiveness-through-circular-
WBCSD to be released in 2017. Eight Economy and Benefits for Society – Jobs economy
materials include steel, aluminium, plastic, and Climate Clear Winners in an Economy
cement, glass, wood, primary crops, and Based on Renewable Energy and Resource
bovine cattle. Efficiency, https://www.clubofrome.org/
wp-content/uploads/2016/03/The-Circular-
4
Accenture analysis based on data from Economy-and-Benefits-for-Society.pdf.
SERI and Dittrich, M. (2014). Global Material
Flow Database. 2014 version and World 9
Accenture, “Taking the European Chemical
Bank GDP data, http:// data.worldbank.org/ Industry Into the Circular Economy,” https://
www.accenture.com/us-en/insight-circular-
5
UNEP International Resource Panel economy-european-chemical-industry
(2016): Global Material Flows and Resource
Productivity Assessment Report, https:// 10
Ellen MacArthur Foundation (2016):
mahb.stanford.edu/library-item/global- Circular Economy in India: Rethinking
material-flows-resource-productivity/ growth for long-term prosperity, http://sites.
ellenmacarthurfoundation.org/india.
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