USE CASES ON DATA SCIENCE FOR CIRCULAR ECONOMY

This year, the earth overshoot day fell on July 28. To simplify, according to the Global Footprint
Network, the humanity as a whole used up the resources needed to live sustainably for a year.
According to sustainability experts, we need 1.75 planets to support humanity’s demand on Earth’s
ecosystem.

Circularity provides a solution, through a harmonious intergrowth in both economic and social terms. It
promises economic and social prosperity by limiting impacts on natural resources. The international
Resource Panel estimated that resource efficiency approaches would reduce natural resource use by 28
per cent and emissions by 72 percent and yet improve economic growth. Ellen Macarthur Foundation,
estimated annual benefit to a tune of USD 624 billion by 2050 and contribute towards 44 per cent
reduction in GHG emissions.

According to Ellen Macarthur Foundation, the circular economy is a systems solution framework that
tackles global challenges like climate change, biodiversity loss, waste, and pollution. The circular
economy is based on three principles, driven by design:

• Eliminate waste and pollution

• Circulate products and materials (at their highest value)
• Regenerate nature

Innovative data solutions prove to be powerful catalyser to enable the shift towards circularity.
Technologies, such as the artificial intelligence (AI), Big Data, Internet of Things (IoT) and applied data
science in general, have shown their potential to effectively address climate change through
innovations. Combining the two megatrends; data technologies and circular economy can accelerate a
shift towards a regenerative system fit for the future. For instance, AI helps to design circular products,
operate business models, and optimize circular infrastructure.

Opportunities for Data Science usage to accelerate the transition to a circular economy –

• To inform and accelerate efforts to design out waste and pollution

• To increase the effectiveness and optimize circular economy business models
 • To streamline the infrastructure needed to keep products and materials in use

NOTE: The participants are allowed to pick a problem statement of their choice that aligns with the
theme of “Data Science for Circular Economy”. However, if you/your team are struggling to pick an idea,
you can refer to the following use cases and choose to work on one of them.

SAMPLE USE CASES & EXAMPLES (FOR REFERENCE)

We have divided the use cases in three broader heads – Rethink, Reuse, and Reduce. Student teams can
use frontier data technologies to create solutions listed below, but not limited to these.

RETHINK
Developing data-driven solutions to help organizations transition from conventional business models
towards a transformative and circular system. A few specific use cases can be:

a. Regenerative supply chain alternatives

There has been a negative impact on your company's business outcomes as a result of
supply chain issues due to COVID-19. Economic loses due to dip in cargo usage is estimated
at €112.7 billion.
Examples –
o AI for perishable food product distribution to reduce wastage in transport
Food waste contribute to 10 per cent of global GHG emissions. In addition to
food waste during consumption, food loss at the retail space contributes highly.
Planning logistics real time will reduce the wastage.
Example: 500 crore loses in a day to apple growers in Kashmir due to traffic jam
o AI-ML based algorithm to detect and suggest cargo sharing, storage space sharing,
etc.
Typically, a long-haul truck idles about 1800 hours per year, using about 5600
liters of diesel. Sharing of trucks to reduce the idle time and increase resource
efficiency
o Smart management of deposit and return schemes
Reverse logistics for a packaging company play a major role in compliance.
Planning these logistics with optimal utilization of forward logistics is a great
cost saver

b. Dynamic pricing
Example –
o AI based dynamic pricing of perishable goods as they approach expiry to reduce
wastage

Dynamic pricing ensures that the perishable goods are pushed on the shelfs
with greater visibility and reduce food wastage
 c. Smart material sourcing to reduce linear risk exposure
Example –
o Smart mapping of vendors and suppliers transitioning to circular raw materials
12 percent of the global GDP is spent on procurement regulation. Rethinking the
backward supply chain, so that the circularity starts at the procurement stage.
GSK launched a new Sustainable Procurement Program. Suppliers will face new
environmental requirements and receive the support to meet them. Topics
covered include emissions, water, waste and deforestation.

d. Design powered by AI/Data Science insights

Examples –
AI helps unearthing previously unknown patterns in manufacturing processes or workflows.
AI uses data to make actionable decisions faster and more accurate than a human. Two
specific areas where this makes a lot of sense is for forecasting and understanding
anomalies or outliers.
o An AI system to design say electronic components that reduce waste in
manufacturing process
o AI & IoT based alloy generation processes to reduce resources wastage human
errors (applicable to any other material design)
o AI algorithms to suggest design alterations to reduce material used
o AI-ML to uncover hidden inefficiencies and opportunities to improve resource
utilization in manufacturing

e. Using AI/ML technologies to incentivise and encourage adoption of practices of zero-

waste/no-waste and circularity as transcended from traditional wisdom.

f. Using data science to upskill and build capacity of traditional workforce to endorse
principles of circular economy thus empowering them to optimise their processes

REDUCE
Recycling is the action or process of converting waste into reusable material. Consumers often think that
if they discard the waste responsibly, it will get recycled. But in the face of our current environmental
challenges, recycling won’t be enough to overcome the sheer amount of waste we produce. The circular
economy, however, goes right back to the beginning to prevent waste and pollution from being created
in the first place. To achieve efficient processes to cut down on waste and energy wastage, data
technologies play a major role in developing solutions.

A few specific use cases can be:

 a. Smart industry operations design and monitoring to reduce waste in operations
Example –
o Image processing and IoT sensors to detect spills or machine failure
Manufacturing spends way too time in fixing breakdown rather than scheduled
maintenance. Machine learning predicts equipment failure before they occur
and allocate resources for planned maintenance. This drastically reduces the
downtime of operations.
o AI & monitoring systems for food quality maintenance during transport
The systems of AI can be integrated into transport systems that can sense odors
and flavors intuitively for the control of food safety and quality during and post
transportation. This revolutionized the cold transport systems and improves
reliance with reduced wastage

b. Using data driven technologies to improve energy efficiency

Example –
o IoT/Smart meters to help households/industries monitor their energy consumption
and analyze insights on reducing consumption
o Sensors to detect machine efficiency and energy utilization in the manufacturing
process
o AI driven energy storage and losses reduction

c. Asset monitoring for repair and maintenance

Example –
o Smart analytics for predictive maintenance and resource lifestyle extension

REUSE
A consumer often judges the worth of a product in terms of the money they pay for it. We need to start
thinking about the worth of a product in terms of the amount of energy that went into getting that
product to the consumer.

There is a need to rethink the traditional processes to increase resource efficiency, minimize waste and
also generate profits. Digital applications can help in many ways to make the available material for
reuse, or redistribute it to extend usability, or upcycle it.

Here are a few specific use cases around the same:

a. Generating additional revenue by reusing existing resources and processes with the help
of artificial intelligence
Example –
o A smart platform to change consumer mindset and help them on how to reduce
their carbon footprint by reusing daily household material
o Smart monitoring of goods transport to better utilize the cargo space and reduce
fuel utilization
 b. Setting up a digital marketplace for second hand goods and by-product material streams
Examples -
o Developing solutions for artificial intelligence-based sorting, segregation, and
valuation of waste/by-products/second hand goods
o A smart platform to rent, sell and buy products such as second-hand clothes, foot
wears, or children’s toys, tools, warehouses, cooling facilities, etc.
o Smart platform for by-products exchange between APMC & Food Market, or
between textile industry and utility, etc.

c. Using data solutions to generate new products from organic waste streams
Example -
o IOT + wet chemistry-based solutions to monitor concentration of contents in organic
fertilizers to expedite the post-compost sales for small composters.
o Using smart technology to retrieve valuable materials from wastewater streams

Here are a few resources that can help you understand circular economy better:

1. Introduction to Circular Economy by Ellen Macarthur Foundation

2. Artificial Intelligence and Circular Economy by Ellen Macarthur Foundation
3. Introduction to Circular Economy and business models in Circular Economy by Climate Collective
Foundation