Embracing Circular Economy to Drive Business Value Part II

Transcription

1 Embracing Circular Economy to Drive Business Value Part II A Case Study Deep Dive Lise Lyngfelt Molander Amy Costello

2 Speakers Lise Lyngfelt Molander Principal Consultant Circular Economy Director, Strategic Accounts thinkstep Amy Costello Sustainability Manager Armstrong Flooring 2

3 About thinkstep thinkstep enables organizations worldwide to succeed sustainably. Our industryleading software, data and services help business drove operational excellence, product innovation, brand value and regulatory compliance. 3

4 Selected questions from the last webinar How to integrate CE thinking into life cycle sustainability assessment? Are there any best-practice metrics to measure circular economy? How do you address CE when products are long-lived (e.g. construction)? Our product is part biological part technical how should we deal with the 2 cycles? Can an SME work with circular economy or do you need to be a larger enterprise? Could you comment something of recyclability of products in the sense of LCA and decreasing functionality of number of recycling cycles? 4

5 Overview Using LCA to assess the environmental impact of products when designed to be part of a circular solution Insights from a number of Case studies 5

6 Life cycle thinking LCA and circular economy 6

7 General Steps for your Circular Strategy Find the path that aligns with your core values 1. Develop or adapt a strategy to match 2. Prioritize your actions 3. Redesign your business 4. Determine Indicators & measurement tools 5. Iterate 7

8 Indicators and Measurement tools What you can Measure you can Manage Context matters Avoid shifting burden Consider the whole Product system but, Not everything that counts can be counted 8

9 Complementary systems Circular Economy addresses circularity of materials (resources) with focus on economic effect LCA addresses environmental indicators (potential risks) along life cycles Information required for CE and LCA high level of overlap Circular economy keep resources at the highest value LCA is a methodology that measures the impact LCA complements CE by adding an environmental dimension to the decision matrix to select the best design solution (ECO-design) 9

10 Complementary systems In the context of Circular Economy, LCA: Substantiates and quantifies environmental improvements; Identifies any potential shifts of environmental burdens; and Ensures optimum levels of and limits to circularity that are known from an environmental point of view 10

11 Complementary systems Life cycle thinking (LCA) can guide you when trying to identify the most preferable materials, transportation methods, supply chains and business models for a more circular system. 11

12 Example: LCA supports the evaluation of Circular Economy The Circular Economy strategy of the European Commission entails existing and emerging regulation on eco-design, waste prevention and the reuse of recycling products... Example of a client request: - Quantify the different existing End-of-Life glass packaging scenarios in Europe: 1. Closed-loop reuse 2. Recycling into glass packaging 3. Recycling into a mix of non-packaging products 4. Losses via landfill, incineration, etc. - Understand status-quo and identify areas of improvement 12

13 Example: LCA supports the evaluation of Circular Economy LCA OUTCOME environmental impacts of different scenarios for various European glass recycling systems based on the following aspects: Circular design New business models Reverse cycles Enables/fav ourable conditions 13

14 Circular Economy as a Life Cycle Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview,

15 How does it work? Linear product = Manufactured using only virgin feedstock and ends up in disposal/landfill at the end of use Circular = Contains no virgin feedstock, is completely collected for recycling or component reuse, and where the recycling efficiency is 100% = 0% circular = 100% circular Most products will sit somewhere between these two extremes Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview,

16 Circular economy in LCA Data generated via LCA Quantities: Product mass, M Virgin material, V, and reused and recycled material, F U, F R Material collection for reuse and recycling, C U, C R Unrecoverable waste flows, W 0, W C, W F Applied on multiple inputs and outputs full LCA model Calculations via LCA model Total unrecoverable waste, W = W 0 + W F +WC 2 Linear Flow index, LFI = V+W 2M+ W F WC 2 Utility, via lifetime and use, X = L L av x U U av Material Circularity Indicator, MCI = 1 LFI x 0.9 X 16

17 Container Glass Full Life Cycle - GaBi Model 17

18 Collection of information Secondary material Recycled content, F R Efficiency and recycling waste, W F On multiple Reused material, F U material streams Recycling waste, W F 18

19 Result Input in the production process virgin vs recycled/ reused Utility during use phase Destination after use Efficiency of recycling MCI =1 LFI x 0.9 X 19

20 Circular Economy Deep dive - Armstrong 20

21 When we try to pick out anything by itself, we find it hitched to everything else in the universe. -John Muir

22 Armstrong Flooring Founded on Circular Economy Principles Armstrong began as a bottle cork manufacturer in 1860 Waste from cork plant was accumulating Thomas Armstrong brought linoleum flooring to US in 1906 Cork waste used as a feedstock for new linoleum plant

23 Examples: Plant + Product Parquet Biobased Tile LVT Diamond Reengineered to use recovered wood instead of virgin wood 2007 Replaced vinyl binder in tile with biobased binder Sited new LVT plant beside existing sheet plant to recover material.

24 Circular Economy Integration Tools Lean Manufacturing Systematic method for the elimination of waste within a manufacturing system. Life Cycle Assessment Systematic method for quantifying environmental impacts. Material Assessment Product Stewardship Program that evaluates and ranks chemicals.

25 Circularity and the Supply Chain Commit Review Rank Partner

26 Value of Circular Economy Thriving on Circular Economy Principles Brand Environmental/Social Recyclability Eliminates trucking waste to IL saves 2 tons GHG Ortho-phthalate free Heavy Metal free Mercury free PVC supply chain Economic Jobs (Community) Increased Sales

27 Circular Economy Deep dive Bio and Technical Cycles 27

28 Where to start? Raw materials Secondary raw materials Symbiosis Reuse or recycled Production Redesign enhance or enable recyclability Functionality Surplus energy, water, materials Waste Use Service Lease Take-back Consider the full life cycle of your product, before deciding your journey Reuse/Recycle 28

29 Circular Economy and Bioeconomy The key risks and opportunities relate to recovery and material choices 29

30 Troldtekt Troldtekt is using locally sourced raw materials wood and cement Change to circular is in line with their core values and strategy to grow from nature Solution: Take back Reused in the biological circle as nutrient in soil 30

31 Troldtekt 31

32 Circular Economy and Technical The key risks and opportunities relate to recovery and material choices 32

33 ENTRA Nordic Built Challenge winner Office building 26 floors 112 meters On top of Oslo central station High energy and water usage 33

34 ENTRA 34

35 ENTRA 35

36 Patagonia 36

37 Industrial Symbiosis Industrial Symbiosis which is the exchange of materials or waste streams between companies, so that one company s waste becomes another company s raw materials 37

38 MUD Jeans 98% organic cotton, Produced in Italy Used jeans are reused to new denim fibre or other accessories 38

39 39

40 Circular Economy Next steps 40

41 Tools/support CE strategy development or adjustment of current strategy Materiality assessment Risk assessment/ Product Portfolio Management EU CE package impact on your business Stakeholder or Supply chain management CE Workshops Beginners to expert Business value workshop Innovation based on CE and life cycle thinking Industrial or urban symbiosis Life cycle thinking and LCA (GaBi) Lifecycle assessment CE study calculate the circularity Proof of environmental benefits Eco-design/Material selection 41

42 Time for questions