Business potentials at circular economy

Transcription

1 Business potentials at circular economy Invest in the future; Digital transformation, IMSAD Kari Herlevi, Project Director, Sitra

2 THERE İS NO WORLD FOR UNSUSTAİNABLE COMPANİES Source: ING 2017

3 ASSET OWNERSHİP WİLL BECOME A NEW İNDUSTRY Source: ING 2017

4 UNDERUTİLİSED ASSETS WİLL BE A THİNG OF THE PAST Source: ING 2017

5 5 key facts about Sitra 1. A gift from Parliament to the 50-year-old Finland. +1 Building our future together 2. An independent foresight agency: futurologist, researcher, visionary, developer, experimentalist, partner, trainer, networker. 3. Funded by returns on endowment capital and capital investments. 4. Envisages Finland as a successful pioneer in sustainable well-being. 5. Its vision is supported by three themes, six focus areas and dozens of projects.

6 T H E B I G G E S T C H A L L E N G E O F O U R T I M E The decoupling of perceived well-being and economic growth from the consumption of natural resources Perceived well-being Anticipatory healthcare Economic growth Cleantech and the circular economy The use of natural resources Digitisation plays a key role as an enabler of new solutions. Finland could play a bigger role than its size merits in finding solutions to the ecological and social problems of the world!

7 The World is full of waste, yet the demand for raw materials is increasing globally Why do we throw away about 80 % of consumer products and their materials? The global demand for raw materials will increase during the next 20 years On average, materials in Europe are used only once % of building materials goes to waste during construction. The average occupancy rate of cars is about 8 % Farmland, over % Water % 31 % of produced food goes to waste in value chain. In Finland it makes million kilos per year. Sources: EEA, GSA, UN FAO, EU, McKinsey, Luke Offices occupancy rate is about 40 % Steel + 57 % Energy + 32 %

8 Decoupling: Products, materials and their value remain in circulation Product design: life cycle, adaptability & high quality Biological & technical cycles Cross-sectoral and across value chains Market based, direction through structures and incentives Circular Economy System-, digital- and service-based Access over ownership Renewable energy & materials (resource efficiency) Sources: Ellen MacArthur Foundation, Sitra

9 The value chains of mobility, food and built environment account for 80 % of resource use Major circular economy business potential lies in these value chains.

10 Circular Economy advances across the globe Canada Zero Waste Canada & CE working group. UK & Scotland Zero Waste Scotland & WRAP promoting the CE. Denmark Industrial symbioses & green public procurement. Germany & Austria Forerunners in municipal waste recycling; Renewables in Germany. Finland Government s key project, roadmap & WCEF Netherlands Circular Economy Hotspot 2020; banks promoting the CE Sweden EU s forerunner in e-waste recycling. Japan Pioneer in material flow management since China CE in legislation, large scale pilots.

11 Estimations about the business potential of the Circular Economy Additional global economic output by 2030: $4.5 trillion By 2050: $25 trillion (Accenture 2015) Yearly business potential in Finland by 2030: 2-3 billion (Sitra, McKinsey, Gaia) Net benefit for Europe by 2030: $1.8 trillion (Ellen MacArthur Foundation 2015) Savings for EU businesses: 600 billion (European Commission)

12 The potential of a Circular Economy in Finland 2-3 billion euro potential annually, by 2030 (Sitra, McKinsey & Gaia)

13 Some Circular Economy opportunities for Finland Annual value of key opportunities identified EUR millions by Machinery & equipment industry Forest, pulp and paper industries Minimising food waste Sharing & second hand Construction sector Nutrient recycling Total ~ 1.8 bln Sources: McKinsey, Gaia Consulting

14 The sale of products for reuse and remanufacture supports more jobs Reuse & remanufacture High value is retained by keeping the original design and function of products 8-20 jobs (per thousand tonnes of products) Recycle Moderate value is retained by recapturing raw materials to make new products 5-10 jobs (per thousand tonnes of products) Landfilling is a waste of valuable products and materials Landfill Value is lost when materials and products are thrown away, costing consumers over 100 per tonne 0.1 jobs (per thousand tonnes of waste) Source: Green Alliance

15 Source: wbcsd 2017

16 Structural waste in the built environment Source: Ellen MacArthur Foundation Growth Within: A Circular Economy Vision for a Competitive Europe

17 115 billion investments for the next wave circular economy in the built environment Source: SystemiQ, Sun Institute, Ellen MacArthur Foundation: Achieving Growth Within, 2017.

18 Construction process needs to be renewed to promote comprehensive Circular Economy Need & Concept Plan Design Construction Utilization Maintenance EoL Purpose of use / transformability Building material Schedule & location Comprehensive analysis of an area From planning of landuse to planning of operations &living Purpose of use / transformability Building type Products Materials Materials Binding circular economy criteria in the delivery of land lot. Material, cost and life cycle information through the process and over organisational boundaries. Utilization of leftover products & materials Guide for circular construction planning. Neutral information collectioning and sharing for construction companies. Renovation Demolition

19 Smart Design* Dismantling and Separation* as an enabler for high-value reuse Bullit Center, Seattle Reuse* Wooden construction Marketplace & Resource Bank* Wood stones, Destaclean *Strategies for Circular Construction in Amsterdam. Source: Circle Economy, TNO, Gemeente Amsterdam. Circular Amsterdam, Photo sources: Bullitcenter.org; Inhabitat.com; Puukivi.fi/Destaclean; Lifecyclebuilding.org; Circular Amsterdam.

20 Source: wbcsd 2017 CIRCULAR SUPPLIES PRODUCT LIFE-EXTENSION PRODUCT AS A SERVICE SHARING PLATFORM RESOURCE RECOVERY

21 The most interesting companies in the circular economy in Finland A list of companies to inspire economic change.

22 Five business models for the circular economy Product-life extension Products are used according to their original purpose for as long as possible or repaired and refurbished for multiple re-uses, thus reducing the need for purchasing and manufacturing new products. Product as a service The customer pays for certain functions or performance and avoids the risks of ownership. The total costs of ownership remain with the service provider, with revenue being earned by means of, for example, a leasing or rental agreement. Sharing platforms Digital-based platforms are used to promote the increased use of goods and resources and the extension of their life cycle, such as by renting, selling, sharing and re-use. Renewability Renewable, recyclable and biodegradable materials, as well as the principles of eco-design, are preferred for products and their design. Fossil fuels are replaced by renewable energy. Resource efficiency and recycling Technological development enhances resource efficiency in value chains, processes and products, and allows for more effective recycling. Side-streams are valuable raw materials for recycled products and materials.

23 Example companies on the list 3 Step IT IT equipment life-cycle management Lassila & Tikanoja Re-use of pallets Valtra Remanufacturing of gearboxes EkoRent Shared electric vehicle service Enevo Optimisation of waste collection Lindström Work uniforms as a service RePack Reusable delivery packaging Valtavalo LED lighting as a service Shareit Blox Car Peer-to-peer car sharing service Sharetribe Service for creating a marketplace website Swap.com Innovative online consignment and thrift store Kotkamills Easily recyclable consumer paperboard cups Neste Renewable diesel made from waste and residues Grano and TouchPoint New uses for advertising banners in business gifts through company co-operation Eko-Expert Recycled blow-in insulation made from surplus mineral wool Ekokem Used plastic as a recycled raw material Rec Alkaline Recycled nutrients from alkaline batteries Remake Designer clothing collection made from used clothes

24 Presenting the world s best circular economy solutions

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26 Thank you! Kari Herlevi p. sitra.fi