Business potentials at circular economy...Guide for circular construction planning. Neutral...

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Business potentials at circular economy Invest in the future; Digital transformation, IMSAD 26.10.2017 Kari Herlevi, Project Director, Sitra

Transcript of Business potentials at circular economy...Guide for circular construction planning. Neutral...

Page 1: Business potentials at circular economy...Guide for circular construction planning. Neutral information collectioning and sharing for construction companies. Binding circular economy

Business potentials at circular economy

Invest in the future; Digital transformation, IMSAD

26.10.2017

Kari Herlevi, Project Director, Sitra

Page 2: Business potentials at circular economy...Guide for circular construction planning. Neutral information collectioning and sharing for construction companies. Binding circular economy

Source: ING 2017

THERE İS NO WORLD FOR

UNSUSTAİNABLE COMPANİES

Page 3: Business potentials at circular economy...Guide for circular construction planning. Neutral information collectioning and sharing for construction companies. Binding circular economy

ASSET OWNERSHİP

WİLL BECOME A NEW İNDUSTRY

Source: ING 2017

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UNDERUTİLİSED ASSETS

WİLL BE A THİNG OF THE PAST

Source: ING 2017

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5 key facts about Sitra

1. A gift from Parliament to the 50-year-old Finland.

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.

+1

Building our future together

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The decoupling of perceived well-being and economic

growth from the consumption of natural resources

Perceived well-being

Economic

growth

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!

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

Anticipatory

healthcare

Cleantech and the circular economy

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Why do we throw away about 80 % of consumer products and their materials?

Offices’ occupancy rate is about

40 %

On average, materials in Europe are used

only once.

The average occupancy rate of cars is about

8 %

10-15 %of building materials goes to waste during construction.

31 % of produced food goes to waste

in value chain. In Finland it makes

300-400 million kilos per year.

The global demand for raw materials will increase during

the next 20 years

Energy

+ 32 %

Steel+ 57 %

Water

+ 137 %

Farmland, over

+ 200 %

The World is full of waste, yet the demand for raw materials

is increasing globally

Sources: EEA, GSA, UN FAO, EU, McKinsey, Luke

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Circular Economy

System-, digital- and service-based

Renewable energy & materials(resource efficiency)

Market based, direction through structures and incentives

Biological &technical cycles

Decoupling: Products, materials and their value remain in circulation

Access over ownership

Product design: life cycle, adaptability & high quality

Cross-sectoral and across value chains

Sources: Ellen MacArthur Foundation, Sitra

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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.

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Japan

Pioneer in material flow management since 1990.

China

CE in legislation, large scale pilots.

Netherlands

”Circular Economy Hotspot” 2020; banks promoting the CE

Germany & Austria

Forerunners in municipal waste

recycling; Renewables in Germany.

Denmark

Industrial symbioses & green public procurement.

UK & Scotland

Zero Waste Scotland & WRAP promoting the CE.

Canada

Zero Waste Canada & CE working group.

Sweden

EU’s forerunner in e-waste recycling.

Finland

Government’s key project, roadmap & WCEF 2017.

Circular Economy advances across the globe

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Estimations about the business potential of the

Circular Economy

Additional global economic output by 2030:

$4.5 trillion

By 2050:

$25 trillion

(Accenture 2015)

Net benefit for

Europe by 2030:

$1.8 trillion(Ellen MacArthur Foundation 2015)

Savings for EU businesses:

€ 600 billion(European Commission)

Yearly business potential in Finland

by 2030:

€2-3 billion (Sitra, McKinsey, Gaia)

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The potential of a Circular Economy in Finland

2-3 billion euro potential annually,

by 2030(Sitra, McKinsey & Gaia)

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Some Circular Economy opportunities for Finland

Annual value of key opportunities identifiedEUR millions by 2030

Const-ruction sector

Forest, pulp and paper industries

Minimisingfood waste

Sharing & second hand

Machinery & equipment industry

Total~€ 1.8 bln

Nutrient recycling

375

230

165

450

255

310

1785

Sources: McKinsey, Gaia Consulting

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Reuse & remanufactureHigh value is retained by keeping the original design and function of products

RecycleModerate value is retainedby recapturing raw materialsto make new products

8-20 jobs(per thousand tonnes of products)

5-10 jobs(per thousand tonnes of products)

Landfilling is a waste of valuable products and materials…

LandfillValue is lost when materialsand products are thrown away, costing consumers over £100 per tonne

0.1 jobs(per thousand tonnes of waste)

Source: Green Alliance

The sale of products for reuse and remanufacture

supports more jobs

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Source: wbcsd 2017

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Structural waste in the built environment

Source: Ellen MacArthur Foundation Growth Within: A Circular Economy Vision for a Competitive Europe. 2015.

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€115 billion investments for the next wave circular

economy in the built environment

Source: SystemiQ, Sun Institute, Ellen MacArthur Foundation: Achieving Growth Within, 2017.

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Need & Concept Plan

Design Construction Utilization Maintenance EoL

Construction process needs to be renewed to

promote comprehensive Circular Economy

• Purpose of use / transformability

• Building material

• Schedule & location

Renovation

Demolition

• Purpose of use / transformability

• Building type

• Products

• Materials

• Materials

• Utilization of leftover products & materials

Comprehensiveanalysis of an area

From planning oflanduse to planning

of operations&living

Guide for circular construction planning.

Neutral information collectioning and sharing

for constructioncompanies.

Binding circular economy criteria in the delivery of land lot.

Material, cost and life cycle information through the process and

over organisational boundaries.

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Dismantling

and Separation*

as an enabler for high-value reuse

*Strategies for Circular Construction in Amsterdam. Source: Circle Economy, TNO, Gemeente Amsterdam. Circular Amsterdam, 2016.

Photo sources: Bullitcenter.org; Inhabitat.com; Puukivi.fi/Destaclean; Lifecyclebuilding.org; Circular Amsterdam.

Marketplace &

Resource Bank*

Wood stones, Destaclean

Reuse*

Bullit Center, SeattleWooden

construction

Smart Design*

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CIRCULAR SUPPLIES

PRODUCT AS A SERVICE

RESOURCE RECOVERY

SHARING PLATFORM

PRODUCT LIFE-EXTENSION

Source: wbcsd 2017

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The most interesting companies

in the circular economy in Finland

A list of companies to inspire economic change.

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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.

Renewability

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.

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.

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.

Product as a service

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.

Five business models for the circular economy

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Example companies on the list

3 Step IT

IT equipment life-cycle management

Lassila & Tikanoja

Re-use of pallets

Valtra

Remanufacturingof gearboxes

EkoRent

Shared electric vehicle service

Enevo

Optimisationof waste collection

Lindström

Work uniformsas a service

RePack

Reusabledelivery packaging

Valtavalo

LED lightingas a service

Shareit Blox Car

Peer-to-peer car sharing service

Sharetribe

Service for creatinga marketplace website

Swap.com

Innovative online consignment and thrift store

Kotkamills

Easily recyclableconsumer paperboard cups

Neste

Renewable dieselmade from waste and residues

Grano and TouchPoint

New uses for advertising banners in business giftsthrough company co-operation

Eko-Expert

Recycled blow-in insulation made from surplus mineral wool

Ekokem

Used plasticas a recycled raw material

Rec Alkaline

Recycled nutrients fromalkaline batteries

Remake

Designer clothing collection made from used clothes

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Presenting the world’s best circular economy solutions

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