Business potentials at circular economy...Guide for circular construction planning. Neutral...
Transcript of Business potentials at circular economy...Guide for circular construction planning. Neutral...
Business potentials at circular economy
Invest in the future; Digital transformation, IMSAD
26.10.2017
Kari Herlevi, Project Director, Sitra
Source: ING 2017
THERE İS NO WORLD FOR
UNSUSTAİNABLE COMPANİES
ASSET OWNERSHİP
WİLL BECOME A NEW İNDUSTRY
Source: ING 2017
UNDERUTİLİSED ASSETS
WİLL BE A THİNG OF THE PAST
Source: ING 2017
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
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
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
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
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.
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
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)
The potential of a Circular Economy in Finland
2-3 billion euro potential annually,
by 2030(Sitra, McKinsey & Gaia)
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
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
Source: wbcsd 2017
Structural waste in the built environment
Source: Ellen MacArthur Foundation Growth Within: A Circular Economy Vision for a Competitive Europe. 2015.
€115 billion investments for the next wave circular
economy in the built environment
Source: SystemiQ, Sun Institute, Ellen MacArthur Foundation: Achieving Growth Within, 2017.
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.
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*
CIRCULAR SUPPLIES
PRODUCT AS A SERVICE
RESOURCE RECOVERY
SHARING PLATFORM
PRODUCT LIFE-EXTENSION
Source: wbcsd 2017
The most interesting companies
in the circular economy in Finland
A list of companies to inspire economic change.
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
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
Presenting the world’s best circular economy solutions