THE PRACTICAL CHALLENGES + OPPORTUNITIES OF TRANSFORMATION:

OLD INDUSTRY, NEW INDUSTRY + DISRUPTIVE TECHNOLOGIES

Albin Kälin CEO

EPEA Switzerland

TODAY: CRADLE TO GRAVE DESIGN PARADIGMA

TODAY: LINEAR SYSTEMS AND THEIR DESIGN PROBLEMS

© Cradle to Cradle Products Innovation Institute

Nutrients

Raw-

materials

Down-

cycling

ALPHA THEMES DEFINE OUR FUTURE

Cradle to Cradle® provides solutions

CONCEPTS OF INDUSTRY TRANSFORMATION:

DO THEY FOCUS ON MATERIAL QUALITY IN MULTIPLE LIFECYCLES ?

CRADLE TO CRADLE® DESIGN

CLOSING THE LOOP AND DEFINE MATERIAL QUALITY FOR FUTURE

LIFECYCLES: BIOLOGICAL & TECHNICAL SYSTEMS

Design beyond Productdesign

Biological System Technical Systems

© EPEA Int. Umweltforschung GmbH

• 7 year goal EU Commission: 16% to 20%

• Stop deindustrialisation in Europe

• Closing the loop of materials

• Circular Economy

• new technologies

• new needs as fundamental drivers

for innovation

• Stop downcycling, generate upcycling

• Design out toxic materials

• Implement Circular Economy and

Cradle to Cradle® Innovations

• Maintain quality of rawmaterials over

multiple lifecycles.

• Implement cycle concepts in education

• Create jobs in closing the loop

GOAL EU COMMISSION WORLDWIDE INDUSTRY PRODUCTION:

RESOURCE PRICING SCENARIOS IN 2030:

A DRIVING FACTOR FOR THE ECONOMY

1. Scenario: Business as usual

• Growth of global demand

• Industry dependency on new

resources

2. Scenario: Intermediate

• Results of resource efficiency

initiatives

• Pressure for global agreement is

too small • Stessfactors will remain

3. Scenario: «Cradle to Cradle®»

«Circular Economy»

• Paradigm change with winners

and loosers

• Impact of global initiatives

• Turnaround, tipping point will be

reached

• Ecology, business and society will

benefit (profit, planet, people) © EPEA Switzerland GmbH

Plastics Recycling Prices/Volume Plastics Waste Import/Export

Paper&Board Recycling Prices/Volume Paper Waste Import/Export

RAWMATERIALS PRICING & CLOSING THE LOOP IN EU WASTE EXPORTS ARE INCREASING

Bleaching Biopolishing Vat dyeing Postscouring Softening

Bleaching Vat dyeing Postscouring Softening

OBA Bleaching Softening

Stabilizer

Detergent Enzyme

Levelling agent

Sequestrant

Lubricant

Defoamer

Postscouring agent Softener

Stabilizer

Detergent

Levelling agent

Sequestrant

Lubricant

Defoamer

Postscouring agent Softener

Softener Stabilizer

Detergent

OBA

former:

CHEMICAL INDUSTRY: FROM PASSIVE TO ACTIVE PARTICIPATION &

PUBLIC ANNOUNCEMENTS OF POSITIVE LISTS

e.g: TANATEX CHEMICALS Cradle to Cradle® System integrated chemical solutions for cellulosic fibres

CHEMICAL INDUSTRY: DEPOLYMERISATION OF POST CONSUMER PRODUCTS

e.g.: Polyamide 6 - Aquafil / Julon (IT/SL)

URGENCY NEED FOR POLYESTER, pet depolymerisation and motivate investors, bottle to bottle recycling is only a partial solution. e.g: Teijin–Japan

Production in Europe 2012: Polyamide 436’000 t/yr (10%) Polyester 1’026’000 t/yr (2%)

Production Worldwide 2013: Polyamide 4’220’000 t/yr Polyester 44’620’000 t/yr

TEXTILE AND APPAREL: 1. INDUSTRIAL REVOLUTION

Today: under attack, suffering of bad image

Change is possible: lighthouses e.g.: Trigema Change

Cradle-to-Cradle Polo-Shirt

100 % Organic Cotton, compostable

TRIGEMA has developed together with the

environmental institute EPEA the WORLD FIRST

COMPOSTABLE polo SHIRT. The Wellness short-

sleeved shirt made from ecologically degradable

organic cotton is equipped with a nice polo collar,

three-button placket and two-color Trigema logo.

This great top piqué quality is as gentle to the skin

and on nature. The material is easy to clean,

durable and fade-resistant. Available in larger sizes up to 4XL.

TEXTILES: 60% OF MARKET COTTON/POLYESTER > No go in C2C !!!!

Loosing quality of resources in closing the loop.

Innovation implementation in Europe biodegradable polymer e.g.: Lauffenmühle Germany: Infinito® yarns and reworx® textiles

Take-Make-Use-Regenerate:

infinito® yarns / reworx® textiles are safe for biological

systems, offer a climate control function, are suitable for

industrial laundering with excellent performance results

for easy care, light fastness, high abrasion and pilling

resistance. The product is designed and qualified to be

used for work wear as well as for other high performance

textile products and applications.

infinito® yarns / reworx® textiles are Cradle to CradleCM

certified at gold level: After use and more than 50 cleaning

cycles the products will be collected and forwarded to an

industrial composting facility where the textiles will safely

transform to humus - which then means living space for

other organisms: new life is generated.

TEXTILES & APPAREL: CLOSING THE LOOP

Take Back Systems for Industrial Composting and Depolymerisation,

Include industrial composting of industrial goods in EU-legislation:

e.g: Lauffenmühle-D: Work Wear, Apparel made from Textiles

Work Wear, Apparel made with reworx® textiles are Cradle to

CradleCM certified at silver level: After use and more than 50

cleaning cycles the products will be collected and forwarded

to an industrial composting facility where the textiles will

safely transform to humus - which then means living space

for other organisms: new life is generated.

Lauffenmuehle textile innovation Cradle to Cradle certified

Work Wear, Apparels made from reworx® textiles are

exclusively produced by licencees of Lauffenmuehle GmbH &

Co. KG, Germany, a fully vertically integrated textile

manufacturer - with more than 175 years of experience in

producing yarns and textiles.

Licensees of Work Wear, Apparel made from reworx®:

Bierbaum-Proenen (BP) Collection BP Bio Cycle

INDUSTRY CONSORTIUMS CREATING KNOWLEDGE + BETTER QUALITY

e.g.: WOLFORD + TEXTILE CONSORTIUM AUSTRIA,

Representing 13 % of the Austrian Textile Industry

Austria FFG 7 Call COIN-Programme „Cooperations and Networks“

„Cradle to Cradle Competitive Basic Underwear“

Premium Unterwear for international markets according Cradle to Cradle®:

14 consortium members Textile Industry. Projectstart July/August 2014

PACKAGING INDUSTRY: WASTING RESOURCES & USING TOXIC CHEMICALS

PACKAGING VISION FOR THE FUTURE, WHERE IS IT ?

e.g.: Cleaning Detergent Frosch: Citrus Shower & Bathcleaner - Germany

Pioniers in Europe

Frosch Cleaning Detergents

are the first Cradle to Cradle CertifiedCM

Gold Level!

But packaging Silver Level!

Innovation is needed.

Founder of Recyclat Initiative in Germany http://initiative-frosch.de/Recyclat-Initiative/Recycling-beginnt-beim-Sortieren/

ECOLABELS WITH LOWER STANDARDS ARE LIMITING TRANSFORMATION

e.g. Case Study: Green Care Professional - Germany

Performance by Design

• All products are based on innovative formulations providing highest and proven

cleaning efficiency, confirmed by the EU Ecolabel certification Added value:

Providing highest cleaning performance through perfect ecological product

design

• Outstanding innovative and safe products for use and environment

• Comprehensive range for cleaning application - C2C Gold Certified

PAPER INDUSTRY: IN A CRISIS AND STILL RESISTING TRANSFORMATION

Top NGO Ranking: Paper Industry Van Houtum – Netherlands Toilet Paper

Satino Black wins WWF Paper Award

Van Houtum received the international WWF Environmental Paper Award

2012 on 13 November. We won this award because our Cradle to Cradle-

certified hygienic paper, Satino Black, scores highly in the area of

environmental performance. A total of 11 companies received the award

because they are transparent about their production process or achieve

outstanding environmental performance with a specific product. Van Houtum

is the only winner from the Netherlands.

BUILDING INDUSTRY: THE SECOND LARGEST & WASTING RESOURCES

Need for innovations in materials and processing (glues, foams etc.)

A vision for the future: Cradle to Cradle® in buildings & within facility management

e.g.: Search Field Hochtief Development Schweiz - Switzerland

DNA OF A BUILDING

(Raw Materials Bank, Value Agreement on Raw

Materials)

• Inventory of all built in raw materials and products

• Include cyclability in planning

• Assure preservation of raw material quality

• Modular construction for a good separability of

materials (planning – building – use – renovation –

decommissioning – next life in new building)

• Presentation of the economic consideration and

advantages for investors

THE ROLE OF CEMENT 2050: LOW CARBON ECONOMY

Vision for the future: Cement for the living environment and next generations

and what about:

• Flying ash with hazardous

chemicals input in new cement ?

• Lower environmental standards ?

• Phase out instead of monitoring

• Material health as priority

Policy recommendations • Develop appropriate indicators to measure resource efficiency based on

the entire life cycle so that the most environmentally and economically

optimal use of recycled C&DW can always be identified and implemented.

• Revise local building codes to encourage increased levels of recycled

content for different applications. The success of these codes would be

linked to effective systems for materials testing and certification.

• Encourage development of building techniques that will allow easy sorting

of construction and demolition waste. [1] Source: Sustainable benefits of concrete structures, European Concrete Platform

WOOD INDUSTRY: TREATING WOOD WITH CHEMICALS FOR CLOSED LOOP

CONCEPTS e.g.: Bauwerk Parquet: Wood Parquet for Generations

Parquet for Generations

Bauwerk parquet is designed to last. It should never become

a waste product or consume unnecessary or

environmentally harmful energy. Raw materials are

preserved and the resource water is treated with

consideration. Bauwerk acts in a fair and socially

responsible manner, both within the company and in public.

EPEA Switzerland is assisting Bauwerk in its implementation

of the cradle to cradle® vision and supporting the company

during the certification process by the cradle to cradle®

product innovation institute. Raw materials are analysed as

to their composition and environmental impact and traced

back to their origin. During the certification process for

Bauwerk’s new silente technology, both the suppliers and

Bauwerk’s manufacturing facilities were subjected to close

scrutiny.

EU-27 TREATMENT OF HAZARDOUS + NOTIFED WASTE

SHIPPED OUT OF EU MEMBER STATES TO OTHER EU MEMBER STATES OR

OUT OF THE EU 2001 TO 2011

Notified waste exports

+ 230% 2001 - 2011

The EU waste average

increased from 22 kg in

2007 to 29 kg in 2011.

Closing the loop of

materials and

maintaining the qualities

of resources can create

jobs in local employment

opportunities and will

save money as waste

disposal will get more

expensive in the future

The table from the report of the technical

inspectorate SENS, SWICO Recycling,

SLRS 2011 indicates the complexity of

todays system. 75% materials of

electronics and electronical goods are

reused. 50% metals, 25% plastics mostly

thermal recycled. However 25% of waste

remains and offers a potential . The

Cradle to Cradle® approach improves

the quality of the rawmaterials in the

closed loop and has the goal to eliminate

waste.

EXPORT OF E-WASTE: ELECTRONIC GOODS AS TECHNICAL NURIENT

e.g: Search Field SENS - SWITZERLAND

ELECTRONIC GOODS: TODAY‘S RESOURCES CYCLE

Collection Point

Recycler

Recycler II

Retail

Import Agent

Manufacturer

Consumer

Destruction

Materialflow

Component Suppliers

Contract Revision

Contract

Characteristics Controling

e-recycling.ch

Platform

SENS

Rawmaterial Mining

ELECTRONIC GOODS: CRADLE TO CRADLE® RESOURCES BUSINESS CASE

Collection Point

Recycler I C2C

Recycler II

Retail

Import Agent

Manufacturer

Consumer

Destruction

Materialflow

Component Suppliers

Contract Revision

Contract

Characteristics Controling

e-recycling.ch

Platform

Education

Rawmaterial Processing

SENS

Rawmaterial Mining

Design- + Processmodification

Design- + Processmodificaton

Prozessmodification

AUTOMOTIVE INDUSTRY: RECYCLING > DOWNCYCLING

e.g: Change regulations from quantity to quality, transformation of industry

FORD - MODEL U FOR CHANGE START 2003 - STOPPED 2006

CLOSING THE LOOP WITH CARBON COMPOSITES ?

• Closing the loop of Carbon

composites is downcycling

• Chemistry resolves toxic

concerns about carbon

fibres

• Solutions ?

Need of Innovation and

transformation of industry

INTEGRATING CONSUMERS INTO TAKE BACK SYSTEMS WITH DEFINED

RESOURCES QUALITY

e.g.: Business Case Office Chairs Stoll Giroflex AG, Switerland «Swiss Quality»

EDUCATION: ENABLE THE NEXT GENERATION TO TRANSFORM INDUSTRY

e.g.: Academic to include Circular Economy and Cradle to Cradle®

Cradle to Cradle® Life Cycle Assessment (LCA)

What is it?

Innovation framework, Business concept (Circular

Economy), but maintaining the quality of raw

materials

Method for measuring the environmental

impact of products over the entire lifecycle

Philosophy

It is possible to design products with a positive

impact on people, the environment and economic

profit (the three P’s)

„All“ products pollute, they all require

extraction of raw materials and there is

always some form of waste left over

Approach Eco-effectiveness: developing a product with positive

qualities. The process is part of the ultimate goal.

Eco-efficiency: doing more with less.

Improving the ratio between economic value

and environmental impact. The aim is to

measure the result, not the process

Design support

Use the 3 guiding principles to establish a clear

direction: waste = food, renewable energy, Respect

diversity

Use hot spots to set priorities for

improvements.

Environmental impact

Maximization of positive effects on people, their

environment and the future availability of high quality

raw materials.

LCA is used as a measuring instrument in

eco-design, whereby hot spots (life cycle

elements with the biggest – negative –

environmental impact) are identified so that

designers can set priorities for improvements.

Ecological footprint Develop a positive beneficial footprint. Measure the footprint and let designers

decide how to handle with it.

© EPEA Switzerland GmbH

QUESTIONS REMAIN FOR TRANSFORMING INDUSTRY TOWARDS

A CIRCULAR ECONOMY

• Is GDP the right measure in a circular economy approach?

• Change of Business Models

• Stock exchange, who will remain on DAX, Dow Jones etc?

• Impact power of legislation, e.g. reach, toxic materials, waste permissions,

industrial composting for industrial goods

• Integrate in education

• LCA scientific debate closing the loop in view of C2C

• Consumer behaviour changes > ownership and leasing, renting

• Product / Service (do not forget the products)

• Change from waste management to resource management

• Infrastructure needed to close the loop

Industry + chemical industry need to invest to close the loop

DESIGN FOR A CIRCULAR ECONOMY

MUST CONSIDER DISRUPTIVE TECHNOLOGIES

• Beyond industrial design and recycling

• Focus on real consumer needs > disruptive technologies

• Infrastructure challenges are local employment opportunities,

e.g. remanufacture, repair, reuse, take back, recycle > creating jobs

• Keep resources in Europe and invest in technology of resource processing

e.g.: reinforced plastics, electronics, fibres

• Incentive tax models for ecofriendly products

• Quick win circular economy?

The future will tell, but there is no other way out

EPEA SWITZERLAND GMBH

Seestrasse 119

CH-8806 Bäch / SZ

www.epeaswitzerland.com

Albin Kälin, CEO

kaelin@epeaswitzerland.com Mobile: +41 76 44 22 66 8

Cradle to Cradle® Products Innovation Institute:

http://c2ccertified.org

Cradle to Cradle® is a registered trademark of McDonough Braungart Design Chemistry LLC (MBDC).

Cradle to Cradle Certified™ is a certification mark licensed exclusively for the Cradle to Cradle Products Innovation Institute (C2CPII).