wo
CE Masterclass 5: Finance & Procurement
Closing the Loop 2013 Daan Dijk Rabobank
• How does the CE affect Financing ?
• How does it change procurement? • Example cases
The closer the economy approaches the scale of the Planet the more it will have to conform to the physical behavior mode of the Planet i.e become Circular
Our House
3 3
The Changing Investment Climate
Days of abundant resources and falling prices are over
Future success will depend on: Efficient resource use ( raw materials, energy,
water) Preservation of biodiversity ( natural asset base) Circular Business models
This will affect capital allocation and equity pricing
4
Circular business models please!
Old interpretation of the circular economy
Hard Nosed Sustainability metrics
Resource efficiency stress test integral part of risk assessment
• In 2007 Rabobank started to assess the Resource Footprint of its entire Loan and investment Book
• 2009 saw comparative resource productivity pilots with large corporates and F&A clients in NL and Brasil
• 2013 development of broader dashboard to monitor sustainable development of our clients
Corporate
Risk foto
Pagina 6
Example: Large Corporate
Pagina 6
Profitable business under BAU scenario
But high resource footprint and bill are a liability Growth investments always win in terms of ROI
New perspective: Balancing Growth and Resilience Structured approach to financing resource efficiency
Rabobank helped to balance Growth and Resilience
From Asset to Performance financing
What is better ? 1000 trucks with a 10 year life time 1000 trucks with a 20 year life time
7 Production as a maintenance cost
The Emerging Performance Economy: the trailer life cycle case
8 From take, make & waste to 2nd life and full reuse of materials
Future Business Models must adress…
9
Resource Scarcity Changing Legislation Consumer Values
Drivers: cost, licence to operate, brand protection, capital attraction
CE: Optimising Energy & Material Throughput
driver of corporate innovation and profitablity
Extracted Non-Renewable Resources Renewable Resources
Upcycling in the Waste Market
EU waste market 2700 MT – Only 40% is recycled
NL waste market 60Mton, – 84% (50MT) recycling, 8MT energy recovery &
composting, 2MT landfill
– Decoupling of GDP & waste volume (-2%)
Turnover 12-13 bn EUR/a, (EUR 200/ton)
– 55% in wholesale of secundary materials .
– 45% waste collection (EUR 2 bn), preparaton for recycling (EUR 1,5 bn) and waste treatment (EUR 2 bn).
11 Waste to Value strategy clearly pays off
Circular Economy Innovator
Water free and clean Dyeing of Textiles with Liquid CO2
13
Cradle to Cradle Carpets Cradle
CEO Stef Kranendijk : ‘With Cradle to Cradle, DESSO is in it for the long haul”.
Treading new grounds
The Scelta case
14
• From small family business to global
player in mushroom products
• Leader in cost reduction , innovation
and customer service
• Resource efficient : residues to
neutraceuticals and cosmetics
Scelta : From healthy snacks to neutraceuticals
Nijhuis Water: from Effluent to Nutrient
15
• Global player in the Food-Water-Energy
nexus
• Waste Water treatment Projects
• Waste-to-Value projects
• Enabling aquafarming
• Industrial waste water , agri waste
water
(Agri-) Waste is a source of revenues
Food & Agri Industry
Chemical industry
Bioneering: the new innovation wave
Agri and Chemical sector co-operate in Food, Feed and Functionals
Brand management
17 PlantBottle collaborative Coca Cola, Ford, Heinz, P&G, Nike
“Over the long term, we beleive the cost of material made from plants is more stable than the cost of petroleum”
18
$700 bn Resource efficiency Benefits in 2030 ( Mc Kinsey 2012) Local energy production initiatives EV to Grid and to Homes
Smart City Planning
Rotterdam wilhelminapier
More and more Communities are taking energy production into their own hands
19
The future is in our hands
A renewable energy and material resource base for the
economy
Transition to a Circular economy
Co-operation in the value chain
Resources are finite, Human ingenuity and solar energy are infinite
Top Related