Road to circularity… Pavel Adámek, Ph.D. Corporate Social Responsibility Specialist Guarantor of the master's course CSR Lecture description and its focus This topic introduces you to the approaches underpinning the circular economy at European and national level, and provides a basic definition of circularity. So, what does the circular economy really mean? What are the principles of the circular economy? Why should every company be interested in it? And not just businesses... We will be looking for answers to these issues. The „stories for grab“ will help you to better understand the practical implications. • • • • • • • • Global environmental problems…several examples…that our world is facing today… •Climate Change •Soil Degradation •Global Warming •Overpopulation •Natural Resource Depletion •Microplastic Pollution •Ambient (outdoor) Air Pollution •Generating Unsustainable Waste (The impact of textile production and waste on the environment) • and more… • • • • • • • • • • Outline of the lecture • Circular economy – Definition, Importance, Benefits • • European Approach, Circular Economy Action Plan • •Stories for grabs • • • • • • • CIRCULAR ECONOMY? The EU’s transition to a circular economy will reduce pressure on natural resources and will create sustainable growth and jobs. It is also a prerequisite to achieve the EU’s 2050 climate neutrality target and to halt biodiversity loss. On 11 December 2019, the European Commission announced the European Green Deal to transform the European Union into the first climate neutral continent by 2050. The European Green Deal – A commitment to future generations CIRCULAR ECONOMY Definition… • Importance… • Benefits… The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby creating further value. In practice reducing waste to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby creating further value. CIRCULAR ECONOMY Definition… • Importance… • Benefits… •To protect the environment –Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit biodiversity loss. – –A reduction in total annual greenhouse gas emissions. Industrial processes and product use are Responsible for 9 % of greenhouse gas emissions in EU. – –Packaging is a growing issue and, on average, the average European generates nearly 180 kilos of packaging waste per year. • CIRCULAR ECONOMY Definition… • Importance… • Benefits… It is estimated that more than 80% of a product's environmental impact is determined during the design phase. The aim is to tackle excessive packaging and improve its design to promote reuse and recycling. •Reduce raw material dependence –The world's population is growing and with it the demand for raw materials. However, the supply of crucial raw materials is limited. – –Finite supplies also means some EU countries are dependent on other countries for their raw materials. According to Eurostat, the EU imports about half of the raw materials it consumes. – –This especially applies to critical raw materials, needed for the production of technologies that are crucial for achieving climate goals, such as batteries and electric engines. • • • • CIRCULAR ECONOMY Definition… • Importance… • Benefits… The total value of trade (import plus exports) of raw materials between the EU and the rest of the world has almost tripled since 2002, with exports growing faster than imports. Regardless, the EU still imports more than it exports. In 2021, this resulted in a trade deficit of €35.5 billion. •Create jobs and save consumers money – –Moving towards a more circular economy could increase competitiveness, stimulate innovation, boost economic growth and create jobs (700,000 jobs in the EU alone by 2030). – –Redesigning materials and products for circular use would also boost innovation across different sectors of the economy. –Consumers will be provided with more durable and innovative products that will increase the quality of life and save them money in the long term. CIRCULAR ECONOMY Definition… • Importance… • Benefits… • What is the EU doing to become a circular economy? Answer for the question could be found in 4 milestones… •2020, the European Commission presented the circular economy action plan, which aims to promote more sustainable product design, reduce waste and empower consumers, for example by creating a right to repair. There is a focus on resource intensive sectors, such as electronics and ICT, plastics, textiles and construction. • •2021, the Parliament adopted a resolution on the new circular economy action plan demanding additional measures to achieve a carbon-neutral, environmentally sustainable, toxic-free and fully circular economy by 2050, including tighter recycling rules and binding targets for materials use and consumption by 2030. • • • • • What is the EU doing to become a circular economy? • •2022, the Commission released the first package of measures to speed up the transition towards a circular economy, as part of the circular economy action plan. –The proposals include boosting sustainable products, empowering consumers for the green transition, reviewing construction product regulation, and creating a strategy on sustainable textiles. •2022, the Commission proposed new EU-wide rules on packaging. –It aims to reduce packaging waste and improve packaging design, with for example clear labelling to promote reuse and recycling; and calls for a transition to bio-based, biodegradable and compostable plastics. • • • • Circular Economy Action Plan - For a cleaner and more competitive Europe [USEMAP] [USEMAP] • What is the EU doing to become a circular economy? The European Institute of Technology and Innovation (EIT) brings together EIT Climate-KIC, EIT Food, EIT Manufacturing, EIT RawMaterials and EIT Urban Mobility to develop a multifaceted approach to furthering the field of Circular Economy and supporting the European Commission to achieve its Circular Economy Action Plan. • • • [USEMAP] [USEMAP] Use the link for European Institute of Technology and Innovation (for additional information). • Storries for grabs – start-ups awarded from European Institute of Technology •kheoos is the B-to-B market place for industrial maintenance parts, favouring the connection between manufacturers, distributors, brokers and industrialists. • •kheoos is the community platform that allows manufacturers managing maintenance parts to automatically build their customized catalogue and benefit from advanced services to lower their inventory levels, reduce their risk of breakage, find rare pieces and resell their dormant stock. T • Storries for grabs – start-ups awarded from European Institute of Technology •ethikis, a social enterprise promoting ethical consumption and use, was awarded the prize for their LONGTIME® product label. This label, a certified stamp of approval, informs consumers that the product is durable and long-lasting. This aims to guide consumers towards more informed and responsible decision making when buying products. T • Storries for grabs – start-ups awarded from European Institute of Technology •Niaga’s solution is a scannable tag for products like mattresses and carpets that enables consumers to see exactly what they are made of and, crucially, how to recycle them. In this way, the Niaga® tag helps to keep valuable materials in the loop for future generations and significantly reduce waste. T • Storries for grabs – start-ups awarded from European Institute of Technology An Alpine mission to decarbonise construction •Technicians and scientists witnessing the effects of climate change in the Alpine region came together to form the start-up ParaStruct. Their mission is to decarbonise the construction industry and reduce resource inefficiencies with an advanced 3D power-printing technology that enables the recycling of construction waste into high-quality materials for re-use. • Storries for grabs • • • •British start-up Winnow has developed smart meters that analyse trash. They are used in commercial kitchens to measure what food gets thrown away, and then identify ways to reduce waste. –Up to a fifth of food purchased can be wasted in some kitchens, and Winnow has managed to cut that in half in hundreds of kitchens across 40 countries, saving its customers over $25 million each year in the process. That is the equivalent of preventing one meal from going to waste every seven seconds. This innovation earned Winnow the Circular Economy Tech Disruptor Award. • • Play video on Winnow website. • Storries for grabs •DyeCoo, based in Weesp, the Netherlands. Company has developed a process of dyeing cloth that uses no water at all, and no chemicals other than the dyes themselves. It uses highly pressurised “supercritical” carbon dioxide, halfway between a liquid and a gas, that dissolves the dye and carries it deep into the fabric. • –The carbon dioxide then evaporates, and is in turn recycled and used again. 98% of the dye is absorbed by the cloth, giving vibrant colours. And because the cloth doesn’t need to dry, the process takes half the time, uses less energy, and even costs less. The company already has partnerships with major brands like Nike and IKEA. • The textiles industry uses vast quantities of water and chemicals and produces huge amounts of toxic waste, which is a major problem in countries like China, India, Bangladesh, Vietnam and Thailand. But Dutch company DyeCoo has developed a process of dyeing cloth that uses no water at all, and no chemicals other than the dyes themselves. • Storries for grabs • Storries for grabs • Source: https://www.ab-inbev.com/sustainability/ [USEMAP] See www pages with examples Sustainability Goals • Storries for grabs • Source: https://www.ab-inbev.com/sustainability/ • Storries for grabs •Essity is a global leader in sustainable solutions for hygiene and health, dedicated to improving well-being through products and services, essential for everyday life. Sustainability is an integral part of their business focusing on value creation for people, nature and society, critical to success and profitability. • •They engage customer channels through our brands using three sustainability platforms: –Well-being – More from less – Circularity – –At least 1/3 of all their innovations should improve society or the environment each year. Materials and energy will be recovered from all waste from all production sites by 2030. In 2017, 62% of all production waste was recovered in materials or energy. All these achievements contribute to a lower environmental footprint for their products. Watch a video and website for additional information in sustainability, circularity. • Storries for grabs •This Australian company has spent more than a decade recovering value from old printer cartridges and soft plastics. Their new innovation turns these materials into roads. • •The products are mixed in with asphalt and recycled glass to produce a higher-quality road surface that lasts up to 65% longer than traditional asphalt. • •In every kilometre of road laid, the equivalent of 530,000 plastic bags, 168,000 glass bottles and the waste toner from 12,500 printer cartridges is used in the mix. • •So instead of ending up in landfill, all that waste is given a new life, getting us where we need to go. • Storries for grabs •Canadian firm Enerkem is the first company in the world to produce renewable methanol and ethanol from non-recyclable, non-compostable municipal solid waste at full commercial scale. • •Technology extracts the carbon from trash that can’t be recycled. It then takes five minutes to turn the carbon into a gas that can be used to make biofuels like methanol and ethanol, as well as chemicals which can be used in thousands of everyday products. The city of Edmonton, for example, now reuses 90% of its waste, saving more than 100,000 metric tons of landfill every year. • Storries for grabs •French-based Schneider Electric, which specialises in energy management and automation, won the Award for the Circular Economy Multinational. • •Employing 142,000 people in more than 100 countries, it uses recycled content and recyclable materials in its products, prolongs product lifespan through leasing and pay-per-use, and has introduced take-back schemes into its supply chain. • •Circular activities now account for 12% of its revenues, and will save 100,000 metric tons of primary resources from 2018-2020. • Storries for grabs This Atlanta firm turns old tyres and other rubber waste into something called micronized rubber powder, which can then be used in a wide variety of applications from tyres to plastics, asphalt and construction material. Five hundred million new tyres have been made using its products, earning it the Award for Circular Economy SME. • Storries for grabs For the founder of Miniwiz, Arthur Huang, there is no such thing as trash. He is for upcycling - turning old materials into something new. As he admits, this isn’t a new idea - until the 20th century reusing whatever was lying around was the norm. But he is taking this principle to new levels, with the scientists and engineers in his Miniwiz Trash Lab inventing over 1,000 new sustainable materials and applications. The Trashpresso machine is the ultimate expression of sustainable upcycling. It is a mobile upcycling plant that can be transported in two shipping containers to its customers. Once there, it turns 50kg of plastic bottles an hour into a low-cost building material, using no water, and only solar power. • Storries for grabs Thousand Fell is already making a name for itself as an environmentally-conscious manufacturer with shoes made from sustainable materials such as coconut husk and sugar cane, and even recycled plastic bottles, Now, in partnership with TerraCycle and UPS, the maker has launched a special recycling incentive. Customers can return old pairs of Thousand Fell shoes back to the manufacturer. Thousand Fell will then recycle the returned footwear and send customers $20 that can be used toward a new pair of shoes. • Storries for grabs Czech company NILMORE _returning clothes for recycling Do you no longer want our clothes? Is it worn or did it just go out of fashion? You can return it to us through our network of Nilmore® Circular Points. For each returned piece you will receive a 100 CZK discount, which you can use for the next purchase! If you have purchased a product from one of our partners • Impact on business concepts in new forms of business models •Circular Business models (ELLEN MACARTHUR FOUNDATION) •10 Circular Business Model Examples (Circular value chains through data / Circular product design / Use, reuse, share, and repair ) • •10 Examples of Circular Economy Solutions (Industrial symbiosis / The Danish deposit and return systém for recycling cans and bottles / Denmark´s first circular soucial housing project / Recycling of artificial turf / Closed loop in reuse packaging-as-service / Re-using old bricks to build a greener future) • •Circulars Awards Program • • • • • • Explore publication… • https://stateofgreen.com/en/wp-content/uploads/2018/07/Forside.png Experiences from Denmark and New York on closing the loop through partnerships and circular business models [USEMAP] How business models can accelerate the transition to a circular economy [USEMAP] A circular economy as an opportunity for successful innovations of Czech firms Explore … • European Parliament/News/Priorities/Circular economy Circular economy and waste reduction Moving towards a resource-efficient society Find out what the European Parliament is doing to ensure our resources are managed in a more sustainable way. https://www.europarl.europa.eu/news/en/headlines/priorities/circular-economy What are you taking away from today's module? • • • • • • • Use the infographic and try to draw it! Show it J • • • • • Thank you… Pavel Adámek, Ph.D. Corporate Social Responsibility Specialist Guarantor of the master's course CSR E-mail address: adamek@opf.slu.cz