Circular Economy Business Sustainability and ESG Blended Intensive Programme 22.04.2025 Pavel Adámek, Ing., Ph.D. adámek@opf.slu.cz Department of Business Economics and Management Corporate Social Responsibility Specialist Guarantor of the master's course Corporate Social Responsibility Content 1. Meaning and Introduction of Circular Economy 1. 2. European Approach 3. Circular Economy Action Plan 4. Stories for grab (best practice) 1. 1. • • • • • Source: (2025), https://thecsrarena.com/how-much-do-you-know-about-the-concept-of-circular-economy/" Lecture overview •So, what does the circular economy really mean? •What are the principles of the circular economy? •Why should every company be interested in it? •Are there any examples of good practice in implementing circular economy principles? • •We will be looking for answers to these issues. The „stories for grab“ will help you to understand the practical implications. • • • • • • • • Lecture overview • • • • • • • • Because… Why should we be interested in circular principles? Because… Why should we be interested in circular principles? The circular economy is based on three principles, driven by design: 1.Eliminate waste and pollution 2. 2.Circulate products and materials (at their highest value) 3. 3.Regenerate nature 1. Meaning and Introduction of Circular Economy •The circular economy is a system where materials never become waste and nature is regenerated. • •In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. • •The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources. Source: https://www.europarl.europa.eu/topics/en/article/20151201STO05603/circular-economy-definition-impor tance-and-benefits 1. Principle – Eliminate waste and pollution Source: 2025, https://www.ellenmacarthurfoundation.org/eliminate-waste-and-pollution 2. Principle – Circulate products and materials Source: 2025, https://www.ellenmacarthurfoundation.org/eliminate-waste-and-pollution 2. Principle – Circulate products and materials Source: 2025, https://www.europarl.europa.eu/topics/en/article/20151201STO05603/circular-economy-definition-impor tance-and-benefits https://grow-circular.eu/wp-content/uploads/2021/05/Logotip-Primarni-900px.png 2. Principle – Circulate products and materials Source: 2025, https://www.europarl.europa.eu/topics/en/article/20151201STO05603/circular-economy-definition-impor tance-and-benefits Butterfly diagram – Ellen MacArthur Foundation, Source: https://www.ellenmacarthurfoundation.org/circulate-products-and-materials 3. Principle – Regenerate nature Source: 2025, https://www.ellenmacarthurfoundation.org/eliminate-waste-and-pollution Circular Economy - summarization 1.Circular supply models, which replace traditional material inputs derived from virgin resources with bio-based, renewable, or recovered materials. 2.Resource recovery models, which recycle waste and scrap into secondary raw materials, diverting waste from Circular supply Resource recovery final disposal while displacing demand for extraction and processing of virgin natural resources. 3.Product life extension models, such as repair and remanufacturing, which extend the use period of existing products, slow the flow of constituent materials through the economy, and reduce the rate of resource extraction and waste generation. 4.Sharing models, which facilitate the sharing of under-utilised products, and reduce demand for new products. 5.Product service system models, where services rather than products are marketed, improving incentives for green product design and more efficient product use. • • • • Source: 2022, INCIEN, The Role of the Circular Economy in Decarbonisation of Industry, https://incien.org/en/think-tank/ Circular Economy - summarization Source: 2022, INCIEN, The Role of the Circular Economy in Decarbonisation of Industry, https://incien.org/en/think-tank/ 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. 2. European aproach to circularity • 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. 2. European aproach to circularity • European Green Deal Source: 2025, https://www.consilium.europa.eu/en/policies/european-green-deal/timeline-european-green-deal-and-fi t-for-55/ •Europe’s future depends on a healthy planet. •Our current economic and consumption patterns do not match what the planet can offer and are detrimental to the environment and nature. We and our economy are fully dependent on a functioning environment and ecosystems. •While the green transition will have a high cost as it requires large investment in transforming our economic model, the cost of inaction will be much greater. Estimates say that if we do nothing to tackle climate change, by the end of the century global damages could amount to up to 12% of the GDP. • • • • Why we need the Green Deal Source: 2025, https://www.consilium.europa.eu/en/policies/european-green-deal/#what • • • Key goals of the Green Deal Source: 2025, https://www.consilium.europa.eu/en/policies/european-green-deal/#what Benefits: why do we need to switch to a circular economy? Source: 2025, https://www.europarl.europa.eu/topics/en/article/20180301STO98928/greenhouse-gas-emissions-by-count ry-and-sector-infographic Benefits: why do we need to switch to a circular economy? Source: 2025, https://www.worldometers.info/world-population/#top20 Benefits: why do we need to switch to a circular economy? Source: 2025, https://www.worldometers.info/world-population/#top20 Source: 2025, https://fastercapital.com/startup-topic/Benefits-of-Circular-Economy.html What is the EU doing to become a circular economy? Answer for the question could be found in 4 milestones… 3. Circular Economy Action Plan • 1.2020, 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. 2.2021, 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. 3.2022, 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. 4.2022, 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. • • • • Source: 2025, https://www.europarl.europa.eu/topics/en/article/20210128STO96607/how-the-eu-wants-to-achieve-a-cir cular-economy-by-2050 Circular Economy Action Plan - For a cleaner and more competitive Europe [USEMAP] [USEMAP] For downloading in your Language: https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN •Circular economy action plan • •Designing sustainable products – Ecodesign (environmental requirements, digital product passport, prohibit the cestruction on certain unsold consumer goods (textiles and footwear). „Right to repair“ policy. • •Empowering consumers •have access to reliable information to make the right green choices •be better protected against unfair green claims •be better informed about the repairability of products before purchase •Green Claims directive (rules address greenwashing) • •Targeting key sectors •Electronics and ICT, batteries and waste batteries, packaging, •Plastics, textiles •Reducing waste • • • • Circular Economy – European Action Source: 2025, https://www.consilium.europa.eu/en/policies/circular-economy/ Source: 2025, https://www.consilium.europa.eu/en/policies/ecodesign-requirements-for-more-sustainable-products/ • The European Institute of Technology and Innovation (EIT) Use the link for European Institute of Technology and Innovation (for additional information). https://www.eit.europa.eu/ Use the link for European Institute of Technology and Innovation (for additional information). Showcasing examples of best practices in the circular economy is essential for several reasons: 4. Stories for grab • 1.Inspiration and Motivation Real-world examples demonstrate that circular principles are not just theoretical—they work in practice. This inspires others, especially businesses, to adopt similar models. 2.Proof of Concept Companies built on circular principles serve as living proof that such models can be economically viable, competitive, and scalable. 3.Knowledge Sharing Best practices highlight specific strategies, technologies, and business models that can be adapted and replicated in other contexts, accelerating the transition to a more sustainable economy. 4.Building Trust and Legitimacy Showcasing successful companies builds credibility and helps overcome skepticism among stakeholders, including investors, customers, and policymakers. 5.Encouraging Innovation Highlighting successful circular businesses encourages others to innovate and experiment with new ways of creating value without waste. 6.Policy and Education Impact Best practices inform policy development and serve as valuable teaching tools in education and professional training. • • • • • 4. 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. Source: https://kheoos.com/en/reuse-your-industrial-maintenance-spare-parts/ 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. Source: https://longtimelabel.com/en/ 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. Source: https://www.niaga.world/en 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. • • Source: https://www.winnowsolutions.com/ 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. • Source: https://dyecoo.com/ 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 •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. 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 •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. Source: https://www.lehightechnologies.com/the-company/what-we-do • 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 Use the infographic and try to draw it! • • • • • • Key Takeaways • •Waste = Food: The concept of circular economy is based on the idea of zero waste. This principle requires continuous cycling and recycling of materials and products rather than discarding them as waste. This principle aligns with nature’s course wherein one species’ waste is another species’ food. • •Resilience through diversity: CE demands that the production and consumption systems should leverage on the biodiversity in the ecosystem and the diversity in the human economic space (in terms of resources) to reboot the system at all times such that inputs for the production process are sourced from the supply chain. This ensures resources continue to flow continuously within the circle, as opposed to the linear approach. • •Energy from Renewable Resources: CE requires that energy be sourced from renewable sources; it emphasizes Solar energy, wind power and tidal power as against the popular use of oil and gas. This is not unconnected with the natural system wherein plants generate their food through sunlight. • •Think in Systems: A central message of CE is the need to work as inter-connected systems rather than stand-alone units. CE works better with different groups working together to create effective flows of materials and information to keep the circle unbroken. As a result of this principle, global success of the CE concept thrives on collaborations and partnership. • Key Takeaways • Thank you… Name: Pavel Adámek, Ph.D. Corporate Social Responsibility Specialist Guarantor of the master's course CSR E-mail address: adamek@opf.slu.cz