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Thriving in the Circular Economy
Product Design and Business Practices for “Circular Tech” and Other Industries
Pamela J. Gordon, Senior Consultant, Antea Group
Author of Lean and Green: Profit for Your Workplace and the Environment
Our Journey Together
 ENABLERS & BARRIERS to thriving
in the Circular Economy
 FACILITATE DIALOGUE with product
designers, suppliers, and customers
 CIRCULAR ECONOMY EXPECTATIONS emerging globally
 GAIN EXECUTIVE SUPPORT in making this critical and
comprehensive change
Circular Maturity
Curve
First Poll
Our Journey Together
 ENABLERS & BARRIERS to thriving
in the Circular Economy
 FACILITATE DIALOGUE with product
designers, suppliers, and customers
 CIRCULAR ECONOMY EXPECTATIONS emerging globally
 GAIN EXECUTIVE SUPPORT in making this critical and
comprehensive change
From the Linear Economy…
The electronics in
front of you
Story Box
The Circular Economy
Source: Ellen MacArthur Foundation
Supply-chain risks
Global expectations
Product costs
Denial about shortages
Resistance to change
Insufficient executive drive
Enablers & Barriers
to Thriving in the Circular Economy
People
ProfitPlanet
Enablers
Barriers
Circular “Value”
1. Move away from
‘selling’ products.
2. Offer customers 'a
better way to get
what I need.'
3. Offer more
capability with existing
assets.
4. Specify non-toxic
materials as feedstock.
Ken Webster,
Feb. 17, 2016
Ellen MacArthur
Foundation
-------------------------------------------------------EXAMPLES------------------------------------------------------
©By ProhibitOnions at English Wikipedia
CircularEconomy
Asset Mgt/
Maintain
Refurbish/
remanufacture
Recycle
Reuse/
redistribute
Linear |
Mining/
materials
manufacturing
Collection
Materials/
parts manufacturer
Product Mfr./
construction
Retail/ service
provider
Energy Recovery
Landfill
User
The value in front
of you
Story Box
Our Journey Together
 ENABLERS & BARRIERS to thriving
in the Circular Economy
 FACILITATE DIALOGUE with product
designers, suppliers, and customers
 CIRCULAR ECONOMY EXPECTATIONS emerging globally
 GAIN EXECUTIVE SUPPORT in making this critical and
comprehensive change
Prevent waste, delay recycling,
and dramatically reduce carbon
emissions starting at product
concept
Leverage your current role –
metrics for waste reduction,
recycling, carbon footprints, etc. –
to…
Getting a Seat at the Circular Table
Draw a larger
circle
Story Box
From Product Design to Value Design
Design Your
Products for the
Circular Economy
Apply the Circular
Economy to Your
Company
Align Your
Suppliers to Your
Circular Strategy
Competitive Advantage Supply Chain SupportRevenue Growth
Photo by
Michael
Kirschner
Antea Group
Design for
Circularity
Workshop,
Nov. 2016
More Key Influencers
CEO CFO
VP Operations VP HR
VP R&D VP Supply Chain
Product Launch Marketing
Your Titles
EHS Engineer Sustainability Leader
CSO Product Stewardship
Technical Leader, Global Environment
Corporate Environmental Compliance
Paths to Enter and Widen the Circle
Sustainability Teams
Earth Day
Executive Sponsor
A Regional Team
Thought Leaders
Industry Groups
- Ellen MacArthur Foundation
- NAEM - EICC - Pilots
- EICC - iNEMI - Others
Enter & Widen the Circle of Influence
Challenging to get
onboard
Second
Poll
Internal
Our Journey Together
 ENABLERS & BARRIERS to thriving
in the Circular Economy
 FACILITATE DIALOGUE with product
designers, suppliers, and customers
 CIRCULAR ECONOMY EXPECTATIONS emerging globally
 GAIN EXECUTIVE SUPPORT in making this critical and
comprehensive change
Supply
Interruption
Brand Exposure
Customer
Disloyalty
Regulatory
Risks
The Linear Economy’s Business Issues
Ferrous Metals
Precious Metals
Meet that
Revenue Goal
Story Box
Circular Economy Package
Circular Economy Strategy (December 2015)
EC adopted a “Circular Economy Package” that
includes revised legislative proposals on waste.
More then 50 key actions included
Progress report: 5 years after adoption
EUROPEAN COMMISSION LEGISLATIVE OVERVIEW
1
3
4
2
Stimulate EU
transition to a
circular
economy
Boost global
competitivenessFoster
sustainable
economic
growth
Generate
new jobs
Purpose
Package Targets
EUROPEAN COMMISSION LEGISLATIVE OVERVIEW
Recycling 65% of municipal waste by 2030
Recycling 75% of packaging waste by 2030
Reduce landfill to maximum of 10% of all waste by 2030
A ban on landfilling of separately collected waste
Promotion of economic instruments to discourage
landfilling
Clearer definitions and consistent calculation methods
across the EU for recycling rates
Measures to promote re-use and stimulate industrial
symbiosis (“waste = food” concept)
Economic incentives for Producers to put greener
products on the market and support recovery and
recycling schemes
Waste Reduction Targets from Revised Proposals
Proposed Directives on Waste
EUROPEAN COMMISSION LEGISLATIVE OVERVIEW
Waste
Packaging &
Packaging
Waste
The Landfill
of Waste
Electrical and
Electronic
equipment
End-of-life
Vehicles
Batteries and
accumulators
Remade, funded by USA D.O.E.
Reducing Embodied-Energy and Decreasing
Emissions Institute
 $140 million (public & private funds)
 Finding new & less expensive ways to reuse,
recycle, & remanufacture materials
 Metals, fibers, polymers, e-waste
 Aim: achieve a 50% improvement in overall
energy efficiency in U.S. manufacturing by
2027
Led by Rochester Institute of Technology’s Golisano Institute for Sustainability.
Research and expertise contributed by:
- 26 universities - 44 companies (including Antea Group)
- 7 national labs - 26 trade associations
Our Journey Together
 ENABLERS & BARRIERS to thriving
in the Circular Economy
 FACILITATE DIALOGUE with product
designers, suppliers, and customers
 CIRCULAR ECONOMY EXPECTATIONS emerging globally
 GAIN EXECUTIVE SUPPORT in making this critical and
comprehensive change
Anticipate Objections
Challenges are easier to meet with
executive commitment to profitable Circular solutions.
“The recycling
stream is
contaminated.”
“Finite materials? We
have a steady stream of
supply.”
“My customers hesitate to
enter into long-term
leases.”
“We’ll wait until
forced by
regulations.”
Executives Recognize these Drivers
4. Supply Chain
Disruptions
6. Regulatory
Risks
1. Customer
Loyalty
2. Brand
Advantage
3. Product
Reliability
5. Cost of
Goods Sold
and how they increase shareholder value
When the CEO is
ready
Story Box
Change the Questions
Questions to Pose at Executive Meetings
Instead of Asking… Ask Instead…
How shall we improve our next-
generation product?
How can we deliver greater customer benefit with
few to no physical resources and minimal cost?
How can we sell more? How can we maximize revenues through leasing?
How can we get more from our
supply-chain, cheaper?
How can we leverage the products/materials our
customers’ already access, and add value locally?
How can we tightly control the
materials we buy?
How can we tightly control our products’ raw
materials forever?
How can we beat our competitors
this quarter?
How can we be first to offer circular solutions for
greatest profit, responsibility, and brand value?
Designing in circularity
Keeping materials in the economy
Detecting & plugging leaks into the natural environment
Preventing material from escaping collection systems
Upcycling
Achieving not only efficiency, but also effectiveness
Increasing revenue and profit through Circular models
“We need multidisciplinary teams… If we want to
succeed, then we need to broaden collaboration.”
–Katia Hansen
Reward Teams for…
B E T T E R B U S I N E S S , B E T T E R WO R L D℠
Antea Group Offices
USA Headquarters
5910 Rice Creek Parkway, Suite 100
St. Paul, MN 55126, USA
USA Toll Free: +1 800 477 7411
International: +1 651 639 9443
Belgium
Rodeveldlaan 1
2600 Antwerpen
Colombia
Calle 35 No. 7-25, Piso 12
Bogota, DC
France
29 avenue Aristide Briand - CS 10006
94117 Arcueil Cedex
Netherlands
Monitorweg 29
1322 BK Almere
www.anteagroup.com
Thank You!
Pamela J. Gordon
Senior Consultant, Antea Group
Author of Lean and Green: Profit
for Your Workplace and the
Environment
Pamela.Gordon@AnteaGroup.com
Silicon Valley, +1-510-406-9460

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Thriving in the Circular Economy: Product Design and Business Practices for “Circular Tech” and Other Industries

  • 1. Thriving in the Circular Economy Product Design and Business Practices for “Circular Tech” and Other Industries Pamela J. Gordon, Senior Consultant, Antea Group Author of Lean and Green: Profit for Your Workplace and the Environment
  • 2. Our Journey Together  ENABLERS & BARRIERS to thriving in the Circular Economy  FACILITATE DIALOGUE with product designers, suppliers, and customers  CIRCULAR ECONOMY EXPECTATIONS emerging globally  GAIN EXECUTIVE SUPPORT in making this critical and comprehensive change Circular Maturity Curve First Poll
  • 3. Our Journey Together  ENABLERS & BARRIERS to thriving in the Circular Economy  FACILITATE DIALOGUE with product designers, suppliers, and customers  CIRCULAR ECONOMY EXPECTATIONS emerging globally  GAIN EXECUTIVE SUPPORT in making this critical and comprehensive change
  • 4. From the Linear Economy… The electronics in front of you Story Box
  • 5. The Circular Economy Source: Ellen MacArthur Foundation
  • 6. Supply-chain risks Global expectations Product costs Denial about shortages Resistance to change Insufficient executive drive Enablers & Barriers to Thriving in the Circular Economy People ProfitPlanet Enablers Barriers
  • 7. Circular “Value” 1. Move away from ‘selling’ products. 2. Offer customers 'a better way to get what I need.' 3. Offer more capability with existing assets. 4. Specify non-toxic materials as feedstock. Ken Webster, Feb. 17, 2016 Ellen MacArthur Foundation -------------------------------------------------------EXAMPLES------------------------------------------------------ ©By ProhibitOnions at English Wikipedia
  • 8. CircularEconomy Asset Mgt/ Maintain Refurbish/ remanufacture Recycle Reuse/ redistribute Linear | Mining/ materials manufacturing Collection Materials/ parts manufacturer Product Mfr./ construction Retail/ service provider Energy Recovery Landfill User The value in front of you Story Box
  • 9. Our Journey Together  ENABLERS & BARRIERS to thriving in the Circular Economy  FACILITATE DIALOGUE with product designers, suppliers, and customers  CIRCULAR ECONOMY EXPECTATIONS emerging globally  GAIN EXECUTIVE SUPPORT in making this critical and comprehensive change
  • 10. Prevent waste, delay recycling, and dramatically reduce carbon emissions starting at product concept Leverage your current role – metrics for waste reduction, recycling, carbon footprints, etc. – to… Getting a Seat at the Circular Table Draw a larger circle Story Box
  • 11. From Product Design to Value Design Design Your Products for the Circular Economy Apply the Circular Economy to Your Company Align Your Suppliers to Your Circular Strategy Competitive Advantage Supply Chain SupportRevenue Growth Photo by Michael Kirschner Antea Group Design for Circularity Workshop, Nov. 2016
  • 12. More Key Influencers CEO CFO VP Operations VP HR VP R&D VP Supply Chain Product Launch Marketing Your Titles EHS Engineer Sustainability Leader CSO Product Stewardship Technical Leader, Global Environment Corporate Environmental Compliance Paths to Enter and Widen the Circle Sustainability Teams Earth Day Executive Sponsor A Regional Team Thought Leaders Industry Groups - Ellen MacArthur Foundation - NAEM - EICC - Pilots - EICC - iNEMI - Others Enter & Widen the Circle of Influence Challenging to get onboard Second Poll Internal
  • 13. Our Journey Together  ENABLERS & BARRIERS to thriving in the Circular Economy  FACILITATE DIALOGUE with product designers, suppliers, and customers  CIRCULAR ECONOMY EXPECTATIONS emerging globally  GAIN EXECUTIVE SUPPORT in making this critical and comprehensive change
  • 14. Supply Interruption Brand Exposure Customer Disloyalty Regulatory Risks The Linear Economy’s Business Issues Ferrous Metals Precious Metals Meet that Revenue Goal Story Box
  • 15. Circular Economy Package Circular Economy Strategy (December 2015) EC adopted a “Circular Economy Package” that includes revised legislative proposals on waste. More then 50 key actions included Progress report: 5 years after adoption EUROPEAN COMMISSION LEGISLATIVE OVERVIEW 1 3 4 2 Stimulate EU transition to a circular economy Boost global competitivenessFoster sustainable economic growth Generate new jobs Purpose
  • 16. Package Targets EUROPEAN COMMISSION LEGISLATIVE OVERVIEW Recycling 65% of municipal waste by 2030 Recycling 75% of packaging waste by 2030 Reduce landfill to maximum of 10% of all waste by 2030 A ban on landfilling of separately collected waste Promotion of economic instruments to discourage landfilling Clearer definitions and consistent calculation methods across the EU for recycling rates Measures to promote re-use and stimulate industrial symbiosis (“waste = food” concept) Economic incentives for Producers to put greener products on the market and support recovery and recycling schemes Waste Reduction Targets from Revised Proposals
  • 17. Proposed Directives on Waste EUROPEAN COMMISSION LEGISLATIVE OVERVIEW Waste Packaging & Packaging Waste The Landfill of Waste Electrical and Electronic equipment End-of-life Vehicles Batteries and accumulators
  • 18. Remade, funded by USA D.O.E. Reducing Embodied-Energy and Decreasing Emissions Institute  $140 million (public & private funds)  Finding new & less expensive ways to reuse, recycle, & remanufacture materials  Metals, fibers, polymers, e-waste  Aim: achieve a 50% improvement in overall energy efficiency in U.S. manufacturing by 2027 Led by Rochester Institute of Technology’s Golisano Institute for Sustainability. Research and expertise contributed by: - 26 universities - 44 companies (including Antea Group) - 7 national labs - 26 trade associations
  • 19. Our Journey Together  ENABLERS & BARRIERS to thriving in the Circular Economy  FACILITATE DIALOGUE with product designers, suppliers, and customers  CIRCULAR ECONOMY EXPECTATIONS emerging globally  GAIN EXECUTIVE SUPPORT in making this critical and comprehensive change
  • 20. Anticipate Objections Challenges are easier to meet with executive commitment to profitable Circular solutions. “The recycling stream is contaminated.” “Finite materials? We have a steady stream of supply.” “My customers hesitate to enter into long-term leases.” “We’ll wait until forced by regulations.”
  • 21. Executives Recognize these Drivers 4. Supply Chain Disruptions 6. Regulatory Risks 1. Customer Loyalty 2. Brand Advantage 3. Product Reliability 5. Cost of Goods Sold and how they increase shareholder value When the CEO is ready Story Box
  • 22. Change the Questions Questions to Pose at Executive Meetings Instead of Asking… Ask Instead… How shall we improve our next- generation product? How can we deliver greater customer benefit with few to no physical resources and minimal cost? How can we sell more? How can we maximize revenues through leasing? How can we get more from our supply-chain, cheaper? How can we leverage the products/materials our customers’ already access, and add value locally? How can we tightly control the materials we buy? How can we tightly control our products’ raw materials forever? How can we beat our competitors this quarter? How can we be first to offer circular solutions for greatest profit, responsibility, and brand value?
  • 23. Designing in circularity Keeping materials in the economy Detecting & plugging leaks into the natural environment Preventing material from escaping collection systems Upcycling Achieving not only efficiency, but also effectiveness Increasing revenue and profit through Circular models “We need multidisciplinary teams… If we want to succeed, then we need to broaden collaboration.” –Katia Hansen Reward Teams for…
  • 24. B E T T E R B U S I N E S S , B E T T E R WO R L D℠ Antea Group Offices USA Headquarters 5910 Rice Creek Parkway, Suite 100 St. Paul, MN 55126, USA USA Toll Free: +1 800 477 7411 International: +1 651 639 9443 Belgium Rodeveldlaan 1 2600 Antwerpen Colombia Calle 35 No. 7-25, Piso 12 Bogota, DC France 29 avenue Aristide Briand - CS 10006 94117 Arcueil Cedex Netherlands Monitorweg 29 1322 BK Almere www.anteagroup.com Thank You! Pamela J. Gordon Senior Consultant, Antea Group Author of Lean and Green: Profit for Your Workplace and the Environment Pamela.Gordon@AnteaGroup.com Silicon Valley, +1-510-406-9460