Sustainability through the adaptation of Circular Economy.

1. CIRCULAR ECONOMY

2. AGENDA
• What is circular economy?
• What is its benefit?
• Why move in that direction?
• How to get there?
• Examples of circular economy

3. WHAT IS CIRCULAR ECONOMY?
A industrial economy that is restorative by intention
renewable energy
 eliminate the use of toxic chemicals
 eradicate waste
biological nutrients
technical nutrients
reenter the biosphere safely
circulate at high quality without entering the biosphere

4. WHAT IS ITS BENEFIT?
•Linear pattern of “take-make-dispose” increases exposure
to risk – most notably price volatility and resource disruption
Overcome limitations of linear consumption
•Systematically, throughout the life cycles and uses of
products and their components
Eradicate waste
•Sharp price increases in commodities since 2000 have
erased all the real price declines of the 20th century
Offset sharp price increases
•Companies adapting circular economy gain a great
advantage from efficiency, integration and effective use of
resources
Competitive advantage

5. WHY MOVE IN THAT DIRECTION?
• Finite resources, finite space  reaching the critical tipping point
• Financially it just makes sense  Circular concept fosters wealth and
employment opportunities
• World Economic Forum (Jan 2014)*
• The materials saving potential alone is estimated at over a trillion dollars a year
• In Europe alone the job creation for re-engineering/manufacturing will create over 1
million jobs this year
• Moving towards a global circular economy is the only option for long-term
sustainability
*World Economic Forum (Jan 2014). “Towards the Circular Economy: Accelerating the scale-up across global supply chains”. Source:
<http://www3.weforum.org/docs/WEF_ENV_TowardsCircularEconomy_Report_2014.pdf>

6. HOW TO GET THERE?
• During the design phase, consider all the steps in
the product life including raw material inputs,
production, transportation & storage, retailing,
consumer use and the 3Rs
Solutions from the World Economic Forum
1. Set up global reverse networks for products &
components
2. Innovate demand-focused business models
3. Focus on pure materials stock management at
the outset

7. EXAMPLES OF CIRCULAR ECONOMY
PRODUCT AS SERVICE :
PHILIPS

8. EXAMPLES OF CIRCULAR ECONOMY
NEXT LIFE SALES:
TATA

9. EXAMPLES OF CIRCULAR ECONOMY
COLLABORATIVE
CONSOMPTION

10. EXAMPLES OF CIRCULAR ECONOMY
RECYCLING 2.0 :
SOUTHWEST AIRLINE

11. QUESTIONS?
Thank you!