A presentation on how an organization can ensure it incorporates sustainable production in its processes.

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SUSTAINABLE
CIRCULAR
ECONOMIES
D e l i g h t P r o f e s s i o n a l S u m m i t s

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W E L C O M E T O
T H I S S E S S I O N !
O U R A G E N D A
SDG 12: Ensuring Responsible Consumption & Production
Product - Service System Models
Circularity in Design and Production
Green supply chain
Harnessing Corporate Innovation Trends
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O B J E C T I V E S
E X P E C TAT I O N S A N D R U L E S
Participants will gain an understanding of
how the value of capacity planning in
responding to forecasts to ensure the
integrity of business operation in times of
change.
1. Participate
2. Exercise respect at all times
3. Mute your audio unless called upon
4. Review what you write before sending
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S D G 1 2 : E N S U R I N G
R E S P O N S I B L E
C O N S U M P T I O N &
P R O D U C T I O N
• The United Nations came up with 17 Sustainable Development Goals (SDG)
as a blueprint to achieve a better and more sustainable future for all.
• SDG 12 on Sustainable consumption and production is about promoting
resource and energy efficiency, sustainable infrastructure, and providing access
to basic services, green and decent jobs and a better quality of life for all.
• Sustainable consumption and production is about doing more and better with
less.
• It is also about decoupling economic growth from environmental degradation,
increasing resource efficiency and promoting sustainable lifestyles.
• Supply chain sustainability and responsible procurement are critical to
achieving this SDG by ensuring that the extension of a company’s operations,
products and services can support the realities of our planet and better serve
markets both today and in the future.
• When supply chain is done right, it delivers significant benefits to companies
in the form of reduced costs and enhanced profitability and shareholder value.
• When don’t take into consideration the environmental, social and governance
(ESG) performance of suppliers – companies leave themselves open to
significant operational and reputational risks.
• Impacts on people and the environment can be substantial and severe.
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S D G 1 2 : E N S U R I N G
R E S P O N S I B L E
C O N S U M P T I O N &
P R O D U C T I O N
• Companies are adopting/ encouraged to adopt innovative solutions to address
the risks to their supply chains that include:
a) Creating collaborative relationships with suppliers and other players in
their industry.
b) Traceability, for MNEs and SMEs, to advance sustainability in the supply
chain.
c) Building more inclusive supply chains, by sourcing from previously
underused suppliers such as SMEs, minorities, women-owned businesses,
indigenous peoples etc.
d) Being better prepared to address critical issues such as forced and child
labour, and meeting emerging standards and legislation.
e) Digitization of supply chain processes.
• The UN has released a guide to Illustrates how companies can implement the
Ten Principles of the UN Global Compact throughout their supply chains
and integrate sustainability into procurement strategies. Supply Chain
Sustainability: A Practical Guide for Continuous Improvement, Second
Edition
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P R O D U C T - S E R V I C E
S Y S T E M M O D E L S
• Product-service systems (PSS) are business models that provide for cohesive
delivery of products and services.
• PSS models are emerging as a means to enable collaborative consumption of
both products and services, with the aim of pro-environmental outcomes.
• The key idea behind product service systems is that consumers do not
specifically demand products, but rather are seeking the utility these products
and services provide.
• By using a service to meet some needs rather than a physical object, more
needs can be met with lower material and energy requirements.
• Product service systems can lead to reduced resource use and waste generation
since fewer products are manufactured.
• The increase in sales of services can offset initial reductions in tangible goods
sold.
• Employment lost in manufacturing can be balanced by jobs created in services.
• More opportunities for innovation and market development.
• Increased operating efficiencies.
• More and longer-term client relationships.
• Improved corporate identity.
• Better feedback on consumer needs.
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C
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C I R C U L A R I T Y I N D E S I G N &
P R O D U C T I O N
• Circular design is about creating products and services that no longer have a
lifecycle with a beginning, a middle and an end.
• The purpose is to design products that can “be made to be made again”.
• The transition towards a circular economy requires fundamental changes to
production and consumption systems, going well beyond resource efficiency
and recycling waste.
• Design sits prominently at the heart of the circular economy.
• It requires us to redesign everything: products, business models, cities, and the
linear systems that have lasted for the past centuries.
• Design is creation with intention.
• It is the way we create products, services and systems, and is the mechanism by
which we shape the material environment around us to meet our needs and
desires.
• Almost everything needs to be redesigned in accordance with the principles of
the circular economy.
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C
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C I R C U L A R I T Y I N D E S I G N &
P R O D U C T I O N
T H E C I R C U L A R D E S I G N P R O C E S S
• The circular design process comprises four stages, namely:
a) Understand - Get to know the user and the system.
b) Define - Put into words the design challenge and your intention as the
designer.
c) Make - Ideate, design, and prototype as many iterations and versions as
you can.
d) Release - Launch your design into the wild and build your narrative -
create loyalty in customers and deepen investment from stakeholders by
telling a compelling story.
• Designing is an iterative process that never finishes.
• The company should constantly be testing and refining as it understands how
users interact with the design, and how it fits within the wider system.
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S
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S T R AT E G I E S F O R C I R C U L A R D E S I G N
DESIGNING FOR INNER LOOPS
• Prioritize the highest value opportunities.
• In the circular economy system diagram,
approaches such as reuse, sharing,
remanufacturing, and refurbishment sit
closer to the centre of the multiple
material loops, while recycling sits
farthest away.
• By designing products to be easily
repaired or remanufactured, or creating
new business models to easily facilitate
sharing, these businesses are unlocking
new value for themselves and their
customers.
MOVING FROM PRODUCTS TO
SERVICES
• Central to the concept of circular
economy is a shift from ownership to
access.
• This advocates for business that embrace
the product-service model.
SAFE AND CIRCULAR MATERIAL
CHOICES
• Not all materials are fit for a circular
economy.
• By choosing materials that are safe and
circular, you can build a better offering
for your users, while ensures that the
products and services you create fit
within a circular economy.
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PRODUCT LIFE EXTENSION
• Design products that last.
• This may involve designing products to
be both physically and emotionally
durable or it may require innovative
approaches that allow the product to
adapt to a user’s changing needs as time
passes.
• Products that resist damage and wear, or
retain their emotional appeal are able to
be used and reused multiple times,
potentially by many different users.
DEMATERIALISATION
• Reduce the resource requirements of your
designs.
• This strategy is all about finding solutions
to deliver utility using the minimum
amount of material possible.
• This could mean finding ways to
virtualize your offering.
MODULARITY
• Design for upgradability and easy repair.
• Modular design is a useful strategy for
making products easier to repair,
remanufacture, and upgrade.
• By making it easy to remove only part of a
product, you make it easier to
disassemble, lowering the cost and effort
to swap out components when they are
damaged.

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G R E E N S U P P LY C H A I N
• Green supply chain refers to the idea of integrating sustainable environmental
processes into the traditional supply chain.
• This can include processes such as supplier selection and purchasing material,
product design, product manufacturing and assembling, distribution and end-
of-life management.
• Green supply chain involves value addition and/or value creation through the
operations of whole chain.
• Reducing air, water and waste pollution is the main goal of green supply chain,
while green operations also enhance firms’ performance in terms of less waste
manufacturing, reuse and recycling of products, reduction in manufacturing
costs, greater efficiency of assets, positive image building, and greater customer
satisfaction.
• It emphasizes how green practices can be adopted in companies to mitigate the
environmental degradations and increase their economic and operational
performance.
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G
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G R E E N S U P P LY C H A I N
C R I T I C A L S U C C E S S FA C T O R S
• Ethical leadership/ Internal management: support and encouragement from
senior managers.
• Customer management: companies face heavy pressure to adopt green
practices in their business operations of supply chain to meet their customers’
demand so that they can be competitive in the market.
• Supplier management: Strong collaboration with suppliers enhances incentive
systems, boosts the adoption and development of innovative ecofriendly ideas.
• Competitiveness: Competitiveness has been perceived as a significant factor to
implement green practices rather than organizations’ wish to protect
environmental sustainability.
• Social: Growing attention of regulatory bodies and awareness of customers on
environment, firms have to exchange end-to-end information regarding their
supply chain operations’ effect on local community and people lives.
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Any QUESTIONS/ Comments?
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T H A N K Y O U F O R
A L O V E LY S E S S I O N .
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