CSR week 3 Flashcards
Background to circular economy: History
Started with the Cradle2Cradle (C2C) philosophy (McDonough & Braungart) which:
1. Defines two distinct material loops: biological and technical
2. When these are entirely separated products and materials can be upcycled and
waste becomes food.
3. This is regarded as eco-effectiveness opposed to eco-efficiency
Background to circular economy: Translation to business
Circular economy principles:
1. Eliminate waste and pollution
Design products that eliminate waste and pollution
- Circulate products and materials (at their highest value)
This means keeping materials in use, either as a product or,
when that can no longer be used, as components or raw materials. - Regenerate nature
Support natural processes and leave more room for nature to thrive
How do companies execute sustainability?
Execution happens through innovation:
Business Model innovation
Economic Innovation
Technological Innovation
Decoupling
Decoupling is removing the linear relation between economic growth (GDP) and (virgin) material use obtained via abstraction
Business Model (BM)
A design or architecture of the value creation, delivery,
and capture mechanisms
Business Model Innovation (BMI)
Changing (by creating, diversifying, acquiring or transforming) BM as a response to internal and external incentives
Circular Business Models (CBM)
Business models can be circular to varies
degrees (downstream, upstream of fully)
Uphill
Groups companies operating with business models focused on producing products that aim for long-term value retention by circular design
Tophill
Groups companies operating with business models focused on optimal use
improving the usage and product productivity
Downhill
Companies that operate according to business models focused on value recovery by recapturing the value after (1st) user life phase or post-use
Network Organization
Companies focused on money, materials and information flow supporting uphill, tophill and downhill
Circular Design
Design products and materials with the aim of long-term value retention:
- Product Design
- Circular Materials
- Classic Long Life
- Encourage Sufficiency
Optimal Use
Support better usage and product productivity:
- Product as a service
- Life extension
- Sharing Platforms
- Sell and buy back
- Repair and Maintenance Service
Value Recovery
Capture value after user life
- 2nd Hand seller
- Refurbished
- Recycler
- Recaptured material supplier
Network Organisation
Manage information, materials, and money flows:
- Value management
- Process design
- Tracing facility
- Recovery provider
