Session 5 - New business models, Reinventing Business models

Question 1

a.) What are the principles of Circular Economy?

b.) How does it help mitigating our emissions?

Answer 1

a.)
1. Regenerate natural systems (Veja)
2. Keep production and materials in use (Apple)
3. Deisgn out waste an pollution (Second hand)

(The principles of circular economy are to design for durability, reduce waste, reuse materials, and recycle)

b.) Circular economy mitigates emissions by reducing waste and resource use, lowering carbon footprints

Question 1

a.) How can we explain the current state of our society in terms of resource extraction and pollution emissions?

b.) How can we address this issue through decoupling?

Answer 1

a.) Our society currently faces unsustainable resource extraction and high pollution emissions due to industrialization and consumer demand

b.) Definition - Decoupling is separating economic growth from resource use and environmental harm

Decoupling can address this issue by separating economic growth from resource use and pollution emissions through sustainable practices

A compamy that does so are for instance;
Ørsted, a Danish energy company, they has decoupled its growth from carbon emissions and resource extraction, creating a more sustainable business model

Question 2

What are the main levers
of Circular Economy?

Answer 2

Butterfly framework;

Inner circling - Reuse > Repair > Remanufacture > Recycle

Longer circling - Reuse or extend product life cycle (maintenance)

Cascade use - e.g. cotton clothing => 2nd hand => furniture => construction. (Diversify reuse throughout the value chain to replace virgin materials in the economy)

Pure inputs - Non-toxic/easier-to-separate inputs and designs

Question 3

What is service (or
functionality) economy?

Answer 3

The service economy focuses on delivering services and solutions instead of selling physical products, emphasizing access over ownership

For instance;
Michelin business case (optimize)