Circular
Embracing Circular Economy to Drive Business Value Part II A Case Study Deep Dive
Lise Lyngfelt Molander Amy Costello
Speakers
Lise Lyngfelt Molander Principal Consultant – Circular Economy Director, Strategic Accounts thinkstep
Amy Costello Sustainability Manager Armstrong Flooring
2
About thinkstep
“thinkstep enables organizations worldwide to succeed sustainably. Our industryleading software, data and services help business drove operational excellence, product innovation, brand value and regulatory compliance.”
3
Selected questions from the last webinar • How to integrate CE thinking into life cycle sustainability assessment? • Are there any best-practice metrics to measure circular
economy? • How do you address CE when products are long-lived (e.g. construction)? • Our product is part biological part technical – how should we deal with the 2 cycles? • Can an SME work with circular economy or do you need to be a larger enterprise? • Could you comment something of recyclability of products in the sense of LCA and decreasing functionality of number of recycling cycles? 4
Overview • Using LCA to assess the environmental impact of products when designed to be part of a circular solution • Insights from a number of Case studies
5
Life cycle thinking LCA and circular economy
6
General Steps for your Circular Strategy Find the path that aligns with your core values 1. Develop or adapt a strategy to match
2. Prioritize your actions 3. Redesign your business 4. Determine Indicators & measurement tools
5. Iterate
7
Indicators and Measurement tools
What you can Measure you can Manage…
“Context” matters
Avoid shifting burden
Consider the whole Product system
…but, Not everything that counts can be counted
8
Complementary systems Circular Economy addresses circularity of materials (resources) with focus on economic effect – LCA addresses environmental indicators (potential risks) along life cycles • Information required for CE and LCA high level of overlap • Circular economy keep resources at the highest value • LCA is a methodology that measures the impact LCA complements CE by adding an environmental dimension to the decision matrix to select the best design solution (ECO-design) 9
Complementary systems
In the context of Circular Economy, LCA: • Substantiates and quantifies environmental improvements; • Identifies any potential shifts of environmental burdens; and • Ensures optimum levels of – and limits to – circularity that are known from an environmental point of view
10
Complementary systems
Life cycle thinking (LCA) can guide you when trying to identify the most preferable materials, transportation methods, supply chains and business models for a more circular system.
11
Example: LCA supports the evaluation of Circular Economy “The Circular Economy strategy of the European Commission entails existing and emerging regulation on eco-design, waste prevention and the reuse of recycling products...”
Example of a client request: - Quantify the different existing End-of-Life glass packaging scenarios in Europe: 1. Closed-loop reuse 2. Recycling into glass packaging 3. Recycling into a mix of non-packaging products 4. Losses via landfill, incineration, etc. - Understand status-quo and identify areas of improvement 12
Example: LCA supports the evaluation of Circular Economy LCA OUTCOME – environmental impacts of different scenarios for various European glass recycling systems based on the following aspects:
Circular design New business models Reverse cycles Enables/fav ourable conditions
13
Circular Economy as a Life Cycle
Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015
14
How does it work?
Linear product = Manufactured using only virgin feedstock and ends up in disposal/landfill at the end of use
Circular = Contains no virgin feedstock, is completely collected for recycling or component reuse, and where the recycling efficiency is 100%
= 0% circular
= 100% circular
Most products will sit somewhere between these two extremes Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015
15
Circular economy in LCA Data generated via LCA Quantities: • Product mass, M • Virgin material, V, and reused and recycled material, FU, FR • Material collection for reuse and recycling, CU, CR • Unrecoverable waste flows, W0, WC, WF • Applied on multiple inputs and outputs – full LCA model Calculations via LCA model
• Total unrecoverable waste, 𝑊 • Linear Flow index,
LFI =
= 𝑊0 +
𝑊𝐹+𝑊𝐶 2
𝑉+𝑊 2𝑀+
𝑊𝐹 −𝑊𝐶 2
𝐿 𝐿𝑎𝑣
𝑥
𝑈 𝑈𝑎𝑣
• Utility, via lifetime and use, 𝑋
=
• Material Circularity Indicator,
𝑀𝐶𝐼 = 1 − 𝐿𝐹𝐼 𝑥
0.9 𝑋 16
Container Glass Full Life Cycle - GaBi Model
17
Collection of information • Secondary material Recycled content, FR Efficiency and recycling waste, WF On multiple Reused material, FU material streams
Recycling waste, W F
18
Result
Input in the production process – virgin vs recycled/ reused
Utility during use phase
Destination after use
Efficiency of recycling
𝑀𝐶𝐼 =1 −𝐿𝐹𝐼 𝑥
0.9 𝑋 19
Circular Economy Deep dive - Armstrong
20
When we try to pick out anything by itself, we find it hitched to everything else in the universe. -John Muir
Armstrong Flooring -1906 Founded on Circular Economy Principles
• • • •
Armstrong began as a bottle cork manufacturer in 1860 Waste from cork plant was accumulating Thomas Armstrong brought linoleum flooring to US in 1906 Cork waste used as a feedstock for new linoleum plant
Examples: Plant + Product Parquet
Biobased Tile
1995 - Reengineered to use recovered wood instead of virgin wood
2007 – Replaced vinyl binder in tile with biobased binder
LVT Diamond 10
2016- Sited new LVT plant beside existing sheet plant to recover material.
Circular Economy Integration Tools
Lean Manufacturing Systematic method for the elimination of waste within a manufacturing system. Life Cycle Assessment Systematic method for quantifying environmental impacts. Material Assessment Product Stewardship Program that evaluates and ranks chemicals.
Circularity and the Supply Chain
Commit
Review
Rank
Partner
Value of Circular Economy Thriving on Circular Economy Principles
Brand Environmental/Social Recyclability Eliminates trucking waste to IL saves 2 tons GHG Ortho-phthalate free Heavy Metal free Mercury free PVC supply chain Economic Jobs (Community) Increased Sales
Circular Economy Deep dive Bio and Technical Cycles 27
Where to start?
Raw materials
• Secondary raw materials • Symbiosis • Reuse or recycled
Production
• Redesign – enhance or enable recyclability • Functionality • Surplus – energy, water, materials • Waste
Use
Consider the full life cycle of your product, before deciding your journey
• Service • Lease • Take-back
Reuse/Recycle 28
Circular Economy and Bioeconomy
29 The key risks and opportunities relate to recovery and material choices
Troldtekt
• Troldtekt is using locally sourced raw materials – wood and cement • Change to circular is in line with their core values and strategy to grow from nature Solution:
• Take back • Reused in the biological circle as nutrient in soil
30
Troldtekt
31
Circular Economy and Technical
32 The key risks and opportunities relate to recovery and material choices
ENTRA – Nordic Built Challenge winner
• Office building • 26 floors • 112 meters • On top of Oslo central station
• High energy and water usage
33
ENTRA
34
ENTRA
35
Patagonia
36
Industrial Symbiosis •
Industrial Symbiosis – which is the exchange of materials or waste streams between companies, so that one company’s waste becomes another company’s raw materials
37
MUD Jeans
• 98% organic cotton , Produced in Italy • Used jeans are reused to new denim fibre or other accessories
38
39
Circular Economy Next steps
40
Tools/support
CE strategy development or adjustment of current strategy
CE Workshops
Life cycle thinking and LCA (GaBi)
• Materiality assessment
• Beginners to expert
• Lifecycle assessment
• Risk assessment/ Product Portfolio Management EU CE package impact on your business
• Business value workshop
• CE study – calculate the circularity
• Innovation based on CE and life cycle thinking
• Proof of environmental benefits
• Stakeholder or Supply chain management
• Industrial or urban symbiosis
• Eco-design/Material selection
41
Time for questions
Lise Lyngfelt Molander Amy Costello
Speakers
Lise Lyngfelt Molander Principal Consultant – Circular Economy Director, Strategic Accounts thinkstep
Amy Costello Sustainability Manager Armstrong Flooring
2
About thinkstep
“thinkstep enables organizations worldwide to succeed sustainably. Our industryleading software, data and services help business drove operational excellence, product innovation, brand value and regulatory compliance.”
3
Selected questions from the last webinar • How to integrate CE thinking into life cycle sustainability assessment? • Are there any best-practice metrics to measure circular
economy? • How do you address CE when products are long-lived (e.g. construction)? • Our product is part biological part technical – how should we deal with the 2 cycles? • Can an SME work with circular economy or do you need to be a larger enterprise? • Could you comment something of recyclability of products in the sense of LCA and decreasing functionality of number of recycling cycles? 4
Overview • Using LCA to assess the environmental impact of products when designed to be part of a circular solution • Insights from a number of Case studies
5
Life cycle thinking LCA and circular economy
6
General Steps for your Circular Strategy Find the path that aligns with your core values 1. Develop or adapt a strategy to match
2. Prioritize your actions 3. Redesign your business 4. Determine Indicators & measurement tools
5. Iterate
7
Indicators and Measurement tools
What you can Measure you can Manage…
“Context” matters
Avoid shifting burden
Consider the whole Product system
…but, Not everything that counts can be counted
8
Complementary systems Circular Economy addresses circularity of materials (resources) with focus on economic effect – LCA addresses environmental indicators (potential risks) along life cycles • Information required for CE and LCA high level of overlap • Circular economy keep resources at the highest value • LCA is a methodology that measures the impact LCA complements CE by adding an environmental dimension to the decision matrix to select the best design solution (ECO-design) 9
Complementary systems
In the context of Circular Economy, LCA: • Substantiates and quantifies environmental improvements; • Identifies any potential shifts of environmental burdens; and • Ensures optimum levels of – and limits to – circularity that are known from an environmental point of view
10
Complementary systems
Life cycle thinking (LCA) can guide you when trying to identify the most preferable materials, transportation methods, supply chains and business models for a more circular system.
11
Example: LCA supports the evaluation of Circular Economy “The Circular Economy strategy of the European Commission entails existing and emerging regulation on eco-design, waste prevention and the reuse of recycling products...”
Example of a client request: - Quantify the different existing End-of-Life glass packaging scenarios in Europe: 1. Closed-loop reuse 2. Recycling into glass packaging 3. Recycling into a mix of non-packaging products 4. Losses via landfill, incineration, etc. - Understand status-quo and identify areas of improvement 12
Example: LCA supports the evaluation of Circular Economy LCA OUTCOME – environmental impacts of different scenarios for various European glass recycling systems based on the following aspects:
Circular design New business models Reverse cycles Enables/fav ourable conditions
13
Circular Economy as a Life Cycle
Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015
14
How does it work?
Linear product = Manufactured using only virgin feedstock and ends up in disposal/landfill at the end of use
Circular = Contains no virgin feedstock, is completely collected for recycling or component reuse, and where the recycling efficiency is 100%
= 0% circular
= 100% circular
Most products will sit somewhere between these two extremes Source: GRANTA and Ellen MacArthur Foundation - Circularity Indicator project overview, 2015
15
Circular economy in LCA Data generated via LCA Quantities: • Product mass, M • Virgin material, V, and reused and recycled material, FU, FR • Material collection for reuse and recycling, CU, CR • Unrecoverable waste flows, W0, WC, WF • Applied on multiple inputs and outputs – full LCA model Calculations via LCA model
• Total unrecoverable waste, 𝑊 • Linear Flow index,
LFI =
= 𝑊0 +
𝑊𝐹+𝑊𝐶 2
𝑉+𝑊 2𝑀+
𝑊𝐹 −𝑊𝐶 2
𝐿 𝐿𝑎𝑣
𝑥
𝑈 𝑈𝑎𝑣
• Utility, via lifetime and use, 𝑋
=
• Material Circularity Indicator,
𝑀𝐶𝐼 = 1 − 𝐿𝐹𝐼 𝑥
0.9 𝑋 16
Container Glass Full Life Cycle - GaBi Model
17
Collection of information • Secondary material Recycled content, FR Efficiency and recycling waste, WF On multiple Reused material, FU material streams
Recycling waste, W F
18
Result
Input in the production process – virgin vs recycled/ reused
Utility during use phase
Destination after use
Efficiency of recycling
𝑀𝐶𝐼 =1 −𝐿𝐹𝐼 𝑥
0.9 𝑋 19
Circular Economy Deep dive - Armstrong
20
When we try to pick out anything by itself, we find it hitched to everything else in the universe. -John Muir
Armstrong Flooring -1906 Founded on Circular Economy Principles
• • • •
Armstrong began as a bottle cork manufacturer in 1860 Waste from cork plant was accumulating Thomas Armstrong brought linoleum flooring to US in 1906 Cork waste used as a feedstock for new linoleum plant
Examples: Plant + Product Parquet
Biobased Tile
1995 - Reengineered to use recovered wood instead of virgin wood
2007 – Replaced vinyl binder in tile with biobased binder
LVT Diamond 10
2016- Sited new LVT plant beside existing sheet plant to recover material.
Circular Economy Integration Tools
Lean Manufacturing Systematic method for the elimination of waste within a manufacturing system. Life Cycle Assessment Systematic method for quantifying environmental impacts. Material Assessment Product Stewardship Program that evaluates and ranks chemicals.
Circularity and the Supply Chain
Commit
Review
Rank
Partner
Value of Circular Economy Thriving on Circular Economy Principles
Brand Environmental/Social Recyclability Eliminates trucking waste to IL saves 2 tons GHG Ortho-phthalate free Heavy Metal free Mercury free PVC supply chain Economic Jobs (Community) Increased Sales
Circular Economy Deep dive Bio and Technical Cycles 27
Where to start?
Raw materials
• Secondary raw materials • Symbiosis • Reuse or recycled
Production
• Redesign – enhance or enable recyclability • Functionality • Surplus – energy, water, materials • Waste
Use
Consider the full life cycle of your product, before deciding your journey
• Service • Lease • Take-back
Reuse/Recycle 28
Circular Economy and Bioeconomy
29 The key risks and opportunities relate to recovery and material choices
Troldtekt
• Troldtekt is using locally sourced raw materials – wood and cement • Change to circular is in line with their core values and strategy to grow from nature Solution:
• Take back • Reused in the biological circle as nutrient in soil
30
Troldtekt
31
Circular Economy and Technical
32 The key risks and opportunities relate to recovery and material choices
ENTRA – Nordic Built Challenge winner
• Office building • 26 floors • 112 meters • On top of Oslo central station
• High energy and water usage
33
ENTRA
34
ENTRA
35
Patagonia
36
Industrial Symbiosis •
Industrial Symbiosis – which is the exchange of materials or waste streams between companies, so that one company’s waste becomes another company’s raw materials
37
MUD Jeans
• 98% organic cotton , Produced in Italy • Used jeans are reused to new denim fibre or other accessories
38
39
Circular Economy Next steps
40
Tools/support
CE strategy development or adjustment of current strategy
CE Workshops
Life cycle thinking and LCA (GaBi)
• Materiality assessment
• Beginners to expert
• Lifecycle assessment
• Risk assessment/ Product Portfolio Management EU CE package impact on your business
• Business value workshop
• CE study – calculate the circularity
• Innovation based on CE and life cycle thinking
• Proof of environmental benefits
• Stakeholder or Supply chain management
• Industrial or urban symbiosis
• Eco-design/Material selection
41
Time for questions
