From a linear to circular value chain while protecting and recovering resources value
Summary of the contribution of Mr. Justin Keeble, managing director, Accenture.
There are five key circular economy business models:
1. Circular suppliers, who use renewable, recycled or biodegradable inputs instead of non-renewable resources, such as bioplastics or Crailar, which makes a cotton-like fibre that uses 17 litres of water per kg rather than the 2,000-29,000 litres used for cotton.
2. Resource recovery – General Motors, for example, has a commitment to zero waste across all its manufacturing sites. Today it recycles 90% of its materials and generates $1bn a year from its own waste.
3. Product life extension – Caterpillar remakes about 6,000 different parts and in 2012 it remanufactured more than 73,000 tonnes of material after taking back 2.2 million end-of-life components.
4. Sharing platforms for selling, lending, bartering and gifting, such as AirBnB, BlaBlaCar or JustGiving.
5. Products as a service – from Phillips selling light instead of lights to SolarCity selling solar power rather than solar panels.