Lesson 2: The Circular Economy

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Sustainable Business: Big Issues, Big Changes

University of Colorado System

Cours 3 de 4 dans Become a Sustainable Business Change Agent Spécialisation

This is class 3 in the MOOC specialization, Become a Sustainable Business Change Agent. This class looks at the big issues companies are fixing - climate change, water, worker satisfaction and supply chain issues. You will learn tools to help your company address these issues intelligently. The class ends with an assignment to set a science-based carbon reduction target for a small company. Tis is absolutely cutting edge material. Only about 300 companies in the whole world are doing this as of July 2017. You could put your company in the elite group! With the knowledge and tools you have acquired from the 3 classes in this specialization you are well on your way to making a difference in your company, and making the future brighter for everyone. Thank you for being part of this program!

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Supply Chain Impacts - An Introduction

Lesson 1: What Are The Big Supply Chain Issues?9:13

Lesson 2: The Circular Economy6:11

Christie Zimmerman - Natural Grocers Procurement15:22

Steve Bernard - Supply Chain9:12

Mike Harper - An overview of sustainable supply chains15:55

Enseigné par

John Byrd
Senior Instructor
Kenneth Bettenhausen
Professor

Transcription

Hi, if you watched the sustainability thinking videos,

you know that circular thinking is one of the key elements of sustainability.

I want to build on that concept in this short lecture on the circular economy.

There's growing interest in developing a circular economy.

You can find lots of great information at the Ellen MacArthur Foundation and

there are several online classes devoted to the topic.

Here's the argument for moving to a circular economy fairly quickly.

Every year, about 2.2 billion tons of waste is dumped.

Municipal waste from cities, that's trash picked up in cities,

is about 1.3 billion tons.

With population growth, and more people moving to cities.

Plus, people getting a little richer.

The amount of waste could double over the next 15 or 20 years.

Add to this the fact that commodity prices have increased about 150%,

since the year 2000.

What all this means is that demand for raw materials will increase, prices for

raw materials will rise.

And all of the environmental and

social impacts of producing raw materials will also increase.

Air and water pollution, deforestation, mining waste and so on.

When you put these forecasts together you almost have to conclude that

this future cannot work.

It certainly is unsustainable very long if at all.

The notion of a circular economy seems like the only long term solution.

To move toward a circular economic system,

there are several things that need to happen.

Probably they have to happen simultaneously rather than in some order.

Here's my list, and probably it's not complete, but

it will give you an idea of the direction we need to head.

So you can steer your company that way.

First, we need new materials that can be produced from recovered raw materials.

Using limited amounts of chemicals and energy for the recovery.

These products themselves need to be easy to recover and reuse.

Finally the materials need to have characteristics.

That will help manufacturers create effective, efficient, lightweight, and

appealing products.

We need policies that encourage manufacturers to design products with

end-of-life in mind.

These could be product take-back policies.

Or they could be new business models where customers lease a service rather than

buy a thing.

We have some examples of these already in car sharing and carpet-tile leasing and

European packaging laws.

We need policies that encourage manufacturers to design products for

a longer life and increased durability.

This could be by offering upgrades, easy repairs, some sort of remanufacturing.

Remanufacturing is sometimes called refurbishing.

Here's an example.

Apple sells refurbished computers, iPads, and other products.

These products have been checked, repaired if necessary, and

have a one-year warranty.

The next step in remanufacturing is upward remanufacturing.

In upward remanufacturing, the old product is disassembled and

it's cleaned, inspected.

It's repaired if necessary and it's upgraded with newer or

next generation components.

This produces a product that's not the original first generation product, but

a second generation product.

Theoretically, this could go on indefinitely if the original design was

done properly.

The original design needs to be designed with multiple life cycles in mind.

Probably through some sort of modularity that allows component clusters

to be removed, cleaned, repaired, or replaced.

Next, we need policies, markets and technologies.

That make identifying and

purchasing recycled materials easy with some sort of quality insurance.

This may mean limiting the types of plastic to some set

that can be sorted most easily.

So the pure resin streams can be reprocessed into their original polymers.

Already there's a lot of activity in this field with color recognition system,

bar code reading systems.

And get this, infrared laser beams that shine on plastic items.

They detect the different grades of plastic then little puffs of air

separate them into different bins.

We need to be able to maintain food supplies for

a growing population while maintaining soil fertility.

Depleted soils need to be restored,

in fact we need to begin thinking about how to create a restorative economy.

This work is starting, but it has a long way to go.

All of these activities need to be done in such a way that renewable energy provides

the primary catalyst for recovery.

Finally we need to make sure that market prices

reflect the full life cycle cost of products.

This means that external costs like pollution have to be factored into prices.

For natural resources depletion has to be accounted for.

Without accurate prices customers can't make good choices.

Here is a diagram from the Ellen MacArthur Foundation that shows how a circular

economy could be restorative.

The diagram is complicated so

I'll post the booklet it comes from in class resources.

The title is Towards a Circular Economy, Business Rationale for

an Accelerated Transition.

It's about 20 pages long but it'd be a great starting place if you want to learn

more or download it as a future reference.

If such an economy can be created, and it has to happen some time or

we're going to run out of resources.

We could begin to think not of limits and austerity, but

of there being enough for everyone to have acceptable lives.

Realize that being part of a circular economy is something companies need to

prepare for.

If you can help your company get ready that'd be a great step forward.

Thanks.

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