Moving towards a circular economy

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1 Moving towards a circular economy successful Nordic business models /Policy brief THE NORDIC REGION leading in green growth

2 Moving towards a circular economy successful Nordic business models Nordic Council of Ministers, 2015 ISBN 978-92-893-4330-5 (PRINT) ISBN 978-92-893-4331-2 (PDF) ANP 2015:771 Nordic Council of Ministers 2015 Layout: Peter Daniel Olsen Cover photo: Photo: & Print: Rosendahls-Schultz Grafisk Copies: 50 Typeface: Meta LF Paper: Munken Polar 54 1T 57 RY K S A G 4 Printed in Denmark This publication has been published with financial support by the Nordic Council of Ministers. However, the contents of this Nordic co-operation publication do not necessarily reflect the views, policies or Nordic co-operation is one of the worlds most extensive forms recom-mendations of the Nordic Council of Ministers. of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland, and land. Nordic co-operation has firm traditions in politics, the economy, and culture. It plays an important role in European and international collaboration, and aims at creating a strong Nordic community in a strong Europe. Nordic co-operation seeks to safeguard Nordic and regional interests and principles in the global community. Common Nordic values help the region solidify its position as one of the worlds most innovative and competitive. Nordic Council of Ministers Ved Stranden 18 DK-1061 Copenhagen K Telefon (+45) 3396 0200 2

3 Moving towards a circular economy Policy brief Authors: Nikola Kirboe (Copenhagen Resource Institute) Helena Sramkova (Copenhagen Resource Institute) Mads Krarup (Copenhagen Resource Institute) With contributions from: David McKinnon (Copenhagen Resource Institute) Lars Mortensen (Copenhagen Iris) Olav Skogesal (Mepex) Peter Sundt (Mepex) Oksana Mont (IIIEE) Circular Business models in the Nordic countries 4 Nordic examples of business models for the circular economy 6 The workshop 44 Key Findings 46 Dansk sammenfatning 54 References57 Annex 1 Workshop programme 58 Annex 2 List of participants 59

4 Circular Business models in the Nordic countries case presentations and policy recommendations The concept of a Circular Economy use of our scarce resources, increases companies in the Nordic countries is currently high on the political harmful emissions and generates are already taking ambitious and im- agenda. World business leaders, increasing amounts of waste from portant steps towards more circular policy makers, academics and NGOs the whole value chain, including business models, while smaller and argue that a move towards a more resource extraction, manufacturing, sometimes lesser-known companies circular economy is necessary in transportation and consumption. are already making it happen. By order to help solve global environ- presenting a range of different ex- mental and economic challenges. The Ellen McArthur foundation amples of Nordic businesses, which Further, the European Commission describes the circular economy are making the circular economy has committed to a revised and as a system that is restorative or happen, the following catalogue is more ambitious strategy on circular regenerative by intention and design intended to inspire and encourage economy before the end of 2015. that can be achieved by eliminating businesses to make creative and in- waste through the superior design novative steps in the same direction. The necessity of a circular economy of materials, products, systems, has been highlighted by many, but and, within this, business models. In Nordic co-operation for the perhaps most convincingly by the addition to the much more efficient Circular Economy Ellen McArthur foundation. Accord- use of resources and thus reduction The Nordic Waste Prevention Group ing to the foundation, the current or even elimination of the negative under the Nordic Council of Ministers linear economic model, which is consequences related to waste initiated this project named largely based on a production and generation, the circular economy is Moving towards a circular economy consumption pattern of take-make- also expected to create jobs. successful Nordic business models. use-dispose, has proven unsustain- The overall objective is to make able and has many shortcomings, The business case for a circular the circular economy-thinking more including a tendency toward shorter economy is compelling. Studies mainstream in the Nordic countries product lifespans and a tendency show that the global economy could and hereby accelerate the develop- towards disposal rather than repair benefit immensely from a more ment of circular economy in the at the end of the first useful lifespan, circular approach, embodied by Nordic countries. even when reuse is possible. The material savings, emissions reduc- linear model results in inefficient tions and job creation. Many large 4

5 The project consisted of two In general, governments should and increased dialogue would activities: impose simple and long-term help generating the general The organisation of a large multi- objectives and regulations, which knowledge- and information flow, stakeholder workshop with a wide level the playing-field for all which is needed. range of actors relevant for the actors. circular economy, which was held Governments should set re-use Finally, it was recommended in Copenhagen in April 2015. targets. that the Nordic Council of The release of a report including a Governments should enable and Ministers should: case-catalogue containing eight- support better quality in recy- identify sectors or areas that are een examples of Nordic business- cling. most relevant for circular eco- es, which are part of the Nordic Governments should utilize pub- nomic business models, circular economy as well as short lic procurement as an active tool demonstrate incentives (mon- policy recommendations, which in creating markets and demand etary as well as non-monetary) were suggested at the workshop. for circular business models. which can pull (rather than push) Governments should set legal development towards a circular These eighteen case presentations requirements for reparability, economy, are presented in the following demanding longer product war- explore and develop National section of this report. In addition, ranties and better information. Capital Accounting in order to the workshop is documented and get the prices right, summarized in the final section and Further, there was general explore the possibilities of re- in the annexes. consensus that: defining end-of-waste criteria producers should improve on in European legislation in order Instruments needed for the circularity by designing products to ease possibilities for reuse, transition to a circular economy for long life including design for repair and refurbishment, and In summary, in order to make the reuse and repair, coordinate and spread the voice circular economy-thinking more a certification scheme for reused of the Nordic countries in clear mainstream and in order to accel- and repaired products would messages, with a view to e.g. erate the development of circular improve markets for these types influence the European develop- economy in the Nordic countries, of products, and that ment within the environment and the workshop discussions led to the improved communication and circular economy. following overall policy recommen- transparency via best-practice dations: presentations, mentor schemes 5

6 Nordic examples of business models for the circular economy The following examples from the Further, the examples have been A few interesting examples covering Nordic countries showcase a range identified mainly from areas in which other sectors have also been includ- of inspiring and successful imple- the Nordic countries have prioritised ed for additional inspiration. mentations of circular economy in their waste prevention programmes practice. The examples cover a wide as well as areas identified as having The examples are described only range of business types and busi- high environmental impact. These briefly, and are merely presented in ness models, but particular focus sectors are: order to inspire and create new ways has been placed on business models Food of thinking in the Nordic business that prevent the generation of waste. Textiles community. They are predominantly Waste prevention is a top priority in Electric and electronic equipment based on publicly available informa- both Nordic countries and in the EU, (EEE) tion, which in some cases has been and is a central part of the circular Building, construction and supplemented with in-depth inter- economic model. However, once in- demolition views with persons from within the evitable waste has been generated, Furniture business. No social-, environmental- circular business models can help Packaging nor economic assessment has been close material loops as efficiently as conducted. possible. The examples have been grouped under the following categories: Product design Service- and function based models Collaborative consumption Reuse Repair Recycling and waste management 6

7 Company Country Sector Business model Agito Medical DK EEE Repair Norsk Ombruk NO EEE Reuse and Repair Godsinlsen SEEEE Repair Xella Danmark DK Building and C&D Product design Houdini Sportswear SE Textile Product design, Service and function, Reuse, Repair Icelandic recycling fund IS Textile Recycling and waste management Vigga DK Textile Design, Service and function, Reuse Arla Foods DK Food Product design, Recycling and waste management Matsentralen NO Food Service and function Martela Oyj FI Furniture Product design, Service and function, Reuse, Repair GH Form DK Furniture Service and function Off2Off SEFurniture Reuse Repack FI Packaging Reuse Plus Pack DK Packaging Product design Lassila & Tikanoja Plc FI Packaging Reuse and Repair Blocket SE Other Collaborative consumption, Reuse Zen Robotics FI Other Recycling and waste management Norsk Gjenvinning NO Other Recycling and waste management 7

8 Agito Medical Providing life-changing medical equipment As European hospitals and clinics spare parts, which its clients can use rather than replaced. The flexibility renew their medical and laboratory to find exactly what they need at a of these services secure a maximum equipment and dispose of old items, lower price than the cost of brand possible uptime of the equipment, many hospitals in other parts of the new products. and prolongs the lifespan of the world cannot afford to purchase entire system and prevents waste. much-needed equipment. Agito This circular business model secures Medical connects these two commu- an extended lifespan of the equip- Mobile Rental Solutions nities in a circular business model, ment through re-using what would A fleet of equipped mobile trailers by retrieving old equipment from one otherwise be discarded. In particular equipped with imaging solutions and making it available to the other. the refurbished equipment is an can be sent to hospitals and clinics affordable alternative to new equip- to help deal with fluctuating patient Extending products life-time ment for less privileged customers. flows. These flexible, temporary Agito Medical, founded in 2004, is Agito Medical provides turn-key digital imaging services can be Europes largest provider of pre- solutions, including shipping and provided where and when needed, owned medical equipment. The installation of the equipment and reducing both the expenses and the company specialises in purchasing, removal of old equipment. environmental impact of outright refurbishing, remarketing and purchase of medical equipment that reselling used medical equipment Service support and would not be fully utilised. (for example MRI, CT and Ultrasound maintenance systems, X-ray, etc.). Co-operating Aside from direct sales, Agito Medical with medical equipment manufac- offers service contracts on CT and turers (OEMs), clinics, hospitals MRI equipment, such as delivering and laboratories worldwide, Agito spare parts and engineering mainte- Medical maintains an online data- nance services. Thereby equipment base of available equipment and may be repaired and upgraded, 8

9 Agito Medical A/S Sector Aalborg, Denmark EEE Good circular business case From its base in the Danish city of Aalborg, Agito Medical has expand- ed and established facilities in France, Germany, Netherlands and Value creation model Spain. Although already one of the Repair market leaders in pre-owned medical equipment, Agito Medical antici- pates further expansion. Demand for medical equipment from healthcare institutions worldwide is set to rise with an ageing population and an increasing incidence of lifestyle- related diseases. 9

10 Norsk Ombruk Extending lifetimes The small Norwegian business Norsk and has a turnover of about 10 mill. Beneficial for environment and Ombruk has developed a profes- NOK. The company also import new economy sional and fast growing business equipment for sale. There is particular focus on re- model for repair and re-sale of used using relatively new, and thus also large household equipment such as The business model is structured energy-efficient products, which will freezers, fridges, stoves, washing around a few simple but effective ensure environmental benefits. The machines. elements: products which are taken in for reuse Effective logistic with tracking will have many years of remaining Serious business is the of individual products from lifetime and only minor needs for key to success collection points, through the further repair. The reuse market is generally repair process along to the growing in Norway. Reuse of used end customer. Reused products are cheaper than household equipment is widespread Agreement with one of the their new counterparts, so are also in Norway but is mainly performed largest WEEE take back systems more economically accessible for by direct sale via the internet or in in Norway (ERP Norway) many people, particularly those on a many cases by the informal sector, Collection agreements with tight budget. As long as the business unlicensed companies or individ- selected electrical retailers and operates by law, jobs are created for uals. Norsk Ombruk has therefore municipal collection sites. the benefit of society as a whole. succeeded in building a reliable A modern repair facility with and robust business concept in skilled staff and established A number of other Nordic compa- collaboration with the retailers and test- and repair procedures and nies including Swedish greentech, take back systems for large house- checklists. Norwegian ATEA and Danish refurb hold appliances. With its 12 full-time Customer networks of second all provides a similar service where employees Norsk Ombruk processes hand shops for used large house- they take in used IT equipment for about 6.000 units for reuse per year hold equipment. repair, and re-sell. 10

11 Norsk Ombruk AS Sector Stokke, Norway EEE Value creation model Reuse and Repair 11

12 Godsinlsen Turning unwelcome accidents into environmental efficiency When accidents happen replace- effective and transparent as possible Massive savings are achieved ment or reimbursement through an in line with environmental stand- The company has been established insurance policy is a welcome relief. ards. This service not only generates on the principle of circularity. All But what happens afterwards to the immediate economic gains but also activities aim to close material loops damaged belongings? Back in 2012 has a positive effect on the environ- by repairing EEEs. There are several two Swedish entrepreneurs found a ment. Reuse reduces resource use large and small companies on the business opportunity in redeeming and emissions linked to manufactur- market, which offer similar services goods in general and damaged elec- ing of new goods. of EEE repair, but not many work tronics in particular. They discov- directly with insurance companies. ered that while such goods may be Resale outlet The staggering global demand useless to insurance policyholders, Redeemable goods are sold in for mobile phones upkeep a high up to 90 % of all modern electron- Returhuset, a retail store owned by demand for precious metals used in ic devices can be refurbished or the company. A large share of the fabrication. Godsinlsen claims to renewed. goods are portable electronics like save 27kg of CO2 emissions per re- mobile phones, laptops and tablets. used mobile phone. Since inception B2B collaboration The net income from this aftermarket in 2012, the company has saved 47 The business model Godsinlsen is shared between the insurance tonnes of CO2 by selling 416 laptops rose, and now recycles and resells company and Godsinlsen. This reclaimed by insurance companies. damaged insured goods, operating business model thus allows the At this time, Godsinlsens activities in collaboration with insurance service provided by Godsinlsen to are concentrated mainly in Southern companies and policy holders. On be mainly self-financed, and often Sweden. However, the company has request by insurance companies, creates a profit to the insurance ambitions to expand to Stockholm Godsinlsen retrieves damaged company. and Gothenburg, which will entail goods from policyholders and collaborating with more suppliers of ensures that they are handled, by used EEE. being either reused or recycled, as 12

13 Sector EEE SWAPping for more value An additional service is the Gdsin- losen SWAP, where the insurance company offers a replacement phone rather than repair or cash reimburse- Value creation model ments. Swapping the phone with a refurbished phone from Godsinlsen Repair saves time used to administrate a repair and time spent on each insur- ance claim. It also lessens the risk of fraud. To the claim holder, a cash allotment for a used phone might be less valuable than receiving a refurbished phone. Danish SA Service delivers a similar Godsinlsen Nordic AB service where they cooperate with ten of the largest insurance compa- Staffanstorp, Sverige nies in Denmark around assessing, repairing and re-delivering damaged white goods. 13

14 Xella Sustainable construction, strong business Xella Denmark, part of the inter- materials limestone, sand and the whole life cycle of AAC blocks. In national Xella group, produces water are sourced within a 200 km the production phase, lime slurry, a innovative Autoclaved Aerated radius of each factory. waste product from the production Concrete (AAC) blocks which are of limestone, is used as a source Cradle-to-Cradle certified. From raw New business in certified of energy for the production of AAC material extraction, through the use concrete blocks. The produced energy more phase, and finally as waste, sustain- Compliant with the strict new 2020 than covers Xellas needs and excess ability is a guiding principle in the European building standards, the energy is sold on the market. whole life cycle of their products. Ytong Energy+ AAC block was devel- Production waste is collected, oped and Cradle-to-Cradle Basic cer- dispersed in water or used for the Big scale, minimal tified in 2011. It is 100% recyclable production of new blocks. Moreover, environmental impact into new products. Thanks to good up to 88% of water vapour used in Xella supplies building materials insulation capabilities, it enables the hardening the blocks is re-used, made of AAC and limestone under building of energy-neutral houses. while percolate is used as process the names of Ytong and Silka. As After the C2C certification and water for facility heating. Finished the corporation counts some 6.700 introduction of Ytong Energy+ on the AAC blocks are transported to con- employees, a turnover close to 200 market, Xellas turnover in Scandina- struction sites on re-usable wooden mio Eur, 98 factories located in 20 via has doubled since 2011. pallets and covered in recyclable countries and sales representatives plastic wrapping. In addition, all in 30 more, minimising the environ- Re-use and re-cycling in all construction cut-offs as well as all mental impacts of both the sourcing product life-cycle stages demolition material at the end of life of raw materials and transportation The circularity of Xellas business of the buildings can be transported of products to customers has a model consists in the many re-use back to Xellas factory and be used grand impact. The inorganic raw and recycling possibilities during for the production of new AAC blocks. 14

15 Sector Xella Danmark A/S Building, construction Lsning, Denmark and development Value creation model Nothing is wasted The environmental and economic Product design benefits of Xellas business model in both operations and the future product offerings of Ytong and Silka building materials, is more than good business. Xella calculates that a family house built using its products will save 1015 tons CO2 over 70 years and will benefit from 5% lower energy consumption every year thanks to the insulating ability of the materials. As such recyclable building mate- rials become ever more popular, economic as well as environmental savings are realized by both custom- ers and the company. 15

16 Houdini Sportswear Keeping the great outdoors great For Swedish sportswear manufac- cling of old garments and second of suppliers in favour of maintained turer Houdini, creating responsible hand sales, all aimed at prolonged control as well as on designing prod- and sustainable products is the product lifetimes or once worn out, ucts to be simple with a limited all-encompassing raison detre of creating new products from the used mix of different materials in order to their product design. Lotta Giornofe- ones. In 1995, a life-time repair improve on recyclability. To reduce lice established Houdini in 1993, service was launched in order to waste levels, Houdini created the wanting to make technical products make Houdini garments last as long Scrap Me Up project in 2010, which with a less is more philosophy. The as possible. use scrap fabrics from factories to result is a multitude of sustainability manufacture limited editions. initiatives. Since the early days, Houdini has focused on using the right fibres Rent or buy second hand Sustainability in the entire in terms of both sustainability and Houdini gear can also be rented. This value chain longevity. In 2006 Houdini partnered is an advantage for those who only Houdinis holistic approach to with Teijin in the closed-loop polyes- use shells a few weeks of the year sustainability pivots the Re-project, ter recycling system Eco Circle and and for those who are not entirely which encompasses the initiatives by 2007 they sold the first sustaina- sure which type of shell garment that Rent, Repair, Recycle and Reuse. ble labelled Houdini products made they want. This is also an advantage Houdini offers rental of shell from recycled fibres. Houdini has for the environment, since garments garments, repair services, recy- also sought to reduce the number are not left hanging unused in the 16

17 Houdini Sportswear AB Nacka, Sweden closet. Both entire sets and sepa- ability efforts. Houdini also received rate items can be rented for either Swedbanks Sustainability Prize in a weekend or a full week. Houdini 2012 for companies able to combine stores are also open for resell of sec- fast and profitable growth with a full ond hand Houdini gear. The pricing on commitment to sustainability. range from 5070% off the price Sector for new items, while the first owner Other sportswear and clothing Textile will get 50% of the second hand companies are also actively pursuing sale. When buying a Kids Houdi the sustainability as a core business customer is offered up to 300 SEK in goal. Among the most famous are exchange for a used Houdi garment. Columbia sportswear, Patagonia The Houdis are then resold in stores and Timberland. In Sweden, other for the same prices as was given. famous examples of a clothes com- pany incorporating sustainability is- Acclaim and inspiration sues in their activities is Boomerang, Houdinis efforts have not gone which takes back their clothes and unnoticed. CNBC choose Houdini as uses them in furniture upholstering, Value creation model one of the 25 most creative Europe- and Filippa K which also resells used an companies in 2010 for its sustain- Filippa K garments in their stores. Product design, Service and function, Reuse, Repair 17

18 rvinnslusjur & Nofir Recovery and recycling of fishing nets in the Nordics State-owned rvinnslusjur, the Fishing is a crucial part of the Ice- The bar is set high Icelandic Recycling Fund, works landic economy generating between rvinnslusjur works with clear re- through state legislation towards 3540% of Icelands GDP. Thus in- cycling targets, and is continuously increasing national recovery and cluding vessel owners in the system becoming more and more ambitious; recycling rates on various types of has been a high priority in order to from 45% in 2006 to 50% in 2007 products including used fishing nets. safeguard their mutual interests. The and 60% in 2008. Today the recov- Icelands large fleet of fishing ships remaining industry was also includ- ery of fishing nets is estimated to be discards a great amount of fishing ed, for instance by appointing four around 80% and the majority of both gear each year and the legislation out of six board members being from nets and wires goes to recycling. allows the industry to make special the rvinnslusjur fund. Fishing ropes, however, remain agreements with rvinnslusjur difficult to recycle due to the blend in order to ensure collection and How it works of different materials. recycling of the nets. In practice, the vessel owners and crew manually separate the nets A Norwegian pendant Essential collaboration with from wires and ropes. Hereafter 15.000 tons of plastic equipment industry the vessel owners may themselves from the fishing and fish farming Since 2005 L, now SFS (Fisheries transport the nets directly to a recy- industry is discarded each year in Iceland), has been responsible for cler or pay for transport through the Norway alone. In Norway, some operating and financing a collection system collection stations. The nets private and competing schemes system for retired fishing nets based collected in Iceland are mainly trans- have been implemented in order to on an agreement with IRF. As long as ported abroad for final recycling. deal with all this material during the this agreement is in place, fishing last years. nets made of synthetic materials are exempted from recycling fees. 18

19 Nofir is one of the leading compa- nies recycling discarded equipment from fishing and fish farming recy- cling, with a nationwide collection Icelandic Recycling Fund system. In 2012 Nofir was granted Sector Reykjavik, Iceland support from the EU Eco Innovaton scheme and have since collected Textile material all over Europe and lately Nofir AS also in North-America. By 2014 the Norwegian system had collected 4 886 tonnes of material, mainly in Norway. Other Norwegian operators report similar good recycling results. Both the Icelandic and the Norwe- gian systems are simple and could inspire other countries to increase the recycling of fishing nets. Not Value creation model only does it contribute to reducing resource use but it also helps reduce Recycling & the amount of fishing equipment Waste Management discarded in the oceans. 19

20 Vigga Baby clothes on demand Circular economy thinking is the new packs of Vigga clothes. The Further, each piece is designed with cornerstone of the Danish baby smaller sizes are usually only with reuse in mind, and the clothing has clothes brand Vigga. The business each user for a short amount of time, been tested to last for the circular is based on the philosophy, that if a because babies grows quickly in business model. The clothing is thus baby romper is only used a few times the beginning. Larger sizes might of such a quality that several chil- before your baby outgrows it and thus stay for longer with each baby. dren can enjoy the clothes. Finally, the romper then ends up in the attic, However, it all depends on the spe- once the clothes is worn out, the almost any effort in sustainable pro- cific needs of each customer, and it clothes will be used to produce new duction will most likely be opposed only takes a click on the screen and products, so that nothing is wasted. by the rompers short lifetime. Vigga a visit to the mail box to receive the has therefore created a subscription next size. Careful attention to production service for baby clothes. and social responsibilities Design and quality is crucial Vigga wears one of the textile Clothes on demand The Vigga collections are designed industrys most stringent certificates The basic idea is that once the baby to suit all kinds of children in all GOTS, which is the acronym for is born, you take out a subscription kinds of shapes. The design is there- Global Organic Textile Standard. for baby clothes from Vigga. By mail fore carefully carried out, so that GOTS is an international, recognized you then receive a pack of selected trouser legs and shirt sleeves can be labeling system which guarantees pieces of clothes for your baby in the rolled up and down, and necklines that Vigga clothes are made of at suitable size. As your child grows, are suitable for large heads. least 95% organic material and that you then replace the clothes with production is both environmentally 20

21 Vigga Copenhagen, Denmark and socially responsible. This e.g. mean that all bleaches, dyes and detergents that are used in produc- tion must meet a number of strict requirements for environmental health. Further, the clothes is Value creation model produced by cotton, which is grown Design, without the use of pesticides and other hazardous chemicals. Finally, Service and function, although not part of the GOTS Reuse certification, the clothes are washed and cleaned at a Swan labeled dry cleaner between each user. GOTS certification is also a guar- antee that the suppliers do not use child labor, that employees have the right to organize and that workers Sector are not discriminated against or under paid. Textiles 21

22 Arla Foods Zero waste programme Arla Foods is a cooperative dairy Recyclable packaging, aim to Waste from production, aims to company owned by 13 500 Euro- achieve 100 percent recyclable eliminate waste to landfill from pean dairy farmers, selling food packaging by 2020 by focusing production by using waste product products to consumers in more than on co-operation with suppliers, for animal feed or biogas production, 100 countries. Arla is the worlds researchers and partnerships with cooperating with waste management fifth largest dairy company and the key customers, and by evaluating vendors or suppliers to recycle or re- worlds largest producer of organ- and selecting the right packaging in use solid waste. An example is a new ic dairy products. The company relation to design and materials. Arla developed technology from Arlas mission is straightforward to secure is engaged in development projects Food Ingredients to use leftover acid the highest value for the farmers for facilitating recycling ex. with the whey from yoghurt into ingredients milk while creating opportunities City of Copenhagen to recycle milk for regular food rather than dumps for future growth. However, perhaps cartons and plastics. into land farming or feedstock, due to the owners connection to the thereby fine-tuning the value chain earth, achieving good growth, is a Reduce food waste, aim to help and product life cycle. big priority. consumers bring down their food waste by 50 percent by easier ahead Other resource strategies Environmental strategy planning in food purchases and Arla also has an environmental strat- Arla strives to work responsible through guides in making full use of egy for water and energy resources, throughout the supply chain with products, e.g. online tips and tricks with a 2020 target of 50% of energy their Environmental Strategy 2020, for using leftovers, weekly dinner supply from renewable sources, which includes a zero waste vision. schedules and climate friendly and annual reduction targets of Where waste is unavoidable, it is recipes. Another method is optimal three percent for energy and water treated as a resource to be reused or packaging in terms of portion size consumption in operations and one recycled. Arla has set three targets and ability to be completely emptied percent reduction in fuel for trans- to fulfil their vision. by consumers. Arla participates in port. Arlas total climate impact has EUs FUSIONS project to reduce food decreased by 12 per cent, compared waste through social innovation. to 2005 levels, despite increased production. 22

23 Arla Foods amba Viby, Denmark Value creation model Product design Recycling and waste management Sector Food 23

24 Matsentralen Utilizing resources better whilst helping people in need For a multitude of reasons, there Cooperation with charities is the Impressive results is a large amount overstocked and foundation for Matcentralen In 2014 Matsentralen received 617 leftover food in Norway, as in other Matsentralen covers around 700 tons of food and groceries from 44 Nordic countries and many other square meters, and is equipped different suppliers. Matsentralen has parts of the world. Overstock and with freezing, refrigerating and a agreements with most of the grocery leftover food not only represents a dry storage facilities. Matsentralen and food industry, supermarkets financial loss for businesses, but accepts food from food retailer and and retailers and Coop Norway, ICA, also an environmental problem for food production companies in the Norway Group, Asko, Bama, Nortura, society. Increasing pressure from a Oslo region. All nonprofit charity TINE and Orkla foods all participate. rising global population and subse- organizations can participate in All revenue comes from sponsors quent pressure on land, make more Matsentralen; they can come and with a 2015 budget of 5,2 million efficient use of food crucial. collect food from Matsentralen NOK. Matsentralen is run with one which they can redistribute to dis- full-time employee and three part While so much food goes to waste, advantaged people. The food is, of time volunteers, together with three many disadvantaged people cannot course, free of charge. The concept full-time Fretex employees operating afford to buy sufficient nutritious is inspired by similar initiatives the warehouse. food. Charities estimate that in the in other European cities and has Oslo area alone more than 10 000 already created interest in several Danish Fdevarebanken conduct people receive food aid. other Norwegian cities. Matsen- a similar service and in 2013 they tralen is organized as a co-operative provided more than 1 million meals Matsentralen - a warehouse for society, with the Salvation Army as for people in need. storage and distribution of overstock operator together with Blue Cross food and groceries - opened in Oslo and the Church City Mission as in 2013, aiming to help solve these founders. In 2014 the received food problems by linking food retailers was then allocated (redistributed) to and producers with charities that 93 different charity organizations. distribute food to those that require assistance. 24

25 Matsentralen AS Sector Oslo, Norge Food Value creation model Service and function 25

26 Martela Circular furniture solutions The Finnish company Martela mental impact and promote reuse Furniture in the best condition is designs and supplies furniture for and recycling. Martela takes respon- sold in Martela Outlet stores. Furni- businesses, public spaces and sibility for the total life cycle of their ture in need of reconditioning, such schools. Their circular business products. From product design and as office chairs, will be serviced and model ensures customers only pur- their supply chain, to production and reupholstered. Almost all materials chase according to needs; old items customer service, maintenance ser- can be reused. Furniture that is unfit are repaired, materials are reused vice during the use time and finally, for use will be dismantled and the and recycled; and modernising and when customer no longer needs the components sorted into wood, metal maintenance is promoted to the product, with product recycling with and plastic materials. The materials highest possible degree, rather than emphasis in giving furniture a new will then be utilised either as parts replacing items. life. This means that the products for used furniture, as secondary raw are not only designed for the longest materials, or in energy production. The family company originates in possible useful life in terms of mate- Finland but have quickly evolved to rials and design language, but after Circular solutions for satisfied become one of the Nordic leaders in ended first use, the products can customers the office interior industry. Its activi- be returned to outlets for repair and Martela supplies furniture to a wide ties have spread widely and in 2014, recycling. range of businesses such as Finnair, Martela employed 742 staff in the Axfood and PWC. When TeliaSonera, Nordic countries, Poland and Russia, The company thus not only provide a network- and telecommunication with a consolidated revenue of EUR quality furniture in long-lasting company, created their new office 135.9 million. design, but they also offer removal space, Martela provided a circular services from start to finish, allowing solution. Existing furniture were Environmental at its core Martela to collect used furniture relocated and tables were partially Martelas Environmental Policy aims carefully for intended reuse and altered by shortening their base and to decrease the companys environ- refurbishment. replacing their tabletops. However, 26

27 Sector Furniture the biggest change was carried out on the storage units. Martela cabinets with sliding doors that were originally intended for a single Value creation model user were modified to make either Product design, a shared cabinet for two worksta- tions cabinet with doors or lockers Service and function, adequate for four users. Martela Reuse, Repair R&D designed add-ons suitable for the original structure and modifica- tions were carried out on-site during renovations. This allowed the use of materials to be minimised for reduced environmental impact. Martela Oyj Helsinki, Finland 27

28 GH Form New street life and park life for old products With raw material costs constituting Raw material scarcity brings about mantled and the iron used to cast up to 60% of the total production increasing material and production new products if damaged. expenses, GH Form realized that a prices. It was mainly for this reason lot of money could be saved both that GH Form, founded in 1918 Circularity starts with sourcing to itself and to its customers by as an iron foundry, adjusted their GH Form aims for highly efficient recycling material rather than using linear business model into a circular production of new items with a virgin raw material. In fact, in some one and started offering products minimum of waste. Moreover, some cases entire products can be re- for lease, instead of for sale, to its of the raw materials used in the cycled, as they are made entirely or customers. An example is a recently production are discarded materials mostly of iron. If they are in a good C2C certified product, a lamp post, from other industries in Denmark, shape, products can even be directly designed to be rented out to munic- thus preventing waste. re-used. Perfect circularity. ipalities and re-collected after 10 to 15 years, to be re-used or recycled. Lack of demand for certified A park bench as a storage circular products for iron How the leasing agreement However advantageous this circu- GH Form produces a wide range of works lar business model is both for the outdoor furniture and other equip- With a leasing agreement, GH Form customers and for the environment, ment for public spaces, streets, remains the owner of the product considerations of resource efficiency parks, including benches, waste and makes sure that it remains a and environmental consequences of bins, streetlights, bike stands, and part of the circular model. In this waste are not currently sufficient to plant pots. Many of the products way, GH Form offers a service that drive GH Forms customers (primarily are made from cast iron, which, if is fulfilled for a certain time, rather municipalities) to opt for a leasing correctly maintained, can last for than the product itself. To promote model: 95% of the products are still decades. This essentially makes the the leasing model, GH Form takes being sold rather than leased. bench or lamppost a storage for iron: care of all maintenance for the At the end of their life-time, they can period of the lease. At the end of the be recycled into new products, lead- lease period, the product is taken ing to environmental and economic back and re-used if no or minor benefits. adjustments are required, or dis- 28

29 Sector Furniture Value creation model Service and function based GH Form Borup, Denmark 29

30 Off2Off Giving products new life in the cloud Swedish national Fredrik stlin Furthermore customers may also new job opportunities within the ad- noticed that the distributed structure advertise additional services such as ditional services for local companies of many public sector organisations transportation, repair and recondi- and labor market policy activities. meant that excess furniture and tioning. Quite often the service al- other resources frequently went lows the funds used for the purchase Business expansion to waste simply through lack of of materials to stay within the sector. Following the launch of the web- awareness of their availability. With based communication service in this in mind, he founded Off2Off, a Managing resources made easy 2011, the company participated web-based communication service All customers have their own ac- in the business incubator Inova. In initially for Swedish public sector count and have access to the Off2Off 2012, the City of Malm signed a organisations where supply and web support. The service functions contract with Off2Off, for supporting demand in goods and resources, as an easy to use cloud-based ser- and enhancing their internal reuse such as furniture, office equipment, vice, compatible with any interface operations, via their on-line platform vehicles, electrical and electronic connected to the internet. This gives Malvin, which was launched in 2013. products can be matched, primarily the customers the opportunity to Ragn-Sells, a waste management, within the organization. check for the availability of goods environmental services and recycling at the same moment as the demand corporation operating in several This business model helps extending arises and to monitor any upcoming countries has commissioned Off2Off products useful lifetime by creating match. While other marketplace to customize and operate a platform, new opportunities for their use, and platforms exist, Off2Off offers a for the easy turnover and reuse of thus follows the inner circle of the dedicated and tailored service products within the organisation. circular economy. Now public and with a knowledge building concept SRAB a regional waste disposal private organisations use the service that reveals the organizations company signed a contract 2014 and to exchange information about reuse-behaviour. Matching func- the municipality of Upplands Vsby needs and functional surplus (things tional surplus with demand reduces signed a contract 2015. Establishing that are too good to be thrown away) the need for storage whilst saving internal systems for exchange pro- both within their own organisa- natural resources and reducing GHG vides such large corporations with a tions and with other organisations. emissions. The concept also creates new means to trim operations. 30

31 Sector EEE, Furniture, Other Value creation model Reuse Off2Off Stockholm, Sweden 31

32 RePack Reusable packaging for e-commerce RePack is a sustainable packaging A new perspective How it works system for online retailers and The founders worked on a sustaina- The scheme is best illustrated with shoppers. RePacks self-designed bility project in Finlands Post an example: reusable packaging is easily re- Office, redesigning load carriers, Eva buys a new sweater from turned through the postal system, when inspiration for a new system Globe Hope and chooses RePack and as a reward, users are offered came from the returnable bottling delivery. She pays an extra fee RePack vouchers to other web systems in the Nordic Countries, of 3,90 EUR for reusable packaging. stores. The scheme thereby en- which achieve very high return rates. When Eva gets her RePack deliv- courages new sales and enforces ery she returns the empty RePack consumer loyalty while reducing RePacks first customers were by dropping it into a postbox. the amount of packaging waste. Finnish fashion web stores. Now Returning RePack is free for Eva. RePack seeks to scale into interna- Once RePack is returned Eva Around 3.7 billion disposable tional markets. In addition, RePack is rewarded with a voucher for packages are delivered to European is using the home market to test her next purchase. Voucher is E-commerce consumers each year, how the concept can be expanded emailed to Eva and it can be with most packaging discarded right to other product categories such as claimed at anhy RePack using away. RePack offers an easy option e.g. pharmacy, food and electronics. store. for reuse for environmentally con- Customer promise is that reusable RePack packaging is delivered scious consumers who are willing packaging has several benefits over to be reused at RePack using to pay a premium where an upfront disposable packaging; its easier to webstores. deposit is automatically refunded use, it reduces cost, creates value in the form of a voucher for the next and removes trash. e-commerce purchase. RePack pack- aging may be returned via the local postal system anywhere in the EU. 32

33 Upcycling materials RePacks smallest packaging is de- signed from used and now upcycled advertising billboards. The medium and large packaging is made from Sector Value creation model more durable polypropylene. Packaging Reuse RePack is designed to be used up to 20 times, with a carbon footprint four times smaller than regular packaging. RePack Helsinki, Finland 33

34 Plus Pack Efficiency within plastic and aluminium packaging A large proportion of food sold in rials and new alloys for packaging embedded energy. In this way, envi- Nordic countries comes in plastic allows reducing resource and energy ronmental impacts can also be saved and aluminium packaging produced consumption for production. More- earlier in the production chain. by Plus Pack A/S. Through tech- over, all production cut-offs, be it no-logical advances and product aluminium or plastic, are re-melted Innovative materials development, Plus Pack A/S strive to and blended to the mixture for new After an intensive two-year long minimize the use of resources and to products to prevent waste and save effort in development of new pack- cut down on waste. on raw materials expenses. Produc- aging materials, Plus Pack achieved tion technology is constantly refined 11% reduction of total CO2 emis- Reduction of impacts along the to reduce production scrap, and sions on Portion Pack containers and production chain energy efficient thermoformers have a further decrease in raw materials Environmental impacts are saved been installed. consumption. both in the production of packag- ing and in its end-of-life phase. Plus Pack A/S also influences its All plastic materials used for Plus Down-gauging, development of suppliers, by asking for raw materi- Pack packaging can be recycled, thinner, lighter and stronger mate- als, products and services with low and recycled materials are used in a 34

35 Plus Pack A/S Odense, Denmark number of their packaging products. 3. A fully recyclable PP chalk Three materials in particular make a material made with a 100% big contribution to the circularity of natural mineral, calcium car- Plus Packs business model: bonate. The fact that 50% of 1. Aluminium, as the material this material is made of non-pe- is 100 % barrier efficient and troleum-based raw ingredients Sector 100% recyclable. Aluminium leads to CO2 reductions, energy Packaging can be recycled an infinite num- savings and lower consumption ber of times without loss of its of fresh water. essential properties. 2. Recycled rPET: makes up 50% A number of other Nordic companies of Plus Packs plastic, and is are also working to reduce waste, expected to remain an attractive improve on materials and ensure PET packaging material. closed loops. Amongst these are Norwegian Biobag and Swedish Ecolean. Value creation model Product design 35

36 Lassila & Tikanoja Wooden pallets going in circles Circular ambitions es and public sector operators that In 2014 Lassila & Tikanoja therefore Lassila & Tikanoja is a large Finnish have issued a shared statement acquired J A Tauriainen in order to in- service company that works towards calling for the circular economy to be ternalize their successful operations transforming the Finnish society included as one of the key objectives with reuse and recycling of pallets. into an efficient recycling society as of the next Government Programme. J A Tauriainen is located in Jrven- part of a circular economy. Lassila p, Finland and it is one of the & Tikanoja was founded in 1905 as Partners joining forces in order leaders in the recycling and repair a wholesale business, but has now to bring pallets into closed loop of pallets in Finland. The acquisition developed into an international cor- In the Nordic countries and in the will make Lassila & Tikanoja one poration focusing on environmental EU, there is focus on increasing the of the largest operators in the field management and support services reuse and recycling of packaging. in Finland. Prior to the acquisition, for properties and plants. L&T has Packaging has a central role in the J A Tauriainens had more than 20 business operations in Finland, Swe- consumer goods system and could employees and their net sales were den and Russia. The company has be an evident case for introducing a around EUR 7 million. It expected 8 000 employees and had a EUR 640 circular business model. that this acquisition will increase million turnover in 2014. the reuse and recycling of wooden Wood packaging like pallets could pallets significantly. Lassila & Tikanoja does not only be of particular interest. In the cur- manage waste, but also works rent system most wood packaging is STEA which is located in both Den- toward reducing waste volumes, incinerated for energy recovery, but mark, Sweden and Germany also extending the useful lives of prop- in order to improve on the recycling repair and reuse wooden pallets. erties, recovering materials and targets, which are expected to decreasing the use of raw materials tighten, wooden packaging could be and energy. Lassila & Tikanoja is an evident case for increasing reuse part of a coalition comprised of and recycling. non-profit organisations, business- 36

37 Lassila & Tikanoja plc Helsinki, Finland Value creation model Reuse and Repair Sector Packaging 37

38 Blocket A nationwide flea market Swedish Blocket is an online second- total sum of for-sale item in ads was with trademark representatives to hand marketplace. Henrik Nordstrm 414 bn Swedish kroner, which corre- avoid counterfeit goods on the mar- started it in 1996 as an online flea sponds to around 11% of Swedens ketplace, as they are rarely produced market for the Southern region of BNP. These are large numbers. With responsibly. Blocket also collabo- Skne. However, after a few years, expertise from Svenska Miljinstitu- rates with Retoy, through financing, Blocket expanded nationwide, and tet (IVL), an independent, non-profit volunteering work and marketing, to today one may find almost anything environmental research institute, create toy-swapping events where on Blocket; from an inexpensive sec- Blocket investigated the climate children may swap, borrow and cre- ond-hand kitchenware to hundred impact of second-hand trade. The ate toys. Thereby through playtime thousand euro houses or a new job. results show that second-hand trade practice sustainable consumption. In turn, Blocket earns revenue by on Blocket is estimated to save 1.6 charging a small fee per advertise- million tons of greenhouse gasses For its efforts, Blocket has been ment. annually, corresponding to all road awarded a number of prizes, includ- traffic in Stockholm in 18 months. ing Inspirationspriset a prize for in- Blocket by the numbers spiring people to reuse products and 5 million people visit Societal impact a scholarship from Berghs School of every week, making it Swedens larg- Blocket prides itself on societal Communication to pursue communi- est national retail market. 8 out of responsibility. It adheres to the cation as a driver for sustainability. 10 swedes and 9 out of 10 Swedish UN Global Compact, reduces the families with children have bought climate footprint through low energy Brave new world or sold something on Blocket, and business practices and climate com- Blocket is an example of circular an incredible 99% of all swedes have pensation, spreads knowledge on economy thinking by encouraging heard about Blocket. In 2013 the sustainable consumption, and works people to prolong the lifespan of 38

39 Blocket AB Stockholm, Sverige products and diverting them away from the buy-and-discard culture and lifestyles. ICT, allows easy and equal access for everyone with Internet all across Sweden 24/7, with easy membership and Value creation model payment schemes. The economics of online trade reduce transaction Collaborative consumption, costs for the consumer and induce Reuse price mechanisms of demand and supply. The environmental benefit of utilising idle capacity of goods and unused services appeals to envi- ronmentally aware consumers, and an ethical movement of vintage and second-hand goods add extra value to Blocket services. Sector Blocket has expanded its concept to 40 countries, and similar on-line Consumer goods market places are seen in Norway (, Denmark ( and 39

40 Zen Robotics Recycling at its best Although the Nordic region in gener- enough sensors, ZenRobotics Brain Award-winning technology al is well known for high quality and can form a more comprehensive view In 2014 ZenRobotics was named in efficient waste management, there of the waste stream than has so far the prestigious 2014 Global Clean- are still some steps to go in order to been possible. tech 100 as a world leader in ro- close the outer loops of the mate- Robot arms sort out the most valu- botic recycling systems. The Global rial cycles in the economy. Efficient able pieces from the waste stream Cleantech 100 represents the most sorting and recycling technology is including rigid plastics. Using innovative and promising ideas in just as relevant for the circular econ- enormous amounts of sensor data, cleantech. Featuring companies that omy as business models for repair ZenRobotics Recycler can identify are best positioned to solve tomor- and reuse. Zen Robotics is a great wanted items and raw materials from rows clean technology challenges, example of such a technology. the waste stream and reclaim them and Global Cleantech 100 is a com- for recycling. The ZenRobotics Brain prehensive list of private companies High-tech solution for sorting is tasked with analysing and refining with the highest potential to make waste the sensor data into useful infor- the most significant market impact. ZenRobotics Brain is a robot mation using realtime data mining control technology developed by technology. ZenRobotics. The advanced control system utilizes multiple sensor Currently, the Next Generation inputs in realtime, reacts to changes ZenRobotics Recycler can sort 3,000 and learns from its mistakes. The picks per hour on average and the sensors include various camera peak sorting speed is around 4,000 types (visible light, spectrometric picks per hour. It can also pick heavi- cameras like NIR), 3D scanners, er objects, up to 20 kg, with a reach haptics, metal detectors etc. With of 2 meters along the sorting belt. 40

41 ZenRobotics Ltd Sector Other Helsinki, Finland Value creation model Recycling and waste management 41

42 Norsk Gjenvinning Putting strategy into practice by closing the waste loop Norsk Gjenvinning is Norways Circular economic projects Together with Norsk Hydro (Word leading waste management compa- in practice leading aluminum producer) and ny providing waste- and recycling Within the past year, Norsk Gjen- Nespresso, Norsk Gjenvinning services for businesses, the public vinning has implemented various has developed a solution for sector and private individuals with a projects towards a circular economy: recovering Nespresso coffee turnover of more than 4 billion NOK New technological developments capsules in Norway. From the end and 1.400 employees. Their vision and solutions have been devel- of 2015 Nespresso capsules from is to provide practical solutions that oped for the recovery of sealed Denmark will also be recovered. help customers achieve their goals double glazed house windows. The solution ensures a transition within sustainability in general and Such windows, containing PCBs from incineration to 100% mate- proper waste management in par- and chlorinated paraffins, were rial recycling. Coffee grounds is ticular. The aim is a business driven previously sent to Europe for turned into biogas and aluminum shift towards a circular economy incineration as hazardous waste. is recycled into new aluminum where doing right for the environ- Along with Glava (Norways through Hydros smelter in ment also brings profitability. Norsk largest producer of insulation Norway. Gjenvinning seeks to work across material) Norsk Gjenvinning Norsk Gjenvinning has also sectors and in the full value chain to has developed a glass crushing worked with R & D institutions, identify solutions that are positive plant to allow waste window the boating industry, consultants for both society, environment and glass directly into production of and governments to introduce a the economy. Glava insulation products. Glava solution for recycling of lei- previously imported equivalent sure boats (ELB). Engaging the amount glass from Europe, but industry side, Norsk Gjenvinning can now use recycled material. has called for action, both to secure key resources and reduce a growing environmental problem of yachts being disposed of in nature. 42

43 Sector Other Amongst their activities, Norsk Gjenvinning also participate in forums and think-tanks that touch upon the theme of circular econo- Value creation model my. A few examples are: Norsk Gjenvinning are McKinsey Recycling and & Co.s selected partner to help waste management analyze and explain the circular economic potential in Norway. During 2015 selected industrial companies, NGOs, governments, etc. will be invited for verification and further development of circu- lar business models. The work is based on the methodology and analysis that McKinsey & Co. has Norsk Gjenvinning previously provided for the Ellen MacArthur Foundation. Oslo, Norge Norsk Gjenvinning, SoCentral and Innovation Norway will establish a corporate network that will fo- cus on circular economic growth opportunities. 43

44 The workshop The workshop on April 28th in Co- The workshop was built up by a of companies already engaged penhagen brought together a mixed mix of inspiring presentations and in circular business models were range of people from businesses, panel discussions combined with presented. In addition, a selection knowledge institutions as well as participatory innovation labs and of prominent speakers presented public and private organisation to sector labs. In the innovation labs the latest insights on the circular discuss opportunities for facilitating discussion focused on characteris- economy from both within and out- the proliferation of circular business tics, trends and opportunities for six side the Nordic region. These inputs, models (see invitation and partici- types of business model elements as well as each of the participants pation list in Annex 1 and 2 respec- were discussed: Product design, expertise, provided great inspiration tively). The aim of the workshop was Service- and function based models, for the discussions, and also caused to provide the Nordic Council with Collaborative consumption, Reuse, some debate about the nature specific policy messages and recom- Repair, as well as Recycling and of circular business models. The mended actions that could support waste management. In the sector workshop discussions proved both and promote circular business labs, the workshop focused on six provocative and fruitful: participants models. specific themes: Textiles, WEEE, were engaged, and were eager to Furniture, Food, Packaging, and Con- both learn about and influence the struction. As part of the workshop future direction of circular economy documentation, eighteen examples initiatives in the Nordic region. 44

45 45

46 Key Findings General policy messages Although discussions were wide Better design and stronger ness models. One powerful driver for ranging, it was clear that there markets market creation can be public pro- were also some common threads, curement by e.g. including criteria which applied across several of the For consumer goods like textiles, on expected active lifetime, options sectors: WEEE, furniture, packaging as well for upgrading and/or customising as certain construction materials, as well as reparability in procure- design for long life, including reuse ment practices. In this respect, and repair, is crucial in order to public bodies and organisations ensure circular economic business could also implement guidelines models. Products and materials for the handling of used equipment must therefore be designed and (such as IT, uniforms, furniture produced with longevity and proper and buildings) in order to ensure end-of-life handling in mind, in alignment with the waste hierarchy order to make the circular economy and circular economic practices. work. It was, however, underlined Reuse and repair markets could be that a crucial prerequisite for these strengthened by the introduction of improvement in design was the certification of reused or repaired presence of a market for them. Thus, products. This would help alleviate creating markets, whether it being buyers and consumers concerns by public or private demand, is over quality and expected lifetime of essential. This was also underlined used products. with respect to markets for better designed products, reuse, repair and service- and function based busi- 46

47 Setting (ambitious) re-use target Setting reuse targets could be used to drive reuse in the Nordic coun- tries. For example, Spain is the first European country to introduce a sep- arate national quantitative target for preparation re-use of certain WEEE categories: 2% of large household appliances and 3% of IT equipment must be prepared for re-use from 2017, and from 2018, the targets will rise to 3% and 4% respectively (Boletn Oficial Del Estado, 2015). Similarly, France has set a reuse target to increasing the amount of used furniture put back on the mar- ket: by 50% from baseline by 2017. This target has been framed in the context of a national EPR scheme for domestic and professional furniture (Legifrance, 2012), which ensures that social enterprises are granted access to collection points in order to carry out reuse activities. 47

48 Increasing levels of repair Ensure better information and ed- (and economic) benefits should be ucation on how to repair products clear, and should be communicated Increasing the level of repair was and where to find spare parts. In to all stakeholders in order to facili- also a general theme heard across this respect, the Nordic coun- tate environmentally better choices. the tables at the workshop. Amongst tries could be inspired by French Further, good case studies and best other things, it was suggested to: law, where manufacturers have practice examples should be collect- Include specific requirements for to clearly label products with ed and spread in order to inspire and reparability of products in the information about how long spare create dialogue. A circular economy European Eco-Design Directive, parts will be available (Legifrance, mentor scheme for SMEs was sug- Promote longer product warran- 2014). This law is part of a larger gested as a way to particularly target ties. This could be achieved by programme on planned obsolesce this group in the business communi- instituting a VAT reduction on all which was decided upon in March ty. Finally, information and dialogue products with warranties longer 2014. in schools, business communities, than the legally required mini- to the general public was considered mum. as a basic step for not only creating Introduce instruments or models More and better communica- structural change, but also bringing that can support or partially tion and transparency about a more fundamental cultural finance salaries for repair. This change toward circular economy could be achieved via increased Communication and transparency thinking, which was considered focus on and establishment of in the entire value chain was also necessary. social enterprises. perceived as crucial. Environmental 48

49 Sector-specific recommendations Participants were also vocal on the business models, VAT exceptions has already been explored by the challenges and opportunities within for new business models should Nordic Council of Ministers, an EPR their specific sector. The key policy be considered. Further, an import scheme for textiles was suggested. messages from these discussions duty on volume rather than on value were: was suggested as a driver for better (W)EEE quality products. EEE is an evident case for improving Textiles The content of hazardous substanc- product design, making EEE prod- There is an evident case for the de- es in textiles was also discussed, ucts more suitable for reuse, repair velopment of new business models and either a ban on use of high and better waste management. within textiles, and much is already concern substances or taxation of However, in order to create substan- happening in the area. However, textiles of concern or containing tial basis for these types of business some people do not like concept of high concern substances on the EU models, efficient and well-function- using clothing which someone else level was suggested as a way for- ing take-back- and collection sys- has used. There might therefore be a ward. This might also ease recycling, tems are decisive. Particular focus need for rendering the previous user which is currently considered an was therefore put on ensuring better invisible by presenting shops and important area to explore further. logistic and take-back systems. A clothes clean and fresh, remov- Funding and research into more and large proportion of discarded EEE is ing the notion of second hand. better recycling was therefore also still fully functional, and suitable for In order to promote the circular considered necessary. Finally, as reuse and/or preparation for reuse, 49

50 but unfortunately, current logistic Furniture It was also recommended that gov- systems are not designed to pro- Participants in the furniture group ernments set certain requirements tect and safeguard these valuable concluded that there is a solid for reuse of furniture. This could resources. Thus, much fully func- case for developing CE business involve municipalities and/or waste tional used EEE is handled as waste models particularly in markets for handlers or alternatively, as was and damaged and sometimes also business to business (B2B) trade mentioned above, social businesses, stolen. Nordic EEE handling systems (office furniture for example) where as seen in France. should therefore be improved in larger batches of relatively homog- order to prevent damage, but just enous furniture are handled. In this as importantly, to prevent theft of respect, public procurers could play valuable products and resources. a role in pushing the market for ser- Later, in the closing session it was vice- and function based models, as stressed that well-functioning and well as creating markets for reuse. suitable take-back systems are not It was underlined that producers only relevant for (W)EEE sector but and procurers need to collaborate also for other products like tex- in order to ensure that products are tiles, furniture, packaging and C&D designed for reuse, for customising materials. and retrofitting, for long life, for repair and for disassembly. 50

51 Packaging Food markets in Austria and England. In It was recommended that an Circular economic thinking around some cases, this might require an increased general focus is put on food is somewhat different from easing of regulation related to food reusable packaging in all parts of other types of products. Since food safety. Further, it was also discussed the value chain, but particularly is a one-way consumable prod- how the public can participate in within the B2B market. Much of the uct. Reusing or repairing does not food sharing and food collectives, packaging currently being used is really apply! Instead, other types of which can be facilitated via new solely for one-way use, after which opportunities, like waste prevention types of media such as social media it is often not suitable for recycling. and developing production pro- groups and related apps. Finally, Shifting the consumer goods pack- cesses that include elements of CE, it was discussed how to improve aging industry to circular models can are more promising. In particular, and perhaps shorten the supply result in significant material savings. the participants at the workshop chain. One referred to the Europe- In order to obtain true circularity, it discussed how to better make use of an BERAS project, which provides is necessary that packaging is de- already produced food and thus to recommendations for developing a signed for both durability and reuse prevent food waste. This could mean realistic, fully integrated ecological as well as for recycling. launching specialised stores for alternative, producing a systemic dated food and food with damaged shift in the food chain from farmer to packaging, inspired by social super- consumer. 51

52 Construction overcome these challenges in the BREEAM3 system. A scarcity tax The table discussions focused on future, is was suggested to conduct on new CO2-intensive materials one of the bigger challenges with careful mapping of all content in was also discussed as a means of C&D materials and waste: that the new buildings, in order to prepare promoting better and more environ- Nordic building stock tends to be for proper handling according to CE mentally friendly design. relatively old, which means that principles. Further, it was suggest- demolition and proper material ed that a tax reduction could be handling can be challenging in terms imposed on sustainable buildings of problematic and/or unknown that carry international certification content of substances. In order to like the Nordic Swan1, C2C2 or the 1 The Nordic Ecolabel is a voluntary ecolabelling scheme that evaluates a products impact on the environment throughout the whole life cycle. See 2 The Cradle to Cradle Certified Product Standard guides designers and manufacturers through a continual improvement process that looks at a product through five quality categories material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness. See 3 BREEAM is the worlds leading design and assessment method for sustainable buildings. BREEAM can be used to assess the environmental performance of any type of building, new and existing, anywhere in the world. See 52

53 Panel discussion Identify sectors or areas that are Explore the possibilities of The closing panel discussion out- most relevant for circular eco- re-defining end-of-waste criteria lined and summarised some more nomic business models. in European legislation in order general discussion threads. It was Demonstrate incentives (mon- to ease possibilities for reuse, first and foremost underlined that, etary as well as non-monetary) repair and refurbishment. no matter how policy makers choose which can pull (rather than push) Unite and spread the voice of the to proliferate circular economy in the development towards a circular Nordic countries, and work on Nordic countries, clear and predict- economy. common positions formulated via able legislation is essential for the Explore and develop National clear messages. business community to respond in a Capital Accounting (an extension desirable way. Simple and long-term of the work undertaken by Novo objectives and regulation that level Nordisk and the Danish apparel the playing-field are thus crucial. sector in collaboration with the Ultimately, some clear recommen- Danish EPA) in order to get the dations for the Nordic Council of prices right. Ministers were laid out: 53

54 Dansk sammenfatning Den cirkulre konomi str hjt p kortere produktlevetid samt en endvidere at skabe arbejdspladser. den politiske dagsorden. Globale tendens til at produkter bortskaffes Potentialerne i den cirkulre kono- erhvervsledere, politikere, akademi- frem for at blive repareret, til trods mi er sledes betydelige. kere og NGOer fastslr, at udviklin- for, at reparation er en reel mulig- gen mod en mere cirkulr konomi hed. Den linere model medfrer De nordiske virksomheder er er ndvendig, hvis de globale sledes ineffektiv udnyttelse af klo- allerede i gang miljmssige og konomiske udfor- dens sparsomme ressourcer, gede Den nordiske gruppe for affaldsfore- dringer skal lses. I tillg har den mngder skadelige emissioner samt byggelse under Nordisk Ministerrd Europiske Kommission forpligtet stigende mngder affald. igangsatte derfor projektet P sig til at prsentere en revideret og vej mod den cirkulre konomi mere ambitis strategi for cirkulr Ellen McArthur Fonden beskriver den succesfulde nordiske forretnings- konomi inden udgangen af 2015. cirkulre konomi som et system modeller. Mlet med projektet var der er designet med henblik p at at ge kendskabet til principperne Mange har understreget ndven- reducere og i sidste ende helt fjerne bag cirkulr konomi generelt, digheden af en cirkulr konomi, spild ved hjlp af bedre design af samt at fremme udviklingen inden men isr Ellen McArthur Fonden materialer, produkter, systemer og for cirkulr konomi i de nordiske har vret toneangivende. Iflge forretningsmodeller. Ud over en lande, gennem prsentation af en fonden er den nuvrende linere langt mere effektiv udnyttelse af rkke eksempler p succesfulde konomiske model uholdbar, idet ressourcerne, herunder alts ogs nordiske forretningsmodeller samt den hovedsageligt er baseret p en reduktion eller mske en fuld- afholdelse af en workshop for forbrug-og-smid-vk kultur, der stndig eliminering af de negative interessenter med reprsentation medfrer en rkke udfordringer, konsekvenser af affaldsgenerering, af bde erhvervsfolk, embedsmnd, herunder bl.a. en bevgelse mod forventes den cirkulre konomi forskere og NGOer. Resultatet 54

55 er nrvrende publikation, hvor Virksomhederne er hovedsageligt forskelligartede ideer og anbefalin- cirkulre forretningsmodeller fra 18 sm- og mellemstore virksomheder, ger som retter sig mod bde regerin- nordiske virksomheder er prsen- der alle opererer inden for et eller ger, producenter og andre aktrer. teret sammen med en rkke af de flere af de seks omrder, som har De mest fremtrdende budskaber, mest fremtrdende resultater og vret i fokus for projektet: Produkt- som gik igen blandt deltagerne var, anbefalinger fra workshoppen. design, service- og funktionsbasere- at regeringer: de modeller, delekonomi, genbrug, generelt introducerer enkel og Mange store virksomheder i de reparation samt genanvendelse langsigtet regulering sledes, nordiske lande har nu taget ambiti- og affaldshndtering. Mlet er, at at aktrerne kan operere p lige se og vigtige skridt i retning af mere kataloget skal inspirere og opfordre vilkr; cirkulre forretningsmodeller, mens andre virksomheder til at tage kre- indfrer ml for genbrug, mindre, og undertiden mindre kend- ative og innovative skridt i samme understtter bedre kvalitet i gen- te virksomheder, allerede udver retning. anvendelse, cirkulr konomi i praksis. Fokus anvender offentlige indkb som har vret p at prsentere virksom- Konkrete forslag til handling et redskab til at skabe markeder heder fra bde Sverige, Norge, Fin- P workshoppen, som blev afholdt i og eftersprgsel efter cirkulre land, Danmark og Island, som bredt Kbenhavn den 28. april 2015, blev forretningsmodeller, dkker de seks udvalgte fokusom- bde forskellige typer af forretnings- stter lovmssige krav til mu- rder: Fdevarer, tekstiler, elektrisk modeller og forskellige omrder og lighederne for at reparere, krve og elektronisk udstyr, bygge- anlg, sektorer diskuteret (se program og lngere garantiperioder samt mbler samt emballage. deltagerliste i henholdsvis Annex 1 bedre information om eksempel- og 2). Gruppedannelser med forskel- vis tilgngelighed af reservedele. lige interessenter medfrte en rkke 55

56 Ydermere var der generel enighed at mentorordninger og get undersge og udvikle konceptet om: dialog generelt vil vre med til omkring National Capital Ac- at producenter br ptage sig at afhjlpe den mangel p viden counting s markedet sender de ansvar for at udbyde produkter og information som der syntes rigtige prissignaler, med lang levetid, som fremmer at vre omkring principperne for undersge mulighederne for at genbrug og reparation, cirkulr konomi. redefinere end-of-waste kriterier- at et certificeringssystem for gen- ne i den europiske lovgivning, brugte og reparerede produkter Endelig blev det anbefalet, at Nor- sledes at betingelserne for vil understtte markedet for disse disk Ministerrd skal: genbrug, reparation og genfrem- produkter, identificere sektorer og omrder stilling lettes, samt endelig, at bedre kommunikation og inden for hvilke den cirkulre at koordinere og fremme flles gennemsigtighed ved hjlp af ek- konomi vil vre relevant i en Nordiske budskaber p en klar og sempelvis best-practice kataloger nordisk kontekst, entydig mde, med henblik p at br udarbejdes, samt gennemfre analyser der kan pvirke eksempelvis den europ- demonstrere effekterne af inci- iske udevikling inden for milj og tamenter (monetre svel som cirkulr konomi. ikke-monetre) som kan vre med til at fremme udviklingen mod en cirkulr konomi, 56

57 References Boletn Oficial Del Estado (2015): 1762 Real Decreto 110/2015, de 20 de febrero, sobre residuos de aparatos elctricos y electrnicos, Legifrance (2012): Dcret n 201222 du 6 janvier 2012 relatif la gestion des dchets dlments dameublement Legifrance (2014): Dcret n 2014-1482 du 9 dcembre 2014 relatif aux obligations dinformation et de fourniture concernant les pices dtaches indispensables lutilisation dun bien, 57

58 Annex 1 Workshop programme 58

59 2 List of participants Company or organisation Country Company or organisation Country Ace & Ace DK Ministry for the Environment and Natural Resources IS AU Herning, Greenhouse DK Ministry of the Environment and Energy SE BMH Technology FI NCC Recycling SE Bredygtigt Erhverv DK Nordic Council of Ministers CHARE, Danish Refugee Counsil DK Norsk Gjenvinning NO Copenhagen Resource Institute DK Norsk ombruk AS NO CopenhagenIRISDK Norwegian Environment Agency NO DanDroneDK Oakdene Hollins / Centre for Remanufacturing and Reuse EN Danish EPA DK off2offSE Danish Federation of SMEs DK PlanMilj DK Danish Industry (DI) DK Radikale Venstre DK Digipolis Oy FI REALLY ApS DK Ekokem Group FI ResecondDK Ellen MacArthur Foundation UK Ronneby Kommun SE Esam AB SE roofurbDK European Environment Agency DK School of engineering and social sciences FI Finnish Environment Institute FI SE Big Blue DK Galaxe A/S - Thermozell Denmark DK SitraFI Green Transition Fund, Danish Business Authority DK Sustainable Leadership Lab SE HRG NORDIC DK SUSTAINIADK IBMSE Swedish EPA SE IKEA Denmark DK Swedish Waste Management SE IKEA Norway NO Tarkett AB SE IKEA Sweden SE VELUX Group DK InnovationshusetDK Viktoria Swedish ICT SE Inrego AB SE WorldperfectDK Lund University SE WorldWatch Institute Europe DK Mepex Consult AS NO 59

60 Ved Stranden 18 DK-1061 Kbenhavn K ANP 2015:771 ISBN 978-92-893-4330-5 (PRINT) THE NORDIC REGION ISBN 978-92-893-4331-2 (PDF) leading in green growth

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