Stuart Clouth of Resource Futures and Dan Wright of Phineas Products Ltd explained the practicalities and benefits of implementing the circular economy. TSB funding enabled research into a feasibility study for Phineas Products to move to a circular economy business model.

1. Implementing the Circular Economy
in the South West
A Case Study
Stuart Clouth, Resource Futures
Dan Wright, Phineas Products
22nd April 2014 |Engine Shed |Bristol

2. Engine Shed, Bristol | 22nd April 2014
Welcome
Introduction to Resource Futures, and background to the
project and the circular economy
Introduction to Phineas Products
Circular Economy Case Study
Summary and next steps

3. Engine Shed, Bristol | 22nd April 2014
Who we are
An independent Bristol-based environmental consultancy
30 years’ experience in resource management
Pioneered recycling collections in the 1980s focused on
collecting materials to meet market demand
Led on developing understanding of waste composition in
relation to developing markets
Engagement of industry, public and communities in
developing circular economy thinking
www.resourcefutures.co.uk

4. Engine Shed, Bristol | 22nd April 2014
Global Material Demand
Source: UNEP

5. Engine Shed, Bristol | 22nd April 2014
Commodity Prices
Source: McKinsey Consultants

6. Engine Shed, Bristol | 22nd April 2014
The Circular Economy
Ellen MacArthur Foundation
“an industrial economy that is, by design or intention,
restorative and in which materials flows are of two types,
biological nutrients, designed to reenter the biosphere safely,
and technical nutrients, which are designed to circulate at high
quality without entering the biosphere.”

7. Engine Shed, Bristol | 22nd April 2014
Source: Ellen MacArthur Foundation

10. Key facts
We are a family owned business with our HQ in South Bristol
We supply all the major high street retailers including Marks and Spencer, Next
and Walmart / Asda
Our global sales is GBP 5 million or 60+ million units per annum
Our average Product Carbon Footprint is approx. 17,000 tonnes
Our 3 year plan includes a number of programmes to reduce our carbon footprint
which includes:
-Increasing the use of recycled plastic 80% reduction on virgin
-Investment in renewables to supplement power generation
-Investment in further energy efficient machinery
-Implementation of a range of reusable products

11. Phineas is a truly global
organisation, with facilities
strategically located around the
globe to meet our customers
requirements
Sales Offices in:
• Hong Kong
• United States
• India
• United Kingdom
Manufacturing facilities in:
• China
• India
• United Kingdom
Global Reach

12. Products
We supply products for hanging any type
of footwear from flip flops to wellington
boots.

13. Current recycling model is based on
granulation of product after a single use
We manufacture as close to the shoe
factory as is possible to reduce
transportation costs
Approximately 90% of our UK
manufacturing uses recycled materials

14. Our key challenges for a circular economy
1. Design products which are robust
enough for multiple uses and which
minimise handling time
2. Design a service which is cost
effective for our clients
3. To quantify the commercial and
environmental benefits of a re-use
system

15. Engine Shed, Bristol | 22nd April 2014
New Designs for a Circular Economy
TSB – New Designs for a Circular Economy
Up to £25,000 funding available
Feasibility Study
Three months
Allocated a project assessor

16. Engine Shed, Bristol | 22nd April 2014
Life Cycle Thinking
Life Cycle Assessment
A technique to assess environmental impacts associated
with all the life cycle stages of a product's life from-cradle-
to-grave
Life Cycle Costing
A technique to assess the most cost-effective option
among different competing alternatives

17. Engine Shed, Bristol | 22nd April 2014
Life Cycle Stages

18. Engine Shed, Bristol | 22nd April 2014
Models
1. Baseline (existing system)
Single use, virgin material produced in China, disposed of
in the UK
2. Closed Loop Recycling
Re-circulated for closed-loop recycling in the UK
3. Reuse
Single use in-store, redistributed to Phineas for reuse

19. Engine Shed, Bristol | 22nd April 2014
1. Baseline model
Single use, virgin material
Raw material processing from virgin polystyrene / polypropylene
Hanger manufacture in China
Distribution of hangers to customers throughout Asia, and then to the UK
Single use in store
Disposed of through landfill, incineration or recycled (open loop)

20. Engine Shed, Bristol | 22nd April 2014
2. Recycling model
Re-circulated for recycling in the UK
Material sourcing from 90% recycled polystyrene / polypropylene
Single use in store
Hangers captured in store, distributed to Phineas UK & recycled
Hanger manufacture UK
Distribution within UK

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3. Reuse
Single use in-store, redistributed to Phineas for reuse
Distribution within UK
Material sourcing to
cover
shortfall/growth
Hanger manufacture
UK
Single use in store, then
captured for reuse
Redistributed to Phineas
Sorted and repacked
Reject waste
(Phineas
recycled)
Reuse cycle

22. Engine Shed, Bristol | 22nd April 2014
Results - CO2 Emissions per hanger
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
Baseline Recycling Model Reuse Model
CarbonEmissions(kgCO2eperhanger)
Raw Material Production Shoe Hanger Manufacture Distribution Use Disposal
80%
42%

23. Engine Shed, Bristol | 22nd April 2014
Results - Life Cycle Costing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Baseline Recycling Model Reuse Model
NormalisedCost
Raw Material Production Shoe Hanger Manufacture Distribution Use Disposal

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Sensitivity analysis
Additional Handling Time in store – cost
Number of reuse cycles – cost
Number of reuse cycles – CO2

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Additional Handling Time – in store
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0.5 1 1.5 3 5 10
NomalisedCostperhanger
Handling time
Baseline Reuse Model

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Number of reuse cycles – cost per hanger
0%
20%
40%
60%
80%
100%
120%
1 2 3 5 10
NormalisedCostperhanger
Number of cycles
Baseline Reuse Model

27. Engine Shed, Bristol | 22nd April 2014
Number of reuse cycles – CO2 per hanger
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
1 2 3 5 10
CarbonEmissions(kgCO2eqperhanger)
Number of cycles
Baseline Reuse Model

28. Engine Shed, Bristol | 22nd April 2014
Summary – Resource Futures
Analysis indicating value of both alternatives in de-risking
materials and supply chain dependency
Great example of re-shoring manufacture in the South
West
Circular Economy in action for a low cost packaging
product
Provides basis for discussion with retailers on sustainability/
supply chain costs

29. Engine Shed, Bristol | 22nd April 2014
Summary – Phineas Products
Demonstrates Phineas commitment to sustainability
Innovation & competitive advantage
Longer term supply chain security
Provides model for future Indian and China manufacturer
Quantification as basis for negotiation with clients