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Towards a Circular Economy model for Procurement
- 1. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com Towards a Circular Economy model for Procurement Mervyn Jones, SGR Ltd UK
- 2. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com Procurement Systems Suppliers Products Circular Business Models take use dispose make CIRCULAR ECONOMY DEMAND PULL
- 3. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com BENEFITS OF A CIRCULAR EU ECONOMY €324 billion www.rebus.eu The Netherlands €7,3 billion 54,000 jobs Sources: EU, Ellen McArthur Foundation, Club of Rome, TNO, WRAP Sweden 3% trade balance 15,000 jobs United Kingdom ~€30 billion 200,000 jobs Denmark GDP 0.8–1.4% 7,000-13,000 jobs Finland GDP 0.33-0.66% 15,000 jobs France GDP 0.33-0.66% 100,000 jobs Spain GDP 0.33-0.66% 100,000 jobs
- 4. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com Collections & sorting De-risk & incentivise investment Business support Financial mechanisms Evidence base Specifications & Standards SUPPLY DEMAND Resource Efficient Business Models Informed choice purchase and disposal Encouraging markets for 2ndary materials Technology Quality Waste prevention Procurement Design for circularity CIRCULAR MARKETS
- 5. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com WASTE HIERARCHY & PROCUREMENT HIERARCHY
- 6. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com HIERARCHY OF ACTIONS FOR PROCUREMENT Using assets and resources more efficiently, e.g.: Purchasing Specifications, for example buildings - •sourcing, e.g. minimise additives, recycled content •lower in-use impacts, e.g. carbon impacts, asset management •Disposal options e.g. take-back
- 7. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com CIRCULAR PROCUREMENT OPPORTUNITIES
- 8. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com ENCOURAGING CIRCULAR PRODUCTS • Best Price-Quality Ratio (BPQR): – Price and/or cost – plus Other Criteria, (including qualitative, environmental and/or social aspects, linked to the subject matter of the public contract in question).
- 9. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com CIRCULAR BUSINESS MODELS • Performance as a priority • Choice - Dutch IMSA has identified 19 different alternatives to linear model • Grouped into 6 themes: – short cycle – long cycle – cascades – pure cycles – dematerialisation e.g. PSS – on demand • Restorative and regenerative models have major carbon & climate change benefits
- 10. CATERING & FOOD WASTE Circular principles & benefits •Waste prevention - storage & preparation •Consumers – plate waste •Food reuse – human & animal •Nutritional diets •Nutrient recovery – composting •Carbon reduction & energy recovery • Waste prevention, UK Public sector catering • Rijkswaterstaat, Netherlands - food waste • Anaerobic digestion • EU Innocat project – Ghent, Torino
- 11. ICT & ELECTRICALS Circular principles & benefits •Design for repair & modularity •Recycled content – laptop casings & parts •REBMs – leasing versus ownership •Lifetime optimisation •End of Life – collection & resource security •CO2 reduction • Utrecht, Netherlands – IT take-back; secure reuse • Schiphol Airport, Netherlands – lighting as a service • BZK, Netherlands – CP of IT: e- recovery, IT-donations • UK UniGreenScheme - Lab equipment re-sale and re-use
- 12. FURNITURE • ProRail, Netherlands – furniture and carpeting • Utrecht MC, Netherlands – REBM options • London, UK – office mobile asset management • Cambridge NHT, UK – hospital beds • Perth DC, Scotland – desk reuse Circular principles & benefits: •Resource efficient design - materials •Recycled content - materials •Furniture as a service – economic benefits •Lifetime optimisation - carbon •Reuse opportunities - jobs
- 13. CONSTRUCTION Circular principles & benefits •Design for deconstruction & recyclability •Materials – passports; recycled content •REBMs – servicisation, •Demolition - closing material loops •CO2 reduction •Refurb & maintenance •Cost savings • 50 Lock Project - Rijkswaterstaat, Netherlands • Netherlands – A6 DBFM, • Rapid circular contracting framework, Utrecht • Amsterdam Concrete Forum • Brummen Town Hall,
- 14. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com REDUCING IMPACT OF PROCUREMENT Impact category Most significant service Impact of most significant service as % of total impact Key resource efficiency action in the most significant service Materials consumed Catering (supply of food) 50% Reduce avoidable food waste Waste produced Furniture (workspace furniture) 50% Product reuse Energy and CO2 in-use Heating, ventilation and air conditioning (particularly heating) 70% Upgrading and refurbishment of equipment Embodied CO2 emissions ICT equipment 45% Extending lifespan of equipment Water use Washrooms and kitchens 90% Reducing mains water use (e.g. flow regulators) Cost ICT equipment 30% Extending equipment lifespans
- 15. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com CORE LEARNING • Internal collaboration – circular products need circular clients • Market engagement – communicate vision and timescales to de-risk R&D and innovation • MEAT – (BPQR & LCC) think of impacts in use and at end of use as well as sourcing • Collaboration – partnership working • Significant process and financial barriers so prioritise actions and efforts to develop quick wins
- 16. With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com THANK YOU Mervyn Jones, SGR Ltd, UK
Hinweis der Redaktion
- Our circular economy definition is: A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life. Which means…Driving the sustainable use of resources. Resources such as materials, energy and water and resource efficiency – using the least possible resource for the same output – and applies to all sectors from extraction, design and production of goods, retail, distribution, use and disposal. Critical to circular economy is the ability to avoid disposal of resources, and to remanufacture and re-use goods, and recycle and recover materials. Adopting a circular approach will help deliver strategic goals through: Waste prevention (e.g. food) Influencing production (e.g. design) Influencing consumption (& procurement) Influencing disposal (e.g. collection) Market development (e.g. re-use and recycling)
- In some ways, the essence of a circular economy lies in economic transactions that focus on performance rather than ownership. IMSA has integrated existing knowledge of circular economy to produce a list containing 19 circular business models in six categories4. These models will develop as a result of growing experience and new possibilities. As a procurer, it’s important to understand these business models and the differences between them, because they represent options for suppliers to produce and deliver their goods and services in a circular way. This can only happen if the procurer creates the conditions for a supplier to present his bid in such a way. In other words, the more functional a tender is formulated, the more options are available for suppliers to offer their goods and services using a circular business model. Consumption strategy options through public procurement (including lifetime optimisation, goods to services /PSS, reuse/restorative, and reducing food waste have major carbon impact reduction potential.
- Hospitality and catering (UK) waste levels: Food Prep 45% Storage 21% Plate 34%
- All sections of the furniture production value chain are present in the EU with high quality raw materials and components suppliers. However, the leading EU furniture markets all depend heavily on imports. Through more circular procurement of office equipment and redeployment of existing assets, there is an estimated savings €6-7 million per year across the Dutch government estate. Additional savings in the short and medium term through lifetime extension (4 to 8 year extension is feasible) creates potential savings of €1.2-4 million per year. Combined, this can lead to a government-wide savings of €8-11 million per year in the Netherlands. Dutch circular category plan for furniture identifies 6 key cycles for circular office furniture: maintain – using preventative maintenance to maximise product lifetime, e.g. a chair remains a chair; repair – corrective maintenance , e.g. a chair remains a chair; reuse – redistributing products through a change in ownership, e.g. a chair remains a chair; refurbish – remanufacturing the product to optimise lifetime, e.g. by changing appearance of a chair through re-upholstering to extend ‘psychological’ service life, or resizing desks; re-purpose – change functionality of the product, e.g. a desk becomes a table; and, recycle – recovering the value of components and materials for feedstock as secondary materials in new products.