How to fill existing gaps in current attempts at circular business models an open discussion

Kai Schubert The Chemours Company
@dupont_news
Markus Laubscher Philips @Philips
Stephen Roberts Dell @StephenRatDell
Rajesh Buch Arizona State University
Michael Waas TerraCycle @mdws
#SB15sd
How to Fill Existing Gaps in Current
Attempts at Circular Business Models:
An Open Discussion

How to Fill Existing Gaps in
Current Attempts at
Circular Business Models:
An Open Discussion
Kai Schubert
Chemours
(A Wholly Owned Subsidiary of DuPont)
Stephen Roberts Markus Laubscher Michael Waas Rajesh Buch
Dell Philips TerraCycle Arizona State U.

Multiple
P.R. China
Global
Global
The Power of Circles
Value
Waste

Dell and the
Circular
Economy
Sustainable Brands Conference
Stephen Roberts
June 3, 2015

Demographics will force change

Linear economic models cannot keep up
FromAccenture’sCircularAdvantage:Innovative BusinessModelsandTechnologiestoCreate Valuein aWorldwithoutLimitstoGrowth.

The upside is enormous
The transitionto a more circulareconomy couldcreate an
estimated
$1 trillionin value1 and generate upto 400,000 new
jobs in Europe alone.2
1. http://www.ellenmacarthurfoundation.org/business/reports
2. http://www.publications.parliament.uk/pa/cm201415/cmselect/cmenvaud/214/214.pdf

The old paradigm of “make-take-waste” isn’t
working anymore. We need to design the
concept of waste out of the system,
recirculating and regenerating materials while
increasing the efficiency and productivity of the
resources we use.

Looking at the
whole ecosystem

Approaches to the circular economy
Material approaches
• Sourcing sustainably from recycled and renewable materials
• Extending product lifecycles through repair and reuse
• Recycling
Efficiency and dematerialization
• Sharing economy – access over ownership; tapping into spare
capacity
• X-as-a-Service
Understanding the system
• Internet of Things and the aware environment (better tracking,
measurement)
• Big Data analytics for greater efficiency, new insights

Example of a materials
approach: Dell’s closed-
loop plastics supply chain

Dell’s closed-loop plastic supply chain

The process begins when you
recycle your electronics
with Dell.

Dell’s environmental partners
sort and responsibly recycle
the materials, sending
plastics
for reuse in new computers.

Plastics are shredded, melted
and blended, then molded
into new parts for products
like the OptiPlex 3030.

Products are then assembled
and shipped for purchase
and use – until they are
recycled again.

2.9M pounds
of closed-loop plastics in
the first year; we’ve used
22 million pound of recycled-
content plastics in 3 years
11 percent
fewer carbon emissions
than virgin plastics
Resultssofar

Contact
information
Stephen_M_Roberts@dell.com
@StephenRatDell

Circular Business
Models
Our experience
Markus Laubscher
Philips Sustainability
June 2015

1 November 2014 Philips Sustainability
Make the world
healthier and more
sustainable through
innovation
Est. 1891
Headquarters in
Amsterdam, Netherlands
115,000
Employees worldwide
in 100+ countries
€ 23.3 billion
Sales in 2013
∽70%Of portfolio is business-to-
business

Providing propositions for healthy
living
Connecting care in the hospital for
better patient outcomes
Connecting care in the home to
improve quality of life
Healthy Living Home CarePrevention Diagnosis Treatment Recovery
Innovation leader in Lighting and Health
Helping businesses work differently
and provide new experiences with
connected lighting
Helping retailers drive sales and
build customer loyalty with
connected lighting for retail
Redefining the space we live in with
connected lighting in the home

OUR APPROACH
• Preserve added value of
labor and capital costs
of assets
• Monetize as long as
possible at highest
value, ideally as service
• Cascade assets down
towards recycling
C
r
e
a
t
e
v
a
l
u
e

Managed services at
hospital level
Refurbished medical
equipment
Spare parts recovery for
servicing medical assets
Service Refurbish Parts harvesting Recycle
Progress of circular economy implementation
Light as a Service Refurbished lighting
equipment
Designed for easy
recycling
Use of recycled content
in new products
Spare parts business for
lighting assets

Our challenges with circular
business models
• Scalability: From pilots to business-as-
usual
• Design: Products need redesign to
support circular business models
• Market perception: Pre-owned seen as
second choice
• Organizational ownership: Led by
strategy and marketing, supported by
sustainability and communications

How to fill existing gaps in current attempts at circular business models an open discussion

TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free
866.967.6766.
A CIRCULAR CONVERSATION
ABOUT “WASTE”

Don’t ask Nature – it doesn't exist

It’s a modern and man made idea
creates waste

Size of the problem – 5 billion tons / year!

The current solution – burn or bury it

866.967.6766.
YOU CAN’T INCINERATE OR RECYCLE
YOUR WAY OUT OF WASTE.
BUT WE CAN VOTE (BUY) AND THEN
DESIGN OUR WAY OUR OF IT.

866.967.6766.
UNTIL THEN WHAT CAN WE DO WITH THE
WASTE WE HAVE TO BE MORE CIRCULAR?

866.967.6766.
36
GLOBALLY RECYCLING THE NONRECYCLABLE
48.7
MILLION
PEOPLE
Consumers collecting waste for
TerraCycle globally.
Pieces of garbage collected by
TerraCycle.
Earned for charitable organizations
for waste collected
$10+ million (USD)
60+ million
4+ billion
Where TerraCycle Operates: Australia,
Austria, Belgium, Brazil, Canada,
Denmark, France, Germany, Hungary,
Ireland, Israel, Japan, Mexico,
Netherlands, New Zealand, Norway,
Spain, Sweden, Switzerland, UK and
US.
21 Countries

866.967.6766.
RECYCLING THE NONRECYCLABLE
37
37
Traditionally
Recyclable
Traditionally Non-Recyclable
Everything Else
Over 2/3 of
all waste is
sent to landfill
or burning.
Most products and packaging are considered non-recyclable
only because of economics.
COST OF
COLLECTION
COST OF
RECYCLING
MATERIAL
VALUE
FINAL
COST
TerraCycle specializes in solving these waste streams by making the waste nationally
recyclable, and helps your brand drive marketing, communications and sales ROI.
• Paper
• Aluminum
• Glass
• #1 PETE
• #2 HDPE

It’s composition
(i.e. plastic, wood)
38
It’s features
(i.e. shape, color)
It’s intention
(i.e. bottle, vase)
Waste has three characteristics:
composition, features and intention.

866.967.6766.
WHAT REALLY IS SUSTAINABLE
CONSUMPTION
39

866.967.6766.
40
TerraCycle use a three-step platform to drive value for your
brand by making your waste nationally recyclable:
SOLVE PROMOTECOLLECT
Our recycling programs allow
consumers to collect non-recyclable
waste free of charge. The waste is sent
to TerraCycle, where it is recycled and
in most cases the consumers are
provided an incentive towards a charity
or school of their choice.
TerraCycle transforms the collected
waste through reuse, upcycling or
recycling into new materials.
TerraCycle drives significant value for
your brand by promoting the
recyclability of your waste through
traditional media, social media
outreach, direct consumer engagement,
retail and marketing integration – at no
incremental cost.

866.967.6766.
41
WE COLLECT FROM ANYWHERE
From homes, offices,
schools, charities…
… factories, labs,
hospitals…
…retailers, and
many more.

866.967.6766.
42
Step 3:
TerraCycle sells the usable
material to major manufacturers
for use in finished products.
Step 1:
TerraCycle checks in
the collected waste.
SAMPLING OF MANUFACTURING PARTNERS
HOW TERRACYCLE PROCESSES WASTE
The waste collected by TerraCycle is recycled, re-used or upcycled.
Step 2:
TerraCycle’s team of scientists and
designers identify solutions for each
specific waste stream.
LIFE CYCLE ANALYSES
Nestle (CA) – Candy Wrappers
Capri Sun (UK) – Drink Pouches
Frito Lay (US) – Chip Bags
ITCAN (CA) - Cigarette Waste
…additional LCAs available upon request. …and many more!
Upcycle: 1%
Recycle: 98%
Reuse: 1%
TERRACYCLE WILL NOT LANDFILL OR
INCINERATE ANY OF THE WASTE WE RECEIVE.

Josef Ehntholt,
Brigades
43
Reuse
Values all aspects: material, features and intention.
Spreads tubs have been reused in to plant holders.
Used shoes are collected and reused or sent to those in need.
E-waste Brigades collect and refurbish used
electronics for direct reuse.

866.967.6766.
47
DESIGN TO BE REUSED
Durability
Standardization
Multi Functional Design

866.967.6766.

866.967.6766.
51

Upcycle
Allison Martyn,
Business Development
52
Values two aspects: material and features.
Eco-speakers made from Frito Lay chip bags
Upcycled backpack from Capri Sun juice pouches
Upcycled vest from paper packaging from
Suzano Brazil

866.967.6766.
60
OUR OFFICES - ALL MADE FROM GARBAGE
USA TerraCycle Office (Trenton, NJ)

Recycle
Bari Levine,
Brigades
62
Values one aspect: material.

866.967.6766.
63
TERRACYCLE HAS CREATED
THOUSANDS OF RECYCLED
PRODUCTS MADE FROM
WASTE.
Product Catalog available

866.967.6766.
64
COMPREHENSIVE TERRACYCLE
WASTE SOLUTIONS
TerraCycle has developed solutions for challenging packages and products that are
commonly landfilled or littered. We have yet to find a waste stream that cannot be
reused, upcycled or recycled. Some of the more extreme examples include:
Used Gum Cigarettes Dirty Diapers
Trash Can Plastic
Products
Compost

866.967.6766.
OPTION 2A: LARGE PROMOTIONAL PRODUCT
Your Brand can create large recycled products, such as a park or garden,
from your hard-to-recycle waste. TerraCycle will work with your brand to
leverage this promotion at retail with interactive contests that engage
consumers and drive foot traffic to retailers.
Playground from Oral Care Waste Playground from Use Flip Flops Garden from cosmetic waste
66

866.967.6766.
67
CASE STUDY: CLOSED LOOP APPLICATION
Side Wall
We helped Frito Lay create the world’s
first trucks made from chip bags.

866.967.6766.
68
DESIGN TO BE RECYCLED
Standardize Material
Keep value in the materials
Easy to dissemble
Rigid
Not Bio-Degradable

866.967.6766.
69
TerraCycle makes it easy for consumers to sign up and start recycling your waste:
NATIONAL RECYCLING PROGRAM
1. Sign Up 2. Collect 3. Download & Ship Incentivize
Participants start collecting the
specific waste at their location
using any available box.
When the box is full, the
participant downloads a shipping
label, affixes it to the box, and
ships it to TerraCycle for
recycling.
Your consumers sign up
to collect your waste at
www.terracycle.com
TerraCycle can credit Brigade
leaders with points for each
piece of waste collected,
which can be redeemed for
charitable donations.
The system is highly flexible and works for any location.

866.967.6766.
PUBLIC COLLECTION LOCATIONS
All Location Types
- Retail locations
- Offices
- Recycling centers
- Community centers
- Schools & nurseries
- Homes
TerraCycle’s public collection locations make it easy for any
consumer to recycle your product.
CASE STUDY: COFFEE PACKAGING BRIGADE (UK) HOW IT WORKS
Interactive Map
Consumers can pin point
their nearest location
using geolocation. The
listing displays the
address, opening hours
and charity of choice.
Better Efficiency
Public locations send in
larger, more cost-efficient
shipments and drive more
cost-effective collections.

866.967.6766.
CAPRI SUN IN THE US
71

866.967.6766.
TARA AND STRAUSS IN ISRAEL
72

866.967.6766.
Step 1: Outbound Supplies Step 2: Collect Step 3: Incentivize
73
COLLECTING IN RETAILERS

866.967.6766.
Below are some examples of customised boxes
which TerraCycle has produced for various partners.

866.967.6766.
TerraCycle can also develop recycling systems that are durable and customised for permanent
placement in retail stores, office headquarters, or other high-traffic areas.

866.967.6766.
76
GRAND&TOY (CANADA)
The Zero Waste Boxes appear on the
welcome page of the Grand&Toy

77
866.967.6766.
77

78
866.967.6766.
Step 1: Zero
Waste Bags
COLLECT
ZERO WASTE BAGS (EMERGING) 78
Step 2: collect
in Blue Box
Step 3: Picked
up by local
hauler
Step 4: Sorted
at local MRF
Step 5: Set to
TerraCycle

866.967.6766.
79

Rob and Melani Walton
Sustainability Solutions
Initiatives
sustainabilitysolutions.asu.edu

ASU charter
ASUisacomprehensivepublicresearch
university,measurednotbywhomit
excludes,butbywhomitincludesand
howtheysucceed;advancingresearch
anddiscoveryofpublicvalue;and
assumingfundamentalresponsibilityfor
theeconomic,socialculturalandoverall
healthofthecommunitiesitserves.
ApprovedbyArizonaBoardofRegents,2014

Sustainability @ ASU
• 345 Sustainability Scientists and Scholars
• Board of Directors
• Pan-university resources
• 8 degree programs
• 400+ active students
• 800 graduates
The first comprehensive degree-granting program
of its kind in the United States
• 7 initiative programs
• Solutions in 6 continents
• 30,000+ people engaged

Mission:
accelerate the impact of our solutions
• SOLVE global sustainability problems
• EDUCATE future leaders
• ENGAGE people of all ages

Executive Master’s for
Sustainability Leadership
Global Sustainability
Solutions Services
Global Sustainability
Studies Programs
Sustainability Solutions
Festival
National Sustainability
Teachers’Academy
Sustainability in
Science Museums

global sustainability
solutions services
Create customized and actionable solutions to local
and global challenges for businesses, governments
and communities utilizing ASU experts including 345
sustainability scientists and scholars.
SOLVE

33 completed projects based in
12 countries on 6 continents
7 government clients
representing a total
population of 5,290,221
9 business clients representing
$125 billion in market value
441 students who developed
practical skills
Indicators
SOLVE

Ellen MacArthur Foundation’s principles
of a circular economy (2010):
• Think in systems
• Think in cascades
• Build resilience from diversity
• Use renewable resources
• Take waste out of design

The Power of Circles – Pure, Tighter, Longer and Cascading …

ASU Approach: Filling the Social Gaps
Importance of Social Construction
• Social processes and relationships
• Understanding human aspects
• Policy and Institutional Analysis
Knowledge Sharing
• Convening public-private partnerships
• Facilitating collaboration, planning and
execution

ASU Approach: Filling the Social Gaps
Impact Focus
• Assess and optimize social impacts
• Goal of "Net Positive”
Sustainability Science
• Systems-thinking
• Iterative, participatory engagement
• Triple bottom line-thinking
• Transdisciplinarity
• Future-thinking/anticipatory

Haarlemmermeer
Beyond Sustainability

Phase 1: Key Findings
• Autonomy is key to adaptability
• Synergistic and strong partnerships are vital
• Balance required between governance and
autonomy
• Partner buy-in, not government mandate, is
critical
• Sustainability is a key to innovation and success
Haarlemmermeer
Beyond Sustainability

Phoenix
Guatemala
Nigeria
Netherlands

As part of “Reimagine Phoenix” initiative to divert 40
percent of Phoenix’s waste away from the landfill by 2020,
the city turned to ASU to establish a network focused on
creating value and economic development opportunities
from solid waste streams.

One year ago…
Launched: January 2014
Partnership with city of Phoenix
Investment of $2million over four years
Main stage presentation at SB14

Green OrganicsFood Scraps
Resource Sites
PHX RIC
Empty Lots: Bioenergy Crops

Today:
• 3 global hubs
• 12 partner organizations
• 6 projects
• Request for Proposals and Call for Innovators
• Resource Innovation Campus

What’s next:
• Ellen MacArthur Fund
• Closed Loop Foundation
• CE course at ASU
• CE certification programs

Thank you!
We’d love to hear from you!
Stephen Roberts Markus Laubscher Michael Waas Rajesh Buch
Dell Philips TerraCycle Arizona State U.
Kai Schubert
Chemours
(A Wholly Owned Subsidiary of DuPont)

How to fill existing gaps in current attempts at circular business models an open discussion

How to fill existing gaps in current attempts at circular business models an open discussion

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How to fill existing gaps in current attempts at circular business models an open discussion