As part of the Paris Climate Agreement, Switzerland has committed to halving its emissions by 2030 compared to 1990. The circular economy offers concrete solutions for industry to not only reduce CO2, but also make the supply chain more resilient and create new revenue streams. Our neighbors have recognized this potential: The EU Commission has issued its second Circular Economy Plan, as part of the European Green Deal. In Switzerland, members of the Swiss parliament have submitted numerous motions to promote the circular economy.
Interview
Circular Economy – a concept, that is relevant in many different sectors, many people think about waste management. But it’s more than that. How can we use Circular Economy to transform our business models?
By adopting circular economy practices a company can renew its business model in different ways such as purchasing renewable raw materials, recovering resources, extending a product life or offering products as services
Why is Circular Economy important in the manufacturing sector?
Despite resources scarcity, the industry and the society produce vast amounts of waste. Industrial waste makes up half of the total amount of waste that the world generates annually. The manufacturing sector can also address this challenge by improving resource efficiency through implementation of circular operationalization strategies (Rs also called value retention options).
What are the best ways to implement it, what do companies have to pay attention to, in order to be successful with it?
Firstly the objectives should be clarified (e.g. reduce waste, reduce C02 footprint..); ideally, these should be aligned with the company strategy and communicated with the employees. Start with small projects focusing on quick wins and then broaden the scope. Inspire yourself from best practices.
What’s in it for the companies? How can they create new revenue streams or make the supply chain more resilient?
Various drivers are moving companies towards the circular economy. Incremental innovations can increase resource efficiency and reduce operational cost of operations, e.g. reduction in the use of raw inputs through increased material circulation and minimization of losses. Circular economy can also make supply chains resilient by becoming less dependent on virgin resources. Furthermore manufacturing companies can diversify their revenues streams, for example by offering remanufactured products or products as services.
What advice would you give a company that wants to become more circular in their international business?
In some regions of the world (EU, China) and countries, Circular Economy is high on the agenda; we therefore recommend a company to conduct due diligence in terms of institutional and regulatory context analysis. An assessment of the infrastructure is also paramount. We further advise to benchmark sectors and companies that are ahead in Circular Economy implementation in the country of interest. Finally, and where relevant, position your company as part of a business ecosystem.
At SML, you offer a CAS in Managing Circular Economy: Why does one need a CAS, why is now a good time and who is it for?
As part of the Paris Climate Agreement, Switzerland has committed to halving its emissions by 2030 compared to 1990.The Circular Economy provides concrete solutions to the industry to not only reduce CO2, but also to make the supply chain more resilient and to create new revenue streams. Our neighbours have recognized this potential: the EU Commission has issued its second Circular Economy Action Plan, as part of the European Green Deal. In Switzerland, members of Parliament have submitted numerous motions to promote more circular patterns of doing business.
The CAS program provides fundamental knowledge of international circular economy, management tools and success stories of companies from different key industries. It is primarily relevant for middle and senior managers working in the secondary sector who want to understand the benefits and constraints of circular economy and plan to apply its principles in their companies.
You are currently running a survey to learn more; what are its goals and who should fill it in?
With this survey we would like to understand whether manufacturing companies based in Switzerland are implementing circular economy measures, the reasons why they are doing it or not, and to understand whether they consider Circular Economy as way to be more efficient and /or more innovative. With their participation, manufacturing companies not only support the research at the ZHAW School of Management and Law, but also provide policymakers with targeted information on how to support the economy in this transformation process of CO2 emission reduction.
A look into the crystal ball: Is it possible to change our consumption patterns and what would be good incentives for that?
Consumption patterns do change over time if one considers shifts in household spending. Financial incentives as well as personal ethical considerations are good drivers of change.
Survey: implementation of circular economy
Your participation will not only support research at the ZHAW School of Management and Law, but will also provide policy makers with targeted advice on how to support Swiss companies in this necessary transformation process to reduce CO2 emissions.
