Resources & Publications

Beyond Green is an annual symposium on the future of fashion, organised by Circle Economy and the Amsterdam Fashion Institute. It uses the collective power of students and industry players to tackle critical issues throughout the fashion system; allowing for new and established minds to come together and push the boundaries of what we know, and realize what we dare to imagine.

'Many companies want to take the next step in sustainability, but are not sure how to go about it. Beyond Green is a very necessary model that not only inspires industry to take action, but demonstrates what that action could look like through real business examples, and interactive workshops with students. The event got my adrenaline pumping and opened my eyes to new possibilities for my company'.

- Kirsten Zwart, Queen of Sourcing, Kings of Indigo

Photo credit throughout: Nina Albada Jelgersma

Inspiration

This first edition, held on the 13th of April, explored ‘The pace of the industry’, and challenged our polarized conceptions of 'fast' and 'slow' fashion. Do these terms refer to speed or quality? Does 'fast' necessarily mean unsustainable? How can 'slow' turn a healthy profit? Must we choose between them?

The first to arrive, toting backpacks packed with laptops and notebooks, eagar fashion students entered the room padded in comfortable layers, clutching coffee cups from the nearby Boterham cafe. Industry leaders promptly followed, appearing a bit lighter and less caffeinated - a mix of local entrepreneurs, notable brands and seasoned sustainability experts. As the curtains closed, seats were taken, and silence fell on the now, anticipatory audience.

What followed was an inspirational start to the day; Helene Smits (Founder, Stating the Obvious) took to the stage to introduce the day’s three keynote speakers, each seeking to explore ‘The Pace of the Industry’,  the theme of this edition of Beyond Green.

‘The rhythm is self-inflicted. We can step out of the current system. There are other options to explore’

- Gwen Cunningham, Project Manager Circle Textiles, Circle Economy

Setting the context for what’s to come, Circle Economy’s Gwen Cunningham, began by showing a series of abstract images from photographer Aaron Tilley. These adrenaline-inducing scenes perfectly captured the critical moment of history that we find ourselves in. She explained, ‘we are moving away from a past that doesn’t work for us anymore, and freefalling into a future that is not yet defined’. We are challenged to use the adrenaline of such a moment- to feel the urgency to act and get ahead of the change. Gwen went on to outline five moments in the past year that have brought the topic of pace to the surface; Li Edelkoort’s ‘Anti-fashion Manifesto’; the departure of Raf Simons and Alber Elbaz; the impact of climate change on retail sales; the hijacking of fashion week by social media and the alignment of the runway and retail in the United States. In doing so, she posited that the time for change is ripe in the fashion Industry, that new rules apply, and that we can be a part of their making.

“In order to speed up the changes necessary in our industry and make those changes as relevant as possible, we need to collaborate with all stakeholders, both existing and future. Beyond Green brings all relevant parties together, and puts the right questions on the table. Discussing future solutions with students gives both insight and inspiration. Their views and perspective can help us to steer changes in the right direction, and make them more strategic and pertinent. Together we can transform and shape tomorrow’s fashion industry.”  

- Elin Larsson, Director of Sustainability, Filippa K

Next up Elin Larsson, Director of Sustainability at Filippa K took to the stage to outline the company’s circular approach, which can be viewed as a new definition of ‘slow’:

1. Reduce: Ensuring that what they do, they do well. ‘Frontrunner’, signature pieces allow Filippa K to delve into the research and collaborations that are needed to devise truly sustainable clothing.
2. Repair: Facilitating a long life with the first user. Filippa K sells special care products in stores, and offer repair services to keep their clothing wearable. The next ‘Frontrunner’ collection will come with a ‘10 years of care’ guarantee!
3. Reuse: Ensuring that Filippa K garments have a third, fourth and fifth life. The unwavering  success of their secondhand store, established in 2008, ushered in the 2015 global Collect concept. Additionally, the lease concept invites consumers to become borrowers, providing access over ownership.
4. Recycle: Ensuring that garments that have reached the end of their useful product lives, are captured and reinjected into the system. ‘Frontrunners’ are designed for cyclability.

The most striking and inspiring about Filippa K, is their bold trial and error approach. Their holistic plan of action has been achieved through multiple well-calculated baby steps, that add up to an impressive whole. Larsson so rightly stated, inertia is the biggest danger of all, and ‘once you are aware, either you do something about it or not, but you are still responsible.’

“Fast might not be the worst thing about fast fashion- it’s just the way that we organise it”

- Martijn van Strien, Founder, Post-Couture Collective

Lastly, Martijn van Strien, Founder of Post-Couture Collective, shared his vision for a ‘faster than fast’ approach, stating boldly that ‘sometimes fast is just better’. Post-Couture Collective offers an alternative to today’s fashion system, fuelled by an open-source mentality and 21st century technology, the company creates minimalist pieces that are specifically developed as downloadable patterns, to be produced on a lasercutter and assembled by the end user. While such a system could presumably encourage high speed, impulsive production and consumption, it also involves consumers in the production process of a garment and this experience has the potential to incite ‘emotional’ durability.

Van Strien’s media fuelled presentation, carried attendees through three variations of the topic; fast (the current state), faster (made to order, shared ownership, and maker movements) and fastest (body scanning, 3D printing, laser cutting, and virtual reality).  He believes that “these methods will eventually allow us to create something new everyday, without having any damaging effects.

Action

In the afternoon workshops, industry and students worked alongside each other to design future models for specific segments of the market, while considering the aforementioned challenges and opportunities that come with fast and slow models of production and consumption.

“Beyond Green was exciting because of the very inspirational speakers and the mix of people from the industry and fashion students. I thoroughly enjoyed connecting with people with the same interest in sustainability and exchanging ideas and thoughts.”

- Jasmin Hammermayer, Fashion & Management student, AMFI

Expert external moderators and dedicated AMFI staff led vivid discussions and guided the participants  using custom workshop materials. The result was a series of innovative business concepts ranging from the teen-oriented Vodaclothes, a fast fashion, lease-to-recycle brand included in your monthly phone bill to Wedenim, a members-only club, where basic, unisex denim is amended, treated and customized by local denim specialists, to tech-savvy Changeables, high-quality, durable clothing, equipped with downloadable nano printing technology.

To view the full length keynote presentations please use the video player below.

Special thanks to Nina Albada Jelgersma for capturing photos from this great event! Click on any of the photos below to check out the event photo gallery.

[gallery link="file" size="medium" ids="10450,10449,10448,10447,10446"]

On the 15th of March, .FABRIC and Circle Economy presented the intermediate results of a study on circular opportunities for the Flemish-Brussels metropolitan region during a workshop in the Bozar museum of Brussels. The project, commissioned by OVAM, aims at inspiring urban designers to take part in a larger program entitled Atelier BXL Productive Metropolis. The workshop was the third in a series of four so called ‘Urban Meetings’ of which the last will be held on June 2nd during the International Architecture Biennal Rotterdam (IABR) 2016.[caption id="attachment_10103" align="alignleft" width="212"]

Graphics made by .FABRIC and Circle Economy[/caption]The project Circulaire Ruimte - BXL started in December 2015 and is carried out by .FABRIC, Université Libre de Bruxelles and Circle Economy. The first phase of the project is focused on spatially mapping regional material flows – in particular construction waste, organic waste, water and freight – and identifying key impacts. For instance, the analysis shows that the value of organic waste is almost entirely lost due to incineration north of Brussels. The second phase consists of developing solutions based on circular economy strategies. For organic waste this could mean the introduction of new composting and biodigestion plants in and around the city – for example in Buda, an underused industrial site in the north of the city. Due to the mostly southern winds this location has more potential than sites in the south of Brussels.During the workshop on the 15th, the mapping and regional circular strategies were discussed amongst urban designers and external experts. New data, anecdotes, opportunities and challenges were added to finalize the maps. In the coming two months, the regional strategies will be translated into inspiring scenarios for ‘circularly’ redeveloping three specific sites in Brussels situated along the canal: Buda, Masui and Birmingham.Besides during the IABR 2016, the circular scenarios will be displayed this fall during an exhibition on sustainable urban development in the city of Brussels.

Together with the Ministry of Infrastructure & Environment and the Ministry of Foreign Affairs, NLCH invited a limited group of participants to attend a 3-day trade mission from the 13th to the 15th of April. The attendees of the trade mission are a mixed group of representatives from government bodies, businesses and NGO’s from 18 different countries around the globe. During this 3 day trade mission, the group will become acquainted with leading examples of circular products, services and business models in The Netherlands. The program also includes a visit to the Circular Expo, located close to Schiphol Airport, where state of the art innovation projects on circular economy will be showcased. The mission will be concluded with a match making event that aims to create new relationships and inspire collaboration.

Netherlands as a Circular Hotspot Campaign

Positioning the Netherlands as a circular hotspot is a promising and necessary ambition that will inspire and connect not only the Netherlands, but also the rest of the world. The Netherlands is spearheading a movement towards a more circular economy and has become a “living lab" that provides the rest of the world with examples to learn from. Being a frontrunner in the circular economy will create benefits for both the Dutch economy as well as the society as a whole.‘The Netherlands Circular Hotspot’ campaign positions the Netherlands as an international circular hotspot during the time of the Dutch presidency of the EU in 2016. Circle Economy and prince Carlos de Bourbon de Parme (INSID) are collaborating with a diverse group of decision makers and visionaries to discuss how The Netherlands can inspire governments and international businesses to take action.Follow the trade mission and other updated from NLCH on social media!

Twitter: @CircularHotspot and #NLCircularHotspot

Facebook: facebook.com/NLCircularHotspot

More information about circular showcases and business cases visit http://www.netherlandscircularhotspot.nl/home.html

The Challenge

Office furniture is replaced on average every 7 years, most of which is disposed of with useful parts still intact. A significant amount of material assets are wasted with this take-make-waste business model.  In 1950 Desko identified the value preservation opportunity within the industry’s current systems and set out to transform the current standard.

The Approach

A ‘three tier buy back system’ was developed, meaning that the office furniture Desko sells enters a triple hand cycle. After a product has reached the end-of-use phase with its first owner, Desko buys it back at 10% of its initial cost. The furniture is then refurbished and sold back to the market for 50% of its initial price. The second time the product reaches the end-of-use phase; Desko buys back the furniture for 5% of its initial cost, refurbishes it and sells it once more to the market for 25% of its initial price. When the product reaches the end-of-use phase for the third and final time, Desko does not buy it back, but instead offers to dispose of the furniture and recovers certain parts that are still able to be refurbished or repaired for use in some of their other products.

“I see more and more companies asking for this. It’s truly a system change. We have a stronger relationship with our customers. We take the desks and chairs away…they don’t have to worry about it. And we can talk about what replacement items they need.” – Michael Kuiper, Desko

Desko’s innovative three tier buy back model not only extends its product’s lifetime it also has proven to be more profitable than the linear model that the industry currently holds as a standard. Additionally it aids in reducing the negative impacts that manufacturing companies have on the environment. For example, Desko’s Duo Slinger Desk generates 127 kilograms of CO2 when it is manufactured. With the three tier buy back system, the 127 kilograms of CO2 are spread over the product’s three lives, reducing the potential emissions by 93.5%, compared to if the product was made new for each of its owners.

Key Learnings

As a pioneer and leader in circular furnishings for commercial office spaces Desko has encountered many potential customers who are very enthusiastic about their circular interior concept. However, it takes perseverance to integrate the concept of circularity into a client’s mind and many companies are not yet ready to let go of their linear processes. They continue to buy new furniture with short life spans instead of considering the remanufacturing or refurbishing options of pre-used products.

What’s Next

The refurbishment of furniture for reuse prevents redundant demand for virgin resources and significantly reduces the environmental impact of the product’s manufacturing processes. However, the sustainability loop is not yet fully closed, waste is still generated and not all customers participate in the buy-back scheme. One barrier is due to the way customers structure their finances. Desko’s next goals are to transition customers to a monthly payment plan or create new furniture rental programs to further the company’s journey to circularity.

As a part of our member community Desko, shares in our ambition to make the circular economy a reality.

Learn more about this global network of changemakers here.

Cities and urban areas are at the core of our current linear economy. The millions of people living in these areas here buy, consume and waste enormous amounts of products and materials. Urbanisation has caused 70% of the world’s population to live in cities. The growing number of urban consumers also means in increase in the influx of goods. People living in cities are responsible for 67% of the global energy consumption and 70% of the total greenhouse gas emissions. Continuing with the way we utilise our resources, cities like Beijing, New Delhi, Milano and Brussels will face higher levels of air pollution and environmental degradation than ever before.Clearly, this is not what our city administrators desire. Their efforts are generally aimed at creating a community that is resilient, competitive and self-sufficient. They want to provide a healthy living environment where people can thrive and be happy, without having to worry about food, jobs or poverty. More and more cities also want to be climate neutral. This is why they are looking for concrete, practical and scalable solutions to change consumption patterns, rejuvenate industries and use waste as a resource. Treating waste as a resource opens up the possibilities for new forms of business – think for instance of repair cafes that provide a new life to discarded products or water purification plants in cities that retrieve ‘struvite’ from wastewater.Cities are key to starting the transition to the circular economy. Being the centres of political and financial power, the nodal points for many value chains and their waste streams, and the hotbeds for creative power and innovation, cities possess all the relevant levers to turn around our economy. This is also true for the scaling up of transformative economic activities: while current circular business models often focus on individual companies, applying a city focus can boost entire chains or sectors to move towards circularity. But what is perhaps more important is the influence of city administrators - unlike at the federal level - they are directly linked to the practical implementation that can happen ‘just around the corner’. They know their citizens and their citizens know them. A mayor can immediately see and feel the effects of change that he or she has introduced, on the road, in surrounding areas or in the air.

“This is where the strength of cities comes in - and this is why we need to make mayors heroes.”

- Andy Ridley, CEO, Circle Economy

The mayor of Paris, Anne Hidalgo, is convinced that the circular economy provides an answer to many challenges cities are confronted with. In the Livre Blanc de l’economie circulaire du Grand Paris (2015), she writes that she sees the circular economy as “An economy with the smallest impact on our environment, on our climate and also on our health” and states that “it is the direction we have to follow as of today”. Some 500 kilometers north of Paris, the alderman for sustainability of the city of Amsterdam, affirms: “The potential of a circular economy is enormous, and that is why we are focused on research and are willing to support anyone who strives to make the circular economy a reality in our city.”What is the real potential of the circular economy within a city? To answer this question Circle Economy developed the City Circle Scan. This tool allows cities to develop practical and scalable solutions to save resources while creating new jobs, a healthier environment and improved livability. A report about the possibilities for circularity within Amsterdam, published last year, shows that material reuse strategies have a potential of creating €85 million of value per year in the construction sector, while €150 million of value could be preserved when organic waste streams are handled more efficiently. In terms of total material savings in the Amsterdam metropolitan area, this could add up to nearly 900 thousand tons per year, a significant amount compared to the annual import of 3.9 million tonnes currently utilised by the region. Lastly, employment could be boosted through increased productivity levels adding up to 700 additional jobs in the construction sector and 1200 new jobs in the food processing industry.Paris and Amsterdam have set the first steps towards circularity and now more and more cities are becoming aware of the impact they can have on a global transition towards a circular economy. At this moment, Brussels and Glasgow are being ‘scanned’ for circular opportunities in order to create a roadmap for change. Other cities such as Vancouver, Taoyuan and Cape Town have indicated they have a strong drive to initiate the transition. The question now is: Who’s next?By: Ben Kubbinga, Lead Partnerships and Collaborations, Circle Economy

We have a global money system that must grow in order to survive, even if the real economy does not. Everything in nature is subject to deterioration, but money is immune to this. On the contrary, we have an interest-based economic system that is devouring nature in the name of growth. If this conversion of nature (commonwealth) into money happens at a rate faster than the rate of interest, then from a financial perspective everything is fine – although not necessarily from an ecological/social perspective. However, we are reaching the limits of our resources. So perhaps the end of growth in the real-world economy has arrived?

Is it possible to create a sustainable economic system when its very existence is based upon economic growth? Where does growth come from and how can we design our fundamental monetary structures to create wealth without growth?

Last Friday Pakhuis de Zwijger was most certainly the birthplace of some cutting edge thoughts and ideas about the circular economy. What fundamental institutions, such as government structures and social networks do we need to facilitate a circular economy? During a workshop about circular money, some of the key components of a circular economy were linked to our money system. This resulted in a joint awareness that with our current monetary system the circular economy is and will continue to be hindered. The workshop was lead by Elisa Achterberg, project manager of Circular Finance at Circle Economy. Experts in the panel were United Economy, Social Trade Circuit Nederland, Alliander.Martine Groenewegen shared her knowledge on the development of innovations in biobased and circular economy.

Two masterminds groups of 40 participants with diverse backgrounds put their minds together in an attempt to create alternative monetary systems, aiming to find solutions to facilitate a sustainable circular economy.

Eight different circular money systems were designed during the workshop. In some of the design systems, speculation was abolished to prevent money leakage to virtual – speculative – economies and money accumulation. In others, local economy activities were stimulated through introducing a 0% or negative interest rates. One brilliant design took creation to the next level and appointed the earth itself as a bank. In other designs blockchain technologies were introduced to take care of the administrative tasks together, instead of a centralised institution.

The outcome was a stream of interesting and inspiring ideas to draw further upon as we take more concrete steps to make a circular economy happen. One goal that recurred in all the system designs: the inevitable necessity to reconnect money with nature and the real economy. For thousands of years, before it took a life on its own, money was just a tool instead of an end on itself. And now, by an energy-fuelled fate we arrive at the point where we have to match the flow of money systems with the flow of intelligence within natural systems.

Driven by the outcomes of this session, Circle Economy continues to expand this topic and create pathways for applying new monetary systems. Solidair systems to turn the circular economy further into reality and stimulating collaboration.

We invite you – we challenge you – to join us in the conversation. Please share your thoughts with us on this topic and be part of our journey towards a circular economy.

The Challenge

Dutch aWEARness provides 100% recyclable uniforms and corporate wear for businesses and organisations. Aiming to continuously cycle clothing throughout its lifecycle, Dutch aWEARness aims to create a business model which allows for shared ownership of materials throughout the value chain. However, no financial structure currently exists to accommodate for shared ownership of a product.

The Approach

At the moment Dutch aWEARness remains the owner of the clothing but this is not a sustainable, long-term solution. Therefore they envision sharing the ownership of the garments with other users. In such construction, costs, as well as risks and returns, are also shared, which is likely to be the strongest incentive to keep the materials cycling throughout the product’s lifecycle. To make this a reality the company’s various financial partners explored the contours of the financial value chain.

“Dutch aWEARness is a company that invests in design for reincarnation”

- Rien Otto, CEO, Dutch aWEARness

In a shared value chain, which provides shared ownership of materials and information, financing for the entire chain rather than a single company is necessary. In such a system an innovation at one point in the chain will benefit all chain partners, therefore creating leverage to share risks and benefits. So-called “chain investment”, is a way of operating that can be a main driver for the collaboration and optimisation of the circular economy.

What's Next?

Due to the insights gained from this case study, Circle Economy will continue to explore how chain investment can be structured. Further questions will be explored such as, “What are the trade-offs, challenges and advantages of investing in a value chain as opposed to a single company?”

The report “Money makes the world go round”, published by the FinanCE working group of the Ellen MacArthur Foundation features further information on this case study.For more information about the report please contact elisa@circle-economy.com

The Challenge

Wanting to reinvent the way we do laundry Bundles developed a business model that focused on selling washing cycles instead of washing machines. By attaching a device to their washing machines the company is able to maintain ownership of the machines while monitoring their usage. Statistics gathered from the machine are displayed on the Wash-App, which provides the customer with insights into the overall cost of doing their laundry, including energy, water and detergent consumption. This pay-per-use model not only reduces the costs for the customer, but also extends the life of the machine. However, by introducing this new way of doing laundry a different way of structuring long-term financing was required.

The Approach

Multiple challenges arose in the case of Bundles, the first being that the washing machines needed to be financed with a longer payback period, which put pressure on the company’s cash flows. Secondly, Bundles’ balance sheet continues to grow due to the fact that they maintain ownership of the washing machines throughout their entire life-cycle creating a capital demand. Lastly, there is currently no company which can remanufacture or refurbish the used washing machines making it very difficult to incorporate residual value into the machine’s lease contracts.

“We save our planet and simultaneously households save money”

- Marcel Peters, CEO

Owning a large fleet of assets is considered a capital tie-up for Bundles. To relieve them of this financial burden a collaboration with (institutional) residential real estate investors, who have financial means and a long-term investment strategy, was established.  A washing machine can be seen as a key service that home owners may want to provide to their renters. Through this collaboration, Bundles was able to access an existing real-estate rental market with pre-established customer relationships.

What's Next?

In order to strengthen the business case for the pay-per-use model the guarantee of residual value from the company’s suppliers would be very beneficial. The trade off between strong contracts with clients and the flexibility of such contracts needs to be balanced in order to optimize the possibility of financing new business models such as this. Additionally, increasing equity capital and factoring or securitisation of receivables would increase financing possibilities for Bundles. The report “Money makes the world go round”, published by the FinanCE working group of the Ellen MacArthur Foundation features further information on this case study. For more information about the report please contact elisa@circle-economy.com

The Challenge

Continued investment in a linear economy results in long-term, system-wide impacts and risks that have adverse effects on the economy, society and the environment. Moving towards a circular economy can generate value and reduce vulnerability against these risks.

The Approach

Circle Economy understands that a global standard is needed to help investors assess the resilience of their portfolios against circular economy objectives; while engaging with their investees to improve their circularity performance and create long-term value. The Circle Portfolio enables investors to review the circularity of companies in their portfolio allowing them to collaborate with investees to reduce risks, capitalise on new opportunities, and enable long-term growth in a circular manner.

By completing our online survey, Circle Assessment, companies are evaluated based on the extent to which they are pursuing and implementing various circular business strategies. The results of the assessment are used as an input into the Circle Portfolio to assess the overall circularity of an investment portfolio. This enables investment managers to identify areas in which they can improve the overall performance of their investment portfolio.

“The circular economy is unlikely to be delivered by individual firms alone. In order for it to develop meaningfully a significant number of like-minded players, in key sectors such energy, manufacturing, and technology, must stimulate sector-wide learning and sharing of best practices.”

- ACTIAM

Key Learnings

A large part of the development of the tool involved focusing first on the business model and the relationship between the partners. However, it was soon decided that a more lean-startup approach was required to first develop a version of the tool and let it organically direct the approach along with the business model. Following this approach and engaging with companies and investors has yielded a significant amount of insights including  new directions for the tool.

What's Next?

The creation of the Circle Portfolio involved presenting mockups of the tool to financial institutions to gain feedback and further insight regarding their needs. Input was received from portfolio managers at PGGM. Additionally, from initial reactions and conversations with ABN, AMRO, GRESB, as well as learning from the RACE Finance program, the tool was redesigned to better evaluate the extent to which circular economy strategies can enable investors to make smarter decisions. It also provides incentives for their portfolio companies to pursue circular strategies.

The Circle Portfolio is a useful tool to gather information about the circular possibilities and actions of potential investments. As a partner in the development of this tool, PGGM will use our network to create a community of financial institutions to further develop the circular analysis framework.”

- PGGM