Circle Economy is launching their new Circle Design Program today. Part of a broader movement to accelerate the transition to the circular economy, the Circle Design Program aims to introduce businesses, designers, and entrepreneurs to circular design thinking and through a collaborative, on-the-ground approach, work with them to develop practical solutions to complex circular challenges.Circular design thinking is central to the transition to a circular economy.Although waste-reducing initiatives and other recycling efforts are still necessary in order to cope with the materials currently in use in linear supply chains, they are also ineffective and do not constitute a viable option in the long run. Resources can better be maintained and retrieved when products and components have been designed for disassembly, reuse, or remanufacture, for example — i.e. when they have been designed according to circular design principles. The need for retrieval is also mitigated when business models anticipate the pre-use, use, and post-use phases of their products.This is why it is critical for current businesses and the next generation of entrepreneurs, designers, and consumers to learn and adopt circular design thinking. It provides room for new perspectives, from future-proof, innovative business models, to regenerative products, services, and systems, where waste is minimised and loops are closed.Leveraging the versatility of circular design thinkingCircular design thinking isn’t exactly new. Design for disassembly, for example, is widely recognized for its direct relevance to the manufacturing industry and the benefits it provides when products are designed with ease of repair, upgradability, optimal reuse and high value recycling in mind. These benefits, however, are not exclusive to the manufacturing industry. Circular design thinking is relevant across industries and sectors and its versatility provides opportunities to any business aiming at future-proofing its activities. Understandably, it has been gaining a lot of traction.[hr]
Join our upcoming Business Innovation or our Circle Design workshops.
[hr]Circle Economy aims to introduce a wide range of industries and sectors to the advantages of circular design thinking. One of the first steps to achieving this was a recent collaboration with Dutch government-funded program Nederland Circulair! and our partners MVO Nederland, which allowed us to tackle the challenge of designing circular climate systems.Climate systems typically provide heating, cooling, and ventilation in buildings, and are traditionally not designed with disassembly, repairability, or modularity in mind. This often results in costly practices like the replacement of complete systems when only specific elements are broken. Circle Economy’s collaborative workshop approach allowed to uncover five circular design strategies that are not only applicable to the entire sector but also have the support of key sector agents to be implemented in the future.
Implementing circular design strategies in the circular economyClear, circular design strategies pave the way for and empower producers, suppliers, and designers to easily employ and apply them. Trade associations can leverage the ability these strategies have to nudge members and stakeholders along the circular economy track. Buyers, consultants, governments and clients can make informed decisions in order for their industry to benefit from circular design thinking. Industry associations (like the VLA, in the case of climate systems) and other parties in charge of developing industry standards and norms can adopt these strategies in order to set guidelines for designers and engineers to follow as part of product development standards. If circular design thinking is adapted in this sense, it has vast potential to enable positive change.Do you or your organization want to be one of the pioneers that get circular design thinking out of theory and into practice? Join one of our workshops.
Impact investing has become a hot topic in the financial world, and understandably so.Clients are increasingly asking investors to not only focus on financial returns but to also consider environmental and social criteria when developing their portfolios. As a result, sustainable investing has been soaring, and nearly 26% of worldwide assets with a value of 22 trillion USD are now sustainable (an increase of 25% from 2014 to 2016).Impact investments can also yield greater financial returns. According to a 2014 study by the Carbon Disclosure Project, S&P 500 industry leaders that have a strong focus on mitigating climate change have a return-on-equity 18% higher and are 50% less volatile than those that don't.
The majority of investors are now using environmental, social, and governance (ESG) screening criteria to exclude investments with negative impact. A growing percentage, however, are taking an impact investing approach — targeting for-profit social enterprises, for example.Regardless of the strategy they follow, many note that they still struggle to identify potential investments that can deliver strong financial returns and create positive environmental and social impact.
The circular economy aims to achieve inclusive economic, social and environmental prosperity within the boundaries of our planet, by making efficient use of our resources. The concept is well aligned with the goals and intentions of impact investing. By applying elements of the circular economy to their evaluation criteria, investors can identify high-impact investment opportunities, improve the value of their portfolios, and minimise their exposure to the risks of linear business practices.To help investors evaluate their investments against the elements of the circular economy, Circle Economy’s Finance Program has developed a comprehensive suite of services that provide practical solutions for investors throughout the investment cycle. From lead generation to due diligence, our tools and services help investors identify promising investments that meet their financial and non-financial impact targets. After an acquisition, we help investors initiate change in the first 100 days and grow companies in the longer-term. We do this by working closely with investors and portfolio companies to identify actionable and value-generating strategies and interventions.Are you an investor looking for new investment opportunities that can create positive impact and deliver financial returns? Or are you hoping to transform your portfolio to create long-term value and impact?Find out more about our services for investors by downloading our investor brochure.
The term 'closing the loop' continues to gain traction, from boardrooms to classrooms to living rooms. While the words are on everyone's lips, we may well ask why we have not seen a significant impact on business as usual. Why has the shift from a linear to a circular model been so fragmented, thus far?The truth is, while the bigger 'why' of a circular textiles industry is now well established, the 'how' is still unclear to many. In recent years, there has been a palpable increase in the industry's focus on improving the 1) collection and 2) recycling of post-consumer textiles. This work is spread across individual closed loop projects, and while they are achieving good results, these separate efforts can only amount to incremental change. The truth is, the industry currently lacks the broad foundation needed to close the loop for textiles. Without connecting the work, greater infrastructural bottlenecks will remain largely untouched. A systemic transition is necessary, and this will take collaboration across the entire textiles industry. Post-consumer textile collection is step one, but then what?The amount of textiles being produced and disposed of in inefficient ways is much higher than the amount that is collected and recycled. Recyclers throughout Europe indicate that only around 0.1% of all collected post-consumer textiles undergo high-value recycling. This means they are not regenerated into yarns, fabrics or garments but are downcycled into things like insulation - this is what's happening to the vast majority of non-rewearable textiles, when they even make it to the recycling process in the first place. The aim of a circular textiles industry is to keep materials and products functioning at their highest potential for as long as possible. Downcycling should be a last resort. Recent efforts of collecting and reverse logistics is one step in the right direction but not a complete solution. H&M came under fire from international press last year, with the leading accusation being that it would take the company 12 years to use recycled fibres from the 1,000 tonnes of used garments they aimed to collect during World Recycle Week. It is reported that in the past few years they have collected 13,600 tonnes of garments from consumers. This has led to a hard look at the industry today: If brands collect large volumes of post consumer garments that are mostly being downcycled, are they really doing the right thing?Pressure has been put on companies and governments to sign agreements to improve their garment collection and recycling efforts. This initiative is good, but it is only part of the solution. H&M is off to a good start, and the world should take note, but the industry must now address the steps after collection. The textile industry needs a solution for more efficient sorting of post-consumer textiles, and high value recycling technologies need a consistent and high-quality input for their processes. Until now there have been few options when it comes to supporting high-value recycling. We have actually been collecting more textiles than can be recycled into a high-value stream. The Fibersort, a technology that enables enable large volumes of post consumer textile sorting, is an exciting opportunity for the textile industry to get involved with and address this gap. It will lead to a tipping point for the high-value textile recycling industry and is a necessary part of the global infrastructure for a closed loop industry.So how is Fibersort part of the solution?An increase of low-quality fast fashion means the portion of rewearable post consumer garments is decreasing while the non-rewearable portion is on the rise. We need to support technologies that can tackle the growing fraction of non-rewearable textiles, and ensure that these precious resources make it back into the supply chain, at their highest value. The Fibersort is a technology that automatically sorts large volumes of finished textile products by fiber composition. This allows them to be recycled into new, high-quality textiles. Because most current and upcoming high-value recycling technologies require fibres of the same content to be recycled together, content purity is a major barrier - or is it an opportunity? Fibersort offers quality assured feedstock to recyclers. Essentially, there will be more control over what goes into the recycling process which means the quality of the output is greatly increased.
We have the technology and you have the perspective. Real change in our industry requires collaboration from us all! Are you a brand, retailer, manufacturer, textile collector, sorter, recycler or anything in-between? Do you want to be a part of something bigger that promotes the circular economy? There is a great need to address this current gap in high value textile recycling. Your feedback and ideas can help drive this innovation and bring change to our industry. Sign up to stay updated and informed of opportunities to provide your feedback on the development of Fibersort.
I want to be part of this change!
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On Thursday September 15th, the FIBERSORT project was announced as one of the few projects that will be funded by the INTERREG NWE programme for the next three years. With the support of INTERREG in the form of EUR 2 million, the consortium will further optimise the machine and demonstrate and validate this pioneering technology in the market. The project partners will add an additional EUR 1.5 million in funding to the project. Contact jade@circle-economy.com for more information about the Fibersort project.
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Today a broad coalition of Dutch companies, research institutes and organisations, including Circle Economy, appeal to the Dutch government to prioritise the SDGs within the upcoming government coalition agreement. All signatories, now already including 118 organisations, appeal to the current coalition negotiator Edith Schippers, to make sure that policy is aligned with the UN Sustainable Development Goals (SDGs) to which the Netherlands has committed in 2015: “We - a coalition of companies and social enterprises - cannot stress the importance of the SDGs more as a tool to create a sustainable society now and for future generations. They are vital for our global society, but also enable a healthy and resilient Dutch Economy.After the Dutch elections in May, the appointed coalition negotiator Edith Schippers is meeting with all elected political parties to explore the common ground in the proposed election programme's. The coalition of Dutch companies and organisation is now appealing to negotiator Edith Schippers, to steer towards a government that prioritises sustainable policy and centralises our commitment to achieve the SDGs. By doing so, a more balanced world will be made more tangible - prioritising issues as the transition to renewable energy, (over) production and consumption, poverty, hunger, health, inequality and climate change on a local, national and global level. The signatories are appealing the new government to:
Read more about the participating organisations, the appeal to the Dutch Coalition Negotiator and how to join here (dutch).
We are very proud to welcome Brightloops, a true trailblazer in circular textiles, to our Circle Membership. Brightloops is working to produce circular yarn, felt and knitwear from 100% recycled old sweaters. Their products, sold under the label Loop.alife, prove that excess post-consumer garments can be transformed into beautifully designed, high value products.So, what does it mean for Brightloops to be ‘truly circular’? It means using post-consumer local waste as a source of input, sorting post-consumer excess by material and color to avoid unnecessary dyeing (saving chemicals, water and energy), and mechanically recycling this excess. They practice full transparency throughout all business practices, focus on local production and new developments within Europe, and not only have a zero waste policy but practice it through continual product development.
What is the next step for the textile recycling industry?Making more ‘closed loop fashion production’ circles. We are convinced we should not transport waste streams over the globe but should find closer circles that have the right economy of scale. This means more - new and existing - production facilities working closer together within the Netherlands/Europe to close the textile loop. This leads to ‘local’ knowledge creation, new designs (for recycling) and product development, which is to sustainably use our mountain of post consumer textile.What areas need further development and support?We need more medium-scale production facilities; from high value fibering, yarn development and knitting and weaving to produce high value end products of recycled yarn.Can companies not involved in the circular economy adopt the technology you use?Yes, Brightloops also helps other textile companies to produce 100% recycled knitwear or felt for their collection. We produce custom made yarn and ready to wear knitwear from their own waste streams using their own label. Anyone who is interested can contact us.What are your recommendations to further close the loop and what is needed for recycled fibers to be incorporated into mass-marketed garments?More marketing, sales support and demand for sustainable fashion. We need retailers and online portals that actively help and support the sustainable brands that make beautiful products in the first place and also have a good story that make you proud to wear it.
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Our member community is an active group of businesses and institutions that have a shared ambition to make the circular economy a reality. As a member you will gain access to a powerful global network of change makers, thought leaders, peers, and stakeholders that share in our ambition to make the circular economy a reality.
Are you a changemaker? Learn more about our global network of innovators by clicking the link below.
[cta link="http://www.circle-economy.com/membership/" ]I'm a changemaker![/cta]
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Complicated derivatives, excessive bonuses, amoral incentives, irresponsible loans and, excessive leverage and asset bubbles are continually highlighted as issues our current financial system faces. However, the real fundamental financial issue of today is the severe imbalance between the financial world and the real world in which we live in. The real world, in which value is created through the use of precious resources and care is not taken to preserve them. This imbalance is at the root of the problem, but how can we address it?Our financial system is responsible for the efficient allocation of money and moving it from points of excess to points of need. But money has become so much more than a simple oil that allows the economic machine to run smoothly. Money deeply affects our behaviour as individuals and as a collective society. It gives us a feeling of individual freedom, yet anchors our dependency on others across the world. Additionally, we use it to express the value of everything: products - of course - but also intangible things such as health, wealth, safety, political power and, human lives. With that in mind, can we really trust our current financial system to facilitate the well-being of the real world?To answer these questions we need to understand what money is. To most people, the nature of money and the world of finance is a mystery, despite the fact that we use it for everything we do and in doing so, influence its function. A survey by Motivaction International and the Sustainable Finance Lab revealed that among 23,000 people, in 20 countries, less than 20% of the respondents were aware of the fact that commercial banks create more than 95% of the money in circulation.This money comes into existence in the process of interest-bearing credit (and debt) creation and relies upon an ever-expanding economic system, that cannot be sustained by the finite system we call earth. Financial system innovation is, therefore, a critical factor and important enabler to create a balance between the financial world and the real world. The money system is a social construct (we humans invented it) and therefore it can be re-designed to include incentives that influence more desirable outcomes. These systems can be complementary to our current monetary realm and create a more diverse and resilient financial system. With financial technology innovations, such as blockchain, it is possible to create these incentives and nurture economic value at the local level by preventing wealth from ‘leaking away’. It provides new social institutions for collaborative consumption and ‘product service systems’, and can facilitate resource-sharing and reuse markets for unwanted goods. But pro-environmental behaviour can also directly be addressed, for example, rewarding citizens who participate in recycling programmes or the development of new green technologies could be rewarded, through for example a cryptocurrency based on renewable energy.An example of such a system is the WASTED Reward System, which aims to incentivise citizens to recycle and create awareness regarding plastic waste in Amsterdam Noord. Plastic waste of participating households is tracked through QR codes and linked to their personal account. For every 5 bags of plastic they recycle, they are rewarded with 5 coins, which can be spent at local shops and restaurants. For example, 5 full bags of plastic are worth a 3-course meal! This programme not only enhances local economic activity but also increases awareness of plastic consumption and results in a cleaner neighbourhood. Currently, the scaling opportunities for such a programme are limited due to the need for manual operations (i.e. a physical currency that has to be collected and distributed). Therefore a digital version of the currency based on blockchain technology is being developed together with Circle Economy. This digital currency will also be able to be used in webshops and make it easier to monitor and evaluate its use. At Circle Economy, we embrace this challenge and together with Sustainable Finance Lab, we aim to leverage financial innovation to enable the circular economy.
[cta link="mailto:elisa@circle-economy.com" ]Get in touch[/cta]
A transition to the circular economy is essential to fight climate change, resource depletion and achieve sustainable growth. To ensure that policymakers and governments know how and where to implement the circular economy effectively, there is a great need for practical tools to measure it.
Method update
With the aim of continuous improvement in monitoring jobs in the circular economy, Circle Economy updates its methodology for quantifying circular economy jobs on a yearly basis. Since the publication of this report, the results for the Netherlands have been recalculated based on the method update carried out in June 2020.
It follows that the results shown in this report differ slightly from the ones displayed on the online monitor. Please explore the data online via the Circular Jobs Monitor where you can also download the updated data file.
During this year’s Goed Geld Gala on 6 February National Postcode Lottery announced its continued support for Circle Economy with a 1 million Euro grant. Thanks to the organisations funding in recent years, Circle Economy has built a solid foundation for a truly impactful organisation and with their continued support we will be able to deliver on our mission to accelerate the practical and scalable implementation of the circular economy. Since the organisation’s founding, Circle Economy has focused on developing practical and scalable solutions for the circular economy. We work with stakeholders throughout value chains, in key sectors, like textiles and construction, to identify and overcome system leaks. From cities to regions, we create actionable implementation plans to guide the transition and have collaborated with the financial sector to create new, financially sound business models.With an open-source ethos at the heart of our organisation, Circle Economy focusses on developing scalable services that help businesses, governments and citizens bring circularity into practice, on a global level. Now as we look to the future, we believe that In order to have successful, on the ground, implementation of the circular economy we need to digitise, scale and distribute our solutions worldwide.. We would like to extend our gratitude to the National Postcode Lottery and the lottery players for their continued support. Together with our growing, international network of members and partners we are looking forward to continuing our mission and shaping a visionary and practical future for our planet. [caption id="attachment_12029" align="aligncenter" width="4422"]
Image: Roy Beusker[/caption]
The textiles industry has rapidly become one of the most polluting industries in the world
"We are using resources and producing waste too fast for the planet to keep up" - Helene Smits, Lead Circle Textiles, Circle Economy
The production of textile fibres is extremely water, land, energy and chemical intensive and relies heavily on finite resources.
To enable our increasing consumption habits, global textile fibre production has risen to ±90 million tonnes per year (the equivalent of ±80 billion garments per year). According to the report 'Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects', a doubling in the number of consumers and an 84% hike in demand for textile fibres over the next 20 years will stretch resources to their breaking point. This level of production is both economically unstable and ecologically unsustainable.
Concurrently, aggravated by increased populations and a fast fashion model of production and consumption, the volumes of post-industrial, pre-consumer and post-consumer textile waste continue to grow year upon year. Today, 20 million tonnes of textiles are being landfilled or incinerated every year in the EU and US alone. An estimated 95% of all these textiles, could be re-worn or recycled (Source).
How can we curb virgin fibre production and utilise textile waste?
We need to transition to a circular textiles industry.
In 2016 Circle Economy joined forces with our members Recover, ReBlend, G-Star RAW, ReShare and Wieland Textiles to test and prove the true potential of high-value recycling.
Leveraging untapped ‘waste’ streams to create new textiles on a large scale would enable us to drastically cut down our need for virgin textile resources and significantly reduce the negative impacts associated with virgin cotton fibre production and textile waste.
High value or textile-to-textile recycling enables leftover textile fabrics or garments that are no longer in use to be redirected back into the textiles loop as recycled raw materials, to create circular fashion
Together with Wieland Textiles and Recover, G-Star RAW and Circle Economy set out to try and prove the business and environmental case for high value textile-to-textile recycling of denim.
The ultimate goal of project was to create new denim fabrics from returned G-Star stock, that can compete with virgin cotton denim on price, quality and aesthetics at a fraction of the environmental impact.
“We partnered with Circle Economy with the ambition to investigate further the potential for closed loop business models for G-Star RAW. The Circle Economy assessment was critical for us because we wanted to understand the business case of high value recycling of G-Star RAW returned inventory goods. As a result, we now have a better understanding of the process and can take informed decisions in closing the loop of these goods.” – Frouke Bruinsma, Director Corporate Responsibility, G-Star RAW
ReBlend joined the Circle Economy’s network to take their project to the next level, and push the potential of mixed post-consumer recycling to the next level. As a pioneering Dutch circular fashion and textiles agency, Reblend’s mission to show the world that mixed post-consumer textiles can be recycled into new high quality products, thereby making the case for closed loop textiles.
The ultimate aim of this collaboration was to demonstrate to the market that, through high-value recycling, post-consumer textile waste (>70%) can be transformed into high-quality, beautiful and unique textile products, with a minimal environmental impact!
Recycling is focused on pure materials (100% cotton, wool or polyester). What we wear is mostly a blend of materials. It is easy to see that this creates a huge gap between theory and reality! - Anita de Wit, Reblend
Circle Economy partnered with Salvation Army ReShare and Recover to explore how used workwear from the Dutch military could be given a second life.
The ultimate aim of this strategic collaboration was to unpack the potential of workwear waste streams, and create commercially viable, high-quality products while at the same time achieving significant environmental savings.
“Ultimately, old uniforms, workwear and other used textiles should not go to waste but should be put back into the loop via high value (textile-to-textile) practises. We are happy that we can contribute positively to the circular movement in the textile sector through this partnership.” – Michel Rosenquist, Manager Relations, Salvation Army ReShare
Acting as a partner for all three of the projects, Recover's four generations of research and development in textile recycling has led to some impressive technical advances. The quality of their upcycled yarn is comparable to virgin yarn and is offered at a competitive price with a fraction of the environmental impact.
However their recovery streams used to recycling post-industrial clipping waste,that have been in place for over 70 years, account for only a fraction of overall textile waste globally.
“Closed loops in textile industries are closer to reality than many would think. The improving techniques of mechanical recycling and the endorsement of global brands and retailers, that realise the important potential for profit making, push the practices of high value recycling to become the new standard for the textile and fashion sectors.” – Isaac Nichelson, Chief Sustainability & Marketing Officer, Recover Textiles
Sensing a valuable collaboration opportunity with the ReBlend, G-Star RAW and ReShare projects Recover partnered with each company to take their collaborative capacity and expertise to the next level.
Results varied based on the challenge outlined, however some key learnings emerged. In the G-Star RAW challenge it was determined that recycled denim fabric has a price premium of 12.5% compared with virgin equivalents however, recycled denim fabric with only 12% recycled content already has a much lower environmental impact than its virgin equivalent.In the case of ReBlend almost 7 tonnes of post consumer garments were processed to produce 6 tonnes of new 100% recycled yarns. The Life Cycle Assessment on one of the recycled yarns (White Cream), completed by Circle Economy, concluded with the following results regarding environmental image:
Finally, the ReShare project successfully transformed several tons of old Dutch navy and army uniforms into new yarns that were used to produce humanitarian aid blankets. A reduction in water consumption, decreased energy use and a reduced CO2 emissions were realised, when compared to a non recycled yarn.
Our Circle Textiles Programme has a unique focus on end-of life and whole-systems redesign. The ultimate goal of the program is to achieve a zero-waste industry, by developing and establishing a commercial and scalable model for closing the loop on post-industrial, pre-consumer and post-consumer textiles. We collaborate closely with members of our member network and our community of collectors, sorters, recyclers, brands and cities to develop groundbreaking pilot projects, that can create best practices for the future.
To learn more about how your company can become a member of the Circle Textiles community contact us!