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The Next Closet: Discovering the Untapped Potential of Circular Luxury
The Next Closet: Discovering the Untapped Potential of Circular LuxuryThe Next Closet: Discovering the Untapped Potential of Circular LuxuryRead more
The Next Closet: Discovering the Untapped Potential of Circular LuxuryThe Next Closet: Discovering the Untapped Potential of Circular Luxury
November 16, 2016
The Next Closet: Discovering the Untapped Potential of Circular Luxury

The Challenge

The Next Closet is a marketplace for pre-loved designer fashion. Every season, while one trend after another is strutting down the runway, wardrobes are getting fuller and wallets are getting thinner. Not an ideal situation.

Via The Next Closet’s online platform users can sell their pre-owned designer fashions or shop other people's closets. Since the company launched in 2013 this has proven to be a widely sought out concept.

"The idea that things can be ‘in’ or ‘out’- this is dangerous. These two things come together and are a dangerous cocktail, they get us drunk on stuff." - Gwen Cunningham, Lead of the Circle Textiles Programme at Circle Economy and Coordinator for Sustainability at AMFI

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As the market for secondhand luxury fashion continues to boom, The Next Closet was anxious to find a way to involve luxury brands in the ever-growing vintage revival. Pre-loved Chanel jackets, vintage Prada bags, and gently worn Jimmy Choos are bought and sold through third-party vendors and re-commerce sites at lightening speed. But can luxury brands themselves take control of their secondhand goods? How could existing re-commerce sites, like The Next Closet, work with luxury brands to launch such a programme? Is the luxury consumer ready for circularity?

The Approach

During the signature event of our Circle Textiles Programme, Beyond Green, organised by Circle Economy and the Amsterdam Fashion Institute, The Next Closet was brave enough to put their real-life zero waste challenges on the table. Together with experts and ambitious AMFI students, they knuckled down and combined their brainpower in an intense 2.5 hour circular fashion hackathon.

“It is very interesting to bring the two worlds together, students have completely different ideas and ambitions compared to industry and when these two worlds collide, brilliant things happen!” - Thalita van Ogtrop, Founder at The Next Closet

The group acknowledged the fact that luxury brands are becoming evermore interested in take-back schemes but do not want to be involved in the logistics. To overcome this obstacle they came up with a solution that would entice luxury brands think beyond the first life of their garments. They proposed for luxury brands to include digital, scannable labels in their garments at the time of production. This would allow consumers, who wish to sell their garment on a re-commerce site, the ability to scan the label and have photos and a description of the garment ready to upload. Additionally, the scannable labels facilitate the reselling of garments while the brands maintain their high-end image without having to be involved in the logistics of resale.

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This visual was created by Circle Economy’s visual designer Kay van ‘t Hof. Click the case studies below to see the visuals and read the results from the other three Beyond Green hackathon challenges.

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The Next Closet shares in our ambition to make the circular economy a reality.
Are you a changemaker? Join us at Beyond Green 2017.

[cta link="http://www.circle-economy.com/beyondgreen2017/" ]I'm a changemaker![/cta]

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ACtronics joins Circle Economy Membership
ACtronics joins Circle Economy MembershipACtronics joins Circle Economy MembershipRead more
ACtronics joins Circle Economy MembershipACtronics joins Circle Economy Membership
November 7, 2016
ACtronics joins Circle Economy Membership

ACtronics is a Dutch automotive supplier that remanufactures automotive car electronic components to provide high-quality components and spare parts. The company’s remanufacture process ensures that each product is inspected for common faults as well as future problem areas. These are corrected and, as a result, each of the products that are remanufactured by ACtronics are expected to work and look like new, with a lifetime equal to, if not beyond, the original manufacturer specifications. The success of ACtronics lies in their thorough understanding of the latest communication systems within the automotive industry and their innovative business approach.

"The ACtronics Group is committed to remanufacturing. We are innovators focussed on creating quality end products that help people save money, improve profitability of garages while at the same time improving their levels of customer satisfaction and decreasing their environmental footprint. We believe the future of the automotive industry will be circular, that is why we joined Circle Economy's membership."

- Thijs Jasink, COO ACtronics

The Dutch automotive industry, characterised by a dynamic mix of innovative part and component suppliers like ACtronics, is well-positioned to play a leading role in the transition to a circular economy.

ACtronics is one of those companies that is - in many ways - already circular by nature. So we are very pleased to have them on board! They are a driver of change and an inspiring example of how remanufacturing can make an industry more circular.”

- Ben Kubbinga, Lead Partnerships and Collaboration at Circle Economy

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Curious to learn more about the vision of ACtronics on the future of the car industry?  Read the report: 'On the road to the circular car', featuring ACtronics COO, Thijs Jasink.The report, co-created by ABN AMRO and  Circle Economy, presents the future of the automotive industry, the role consumer trends play and how car part suppliers can future-proof their business by adopting circular business models.Other expert's interviews in the report are from Ralph Ramaekers DSM Engineering Plastics,Jasper IJsenbrandt - ARN, Jan-Paul Kimmel - CLAUT, Wim Simons - Timmerije, Martijn Lopes Cardozo - Black Bear Carbon.

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Black Bear and CRS Holland Nominees for The Circulars
Black Bear and CRS Holland Nominees for The CircularsBlack Bear and CRS Holland Nominees for The CircularsRead more
Black Bear and CRS Holland Nominees for The CircularsBlack Bear and CRS Holland Nominees for The Circulars
November 1, 2016
Black Bear and CRS Holland Nominees for The Circulars

The Circulars, an initiative of the World Economic Forum and Forum of Young Global Leaders, is the world’s premier circular economy award program. It is held annually, in January at the World Economic Forum Annual Meeting in Davos, and run in collaboration with Accenture. The Awards engage individuals and organisations from across business and civil society across 7 award categories, ranging from multinationals to entrepreneurs, with winners receiving the opportunity to attend the ceremony in Davos. Circle Economy is a supporter of this year's Circulars Awards and very proud Black Bear and CRS Holland are nominated!

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The Circulars – People’s Choice Overview

The Dell Circular Economy People’s Choice Award is for early-stage innovators and entrepreneurs at the forefront of the circular economy, demonstrating innovation and market disruption. The winner and runners up for this award are chosen by public vote which opens on the 24th October till the 11th November. Please make sure to vote for Black Bear or CRS Holland now!

About Black Bear

Black Bear brings the circular economy to tires and has developed innovative technology to extract high quality carbon black from waste tires, allowing for industries to move away from the ‘polluting’ carbon black that is currently produced from crude oil. Carbon black is used in tires and rubber, and as pigment in coatings, plastics and inks.

Black Bear’s circular solution, which tackles the issues posed by the 1 billion end of life tries produced globally each year, has the potential to unlock a huge environmental impact. Each ton of carbon black produced by Black Bear saves 2.5 tons of oil and 5 tons of CO2. For each installation, that’s more CO2 than 1 million trees can consume. Moreover, there are enough waste tires to build over 800 installations!

Black Bear has formed over 30 customer relationships, including ones with tire giants such as Michelin and GoodYear and paint companies such as AkzoNobel. These companies have tested the Black Bear product with good results and are incorporating it in their production processes.

In summary, Black Bear is solving the issue of waste tires and at the same time reducing oil consumption through their circular innovative solution for carbon black users.

About CRS Holland

CRS Holland has developed a circular economy solution to a unique environmental and economic challenge hidden under the sea.

Since 1850, an estimated 1.7 million km of cables have been installed underneath our sea, cables which are made of nearly 800.000 metric tons of metals and 800.000 metric tons of plastics, and can be worth several billion USD. Many of these cables have gone out of service and still 94% of unused cables are lying on the seabed together with 72.000 repeaters, some of which contain traces of radioactive materials. Recovering and recycling these unused cables could save over 4 million metric tons of CO2 emissions.

CRS Holland is committed to cleaning up the oceans and to recovering this value and provide Telecom companies with deep sea cable recovery services, giving them an opportunity to turn their retired cables from liability into an asset by selling the recovered materials.

To date, CRS Holland have completed 8 projects and recovered 30,000km of cable from under the sea.

[cta link="https://thecirculars.org/peoples-choice-entrepreneur-award" ]Vote Now![/cta]

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Circular Economy: A key lever in bridging the emissions gap to a 1.5 °C pathway
Circular Economy: A key lever in bridging the emissions gap to a 1.5 °C pathwayCircular Economy: A key lever in bridging the emissions gap to a 1.5 °C pathwayRead more
Circular Economy: A key lever in bridging the emissions gap to a 1.5 °C pathwayCircular Economy: A key lever in bridging the emissions gap to a 1.5 °C pathway
November 1, 2016
Circular Economy: A key lever in bridging the emissions gap to a 1.5 °C pathway

Circle Economy and international consultancy Ecofys have called for a rapid transition to a global circular economy to meet the ambitious Paris climate agreement. According to an estimate by the two organisations, circular economy strategies may deliver emissions reductions that could cut the 1.5 °C emissions gap in half.

“The momentum from a circular economy can provide a basis for the transition to a low carbon economy with secure sustainable economic growth and prosperity for all. To reduce the risk, companies need to find new ways of doing business. The sooner this is accomplished, the less disruptive and more cost-effective the transition will be,” - Preeti Srivastav, Project Director of Corporate Climate Action at Ecofys

Circle Economy and Ecofys have issued a white paper that informs on key strategies to move to a circular state. It also highlights existing circular examples in the world today. The white paper will form part of a further comprehensive analysis of the new climate agreement and targets and circular economy’s contribution to the same. The white paper and initiative were launched today at The Business & Climate Summit in London where institutional Business and climate leaders are working together to deliver real climate action.

“The research clearly shows that there is a massive role for the circular economy. Not only as the ‘missing part of the puzzle’ to make our Paris targets achievable, but also as a practical and scalable approach to decouple unsustainable material use from prosperity. This makes the circular economy a vital addition to the mix of solutions to address climate change. We urge companies and governments to embed the circular economy in their climate strategies and policies, and prompt the next wave of climate action through circularity.” - Andy Ridley, CEO, Circle Economy

Circle Economy and Ecofys will support both companies and governments to amplify the circular economy contribution to climate change and in translating the Paris Agreement from a diplomatic settlement between countries into a catalytic instrument for the real economy.

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A KEY-ENABLER FOR HIGH VALUE 'TEXTILE-TO-TEXTILE' RECYCLING IS ON ITS WAY TO THE MARKET
A KEY-ENABLER FOR HIGH VALUE 'TEXTILE-TO-TEXTILE' RECYCLING IS ON ITS WAY TO THE MARKETA KEY-ENABLER FOR HIGH VALUE 'TEXTILE-TO-TEXTILE' RECYCLING IS ON ITS WAY TO THE MARKETRead more
A KEY-ENABLER FOR HIGH VALUE 'TEXTILE-TO-TEXTILE' RECYCLING IS ON ITS WAY TO THE MARKETA KEY-ENABLER FOR HIGH VALUE 'TEXTILE-TO-TEXTILE' RECYCLING IS ON ITS WAY TO THE MARKET
October 25, 2016
A KEY-ENABLER FOR HIGH VALUE 'TEXTILE-TO-TEXTILE' RECYCLING IS ON ITS WAY TO THE MARKET

After years of development, testing and tireless innovation, the FIBERSORT consortium has received funding support from the European Commission INTERREG NWE programme to optimise, validate and launch the FIBERSORT technology in the global market. The FIBERSORT technology is the world's first automated sorting technology that is able to sort large volumes of mixed post-consumer textiles based on fiber composition of fabric. Commercialisation of the new technology will bring us one step closer to the closed-loop textiles industry that we so desperately need.

A Unique Technology

In November 2015, the FIBERSORT partner consortium, led by Circle Economy, submitted a phase 1 proposal for the ‘Market demonstration and validation of FIBERSORT technology’. Almost a year later, 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.

"This funding is an essential to bringing the FIBERSORT technology to the next level.We are thrilled to be able to bring a key, enabling technology, for a closed loop textile industry, to the market”   - Gwen Cunningham, Lead Circle Textiles, Circle Economy
A Consortium with a Global Mission

The textiles industry is the second most polluting industry in the world and second largest consumer and polluter of water.  That is why, over a year ago, Wieland Textiles, Valvan Baling Systems, Worn Again, Salvation Army ReShare and Circle Economy joined  forces to address these issues through the Textile Sorting Project.In North-West Europe alone, 4.650 kt of textiles are discarded every year. That is the equivalent of 700 times the weight of the great pyramid of Giza! Of these discarded textiles a meagre 30% is collected, of which 40% is not suitable for re-wear and currently being downcycled. An initial analysis shows that 50% of the textiles collected ,that are not suitable for re-wear, could be diverted from downcycling into high-value recycling routes as a result of the FIBERSORT technology.To enable large scale, high-value recycling of textiles, there is a need for an effective technology that can sort textiles based on fiber composition; is capable of dealing with the complexity of the materials in circulation; and is able to process large volumes quickly. The FIBERSORT technology delivers exactly that.  This unique technology is positioned to deliver two things. First, it reduces the need for virgin textile materials by enabling high-value (textile to textile) recycling. This will alleviate the environmental pressure of producing virgin materials. Second, it creates additional market value and business opportunities by developing a business case out of waste that currently would go to landfill, be incinerated or downcycled.

"We started the FIBERSORT after a visit to India, where I witnessed firsthand the incredible amounts of landfill, chemicals and child labour involved in dealing with our waste, I decided we needed to change the way we handle our discarded textiles. The FIBERSORT offers us the solution to find an alternative, high-value destination for our waste"-  Hans Bon, Director, Wieland Textiles
Hans Bon, Denim bleaching in Panipat, India - 2008
Image: Hans Bon, Denim bleaching in Panipat, India - 2008
The Innovation Partners

Essential to the success of this project is the collaboration between the various stakeholders in the textile value chain. Within the partner consortium, the three value chain stakeholders that are needed to achieve the main objective and outputs are represented:

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RePack joins Circle Economy Membership
RePack joins Circle Economy MembershipRePack joins Circle Economy MembershipRead more
RePack joins Circle Economy MembershipRePack joins Circle Economy Membership
October 24, 2016
RePack joins Circle Economy Membership

Always keeping in mind their motto, "The End of Trash!", RePack tackles packaging waste associated with e-commerce. It offers returnable and reusable packaging that rewards its users for every order. RePack sleeves are designed to be used for at least 20 times. Comparing one RePack to 20 disposable packages showed that RePack has a 50 % lower carbon footprint then throw away packages.

“Circularity and reuse are core values of RePack. We hope that together with Circle Economy we will be able to connect and partner with other like-minded companies that have circularity at the heart of their organisation. As a company based in Helsinki we sometimes feel removed from Europe's hotspots. That is why we look to partner with forward thinking organisations like Circle Economy to share our message about reusable packaging."- Jonne Hellgren, CEO RePack

So how does it work?

Deliveries are packaged and shipped in reusable RePack sleeves and consumers return the sleeves by simply dropping them into any mailbox, anywhere in the world, free of charge. Once returned, customers are rewarded with a discount voucher to use at any company that uses RePack's sleeves.

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“We are very happy to welcome RePack to our Membership! In addition to reducing packaging waste, their beautiful and simple designs are perfectly suited to support circular business, take-back schemes and reverse logistics models. In particular, we see these types of solutions as key to enabling a circular fashion industry. We look forward to working with RePack through the Circle Textiles Program and beyond.”- Gwen Cunningham, Lead Circle Textiles

Around 25 retailers are already using RePack! All participating stores, including our member MUD Jeans, can be found here. To learn more about RePack visit their website or watch their company video below.https://www.youtube.com/watch?v=arA_fGLh74g

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The Circular Dairy Economy
The Circular Dairy EconomyThe Circular Dairy EconomyRead more
The Circular Dairy EconomyThe Circular Dairy Economy
October 17, 2016
The Circular Dairy Economy

Ahead of the World Dairy Summit, held in October 2016 in Rotterdam, The Netherlands, Circle Economy and FrieslandCampina explored the potential pathways for the Dutch dairy sector to transition to the circular economy. Findings are presented in the Discussion Paper - The Circular Dairy Economy.The global dairy sector provides livelihoods and vital nutrition to billions of people worldwide. It also faces major challenges and sustainable growth compatible with the intents of the Dairy Sustainability Framework is imperatively needed.Circular economy principles offer a promising avenue to resolve these challenges. A truly circular dairy sector is regenerative and closes nutrient, water, carbon and waste cycles while promoting biodiversity, optimising land use and safeguarding farmer income.The Dutch dairy sector is a recognised innovation leader and Dutch dairy farmers have an important role to play in leading a transition toward circularity. To start this transition, three archetype pathways were identified:

  • Optimised grazing, which seeks to maximise the productivity of the land by combining biological and technological approaches to achieve circularity.
  • Extensive grazing, which builds on biological processes and organic farming methods to close the soil-plant-animal-nutrient cycle locally.
  • Intensive high-tech farming, which leverages technological solutions to close key cycles.

[cta link="http://www.circle-economy.com/dairy"]Download the report[/cta]

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Five ways the circular economy can help mitigate climate change
Five ways the circular economy can help mitigate climate changeFive ways the circular economy can help mitigate climate changeRead more
Five ways the circular economy can help mitigate climate changeFive ways the circular economy can help mitigate climate change
October 6, 2016
Five ways the circular economy can help mitigate climate change

The 2015 Paris Agreement united 195 countries behind a commitment to limit the rise of the earth’s average temperature to no more than 1.5C. In order to achieve this, global emissions must be cut by 26bn tonnes annually by 2030, according to UNEP. Unfortunately, the climate policy packages proposed thus far can only deliver about half the emission reductions that are needed. However, a recent report published by Circle Economy and Ecofys, illustrates how implementing the circular economy globally can help to reduce the remaining emissions by half.There is no doubt that climate change poses a significant risk to society, our planet and the ability for future generations to thrive. Increasingly, investors are moving funds and implementing mitigation strategies but in order to truly alleviate climate change, new paradigms must be explored. We must move beyond incremental improvements and reimagine the ways we generate and deliver goods and services. The focus on climate change and the reduction of emissions so far has rightfully been on renewables and efficiency improvements, yet the circular economy shifts our attention to retaining value and making efficient use of the resources we already have by re-entering them into a system that is continuous and long lasting. The shift away from fossil fuels to renewables has engaged investors, industry players and pioneering entrepreneurs. The next step requires a similar transition. One which addresses our material use and draws inspiration from companies like Spotify, Zipcar and Peerby.Here are the top five ways the circular economy can play a part in fighting climate change.

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1. Do more with less

Roughly 60bn tonnes of raw materials are extracted from the earth annually. That is the equivalent of 22kgs per person per day. Half of these materials are the fuels we burn and the food we eat and a significant portion of the other half is used to build our homes, offices and roads. The remainder is used for a variety of products from cars and clothing to cleaning agents and personal care products. Of all these raw materials used by the global economy only 7% are reused. The circular economy, as a principle, promotes the reusing of materials through repair, refurbishment and upgrading. If a car engine can be taken out, upgraded, and installed back into the car as good as or even better than new, the opportunities for saving on materials is significant.

2. Substitute carbon-intensive materials

The cement industry alone is responsible for approximately 5% of current emissions globally. In order to incentivise energy efficiency measures, typical climate policies focus on reducing emissions per tonne of cement produced. This mentality only lessens the amount of emissions instead of finding a safe alternative for the product and too often ignores other solutions such as substituting concrete or designing modular buildings.An example of this forward thinking approach is Park 20|20, a business estate in Amsterdam that strives for closed material, energy, waste and water cycles. During the construction of the building, modular materials were used so that they can be reused indefinitely. Alternatively the use of low-carbon alternative building materials like Cross-Laminated Timber (CLT) are being used to construct skyscrapers such as the proposed 35-storey Baobab tower in Paris designed by Vancouver architect Michael Green.If cement and construction companies can take these innovative approaches into account, they can engage in the circular economy while future-proofing their business.

3. Create a domino effect

In developed countries, 55% to 65% of greenhouse gas emissions are related to the extraction, transport and processing of raw materials, according to the OECD (pdf). Increasing circularity means reducing our dependence on raw materials and results in a reduction in the amount of energy needed to extract, transport and process these materials. As energy needs in these stages decrease so too does the need for energy infrastructure, pipelines, coal terminals and refineries. Although we’re far from ending our reliance on fossil fuels, this would free up material embedded in our fossil energy infrastructure for other purposes and create a positive domino effect from one sector into another.

4. Efficient use of resources and energy

An often heard counterargument is that although improved efficiency reduces costs it also leads to increased demand. This rebound effect has been studied in detail in regards to energy efficiency and it has been found that only 5% to 30% of the efficiency gains are lost through greater use. This rebound effect is likely to be similar for resource efficiency.

5. Disrupt the digital stage

Established business models are beginning to be replaced and the circular economy is adding to the increased momentum of this new, disruptive age. Physical services are being replaced by online equivalents, effectively dematerialising services. For example, in the music industry, compact discs have essentially been replaced by unlimited access to music online, thanks to iTunes, Spotify, and even now obsolete websites such as Myspace. This reduction in material use due to service delivery is optimising resource use and maximising value.This article was originally published on The Guardian.

Interested in learning more about how implementing the circular economy globally can help to reduce the remaining emissions by half?
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Master Circular Business with the Value Hill
Master Circular Business with the Value HillMaster Circular Business with the Value HillRead more
Master Circular Business with the Value HillMaster Circular Business with the Value Hill
September 22, 2016
Master Circular Business with the Value Hill

Although the opportunities for investing in circular business models are widely available, current investment methods do not match the needs of these unique businesses.

To finance these business models, companies as well as the financial sector need to adapt. Businesses need to create an attractive business model for financiers, and financiers need to change the way they perceive the risks and opportunities associated with these models.

To help businesses position themselves in a circular context and develop future strategies for doing business in a circular economy, Sustainable Finance Lab, Circle Economy, Nuovalente, TUDelft, and het Groene Brein got together to create the Value Hill.

The Value Hill proposes a categorisation based on the lifecycle phases of a product: pre-, in- and post- use. This allows businesses to position themselves on the Value Hill and understand possible circular strategies they can implement as well as identify missing partners in their circular network. The Value Hill provides an overview of the circular partners and collaborations essential to the success of a circular value network.

This report is the first in a series of three reports that will help you to finance a successful circular business model:

  • Volume 1: Master Circular business with the Value Hill
  • Volume 2: Create A financeable circular businesses (To be released in October)
  • Volume 3: Empower Financial decision makers for a circular economy (To be released in November)
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