On the 28th of October, in partnership with the Amsterdam Fashion Institute, we held our signature circular textiles event, Beyond Green, at the beautiful Pakhuis de Zwijger. Read the full event recap and the four key learnings that emerged from the day below.
https://vimeo.com/191341921
The topic of the day was zero waste and the role that design, technology, businesses, and consumers play in achieving this in the fashion industry.
A palpable excitement and energy filled the room, where students and industry rubbed shoulders and exchanged ideas, during a day of inspiration and collaborative problem solving. Two words can summarise the prevailing atmosphere; hopeful and urgent.
“The one thing we cannot waste anymore is time. We have a window of opportunity, to change the way we work on this planet” - Gwen Cunningham, Lead of the Circle Textiles Programme at Circle Economy and Coordinator for Sustainability at AMFI
Most notably, the day did not dwell on the problem, but rather, focussed on concrete solutions that are bubbling below the surface and asked 'what next?'. Key learnings that emerged from the day included:
Isaac Nichelson, Chief Sustainability and Marketing Officer at Recover, one of the world's leading mechanical upcyclers, with 70 years of experience recycling cotton and textile waste, schooled us on the immediate potential of closed loop textile recycling. He stressed that huge synergies exists between mechanical and chemical recyclers and highlighted how they will both play a critical role to achieve a zero waste future.
“Finally I feel momentum, after 20 years of trying to convince people. Linear, meet Circular... This is where we’re heading” - Isaac Nichelson, Chief Sustainability and Marketing Officer at Recover
It was made clear that solutions, including the FIBERSORT technology and the 'tinder for textiles', Circle Market, exist and are scaleable however, what is needed is an increase in demand for them.
Gwen Cunningham, Lead of the Circle Textiles Programme at Circle Economy and Coordinator for Sustainability at AMFI, got straight to the heart of the issue by calling out the culprits: planned and perceived obsolescence and our unfaltering pursuit of 'growth for growth's sake.'
By looking to the past, Gwen helped us to imagine a zero waste future. She pointed to the ingenuity of war-time Britain, when fantastical measures were introduced with remarkable success, in order to safeguard raw materials. If we were faced with similar rations, as our war stricken predecessors, how would we cope?
Indeed, constraint drives genius and the genius is already bubbling up around is. In fact, Circle Economy’s Circle Textile's Programme is already paving this new path with the advent of an exciting new partnership with the C&A Foundation that will continue to push innovative projects like the FIBERSORT technology and Circle Market.
Solutions for reducing the amount of waste produced during the sampling stage of designing a fashion line were brought to light by recent AMFI graduates Tamara Koch and Zil Vostalova. They introduced us to the concept of working “phygitally'. The love affair between the physical and digital world, that can be perfectly married using softwares like Clo3D and Lectra to enable virtual prototyping.
“We have to stop thinking of products as static, stationary objects, we have to think of them as journeys” -Dr.Kate Goldsworthy, Design Researcher at the Textiles Futures Research Center
Self confessed ‘trash lady’ Jessie Kroon of A New Zero, taught us how she mastered a zero waste lifestyle, and invited us to join her on her quest. While through continued research and prototyping, Dr. Kate Goldsworthy showed the audience how she is building a powerful menu of design strategies for a zero-waste, circular world.
Technology and general consumer awareness are in tow to help realise a zero waste fashion industry. As a result of this the industry must prepare for a future where the consumer has the potential to be the supplier of raw materials.
“In a circular future, consumers will be the raw materials suppliers”and play a critical role in the supply chain.” - Cyndi Rhoades, Founder and CEO of Worn Again
The packed auditorium heard from leading minds on the topic including the current innovations of Worn Again's chemical recycling technology, the was presented by founder and CEO, Cyndi Rhoades. She explained that while upcycling is a good solution in the interim, it simply extends the lifetime of materials, which will ultimately end up in landfill anyway.
The bold and brave voice of the next generation echoed in our ears as a powerful battle-cry came from the student-led AMFI activist group Hello-Goodbuy. They are fed up with the current fashion industry and have joined forces to come to terms with their addiction. In a heartfelt launch, this no-nonsense collective voiced their frustrations with the industry and implored us all, students and industry, to #GETYOURSHITTOGETHER.
Additional learnings were discovered during an intense 2.5 hour circular fashion hackathon at which a lucky number of AMFI students and hand selected industry collaborated with four pioneering companies, Orta Anadolu, Boer Group, Mud Jeans and The Next Closet. These forward-thinking companies were brave enough to put their real-life, zero waste challenges on the table seeking circular solutions.
“We came here today to find a solution for this problem of waste, globally “ - Gulfem Santo, Marketing Team Leader at Orta Anadolu
Details about the challenges presented and the solutions that emerged can be found in the case studies below.
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https://vimeo.com/189638719
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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
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.
C&A Foundation has dedicated €250,000 to Circle Economy to expand the Circle Textiles Programme. Over the past 1.5 years, Circle Economy has developed extensive expertise and hands-on experience in the field of circular fashion, through their vanguard Circle Textiles Programme.
Thanks to C&A Foundation’s generous grant, we can push this ambitious program to the next level and take the bold steps necessary to scale our zero waste mission. We plan to build on the success and expertise of the Circle Textiles Program to date, but also develop new tools for the industry that are critical in engaging companies in closed loop strategies.- Gwen Cunningham, Lead Circle Textiles at Circle Economy
Launched in 2014, the Circle Textiles Programme’s mission is to ‘close the loop’ for textiles and create a zero waste industry. With a unique focus on end-of life and systems redesign, the programme aims 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.Circle Economy approaches these issues facing the world's second most polluting industry through practical, on the ground tools and services. To date, the Circle Textiles Program core projects include:
With the support of C&A Foundation, Circle Economy will expand their efforts to ensure the continued growth of the programme and support the development of the 'Circle Fashion’ tool. The tool will be designed to facilitate decision-making for brands who want to understand the business case and environmental impacts behind closed-loop recycling and sourcing. By using the tool, a brand will be able to evaluate the practical end-of-life options for textile waste (eg. incineration vs. downcycling vs. high-value recycling) and weigh both the environmental and economic impacts of these scenarios. Circle Economy is looking to develop this tool with global brands who wish to implement innovative new solutions in the textiles industry.
"At C&A Foundation, we believe that fashion can be a force for good. Circle Economy’s pragmatic, tool-based approach will make it easier for the global apparel industry to transition to new, restorative business models.- Leslie Johnston , Executive Director, C&A Foundation
Transitioning to a circular textiles industry will enable continued fibre consumption without the depletion or destruction of our earth’s natural resources and ecosystems. With the C&A Foundation’s funding Circle Economy will have the ability to build on the success and expertise of the Circle Textiles Program and accelerate the transition to a closed-loop textiles industry.
C&A Foundation is a corporate foundation here to transform the fashion industry. We give our partners the financial support, expertise and networks so they can make the industry work better for every person it touches. We do this because we believe that despite the vast and complex challenges, we can work together to make fashion a force for good.
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!
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!
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.
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.
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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.
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
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
Image: Hans Bon, Denim bleaching in Panipat, India - 2008
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:
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
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.
“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
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.
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.
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.
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.
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.
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.
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 framework gives us insight in how to keep on building our business model for the circular economy: extracting maximum value of our modular long-lasting product and insight in collaborations we need to engage in to succeed”– Miquel Ballester, Operator Relations, Fairphone
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.
“The Value Hill provides a great graphic to support storytelling on circular business strategies” - Stephan Sicars, Director Environment Department, UNIDO
Interested in learning more about the Value Hill and how it can help guide you to a successful circular business strategy?
[cta link="http://www.circle-economy.com/financing-circular-business" ]Download the report[/cta]
This report is the first in a series of three reports that will help you to finance a successful circular business model:
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