We believe the circular economy is part of the answer.
With the turn of the new year, 2020 launched the world into a chaos that had long been predicted, but hardly prepared for. But if we’ve learnt anything from 2020 so far, it’s to ‘never let a crisis go to waste’.
At Circle Economy, the past year has strengthened our resolve to accelerate the transition towards a circular economy and to ensure a socially just and ecologically safe space for all.
Circle Economy's impact report covers some of our work in the past 12 months, as well as our reflections on how circularity and resilience have become intimately linked in our activities and with the broader ecosystem of stakeholders we work with.
Circularity presents significant opportunities for local labour markets. If embraced with the right mindset, it can promote decent work and create new, more diverse skill sets and job roles.
In the past few months, Tevi and Circle Economy collaborated to increase local awareness of the circular economy in Cornwall and the Isles of Scilly in the UK.
As part of this collaboration, Circle Economy assessed the number of jobs related to the circular economy using our Circular Jobs Monitor, ran a three-week circularity in-depth course for SMEs, and set up the Circle Assessment Tool that enables businesses to understand and identify which circular opportunities are relevant to them.
Launching today, our baseline analysis report finds that 8.5% of all jobs in the region are already circular. It also recommends concrete steps for policymakers to take in order to realise the opportunities of the circular economy.
Download the full report below.
The data from the report is now also available on the Circular Jobs Monitor: an online monitor that displays the amount and type of jobs that are part of the circular economy, with data already available for the Netherlands and Belgium.
You can read more on the collaboration and what embracing the circular economy means to a local, coastal region like Cornwall, in this blog by Tevi's Project Manager, Dan Bloomfield.
The Circular Jobs Initiative introduces its Advisory Board, which will help to inform the strategic positioning of the initiative and guide the research agenda and best practice development.
The Advisory Board includes three research partners, being Kris Bachus (Research Manager Climate and Sustainability, HIVA- KU Leuven), Ödül Bozkurt (Senior Lecturer, University of Sussex Business School) and Antonius Schröder (Scientist, TU Dortmund Social Research Centre). They have a background in the focus areas of the initiative: skilling the workforce, quality of work, and inclusive labour market.
Alongside our research partners, we welcome Kari Herlevi (Project Director, Circular Economy, Sitra) and Reniera O'Donnell (Higher Education Lead, Ellen MacArthur Foundation) as programme partners to our board. They come from civil society and are working to raise the profile of issues related to education and employment in the circular economy on national and international levels.
We look forward to working in collaboration with our Advisory Board over the next two years.
“The initiative is very welcome and much needed for us to understand more thoroughly the impacts a transition to a circular economy could have on employment and needed skills, and consequently what kind of measures to support and address the changes are needed. Wide cooperation between policy makers, industries, researchers and employees is vital to manage the transition and make it inclusive and fair.” - Kari Herlevi, Project Director, Circular Economy, Sitra
'I am delighted to be part of the CJI Advisory Board. This is a great opportunity to share all the learning from the Ellen MacArthur Foundation's work with the higher education sector and our business networks as well as learning from the CJI. I look forward to being able to help shape and steer this key area in driving forward the transition to a circular economy'. - Reniera O'Donnell, Higher Education Lead, Ellen MacArthur Foundation
"I am highly interested to join the Advisory Board of the Circular Jobs Initiative to ensure exchange between the European co-funded Skills Alliance for Industrial Symbiosis (SPIRE-SAIS). Skilling the workforce and improving the quality of work is vital for implementing and unfolding the potential of new technologies in the direction of a sustainable and symbiotic industrial circle economy. So let’s join forces to move in this direction." - Antonius Schröder, Scientist, TU Dortmund Social Research Centre
"The circular transition promises multiple benefits, but it won't be straightforward to ensure they are all delivered at the same time. How do we align a move away from the environmental damages of the linear economy with the creation of large numbers of high-quality jobs? This agenda could not be more important or timely. Circular work must be accessible, rewarding, decent work. I am really excited to join the conversation CE has started on this and keen to contribute to the effort with a sociological sensibility that remains sensitive to both the material and the subjective experiences of work and employment." - Ödül Bozkurt, Senior Lecturer, University of Sussex Business School
The Coalition Circular Accounting is a collaboration between Circle Economy, NBA, Invest-NL, ABN AMRO, Rabobank, Triodos Bank, KPMG, Allen & Overy, Sustainable Finance Lab and scientists associated with Nyenrode Business University and Avans Hogeschool.
This coalition is part of the many on-the-ground initiatives in the Netherlands working to accelerate the transition to a circular economy, boosted by the Dutch government’s ambitious goals: 50% circular by 2030, and 100% by 2050.
An earlier report by Circle Economy found that the global economy is consuming 100 billion tonnes of materials a year for the first time ever, but reuse of resources has gone into reverse, with global circularity – the percentage of materials being reused – falling from 9.1% to 8.6%. The report also called for nations to establish roadmaps for circularity.
In a circular economy, suppliers and providers of different types (hardware, consumables, and service providers) collaborate to optimise the lifetime of the assets they provide, either as a service or in different models that emphasise use over consumption. This collaboration spans from pre-use to post-use, and can be represented in terms of a value hill for any product; for example, a washing machine, or a set of headphones.
However, the businesses trying to make headway are often faced with existing reporting and valuation rules (based on a linear economy) and the economic principles that underpin them, that are not fit for purpose.
Throughout 2020, the coalition will bring together financial, accounting, legal, and other experts to discuss and work out the case of three specific, existing circular business models with a valuation or reporting issue.
These cases are chosen based on how applicable the findings could be to other cases elsewhere. These are made freely available in the form of whitepapers and ready-to-use resources.
“The Circular Accounting Coalition is based on a proven model of Circle Economy and partners. In the past, we’ve collaborated with a team of finance and accounting experts to finetune the business cases and with legal experts to create contract templates for intra- and entrepreneurs to help them kick-start their circular business models. They address the more practical aspects of a circular economy– what happens after the executive stamp of approval.” says Aglaia Fischer, project manager at Circle Economy.
'Circularity, the energy transition, sustainable entrepreneurship or sustainability is about economic lifetimes, determining the cost price, valuation problems, depreciation periods, residual values and business models. That is 100% our profession'. says Fou-Khan Tsang, chartered accountant and driving force of the NBA Planet Finance
The coalition is now delving into the case of three Dutch facade builders – Alkondor, Blitta en De Groot & Visser – that have entered into a partnership to offer Facades-as-a-Service: a pilot for a customisable, dismantlable facade that provides a building with ventilation, sunlight regulation and energy generation, all controllable by remote control. The three facade builders work together with area developer AM to realize the pilot project; Facade-as-a-Service in the Bajes Kwartier area development in Amsterdam.
The coalition will look at the opportunities and risks this entails for the three facade builders, what joint venture structure works best and how contracts can be formulated.
If you are interested in participating in the Coalition Circular Accounting, or would like to know more, please contact us through our Finance Programme page.
If you would like to stay up to date on the CoalitionCircular Accounting, please sign up to our newsletter below.
For press enquiries, please contact us through our press contact form.
Circle Economy has successfully launched the Circular Jobs Initiative with a kick-off event in Amsterdam in March 2020, an online event during Circular City Week New York and an online event in partnership with the European Policy Centre on 16th June 2020.
During this final event, Fostering Decent Work in the Circular Economy, we were joined by 175 guests from across sectors and an esteemed panel of speakers, including Benjamin Denis (IndustriAll), Marek Harsdorff (International Labour Organisation), Ryan Gellert (Patagonia), William Neale (European Commission), with moderation by Claire Dhéret (European Policy Centre). Together, we explored the interlinkages between the transition to a more circular economy and quality jobs, drawing on our recent report on Jobs & Skills in the Circular Economy: State of Play and future Pathways.
Have you missed the event? Listen back to it here.
The launch of the Circular Jobs Initiative is only the beginning. Would you like to stay in the loop on the Circular Jobs Initiative and be informed about upcoming events? Register for our newsletter.
We are excited to announce Circle Textiles Talks, a series of webinars to provide you with insights and opportunities to connect with our ecosystem of circular innovators and experts.
First up: Do labels actually tell us what is in our clothes? on June 17th, 15:00 - 16:30 (CEST)
We invite you to critically reflect on a key issue for circular textiles, the composition of garments and the information that is provided on labels. Join our fantastic line-up of speakers, including: Hilde van Duijn and Jade Wilting from our own Circle Textiles Programme, Arende van der Pol from the Dutch Ministry of Infrastructure & Waterways, Ashley Gill and Trini Gantner from Textile Exchange and Jan Merckx from GS1 Nederland to discuss the role labels play in achieving a zero waste textiles industry.
Sign up for future updates and the latest in our series below.
Can circular business models like resale and rental deliver the radical change the apparel industry needs?
In this episode of the 'Big Closets Small Planet' podcast, host Michael Schragger invites our Circle Textiles Programme Lead Gwen Cunningham, Jeff Denby (The Renewal Workshop) and Sam Gilick (WRAP) to cast a critical eye on circular apparel business models.
Are you interested in the challenges and opportunities facing circular fashion? Then this episode is for you: https://lnkd.in/d6-rmji
The Hague, the Netherlands, June 3rd 2020: All countries must measure and share data on the circularity of their economies if the world is to prevent global climate disaster, warns Circle Economy as it publishes its latest report, The Circularity Gap Report, the Netherlands.
Earlier this year, Circle Economy’s study The Circularity Gap Report 2020, found that the global economy is only 8.6% circular. This means that over 90% of the resources that enter the economy—100 billion tonnes per year—are wasted. The report made clear the vital importance of countries as key change agents—they have the power to correct the negative trend.
Today’s new report takes this further by looking in detail at the Dutch economy—already leaders in the circular transition—in a way that can provide a blueprint for how any country can assess and make progress towards circularity. Global circularity can only increase if more countries conduct similar studies, say the report authors. This can foster global collaboration to collect and share data needed to measure and track circular performance, and provide the necessary infrastructure and alliances to collectively implement a circular future.
The goal of a circular economy is to establish an ecologically safe and socially just operating space for humanity. It reinforces the climate agenda because it ensures all materials stay cycled in the economy and does not allow for the use of fossil fuels. And 2020 is a key year for progress. The covid-19 pandemic has swept the world and further exposed the limits to linearity; an economy that is fragile and not resilient to shocks and crises. In building back the economy, circularity must be firmly on national and global agendas.
We can achieve a great deal for our planet and society with an overhaul of our economic systems. Whilst global circularity is low and going in reverse, countries have the power to correct the negative trend. National governments, NGOs and academics must grasp the opportunity to evaluate how circular their local contexts are, and then share this knowledge. We risk global disaster if resource consumption continues to spiral unchecked. The time for action is now.
– Marc de Wit, lead author of the report and director of global alliances at Circle Economy.
When it comes to a circular economy, we are all developing countries. No country, as of yet, satisfies the basic needs of its citizens within the ecological boundaries of the planet, warns Circle Economy.
The report shows how countries can power the transition to circularity. They have the mandate to develop national legislation which creates an enabling environment. Alongside this, as lead investors in infrastructure, government buildings and assets, their procurement strategy can kick-start circularity at scale. They are also the leading actors in supranational and multilateral coordination, via alliances such as the United Nations, the African Union and the European Union.
But in principle, all countries are unique when it comes to their ecological footprint and ability to provide for their people. The authors say that tailored blueprints for action based on the analysis of national material footprints will deliver the best results. This will enable countries to translate global climate mitigation goals into national pathways for action. A tailored Circularity Metric allows for measurement of progress and goal-setting.
The Dutch government currently has one of the most ambitious goals for circularity—aiming for a fully circular economy by 2050. Its progress can help inspire others and provide ideas for action.
Today’s report finds that the Dutch economy is currently 24.5% circular. Whilst this number may appear to be better than many other countries around the world, major overhauls to the framework of the national economy will be necessary to achieve the government’s ambitions. Crucially, the report identifies four key recommendations that would result in reducing the materials consumption of the Netherlands by over 128 million tonnes, and help the economy to go from 24.5% to 70% circular. The recommendations include:
Circle Economy calls on governments, businesses, NGOs and academics around the world to conduct their own Circularity Gap Reports to facilitate the deep, but urgently needed, transformation. In a major move forward for its sustainability agenda, Norway is collaborating with Circle Economy to launch The Circularity Gap Report Norway later in 2020.
The figure of over 90% of materials being ‘wasted’: This includes resources that are never reused by the economy (fossil fuel emissions and incinerated resources), lost (rubber and plastic that wears off car tyres with use), and embedded in the built environment.
Circle Economy assesses the volume of waste that is recycled by using the most recent national figures on volumes of waste generated, collected and treated, or extrapolating them from demographic and economic data when information is not available. It uses reported treatment shares to quantify the volume that is recovered, recycled, sent to landfill and incineration.
The report was made possible due to funding from the Goldschmeding Foundation for People, Work and Economy.
The report has garnered the support of multiple high profile endorsers including:
“What gets measured, gets managed. And what gets managed, gets done. This illustrates the importance of this study. Although it is practically impossible to be 100% complete and accurate, this study gives a clear signal that our efforts to create a new, circular economy needs to step up because we are still missing out on a lot of business opportunities with a societal benefit.” Maria van der Heijden, director at CSR the Netherlands.
“The transition to a circular economy is much needed: from a sustainable and socio-economic perspective. This report provides valuable insights and inspiration to spark the necessary discussion of what a circular future for the Netherlands could look like and the skills needed to make it a reality.” Mariette Hamer, chairwoman at the Social and Economic Council.
“The Dutch government’s ambitious target to be fully circular by 2050 means that policymakers and businesses must join forces; we have to do this together. The baseline assessment and future scenarios sketched in this report provide a good starting point to drive both the discussion and collaboration needed to enable a circular Netherlands.” Dimitri de Vreeze, co-ceo at DSM.
“The insights in the Circularity Gap Report demonstrates why it is important to strengthen our circular economy. Together with the larger cities in the world, Amsterdam should be a leading example and a driving force in this transition. To achieve our sustainability goals we must look further than city limits and country borders.” Marieke van Doorninck, deputy mayor at City of Amsterdam.
“This report introduces a much-needed national yardstick for the transition towards 50% circularity in 2030. It also highlights the urgent need to start thinking differently about ‘work’ in the circular economy. The fact-based scenarios provide an interesting outlook on circular jobs and skills, and highlight the need for new training and education programs. Goldschmeding Foundation is proud to be the funding partner of Circle Economy for this first edition of the Dutch Circularity Gap Report.” Michiel de Wilde, member executive board at Goldschmeding Foundation for People, Work and Economy.
For more information, please visit: www.circularity-gap.world/methodology
Further information and interview requests:
Laxmi Haigh, press@circle-economy.com
Interviews available with:
Marc de Wit, Director of Strategic Alliances, Circle Economy
In January 2018, the first Circularity Gap Report was published during the World Annual Forum in Davos. This first report established that our world is only 9.1% circular, leaving a massive circularity gap. It also provided a framework and fact-base to measure and monitor progress in bridging the global circularity gap. In January 2020 the third edition of the Circularity Gap Report was launched, reiterating that our global economy is stuck in reverse and failing people and the planet.
Today, our efforts to measure the circular economy have grown into the Circularity Gap Reporting Initiative. The Initiative delivers an annual global circularity metric that measures the state of the world economy and identifies key levers to transition to global circularity. It also provides insights into the circularity gap of individual countries and sectors. In 2019, we launched the first investigation into a national economy with the Circularity Gap Report for Austria. To improve the analysis and recommendations of all reports, the Initiative will form a Global Data Alliance focused on using data as a force for good.
The Initiative will continue to bring together global, cross-sector stakeholders from academia, businesses, NGOs and governments to input, evaluate and endorse the authoritative annual report.
www.circularity-gap.world
We work to accelerate the transition to a circular economy. As an impact organisation, we work to identify opportunities to turn circular economy principles into practical reality. With nature as our mentor, we combine practical insights with scalable responses to humanity’s greatest challenges. Our vision is economic, social and environmental prosperity without compromising the future of our planet. Our mission is to connect and empower a global community in business, cities and governments to create the conditions for systemic transformation. More than 50 businesses are now part of our membership community (from large multinationals to active SMEs and innovative start-ups) with whom we co-create practical and scalable solutions, making the circular economy happen. In addition, we work with cities, governments, CSOs, NGO’s, advisory boards and intergovernmental bodies.
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