Shifting your business model from linear to circular

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What will be the first step you take when you are open to shifting your business model from the linear to circular economy? One of the major aspects is diving into your business models. There are a lot of financial factors that should be taken into account; not only concerning your own company, but also regarding the entire production chain you are in. Let me show you how banks, next to innovative organisations and change-makers, play an important role in the transition towards the circular economy.

Recently an interesting article was published in ‘Het Financieele Dagblad’ ("Niets meer weggooien", August 2, 2014) about the progress and current obstacles in the movement towards the circular economy. In this blog Circle Economy’s Noor Buttinger reflects on the article.

There are many examples of front running companies changing their business models to a circular oriented model. Philips for example makes it possible to lease light instead of buying the physical lamp itself. The lamp producer remains the owner of the product and materials, and sells light as a service. Philips will be more independent of the unstable resource chain and it changes the product design so the components are reusable. The investment costs for the consumers are low, while they get customized light. Loops get more circular by changing the setup of the models. There are also companies that create a new chain together. Gro-Holland grows mushrooms on the coffee grounds of Starbucks that again takes mushrooms to use as snack products in return.

The article in the Financieele Dagblad paints a good picture of the importance to involve banks and institutional investors in the transition at this moment. ABN AMRO is collaborating with Circle Economy now to map the risks and opportunities of the current economic revolution. Also, she supports the organisations and people that contribute to this turnaround and wants to make sure they have al the knowledge about the risks involved. It becomes clear that banks and financial institutions play a vital role in enabling business models such as leasing or sharing.

Firstly, a production model that becomes a lease model needs different types of experts, within the company as well as in the banks. Secondly, the company remains the owner of the physical product. This means more working capital is needed, larger investments are made in the beginning and the profit will be earned over a longer period of time. Moreover it is not certain what will happen over time with the resources and materials that are now owned by the companies, which is a new risk for them. Also, there are more dependencies in circular models, which means financial risks are harder to predict.

Since the circular movement is still in its infancy, all those things have to be further explored yet. It becomes clear that both bottom-up as well as top-down approaches are necessary to make the circular movement a success. Companies need to try out their new business models, while large investment institutions need to put their money and faith in them. A good example of connecting both approaches is the Rabobank Challenge. As circular investment the bank makes its network, knowledge and resources available for several member companies in order to create new business opportunities and to develop new cycles. You could think of Heinz’ tomato skins that are used now to create Ford’s car dashboards for example.

Many companies and banks see the need for change, not only to take better care of our planet and its inhabitants. Also financially speaking it is wise to explore new business models, since the potential returns will be huge. McKinsey calculated that the European industry until 2025 could save 630 million dollars per year by switching to circular models. At the same time the transition will provide more diligence in the product development, renovation, and remanufacturing. Moreover circular businesses have the chance to be independent of the fluctuating market of resources, which gives them a lot of freedom. Others see the advantage of making money out of other people’s waste.

Pension investor firm PGGM is collaborating with Circle Economy and Metabolic on creating a program in which the absolute boundaries of circularity will be defined. In order to be able to compare different companies’ data to the right values instead of other companies, PGGM wants to internationally standardise those boundaries. This is one of the many steps that are being made that bring us closer to the circular economy.

I would like to challenge you to take a look around in the production or supply chain you are in. There are always possibilities for improvement, while at the same time you are able to increase your earnings. Once you have noticed the potentials for your own company, you can start contributing to the circular economy.

Picture: Photo Pin

August 20, 2014

Shifting your business model from linear to circular

What will be the first step you take when you are open to shifting your company from the linear to the circular economy?

What will be the first step you take when you are open to shifting your business model from the linear to circular economy? One of the major aspects is diving into your business models. There are a lot of financial factors that should be taken into account; not only concerning your own company, but also regarding the entire production chain you are in. Let me show you how banks, next to innovative organisations and change-makers, play an important role in the transition towards the circular economy.

Recently an interesting article was published in ‘Het Financieele Dagblad’ ("Niets meer weggooien", August 2, 2014) about the progress and current obstacles in the movement towards the circular economy. In this blog Circle Economy’s Noor Buttinger reflects on the article.

There are many examples of front running companies changing their business models to a circular oriented model. Philips for example makes it possible to lease light instead of buying the physical lamp itself. The lamp producer remains the owner of the product and materials, and sells light as a service. Philips will be more independent of the unstable resource chain and it changes the product design so the components are reusable. The investment costs for the consumers are low, while they get customized light. Loops get more circular by changing the setup of the models. There are also companies that create a new chain together. Gro-Holland grows mushrooms on the coffee grounds of Starbucks that again takes mushrooms to use as snack products in return.

The article in the Financieele Dagblad paints a good picture of the importance to involve banks and institutional investors in the transition at this moment. ABN AMRO is collaborating with Circle Economy now to map the risks and opportunities of the current economic revolution. Also, she supports the organisations and people that contribute to this turnaround and wants to make sure they have al the knowledge about the risks involved. It becomes clear that banks and financial institutions play a vital role in enabling business models such as leasing or sharing.

Firstly, a production model that becomes a lease model needs different types of experts, within the company as well as in the banks. Secondly, the company remains the owner of the physical product. This means more working capital is needed, larger investments are made in the beginning and the profit will be earned over a longer period of time. Moreover it is not certain what will happen over time with the resources and materials that are now owned by the companies, which is a new risk for them. Also, there are more dependencies in circular models, which means financial risks are harder to predict.

Since the circular movement is still in its infancy, all those things have to be further explored yet. It becomes clear that both bottom-up as well as top-down approaches are necessary to make the circular movement a success. Companies need to try out their new business models, while large investment institutions need to put their money and faith in them. A good example of connecting both approaches is the Rabobank Challenge. As circular investment the bank makes its network, knowledge and resources available for several member companies in order to create new business opportunities and to develop new cycles. You could think of Heinz’ tomato skins that are used now to create Ford’s car dashboards for example.

Many companies and banks see the need for change, not only to take better care of our planet and its inhabitants. Also financially speaking it is wise to explore new business models, since the potential returns will be huge. McKinsey calculated that the European industry until 2025 could save 630 million dollars per year by switching to circular models. At the same time the transition will provide more diligence in the product development, renovation, and remanufacturing. Moreover circular businesses have the chance to be independent of the fluctuating market of resources, which gives them a lot of freedom. Others see the advantage of making money out of other people’s waste.

Pension investor firm PGGM is collaborating with Circle Economy and Metabolic on creating a program in which the absolute boundaries of circularity will be defined. In order to be able to compare different companies’ data to the right values instead of other companies, PGGM wants to internationally standardise those boundaries. This is one of the many steps that are being made that bring us closer to the circular economy.

I would like to challenge you to take a look around in the production or supply chain you are in. There are always possibilities for improvement, while at the same time you are able to increase your earnings. Once you have noticed the potentials for your own company, you can start contributing to the circular economy.

Picture: Photo Pin

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December 5, 2019

Shifting your business model from linear to circular

Shifting your business model from linear to circular

What will be the first step you take when you are open to shifting your business model from the linear to circular economy? One of the major aspects is diving into your business models. There are a lot of financial factors that should be taken into account; not only concerning your own company, but also regarding the entire production chain you are in. Let me show you how banks, next to innovative organisations and change-makers, play an important role in the transition towards the circular economy.

Recently an interesting article was published in ‘Het Financieele Dagblad’ ("Niets meer weggooien", August 2, 2014) about the progress and current obstacles in the movement towards the circular economy. In this blog Circle Economy’s Noor Buttinger reflects on the article.

There are many examples of front running companies changing their business models to a circular oriented model. Philips for example makes it possible to lease light instead of buying the physical lamp itself. The lamp producer remains the owner of the product and materials, and sells light as a service. Philips will be more independent of the unstable resource chain and it changes the product design so the components are reusable. The investment costs for the consumers are low, while they get customized light. Loops get more circular by changing the setup of the models. There are also companies that create a new chain together. Gro-Holland grows mushrooms on the coffee grounds of Starbucks that again takes mushrooms to use as snack products in return.

The article in the Financieele Dagblad paints a good picture of the importance to involve banks and institutional investors in the transition at this moment. ABN AMRO is collaborating with Circle Economy now to map the risks and opportunities of the current economic revolution. Also, she supports the organisations and people that contribute to this turnaround and wants to make sure they have al the knowledge about the risks involved. It becomes clear that banks and financial institutions play a vital role in enabling business models such as leasing or sharing.

Firstly, a production model that becomes a lease model needs different types of experts, within the company as well as in the banks. Secondly, the company remains the owner of the physical product. This means more working capital is needed, larger investments are made in the beginning and the profit will be earned over a longer period of time. Moreover it is not certain what will happen over time with the resources and materials that are now owned by the companies, which is a new risk for them. Also, there are more dependencies in circular models, which means financial risks are harder to predict.

Since the circular movement is still in its infancy, all those things have to be further explored yet. It becomes clear that both bottom-up as well as top-down approaches are necessary to make the circular movement a success. Companies need to try out their new business models, while large investment institutions need to put their money and faith in them. A good example of connecting both approaches is the Rabobank Challenge. As circular investment the bank makes its network, knowledge and resources available for several member companies in order to create new business opportunities and to develop new cycles. You could think of Heinz’ tomato skins that are used now to create Ford’s car dashboards for example.

Many companies and banks see the need for change, not only to take better care of our planet and its inhabitants. Also financially speaking it is wise to explore new business models, since the potential returns will be huge. McKinsey calculated that the European industry until 2025 could save 630 million dollars per year by switching to circular models. At the same time the transition will provide more diligence in the product development, renovation, and remanufacturing. Moreover circular businesses have the chance to be independent of the fluctuating market of resources, which gives them a lot of freedom. Others see the advantage of making money out of other people’s waste.

Pension investor firm PGGM is collaborating with Circle Economy and Metabolic on creating a program in which the absolute boundaries of circularity will be defined. In order to be able to compare different companies’ data to the right values instead of other companies, PGGM wants to internationally standardise those boundaries. This is one of the many steps that are being made that bring us closer to the circular economy.

I would like to challenge you to take a look around in the production or supply chain you are in. There are always possibilities for improvement, while at the same time you are able to increase your earnings. Once you have noticed the potentials for your own company, you can start contributing to the circular economy.

Picture: Photo Pin

Shifting your business model from linear to circular

Downloads

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What will be the first step you take when you are open to shifting your business model from the linear to circular economy? One of the major aspects is diving into your business models. There are a lot of financial factors that should be taken into account; not only concerning your own company, but also regarding the entire production chain you are in. Let me show you how banks, next to innovative organisations and change-makers, play an important role in the transition towards the circular economy.

Recently an interesting article was published in ‘Het Financieele Dagblad’ ("Niets meer weggooien", August 2, 2014) about the progress and current obstacles in the movement towards the circular economy. In this blog Circle Economy’s Noor Buttinger reflects on the article.

There are many examples of front running companies changing their business models to a circular oriented model. Philips for example makes it possible to lease light instead of buying the physical lamp itself. The lamp producer remains the owner of the product and materials, and sells light as a service. Philips will be more independent of the unstable resource chain and it changes the product design so the components are reusable. The investment costs for the consumers are low, while they get customized light. Loops get more circular by changing the setup of the models. There are also companies that create a new chain together. Gro-Holland grows mushrooms on the coffee grounds of Starbucks that again takes mushrooms to use as snack products in return.

The article in the Financieele Dagblad paints a good picture of the importance to involve banks and institutional investors in the transition at this moment. ABN AMRO is collaborating with Circle Economy now to map the risks and opportunities of the current economic revolution. Also, she supports the organisations and people that contribute to this turnaround and wants to make sure they have al the knowledge about the risks involved. It becomes clear that banks and financial institutions play a vital role in enabling business models such as leasing or sharing.

Firstly, a production model that becomes a lease model needs different types of experts, within the company as well as in the banks. Secondly, the company remains the owner of the physical product. This means more working capital is needed, larger investments are made in the beginning and the profit will be earned over a longer period of time. Moreover it is not certain what will happen over time with the resources and materials that are now owned by the companies, which is a new risk for them. Also, there are more dependencies in circular models, which means financial risks are harder to predict.

Since the circular movement is still in its infancy, all those things have to be further explored yet. It becomes clear that both bottom-up as well as top-down approaches are necessary to make the circular movement a success. Companies need to try out their new business models, while large investment institutions need to put their money and faith in them. A good example of connecting both approaches is the Rabobank Challenge. As circular investment the bank makes its network, knowledge and resources available for several member companies in order to create new business opportunities and to develop new cycles. You could think of Heinz’ tomato skins that are used now to create Ford’s car dashboards for example.

Many companies and banks see the need for change, not only to take better care of our planet and its inhabitants. Also financially speaking it is wise to explore new business models, since the potential returns will be huge. McKinsey calculated that the European industry until 2025 could save 630 million dollars per year by switching to circular models. At the same time the transition will provide more diligence in the product development, renovation, and remanufacturing. Moreover circular businesses have the chance to be independent of the fluctuating market of resources, which gives them a lot of freedom. Others see the advantage of making money out of other people’s waste.

Pension investor firm PGGM is collaborating with Circle Economy and Metabolic on creating a program in which the absolute boundaries of circularity will be defined. In order to be able to compare different companies’ data to the right values instead of other companies, PGGM wants to internationally standardise those boundaries. This is one of the many steps that are being made that bring us closer to the circular economy.

I would like to challenge you to take a look around in the production or supply chain you are in. There are always possibilities for improvement, while at the same time you are able to increase your earnings. Once you have noticed the potentials for your own company, you can start contributing to the circular economy.

Picture: Photo Pin

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Shifting your business model from linear to circular

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What will be the first step you take when you are open to shifting your business model from the linear to circular economy? One of the major aspects is diving into your business models. There are a lot of financial factors that should be taken into account; not only concerning your own company, but also regarding the entire production chain you are in. Let me show you how banks, next to innovative organisations and change-makers, play an important role in the transition towards the circular economy.

Recently an interesting article was published in ‘Het Financieele Dagblad’ ("Niets meer weggooien", August 2, 2014) about the progress and current obstacles in the movement towards the circular economy. In this blog Circle Economy’s Noor Buttinger reflects on the article.

There are many examples of front running companies changing their business models to a circular oriented model. Philips for example makes it possible to lease light instead of buying the physical lamp itself. The lamp producer remains the owner of the product and materials, and sells light as a service. Philips will be more independent of the unstable resource chain and it changes the product design so the components are reusable. The investment costs for the consumers are low, while they get customized light. Loops get more circular by changing the setup of the models. There are also companies that create a new chain together. Gro-Holland grows mushrooms on the coffee grounds of Starbucks that again takes mushrooms to use as snack products in return.

The article in the Financieele Dagblad paints a good picture of the importance to involve banks and institutional investors in the transition at this moment. ABN AMRO is collaborating with Circle Economy now to map the risks and opportunities of the current economic revolution. Also, she supports the organisations and people that contribute to this turnaround and wants to make sure they have al the knowledge about the risks involved. It becomes clear that banks and financial institutions play a vital role in enabling business models such as leasing or sharing.

Firstly, a production model that becomes a lease model needs different types of experts, within the company as well as in the banks. Secondly, the company remains the owner of the physical product. This means more working capital is needed, larger investments are made in the beginning and the profit will be earned over a longer period of time. Moreover it is not certain what will happen over time with the resources and materials that are now owned by the companies, which is a new risk for them. Also, there are more dependencies in circular models, which means financial risks are harder to predict.

Since the circular movement is still in its infancy, all those things have to be further explored yet. It becomes clear that both bottom-up as well as top-down approaches are necessary to make the circular movement a success. Companies need to try out their new business models, while large investment institutions need to put their money and faith in them. A good example of connecting both approaches is the Rabobank Challenge. As circular investment the bank makes its network, knowledge and resources available for several member companies in order to create new business opportunities and to develop new cycles. You could think of Heinz’ tomato skins that are used now to create Ford’s car dashboards for example.

Many companies and banks see the need for change, not only to take better care of our planet and its inhabitants. Also financially speaking it is wise to explore new business models, since the potential returns will be huge. McKinsey calculated that the European industry until 2025 could save 630 million dollars per year by switching to circular models. At the same time the transition will provide more diligence in the product development, renovation, and remanufacturing. Moreover circular businesses have the chance to be independent of the fluctuating market of resources, which gives them a lot of freedom. Others see the advantage of making money out of other people’s waste.

Pension investor firm PGGM is collaborating with Circle Economy and Metabolic on creating a program in which the absolute boundaries of circularity will be defined. In order to be able to compare different companies’ data to the right values instead of other companies, PGGM wants to internationally standardise those boundaries. This is one of the many steps that are being made that bring us closer to the circular economy.

I would like to challenge you to take a look around in the production or supply chain you are in. There are always possibilities for improvement, while at the same time you are able to increase your earnings. Once you have noticed the potentials for your own company, you can start contributing to the circular economy.

Picture: Photo Pin

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