towards a circular economy model for procurement

With the contribution of the LIFE financial instrument of the European Community www.rebus.eu.com

Towards a Circular Economy model for Procurement

Mervyn Jones, SGR Ltd UK


Procurement Systems

Suppliers

Products

Circular Business

Modelstake

use

dispose

make

CIRCULAR ECONOMY

DEMAND PULL


BENEFITS OF A CIRCULAR EU ECONOMY€324 billion www.rebus.eu

The Netherlands €7,3 billion 54,000 jobs

Sources: EU, Ellen McArthur Foundation, Club of Rome, TNO, WRAP

Sweden 3% trade

balance15,000 jobs

United Kingdom ~€30 billion

200,000 jobs

Denmark GDP 0.8–1.4%7,000-13,000 jobs

Finland GDP 0.33-0.66%

15,000 jobs

France GDP 0.33-0.66%

100,000 jobs

Spain GDP 0.33-0.66%

100,000 jobs

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=29Otfhyp8c-ayM&tbnid=s6Wq74QygcYdvM:&ved=0CAUQjRw&url=http://www.johanhendriks.nl/de-europese-unie.html&ei=sWPbU6a_OIe1O7XzgZgJ&bvm=bv.72185853,d.ZWU&psig=AFQjCNFpVoBevGgv0_0Wz61ZLxCqv_0qCg&ust=1406973139956410


Collections & sorting

De-risk & incentivise

investment

Business support

Financial mechanisms

Evidence base

Specifications & Standards

SUPPLY DEMAND

Resource Efficient Business Models

Informed choice purchase and disposal

Encouraging markets for 2ndary

materials

Technology

Quality

Waste prevention Procurement

Design for circularity

CIRCULAR MARKETS


WASTE HIERARCHY & PROCUREMENT HIERARCHY


HIERARCHY OF ACTIONS FOR PROCUREMENT

Using assets and resources more efficiently, e.g.:

Purchasing

Specifications, for example buildings - •sourcing, e.g. minimise additives, recycled content•lower in-use impacts, e.g. carbon impacts, asset management•Disposal options e.g. take-back


CIRCULAR PROCUREMENT OPPORTUNITIES


ENCOURAGING CIRCULAR PRODUCTS

• Best Price-Quality Ratio (BPQR): – Price and/or cost – plus Other Criteria, (including qualitative, environmental and/or social

aspects, linked to the subject matter of the public contract in question).


CIRCULAR BUSINESS MODELS

• Performance as a priority• Choice - Dutch IMSA has identified 19 different alternatives to linear

model• Grouped into 6 themes:

– short cycle– long cycle– cascades– pure cycles– dematerialisation e.g. PSS – on demand

• Restorative and regenerative models have major carbon & climate change benefits

CATERING & FOOD WASTECircular principles & benefits•Waste prevention - storage & preparation•Consumers – plate waste•Food reuse – human & animal•Nutritional diets•Nutrient recovery – composting•Carbon reduction & energy recovery

• Waste prevention, UK Public sector catering

• Rijkswaterstaat, Netherlands - food waste

• Anaerobic digestion• EU Innocat project – Ghent, Torino

ICT & ELECTRICALSCircular principles & benefits•Design for repair & modularity•Recycled content – laptop casings & parts•REBMs – leasing versus ownership•Lifetime optimisation•End of Life – collection & resource security•CO2 reduction

• Utrecht, Netherlands – IT take-back; secure reuse

• Schiphol Airport, Netherlands – lighting as a service

• BZK, Netherlands – CP of IT: e-recovery, IT-donations

• UK UniGreenScheme - Lab equipment re-sale and re-use

FURNITURE

• ProRail, Netherlands – furniture and carpeting

• Utrecht MC, Netherlands – REBM options• London, UK – office mobile asset

management• Cambridge NHT, UK – hospital beds• Perth DC, Scotland – desk reuse

Circular principles & benefits:•Resource efficient design - materials•Recycled content - materials•Furniture as a service – economic benefits•Lifetime optimisation - carbon•Reuse opportunities - jobs

CONSTRUCTIONCircular principles & benefits•Design for deconstruction & recyclability•Materials – passports; recycled content•REBMs – servicisation,•Demolition - closing material loops•CO2 reduction

•Refurb & maintenance •Cost savings

• 50 Lock Project - Rijkswaterstaat, Netherlands

• Netherlands – A6 DBFM, • Rapid circular contracting

framework, Utrecht• Amsterdam Concrete Forum• Brummen Town Hall,

Netherlands


REDUCING IMPACT OF PROCUREMENTImpact category Most significant service Impact of most

significant service as % of total impact

Key resource efficiency action in the most significant service

Materials consumed

Catering(supply of food)

50% Reduce avoidable food waste

Waste produced Furniture (workspace furniture)

50% Product reuse

Energy and CO2

in-useHeating, ventilation and air

conditioning(particularly heating)

70% Upgrading and refurbishment of equipment

Embodied CO2 emissions

ICT equipment 45% Extending lifespan of equipment

Water use Washrooms and kitchens 90% Reducing mains water use (e.g. flow regulators)

Cost ICT equipment 30% Extending equipment lifespans


CORE LEARNING• Internal collaboration – circular products need

circular clients• Market engagement – communicate vision and

timescales to de-risk R&D and innovation• MEAT – (BPQR & LCC) think of impacts in use and

at end of use as well as sourcing• Collaboration – partnership working• Significant process and financial barriers so

prioritise actions and efforts to develop quick wins

With the contribution of the LIFE financial instrument of the European Community

www.rebus.eu.com

THANK YOUMervyn Jones, SGR Ltd, UK

towards a circular economy model for procurement

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