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Circular Economy for Business

Circular economy maximizes resource efficiency and minimizes waste to benefit the environment, society, and businesses. Collaboration is essential for achieving circular economy, as individual efforts are not enough.

Circular ImageCircular Image

Ellen MacArthur Foundation's research shows that improving energy efficiency and using renewable energy can only solve 55% of global greenhouse gas emissions. The remaining 45% requires a complete transformation of product production and usage through a circular economy. To achieve a complete transformation of product production and usage, businesses must find entry points from the value chain.

Source: Completing the picture: How the circular economy tackles climate change (2019)

Pie Chart
About Scope 3 Emissions

Let natural resources flow through
various stages of the
value chain without end.

Natural resources give life to everything on our planet, including products made by the manufacturing industry. Specifically in the manufacturing industry, the practice of circular economy involves the continuous circulation of resources in three forms: materials, products, and waste. As carbon emissions become more costly, designing circular products can become a competitive advantage, while monetizing waste also bring in significant new revenue.

Circular ImageCircular Image

Natural resources give life to everything on our planet, including products made by the manufacturing industry. Specifically in the manufacturing industry, the practice of circular economy involves the continuous circulation of resources in three forms: materials, products, and waste. As carbon emissions become more costly, designing circular products can become a competitive advantage, while monetizing waste also bring in significant new revenue.

Building a collaborative ecosystem
for circular economy

Circular economy is a broad concept that involves multiple stakeholders, linking different roles and goals in the economy and society. To effectively work towards a circular economy, the first step is to determine your goals and action plans based on the analysis of stakeholders' levels of interest:

Pyramid

The value chain is where
a business can leverage its circular impact.

Enterprises face unique challenges and opportunities based on their position and advantages. All activities of the enterprise occur on the value chain from raw material procurement to after-sales service. Circular economy principles can be applied throughout the value chain. Optimizing and coordinating every stage across the value chain can reduce costs, improve efficiency, and enhance competitiveness.

Pyramid
Pyramid

Make circular economy a reality.

Let's take the example of a final product's value chain, which can be divided into three phases and seven stages:

Use less

During the build phase, the goal is to achieve the same output using fewer resources.

  • Lifecycle Thinking

    Consider the whole lifecycle in the design process from production to use phase to end-of-life, minimizing environmental impacts along the whole lifecycle and comparing alternatives against each other.

  • Modular Design

    Design for ease of disassembly and exchange of components, enabling enhanced reparability and upgradeability.

  • Smart Material Selection

    Under limited conditions, in addition to functionality, factors such as those of environmental, social, human health, and resource scarcity should be taken into consideration, to select the relatively sustainable materials. There are three possibilities: recycled material, recyclable material and renewable material.

  • Process Optimization

    In addition to improving product yield and production efficiency, process optimization includes improving resource efficiency and waste diversion rate, in order to use less resources to meet demands.

Use smarter

In the use phase, resources are used more efficiently by adjusting or changing the business model.

  • Product-as-a-Service

    Offer customers to use a product against a subscription fee or usage based charges instead of owning it.

  • Performance-as-a-Service

    Offer customers to buy a pre-defined service and quality level and commit to guaranteeing a specific result.

  • Sharing Platform

    Establish a platform to connect the product owners and renters, in order to increase usage rates.

  • Maintenance

    Extend an existing use-cycle by preserving a product’s functionality and preventing malfunctions/faults.

  • Repair

    Extend an existing use-cycle when malfunctions happen by restoration or replacement of faulty parts to return the product to its original functionality.

  • Upgrade

    Extend an existing use-cycle by adding value or expanding functions in respect to previous versions.

  • Refurbishment

    Extend to new use-cycles by returning a part or product which is discarded or not in use at the current owner to a satisfactory working condition. The working condition may be inferior to the original specification.

  • Remanufacturing

    Extend to new use-cycles by returning a product that is discarded or not in use, to at least OEM performance specification and quality.

  • Resale

    Extend to new use-cycle by reselling a product which is unwanted by the original user, but still in good condition and can fulfill its original function in a different use context (new customer/user).

Use better

During the loop phase, ensure that misplaced resources are directed to the correct location.

  • Component Reuse

    When the product is discarded, after inspection or treatment, use the reusable disassembled components in the product line again.

  • Material Recycling  (Closed-Loop)

    Extend the lifespan of materials by processing them, in order to obtain the same or comparable quality for a wide variety of new applications in own production.

  • Recycling / Upcycling  (Open-Loop)

    Recover waste products/components/materials to use in a non-original product production line.

Take a quick scan and receive a tailor-made
“Circular Potential Report” for your organization.

REnato lab

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Banqiao Dist., New Taipei City, Taiwan

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