In last month’s article www.nzmanufacturer.co.nz, we looked at circular economy (CE): what it is (and isn’t), how it works, and how ‘going circular’ will benefit your manufacturing business, the environment, and people.

This month we help you get started with circular economy, with ten tips to gain the benefits. (The word ‘economy’ appears for a reason!) Learn how to reduce your risks and costs, make your business more resilient, build your brand, and identify new income streams.

Tip 1: understand circular concepts

CE is much more than recycling. Here it is in a nutshell.

• CE is an economic system. It recognises that the ‘linear’ economic system we use to produce and consume goods and services – ‘take-make-dispose’ – cannot go on forever.
• CE is based on three principles. Firstly, it keeps products and materials in use. For example, if a product can be repaired, it retains the value created during manufacturing. Plus, there’s no need to extract new materials.

Secondly, circular economy designs out waste and pollution. It preserves finite resources and avoids attendant problems like volatile prices and ecological damage.

Thirdly, circular economy regenerates natural systems. It supports natural processes which result in healthy soil and flourishing biodiversity.

• There are many circular manufacturing processes. They include sharing, reusing, repairing, and remanufacturing products and building them ‘to last’. Some are more circular than others.

Tip 2: understand circular tools

• The Material Circularity Indicator (MCI). Do you want to know how circular your product, materials and business are? The Ellen MacArthur Foundation’s MCI compares different options for your product from the start to the end of its life. How well do these options reuse or recycle materials? How durable is your product? How easily can consumers repair it?

The MCI identifies ‘hotspots’ in your production process. These are the areas to focus on to make your product or business more circular. It rates circularity on a scale of 0 to 1. Single-use packaging, produced in a linear (‘take-make-dispose’) process, scores 0.1. A refillable milk bottle, produced in a fully circular process, rates a 1.

• Do you want to know how circular your business is and how well-equipped you are to continue to make it more circular? The Ellen MacArthur Foundation’s Circulytics calculates this. It includes quantitative and qualitative measures. An independent party confirms the results.
• Circular Transition Indicators (CTI). Do you want to turn your data into an action plan that will make your products and business more circular? To identify risks and opportunities? Confirm your priorities and set targets? The CTIs, developed by businesses and the World Business Council for Sustainable Development, help you do this.

 Tip 3: get your data in order

You’ll need good data from the start – but it doesn’t need to be perfect. Data will help you understand your starting point, map where to head, and measure your progress.

Tip 4: identify the risks your manufacturing business faces

What problem are you trying to solve? Are you struggling to secure raw materials? To access international markets as regulations tighten? To retain market share because consumers are concerned about the waste you create? Your circular economy strategy should address these risks.

Tip 5: identity the circular opportunities available to your business

Could you redesign your product to reuse materials? Build market share by becoming known as the manufacturer whose products last? Add services based on your product?

Talk with your customers. Can you design your product so they can use it again? Can you change your business model to a ‘pay for service’? (This has been common in photocopying for decades.)

Your suppliers will have ideas too. Are there opportunities to create circularity in your supply chain?

Tip 6: find the best way in for your manufacturing business

Revamping your packaging may be easier than redesigning your product – fewer suppliers, less financial outlay. Minimise or eliminate your packaging. Make what’s left reusable, compostable or recyclable. Use what you learn to make your product circular too. Consider running a pilot before you make big changes.

Tip 7: collaborate

CE economy is about systems and partnerships. Collaborate with suppliers, customers and, at a general level, your competitors too.

Tip 8: educate and listen

CE economy is still new in New Zealand. Get alongside your customers, suppliers, industry association, and team. Talk about your vision. Show them the benefits. Understand their concerns. Will your product last? Does it meet legal requirements?  How do encourage customers to look after it? Are there regulations that prevent your sector from being more circular?

Tip 9: break your circular project into stages

Don’t try to do everything at once. Approach CE in stages.

• Stage one (get started): understand the concepts and tools. Benchmark your existing circularity. Set realistic targets and metrics.
• Stage two (make progress): (re) design your product or service. Build circularity into your supply chain. Measure your impact and tell your story.
• Stage three (lead the way): benchmark your product against competitors’ products and continue to improve it. Consider Cradle to Cradle certification. It’s one of the world’s most advanced standards for products that are circular, safe and responsibly made.

Tip 10: bring this information together in a plan

Develop a CE strategy, business case and roadmap. (Circularity involves continuous improvement.) Then get started!

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