DESSO: Cradle to Cradle

Stef Kranendijk, DESSO, Cradle to Cradle


Original post:
http://www.emg-csr.com/blog/implementing-cradle-to-cradle/

For related resources, Design for Disassembly, Eco-Design, Environment and AD Technology guidelines related to this can be downloaded for free at:

http://www.activedisassembly.com/strategy

Sustainable business framework for growth

“EMG has shown how it’s possible to underpin the idea of sustainability with real substance. Its team has created a true example of environmental excellence and hence our commitment to it.” Stef Kranendijk, CEO DESSO, a Cradle to Cradle company

What is the circular economy / sustainable business framework?

In short, the circular economy (or closed loop) is a generic term for an industrial economy where materials flow in continuous cycles: either a biological cycle (via composting) or a technical cycle, where materials retain their high quality for the manufacturing of new (upgraded) products over and over again. Essentially eliminating the concept of waste, it’s the opposite of the linear process of ‘take, make, dispose’. As in life, the aim is to generate energy only from renewable sources.

Why does this make business sense?

As finite resources become increasingly scarce, the price of new materials will have more and more effect on the business bottom line. Businesses that are able to innovate their processes to take back what they sell and keep their materials in closed loops are able to turn material scarcity into a significant competitive advantage. To put a figure to it, 2014 research presented at the World Economic Forum estimated that the circular economy could generate USD 1 trillion a year for the global economy by 2025, and create 100,000 new jobs.

What is Cradle to Cradle?

Cradle to Cradle is the circular economy model developed by American architect Bill McDonough and German scientist Michael Braungart (MBDC). The core belief is that product manufacturing can be a positive force for society, the economy, and the planet, and it encompasses standards far beyond ‘just’ the circular economy model with regard to water usage, social fairness, the protection of ecosystems and the maximum phase-out of toxic materials.

Case in point: DESSO

In 2007, Stef Kranendijk was appointed new CEO of Dutch carpet manufacturer DESSO following the management buyout from Armstrong World Industries. Inspired by the philosophy and business potential of Cradle to Cradle he set out on a mission to change the way the business had run for almost 80 years, indeed raising the standards of the entire industry. EMG worked together with DESSO on their successful journey right from the start.

Services included:

• Stakeholder and customer engagement assessment and analysis
• Development and full integration of CSR into the corporate communications strategy
• Corporate reputation management
• Employee engagement, training and corporate events
• Cradle to Cradle communications and product promotion
• CSR reports and Annual reports
• GRI reporting

The work of EMG was rewarded by the following international recognition:

• Leadership Award – Leadership in Ethical and Environmental Responsibility, Communitas Awards
• Best of Category Award – Green Marketing, Summit International Marketing Effectiveness Awards
• Platinum Award – Category Environmental, MarCom Awards

The success of DESSO’s transition has been phenomenal. Today, DESSO is an exemplar organisation for successful C2C implementation, promoted at the World Economic Forum in Davos and a business case at London Business School. Media attention has been spectacular and DESSO is frequently recognized as one of most sustainable and innovative companies in the country. Most importantly, market share increased everywhere and profitability (EBIT) went up from less than 1% in 2006 to 3% in 2007, 4.5% in 2008, almost 6% in 2009, and 9% in 2010 – straight through the crisis. DESSO has now taken things to another new level, following their recent acquisition of the larger Enia Carpet.

Cradle to Cradle Case study, Circular economy case study Desso

For related resources, Design for Disassembly, Eco-Design, Environment and AD Technology guidelines related to this can be downloaded for free at:

http://www.activedisassembly.com/strategy/ncyClicke

A guide to implementing the circular economy in your business

This is about the initial steps of implementing the circular economy within your existing business.

A guide to implementing the circular economy in your business

http://www.theguardian.com/sustainable-business/how-to-implement-circular-economy-business

Looking to embrace the circular economy model but not sure where to start? Daan Elffers shares the initial steps that companies can take in the first year

Daan Elffers, Gaurdian Professional, Wed., 12 Mar, 2014

More and more people are realising the phenomenal potential of thecircular economy model. More than being essential to securing materials for future generations, it's also a serious business opportunity. Being a first mover in this process will certainly bring added benefits. But how to get started in order to make it a successful transition?

Phase 1. Set goals and create an action plan

Shifting towards a circular economy requires planning. See it as a journey. Together with your key team members, decide what you want to achieve and draft a roadmap of how you're going to get there.

Ask questions, such as: "What does our company stand for and how do we as a company live it?" Then develop a working definition of a circular economy that is aligned with your company's values and ethics.

Focus on how the company can do more good rather than just less bad. Consider renewable energy, cleaning the air, water and soil, protecting the world's species, increasing biodiversity, enabling people to lead better lives. Determine the internal and external drivers motivating your company to undertake a more systematic approach to circular economy models and principles. Be realistic, but be bold.

Phase 2. Educate and activate your organisation

Ensure that everyone in the company understands its new goals and ambitions. Depending on the size and structure of the organisation, arrange training sessions to ensure everyone knows what it means and how they can participate. When employees are inspired, they will be able to contribute better. When everyone in the organisation understands the principles of the circular economy and is aware of how these need to be integral to your core activities and operations they will be able to contribute multi-fold, not just from a technical point of view. At first, focus on the big picture, to ensure everyone is looking at the same picture.

Phase 3. Innovate and optimise

Design creates the first stirrings of desire. Core to the circular economy model is the power of biological and technical cycles. Evaluate processes for initial improvement. Assess which materials can be recycled, which materials can be taken back as nutrients and which materials should be phased out. Look at ways in which products could be designed so that they can be easily disassembled, taken back and reused, either by your own factory to serve as raw materials or by other business partners.

Keep in mind it's not just about recycling, but about upcycling, where materials can be used for a higher quality product over and over again. Explore with your R&D and other constituencies how (up)cycling can become integral to your own activities and how this will later benefit your clients.

Phase 4. Engage

Start engaging your business partners, suppliers and clients with regard to your new ambitions and actions. Have an honest but positive approach which celebrates possibilities rather than obstacles. Also, see what your company can do to help them deliver on their own sustainability promise.

Be transparent about your knowledge and ambition. Quality is central to a circular economy. When people truly understand this, the price will become secondary. If you co-operate with your clients and suppliers in an open manner, they will understand that you will only move ahead when you have sufficient funds to invest in R&D and that this depends on current income.

Set up processes that enable you to continuously collect data, listen to users, and evaluate variations in performance. Then make plans about how you can make the necessary improvements to your strategy and your products as you progress.

The community is also a vital part of circular economy success. Many companies already working with circular economy-inspired philosophies are using each other's products, sharing their experiences and developing partnerships. Recognise the levers available to you and how your company will give back.

Implementing the circular economy framework and philosophy into your organisation can take time. However the result will be a future of security and opportunity that you can use to position yourself as a leader in your field. It's a new world of possibilities, fresh discoveries and the pushing away of previously accepted boundaries. This will bring significant benefits to all. So let people know when you take these important steps along your journey towards abundance and they will be happy to travel with you.

Dr Daan Elffers is the CEO of Dutch sustainability consultancy EMG. The Netherlands was among the first countries in the world to implement Cradle to Cradle and the circular economy on a significant scale.