The big picture
- Circularity has become a new focus in the consumer goods industry due to regulation, changing customer needs, competition, and scarcity of materials.
- An appliance manufacturer with a strong track record in sustainability committed to becoming a “circularity leader.”
The challenge at hand
For centuries, value creation has followed a linear business model for companies and consumers. However, the negative impacts of a linear model for production—extracting limited resources, processing them into usable goods, and then disposing of them—have become increasingly clear over the last few decades. As the availability of raw materials declines, resources must be reused in new, productive applications.
To shift towards a more circular business model, a household appliance manufacturer worked with us to build an integrated strategy for circularity. Together, we developed a long-term perspective on circularity and a high-level list of circularity options.
Results achieved
Together with our client, we developed a holistic strategy for circularity and set up a six-month plan for company-wide transformation. The plan includes four key steps:
- Developed a strategic, long-term view of circularity and held an “inspiration workshop” to show how businesses are applying the “six ‘R’s”—rethink, refuse (to pay for waste- or CO2-generating items), reduce, reuse, recycle and repair—to lead the way in circularity.
- Identified the key dimensions of circularity and developed a circularity framework that includes measurement logic and strategic guidance for the company.
- Highlighted and prioritized ways in which the client can facilitate circularity and defined the client’s overall circularity goals.
- Supported lead business units in executing defined activities, developing circularity-related ideas, and carrying out pilot projects.
The engagement led to a comprehensive roll-out plan across the organization that includes educational workshops to ensure tangible long-term change. Our client has set ambitious circularity targets like increasing recycling rates, generating substantial revenue from circular business models, and reducing costs through design-to-circularity efforts. In partnership with other players along the value chain, our client is designing a fully circular product that will serve as a “lighthouse” for future initiatives.