Circular Economy From theory to practise What is circular economy? BIO by Deloitte expertise on circular economy Instead of discarding assets after only one product cycle, companies are developing ways to continually BIO by Deloitte has worked with all stakeholders along the product and waste lifecycle and our experience re-acquire and reintroduce these assets to market. cover all aspects of a circular economy.
Linear value chain Closed loop value chain Materials Ecodesign analyses Industrial symbiosis sourcing Manufacturing process reuse and industrial symbiosis
Manufacturing Manufacturing waste Manufacturing Market studies Regional strategies Logistics and auxiliary Raw materials products reuse Distribution Distribution Logistics Materials logistics logistics waste sourcing Functional Innovative
Remanufacturing economy analyses business models
Packaging Sales and retail waste Product Sales and Limited recycling recycling and retail materials Extended producer recovery Scoping studies Water responsibility Consumption/ Consumption and Consumption use waste use and use
Value chain analyses Waste Reuse and repair Product Product reuse Manufacturing waste
Perspectives and insights on circular economy Overview of circular economy business models A circular economy goes beyond the pursuit of waste prevention and waste reduction to inspire Deloitte has identified seven different types of circular economy business models, which can provide as a useful technological, organisational and social innovation across and within value chains. method for thinking, highlighting different logics and rationales.
Perspectives The seven types of circular economy business models • A circular economy is one that is restorative and regenerative by design – it is about optimisation of value circulation, not prevention of waste generation Deposit systems • It is a continuous positive development cycle that preserves and enhances natural capital, optimises A manufacturer or retailer (or resource yields, and minimises system risks by managing finite stocks and renewable flows 3 groups of) takes back their own products (or a common product) • According to a survey conducted by Sitra, a circular economy represents an opportunity for Finland and refunds the customer worth 1.5 to 2.5 billion euros Cradle to cradle Remanufacturing A manufacturer designs waste free A manufacturer remanufactures • Finland is in a good position to thrive in the face of global competition due to factors such as a high 1 products that can be integrated in 6 their own product and provides a education level, solid technological expertise and a strong reputation as a cleantech operator fully recyclable loops or guarantee for functionality / biodegradable processes performance Deloitte insights Repair 4 A manufacturer or retailer offers to • A recent BIO by Deloitte study for the European Commission identifies: repair their own products • Priority materials: agricultural products and waste, wood and paper, plastics, metals, and Take-back management, Rematerialisation, including phosphorus Including reverse logistics recycling and cascading use • Priority sectors: packaging, food, electronic and electrical equipment, transport, furniture, 2 A manufacturer or retailer takes 7 A manufacturer transforms or buildings, and construction back the product using reverse recycles a product into a new logistics streams material or product • Among key drivers are rising material costs, changing societal values, environmental benefits, supply Refurbishment, including resale A manufacturer or retailer offers to security, value recovery, and legislation 5 refurbish (clean and put in working • Among key barriers are technology change, consumerism, costs for recovery and management of condition) their own products reverse logistics, and lack of competence 1 Overview of specific approaches to get started
Deloitte suggests a number of approaches that a company can choose in order to begin the journey of working with circular economy – or develop the efforts even further.
Analysis and expertise approaches
Inspirational talk or breakfast session What How Why Deliverables What is the first step, if one has never worked Deloitte and BIO provide expertise and The objective of an inspirational circular • Talks and presentations systematically with circular economy before? A inspirational case examples on how to work in economy talk or session is to kick-start or inspire • Breakfast sessions The Deloitte analysis and targeted presentation, talk or session might be the area of circular economy, e.g. as the work of a business unit or a company. • Inspirational material the right kick-starter. presentations or sessions. expertise approaches to circular economy business Innovation workshop(s) development is about What How Why Deliverables Innovation workshop(s) is a good point of The workshop(s) will be facilitated by Deloitte, The objective of the innovation workshop is to • New market creation inspiring and positioning departure in order to clarify the needs of the who prepare the material, e.g. based on input brainstorm ideas and discuss possible actions • Business logic transformation business, or it can be as part of developing the from client and Deloitte material. The focus of on innovation efforts within circular economy • Opportunity identification the management for better circular economy business further. the workshop will be decided with the client. business development. environmental decision- making. Value chain mapping and analysis What How Why Deliverables Value chain mapping and analysis can provide a Deloitte will perform the relevant analyses based The objective of value chain mapping and • Co-innovation with stakeholders starting point for leveraging key opportunities on a great variety of best practice tools and analysis is to recognise opportunities in the and business partners within circular economy, e.g. by co-innovate with methods as well as industry and company value chain in order to develop the business • Recognising opportunities stakeholders and partners. knowledge to be leveraged. around circular economy.
Benchmarking and industry peer analysis What How Why Deliverables The seven types of circular economy business models Benchmarking and industry peer analysis will Deloitte will perform the relevant analyses based The objective of the benchmarking and industry • Benchmarking analysis of provide key insights on how other companies in on a great variety of best practice tools and peer analysis is to create a foundation for comparable companies the industry use and leverage efforts within methods as well as industry and company decisions on where and how to play in order to • Industry peer analysis Deposit systems circular economy business development. knowledge to be leveraged. make the right decisions. A manufacturer or retailer (or 3 groups of) takes back their own Regulatory studies products (or a common product) Value drivers What How Why Deliverables Volume Price realization Company strengths External factors Company A 1 1 1 1 and refunds the customer Company B 8 0 0 8 Company C 3 3 8 3 Cradle to cradle Remanufacturing Regulatory studies play an essential part of Deloitte will perform the relevant analyses based The objective of the regulatory studies (risk • Regulatory study using Company D 4 4 4 4 Company E 6 4 1 3 Company F 2 3 10 3 Company G 1 1 2 4 A manufacturer designs waste free A manufacturer remanufactures actions regarding circular economy, because all on a risk and/or opportunity approach with a and/or opportunity approach) is to develop and different risk and Company H 4 4 4 3 Company I 2 2 0 1 Company J 6 0 0 4 1 products that can be integrated in 6 their own product and provides a Company K 2 1 3 2 efforts are naturally subject to national and great variety of best practice tools and methods clarify the regulatory environment of circular opportunity approaches Company L 8 4 4 0 Company M 9 2 1 3 Company N 10 1 4 4 fully recyclable loops or guarantee for functionality / international law and conditions. as well as crucial expertise. economy. Company O 6 4 2 10 biodegradable processes performance Repair 4 A manufacturer or retailer offers to Environmental profit and loss calculation repair their own products What How Why Deliverables Take-back management, Rematerialisation, including The environmental profit and loss calculation is Deloitte masters the entire value chain of The objective of the calculations is to develop a • Environmental profit-loss Including reverse logistics recycling and cascading use about making sure that the organisation have a environmental information and offers support in better understanding of the environmental calculations 2 A manufacturer or retailer takes 7 A manufacturer transforms or nuanced understanding of the environmental client’s environmental net positive journey, which footprint in order to better position the • Net positive journeys back the product using reverse recycles a product into a new impacts whether positive or negative. includes clarifying environmental footprints. management to environmental decision-making. • Performance measurement logistics streams material or product Refurbishment, including resale A manufacturer or retailer offers to 5 refurbish (clean and put in working condition) their own products
1 Facilitation and support approaches
Strategy facilitation What How Why Deliverables Strategy facilitation with focus on circular Several tools can be used in order to facilitate The objective of circular economy strategy • Business case development economy can take various forms and methods strategy work within circular economy, but one facilitation is to create the right innovation and • Plan for integrating circular dependant on e.g. maturity of the business and crucial element is developing the business case entrepreneurial environment, so company economy efforts into corporate The Deloitte facilitation knowledge of circular economy. for possible scenarios. stakeholders are able to re-think the business. strategy and support approaches to circular economy Piloting and implementation support business development What How Why Deliverables Piloting and implementation support is about Several tools can be used in order to support the The objective of the piloting and implementation • Pilot workshops and individual focuses on creating the
Legend Environmental Improvement Levers Shareholder Value Social Improvement Levers Deloitte Sustainability Value MapTM ( Economic Value) Environmental & Social Improvement Levers (Practical paths to increase shareholder & other stakeholder value) z Economic Improvement Levers It’s easy to say shareholder and stakeholder Here are two simple ways to use it: value is important. Not so easy to make it influence the decisions that are made every day: § Start at the top and on the left hand side. where to spend time and resources, how best to Working your way down and towards the get things done, and, ultimately, how to win in middle, at each step ask yourself, How will the competitive marketplace. In addition, it’s we improve this? This will help ensure that Operating Margin not easy to consider environmental and social Revenue Growth (after taxes) Asset Efficiency Expectations impact of these decisions. your tactics support your objectives. This Map is designed to accelerate the § Start at the bottom. Working your way up connection between actions you can take and and towards the left hand side, at each step the shareholder and stakeholder value. It is not ask yourself, Why are we doing this? This will rocket science and it is not complete, but it can Selling, General & Cost of Goods Sold Property, Plant & jump-start the process of focusing on the things help ensure that every tactic leads to Volume Price Realization Administrative Income Taxes Equipment Inventory Receivables Company Strengths External Factors that matter most from economic, social and shareholder (economic) and stakeholder (SG&A) (COGS) (PP&E) & Payables environmental perspective. (social and environmental) values.
Improve Improve How was the Sustainability Value Map developed ? Improve Improve Improve Improve Improve Improve Improve Retain and Grow Current Leverage Income- Strengthen Pricing Customer Interaction Logistics & Service Management & Governance Improve Acquire New Customers Corporate/Shared Services Development & Production Income Tax PP&E Inventory Receivables & Payables Execution Capabilities Step 1: Identification of social and environmental value drivers and improvement actions Customers Generating Assets Efficiency Efficiency Efficiency Provision Efficiency Efficiency Efficiency Effectiveness Step 2: Grouping ideas and aligning the environmental/social vocabulary with business language Efficiency Efficiency Step 3: Identification of Deloitte’s Enterprise Value Map improvement actions that also create environmental and/or social value Step 4: Identification of additional, social or environmental improvement actions that also create economic value Accounts, Accounts, Product & Demand & Customer Order Procurement Work in Business Step 5: Validation by team members (gate 0) Marketing & Account Cross-Sell/ Cash/Asset Price Marketing & IT, Telecom & Human Business Financial Product Logistics & Service Real Estate & Equipment & Finished Notes & Notes & Business Program Operational Partnership & Relationship Agility & Service Retention Supply Sales Service & Fulfillment & Real Estate (Excluding Production Materials Production Merchandising Income Tax Process & Performance Strategic Step 6: Validation by team leaders (gate 1) Sales Management Up-Sell Optimization Advertising Networking Resources Materials & Management Management Development Distribution Infrastructure Systems Goods Governance Management Management Support Billing Delivery Management Raw Materials Interest Interest Planning Delivery Excellence Collaboration Strength Flexibility Assets Step 7: Validation by other senior Deloitte practitioners (gate 2) Innovation Merchandise) Receivable Payable Management Step 8: Validation by clients (gate 3)
Work in progress Improve collaboration Improve Improve terms with Improve real estate Improve collaboration Influence suppliers’ Influence suppliers Increase emphasis on Develop and leverage making sure that the strategy is solidly founded circular economy strategy work, e.g. agile support is to strengthen the organisation’s ability training Improve forecasting Improve design, Include environmental Promote the Improve collaboration Improve product Improve design and Increase focus on Manage purchasing Improve terms with Improve terms on Improve terms on Increase use of Influence sub- Influence dependent Improve ability to Business Inputs with design, decisions with regards operational integration strong/unique partner communication to development and service providers selection, acquisition with vendors improvement of supply with partners and conception/initiation development production equipment merchandise (fair vendor-managed/ decisions with regards contractors to suppliers to maintain top structure and development and Innovative actions to be identified Innovative actions to be identified planning and (security, energy, etc.) and social evaluation lower impact on a national/global service providers Innovative actions to be identified Innovative actions to be identified to environmental and with partners relationships Development version 1 customers on testing processes and contracting chain management consumers processes processes payment and delivery vendor-warehoused to the management of implement human performance in order to implement durable, production partners prioritization skills and processes criteria in RFP materials for basis (outsourced services, risks and liabilities social management responsible tools processes according to EH&S network services, terms) inventory rights standards minimize risks of switching mutually beneficial partnerships with distribution and principles to increase Influence suppliers merchandising information services, to better performing partnerships Influence suppliers Influence suppliers Rationalize and/or suppliers decisions with regards efficiency Improve collaboration procurement etc.) Business Operations realign product with vendors decisions to favour Suppliers’ Env. to the optimization of development efforts Improve use of resources (materials, optimal material use Performance & and sustainable national/global energy and water) to purchasing power lower the prices Develop and promote sources Social Business Outputs collaborative stewardship Accountability (Products & Services) initiatives (efforts to improve product design and to minimize negative impacts associated with Business Management manufacturing, use, Business packaging and final disposal)
Inputs Increase emphasis on Improve quality and Improve real estate Utilize national/global Reduce hazardous designing for Focus R&D on new consistency of Develop closed-loop Increase emphasis on design and develop- purchasing power materials use by sources of materials system for hazardous designing for Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified ment processes materials efficiency Innovative actions to be identified Innovative actions to be identified manufacturing Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified replacing it with to replace non- materials materials materials efficiency Lower Impact Material substitutes renewable ones Reduce the volume of Reduce the Improve materials used by packaging of Use by-products from improving design and materials used other manufacturing Management of development activities as raw Buying processes materials Practices Increase share of «green materials» (e.g. trees Fair & Ethical from replanted forests, Procurement Practices materials that contain recycled components, degradable materials,etc.)
Provide staff with Develop and utilize Improve workforce Improve utilization of Manage and prevent Improve Improve salary and Improve focus on Track and seek Improve management Improve talent Improve recruiting Improve mechanisms Prevent all types of Equitable Employment Improve alignment of Provide staff with Improve incentives benefits administra- better production Improve skills of Improve tax benefits Improve sharing of unique human planning and dispatch service staff standard injuries, lost recruitment and employee retention Improve disability alternatives to child of organizational management models effectiveness for collecting and discrimination staff incentives with processes and tools better customer around service tion processes / Improve retention & Establish succession information and tools service staff of compensation and change in support of Adopt fair compensation implementing knowledge across resources Practices days, absenteeism orientation processes management labor in all plants, and programs (thought leaders, managers, strategic objectives information efficiency and Increase employee performance planning process benefit programs practices for low cost organizational Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified and number of work Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified divisions, etc. initiatives employee ideas subject matter experts, etc.) (profiles, transaction effectiveness - self-service management (deferred and equity-based labour boundaries histories, etc.) related fatalities comp; retirement and Promote balanced methods and tools Increase emphasis Improve value delivered Improve physical healthcare benefits, etc.) Systematically Ensure employee Improve monetary on people/talent Ensure employees’ Build innovation and demographic Improve performance Improve training training on human and non-monetary Improve organization to employees security of people improvement into Improve representation in all processes consider alternatives development and managers’ assessment Improve rewards & to layoffs (eg internal rights recognition of staff design to increase rewards and divisions/plant, etc. accountability for workforce efficiency Workforce Develop incentives to processes recognition process job market) contributions health and safety incentives Well-being encourage Practices innovations that enhance resources Improve assignment Build an organizational Manage risks/prevent Seek cultural diversity productivity of human resources structure that supports accidents and injuries as a source of global to projects employees in the (H&S management competitive advantage achievement of their training and employee performance objectives (e.g. training) Productivity teamwork, knowledge management structures)
Develop business Utilize more efficient Improve reuse of Increase utilization of Increase emphasis Improve pick, pack Improve demand Increase focus on Shorten production Develop low-Inventory Shorten time-to- Shorten time-to- Consolidate IT, Implement integrated Utilize national/global Rationalize order component reuse cycles models with low real production equipment Shorten production Improve assignment Establish a culture Improve integration of Develop and utilize Improve performance product and service modular, reusable on supply chain and ship processes Improve incentives planning processes quantities and timing Optimize energy use business models market Mine waste stream for market Increase use of lower- telecom and network applications across purchasing power Improve materials Increase service Optimize warehousing estate requirements cycles of resources to centered on IT systems across unique production and reliability of IT components designs management around IT/network and tools Increase focus on Increase emphasis on in organizational Increase emphasis systems/platforms sellable assets (production, distribution and cost billing channels equipment and organizational internality (reduced size, configuration, Increase emphasis projects operational partner networks resources Innovative actions to be identified efficiency design for production efficiency of travel, transport to Innovative actions to be identified on preventive (applications, equipment, Sell or lease excess sales pipelines) (automated, self-service, facilities materials-efficient consumption of resources, and operation to Reconfigure facilities/ on build- Innovative actions to be identified (methods, equipment, boundaries efficiency production processes equipment to-order Increase emphasis on excellence facilities, etc networks, etc.) Emission Severity capacity to other etc.) production work, etc. pollution and risks) reduce energy Increase utilization of .) mechanisms maintenance designing for Sell knowledge and Identify markets to enterprises Reduce procurement consumption, land facilities manufacturing experience in eco- (production capacity, service Improve product cycle times Improve effectiveness sell by-products used Identify opportunities use, etc. Increase utilization of efficiency efficiency, health & as a raw materials capacity, etc.) lifecycle of plant maintenance production equipment Increase emphasis on Manage recyclable Reduce safety and Optimize materials management to for telecommuting and use of common wastes promoting utilisation by applying Improve capacity e-business Emissions to Air environmental optimize energy planning processes, Reduce number of components recovery, reuse and performance standards and norms technologies to data centers, branch Increase use of recycling (Eco-efficiency, Six Design product with skills and tools reduce travel cost and flexible/expandable Develop and offices, dealerships, (composting) Sigma, etc.) minimal noise office space retail outlets, etc. production equipment generation implement Utilize more efficient Emission Volume Increase percentage management strategy IT systems (Inc. Noise) Develop energy Develop indirect energy of materials used that consumption footprint of for all production, transport, import or consumption footprint of are wastes (including major products and by major activities (office, post-consumer recycled primary source export of any waste material) deemed hazardous transportation, etc.) by primary (electricity, heat, gas, etc.) source (electricity, heat, gas, etc.)
Maximize recycling Reduce water Prevent spills of and reuse of water Reduce impact on sources and related Increase use of Increase emphasis on Increase emphasis on chemicals, oils and (e.g. cooling water) water sources and ecosystems/habitats equipment & Design and build designing for use of common fuels by implementing related ecosystems/ energy efficient Discharges, Spills & Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified affected by Innovative actions to be identified Innovative actions to be identified processes that reduce manufacturing components Innovative actions to be identified strict safety measures Innovative actions to be identified Effluents habitats (wetlands, etc.) discharges of water water impact buildings and water efficiency and runoff friendly working Optimize/Reduce total environment
) water use Business Minimize Water (withdrawals of Include effluents & Develop sustainable ground and surface discharge reduction wastewater Impact waters) initiatives in management operational practices (e.g. Operations improvement biofilters, etc.) programs in the organisation, e.g. enabling the right solutions, testing, disruptive thinking, to carry out the strategic actions on circular • Implementation plans Water Use
Eliminate accidental Reduce and control Ensure compliance Increase use of lower- releases Manage trading Increase use of quantities of Increase emphasis on Increase emphasis on with local and Collaborate with Schedule inbound Optimize inbound and credits equipment & greenhouse gas designing for international Native Ecosystem & cost delivery/ delivery appointments use of common Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified customers and outbound ground processes that reduce emissions components manufacturing Innovative actions to be identified standards and Innovative actions to be identified Biodiversity Preservation installation channels suppliers in planning, to minimize truck distribution loads to (self-service, partners, etc.) emission to air efficiency regulations forecasting, and idling time reduce less-than-full- Consolidate replenishment to truckloads (LTL’S) inventory Improve Natural reduce emissions and Asset road congestion right innovation and Management
Land Use Optimization
Energy Utilisation
Environmental Value Increase focus on Improve real estate Consolidate company Increase utilization of Upgrade facilities to Increase amount of Develop and promote Minimize negative Optimize tax benefits Improve consideration Rationalize production Limite site impact on Minimize negative Reduce/eliminate use of Support community Develop and utilize Develop and execute Improve permeable surface as industrial sites holder Value Innovative actions to be identified Innovative actions to be identified divesture and Innovative actions to be identified Innovative actions to be identified design and develop- real estate/facilities real estate improve energy preservation practices impacts on biodiversity Innovative actions to be identified associated with self- of tax implications in facilities locally existing Innovative actions to be identified Innovative actions to be identified impacts of activities and endangered species in conservation/restoration unique physical reinvestment ment processes efficiency & work a percentage of land (harvesting for natural associated with constructed assets the acquisition and habitants (track operations on protected production/retail of initiatives through resources conversion/restoration Environmental environment purchased or leased plant species, fish activities in terrestrial, (plant, facilities, internally- disposition of assets Improve terms location and size of and sensitive areas processes/fresh food, targeted corporate (facilities, land, etc.) programs when closing Wastes populating, soil freshwater and marine used software, etc.) on property and land owned, leased, pharmaceuticals, programs facilities & Resource decontamination, etc.) environment facilities or managed) Manage risks and manufactured forestry Utilization Improve terms liabilities related to products, etc. on infrastructure Develop business contaminated land models with low real estate requirements Optimal Materials Use take Social
S Improve campaign Improve emphasis on Improve total customer Improve Establish customer Improve features and Bypass current Design products for ( Improve total Tailor products and Improve design and product quality and Improve definition of Increase emphasis on Increase emphasis on Improve alignment of experience (purchasing, understanding of customer experience communities functionality of channels / Sell ease-of-use / self- Align production and Apply precautionary Implement product Ensure economic Develop and utilize Product Characteristics fulfillment, usage, services to new understanding of service prevention / designing for service customer, product, support, customer needs (purchasing, fulfillment, products and services management ease of service product and service Improve product and Improve collaboration unique information service, etc.) product/service value directly to customers service merchandise ordering Reduce need for efficiency and self- principle in product traceability tools (e.g. benefit relationship customer segments usage, support, service, Innovative actions to be identified processes and tools Innovative actions to be identified specifications Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified Innovative actions to be identified advertising, sales, resources (customer, etc.) to customers service introduction/ with partners and schedules with service service recall decisions barcoding) with customers Improve Monitor customer launch processes consumers distribution schedules service, support, and product, market, etc.) Ensure ethical Increase emphasis Shorten order-to- satisfaction (surveys) fulfillment strategies advertising programs Identify new market Align product and Improve definition of Improve relationship / Increase use of lower- Improve service and Products & on customer delivery cycle time / service prices with Identify market product and service account development cost billing channels support processes (respect of opportunities, that satisfaction Improve product and Provide continuous Improve service and privacy,etc.) to attract could arise from value to customers opportunities for specification processes (automated, self-service, support processes Services service availability information on etc.) Selling, Labelling & responsible sustainability production processes « sustainable » Increase proportion of Improve products sold at a Responsibility Advertising customers understanding of to customers Improve tailoring of Improve invoicing/ eco-labelled products price premium Lower impact Ensure the billing processes Improve in market offerings current customer Focus on selling marketing and Toward satisfaction materials in preservation of communication of services or leasing advertising interaction with customer health and Customer environmental and Ensure exhaustive, products approaches to customers (e.g. less safety during use of social benefits of truthful product customer segments paper used) products and services products to increase information on labels consumers interest and packaging to Improve utilization of Customer Satisfaction and choice Improve due-date better market new reliability service staff Business sustainable products
Identifying new market opportunities, that could arise from sustainability (ex. automobile companies producing wind energy components) Rationalize and/or Improve collaboration Outputs realign product Reuse and recycle with partners and Shorten order-to- development efforts components and Improve product Increase focus on Sell licenses related Increase emphasis Improve features and Consolidate or Improve emphasis on customers Improve transport and Consolidate/ Refine/align Rationalize and/or Improve logistics/ (Products & Services) delivery cycle time / Design products for design for packing/ Increase emphasis on Improve design and materials from returned Increase emphasis on Increase emphasis on innovation processes End of Life Management R&D, product to sustainable product on supply chain functionality of Improve definition of ease-of-use / self- outsource order products and services delivery processes/ outsource logistics logistics and Improve identification refocus product and distribution efficiency use of common Improve product and innovation, and innovation shipping efficiency modular, extensible, development processes and distribution and application of cross-business-unit Innovative actions to be identified management products and services product and service service fulfillment functions Innovative actions to be identified that have been algorithms distribution strategies service portfolios components Innovative actions to be identified Innovative actions to be found and cross-company service availability product leadership (production, distribution and (pick, pack and ship, scalable designs Improve product functions R&D tax incentives specifications designed for collaboration sales pipelines) install, provision, etc.) conception/initiation Increase emphasis on Increase emphasis Improve collaboration Improve pick, pack Improve prototyping, disassembly Improve design/ Improve reuse of processes designing and Prioritize low intensity on build-to-order Improve with design, Improve quality and and ship processes piloting and testing Improve recovery, structure of distribution channels by product and service development and processes packaging reliability of products Reduce and optimize reuse, and recycling of distribution networks for distribution reducing the energy Products & components production partners Consolidate or outsource Increase utilization of and services the volume, weight packaging from transportation use, Services Life Distribution product development and area of packaging greenhouse gas modular, reusable Increase emphasis on functions Develop programs to designs emission, etc. Cycle design for Improve profitability of Design products for formally assess and configurability/ R&D efforts through environment: smaller, minimize the Address concerns of customization utilization of tax and simpler with less variety environmental impacts Minimize the energy responsible economic development of materials, easier to of product use for other customers in product incentives upgrade and manufacturing, activities than Product & Packaging design, distribution disassemble for packaging, distribution, production (office, etc.) Improve leadership Improve communi- Improve quality of Improve identification Ensure the use of Develop corporate Design and marketing recycling, offering higher use and disposal Define explicitly formal and management cation between the policy of human rights information provided of stakeholder groups processes recyclable packaging skills of executives Increase focus on Increase focus on and establishment of Align product and Improve alignment of functionnality Increase focus on responsibility of the Board board, management, management Improve understand- to stakeholders Improve structuring Rationalize targeted Improve technology Improve alignment of Improve operational Increase focus on businessImprove continuitybusiness stakeholderImprove value delivered ingImprove of stakeholder value delivered (accuracy, timeliness, priorities Board Accountability Improve brand Develop, spin-off and and pricing of service prices with Rationalize and/or Consolidate or Improve terms with Improve terms with organization struc- Improve identification Improve terms on Improve coordination vendors with favorable Improve coordination with regards to: strategy, Align compensation shareholders and the markets and customer and data risk capital budgets and risk management business insight and Increase account- planningcontinuity planning relationshipsto partners ( vendors, intereststo other stakeholders transparency & Establish management Prevent anticompetitive strength and good sell new businesses value to customers refocus channel/ outsource service and service providers service providers tures and governance and discontinuation of materials purchases with business Internalize social costs payment terms of payments across audit, accounting, risk and incentive systems public predictability) promotions segments by management program plans with processes forward-looking Implement policies ability of business and disaster recovery channel partners, etc.) (public, alumni, analysts, etc.) of key stakeholder behavior in marketing will in order to create new media usage support operations (network services, (contractors, network models with business unsuccessful partners of environmental to eliminate fraud Innovative actions to be identified business units management, with strategies, values Improve identification Improve identification of Innovative actions to be identified addressing outsourced functions, etc.) processes services, consultants, etc.) sustainable business information Innovative actions to be identified Innovative actions to be identified unit leaders for tax capabilities relationships as and sales approaches jobs and diversify strategies efforts damage into business and thus control nominations and and ethics and assessment of opportunities to increase to customer segments environmental and priorities remuneration of Board impact of decisions Improve mechanisms value to stakeholders organizational priority business activities Coordinate pricing of budget (pollution charges, costs of goods sold Coordinate Refine credit/days- risk (strategic, operational, Develop and cultivate Increase focus on for soliciting and complementary Adapt pricing strategy social impacts Improve financial Improve partnership tradable pollution permits, fees management of members and top Improve investment, financial, com- Align management partnership, merger and Improve relationship Local Communities Ensure fair pricing Improve terms with receivable strategy pliance, data/privacy, etc.) good will addressing Improve products and services for vital products (e.g. risk management terms on equipment for natural resources, etc.) credit/receivables managers, sustainable communication of and staff incentives acquisition opportunities management strategies for Improve social and service providers stakeholder feedback Seek to alleviate strategies for key (razors v. blades / product v. water, medicine, etc.); processes purchases (outsourced functions, etc.) across business units business practices strategic directions Clarify governance with company acquisitions of shipping charges, environmental aspects Improve effectiveness Improve ability to integrate Corporate etc.) and for sensitive Leverage breadth of and priorities roles and responsi- performance Identify risks of consequences of stakeholder groups companies in targeted of the communities in Establish corporate codes of organizational merged and acquired layoffs on community Increase focus on markets vendor relationships bilities (delegation of Improve management structures and organizations business interruption Governance geographies which business are to lengthen payment of conduct at a group level Improve alignment of authority, segregation of (develop contingency plans) Fair Business Practices pricing effectiveness/ located to gain license with regards to corruption of vendors/service governance models for community and Ensure positive impact (Including Code of Ethics) cycles projects with program duties, etc.) Develop a corporate on communities price optimization to operate and bribery, discrimination, and business objectives Improve focus on providers Ensure leadership to employees confidentiality of Build values and Strengthen and implement Ensure compliance policy with regards to management and internal controls and communicate Clearly assign political contributions development information, money ethics into corporate regulatory compliance accountability and sustainability with anti-trust and laundering and insider culture governance policies, practices monopoly regulations and lobbying Strengthen and procedures and responsibility on social Apply same ethical trading, security of staff, and environmental issuesEnsure suppliers’ Avoid community Human Rights communicate mission, structures (composition, standards in all business partners and EHSEstablish measures to perception of economic dependency on one vision, values and selection, roles, etc.) benefit relationship economic activity/ locations of the Business ensure the independency ethics organization Integrate all sustainable of an outside auditor and (payment delays, contract company by Establish/promote fair initiatives into business financial controls Foster volunteerism conditions, etc.) promoting diversity pricing practices competencies and skills in the workforce. implementation plans, and regulatory reviews. economy business development. • Agile solutions strategies Improve accounting Improve identification Manage corporate Management Environmental & Social Consolidate and/or Improve breadth, Improve/implement Improve company- Improve determination, and measurement Improve manage- Improve Improve IT system in align business depth and quality of Adapt accounting Integrate tax oppor- of opportunities and quality, consistency affaires (lobbying, good Improve identification Performance order to manage processes Improve Improve Improve management internal control wide monitoring and threats ment of regulatory Increase focus on Increase focus on understanding of Sell or lease excess Improve analytical Develop a centralized planning, financial information Foster employees’ methods to produce tunities and issues Improve management and measurement of relations with NGOs, and mitigation of environmental and management management systems and systems and reporting frameworks and policies management of risks compliance Invest in employee socialstrategic interactions assets social and business unit capacity to other processes and tools database for management and (asset, budget, price/cost, feedbacks on financial, into business planning Improve effectiveness key performance , etc.) operational risk social data treasury, debtor/creditor, systems & systems & reporting relating to relating to storage Align internal audit Improve anticipation education program on environmental Innovative actions to be identified performance and enterprises (production Innovative actions to be identified environmental data reporting functions environmental and environmental and processes Innovative actions to be identified of program/project targets, metrics and (people, process, tech- considerations when market values (utilization, performance, accessible from various performance, tax, risk, etc.) social issues reporting on reporting relating compliance with practices with business and understanding of sustainability issues nology, data, etc.) capacity, service capacity, capacity planning, etc.) social statements governance models reporting etc.) parts of the organization environmental to environmental environmental and risk objectives current and potential Improve Env. & Social Mng developing market Improve accountability/ strategy and social and social legislation & impacts Implement/enhance regulations/legislation Increase focus on risk Management System Design impacts of impacts of of PP&E anonymous employee and formulate authority of program management and Develop corporate environmental production logistic and reporting and feed- strategic response and project resources regulatory compliance System & and social requirements or distribution back mechanisms Improve identification Standards & Legislative guidelines for production and prediction of Improve ability to launch Reporting operations , maintenance Develop performance industry and market improvement efforts Improve communication Requirements operations, selection and on- trends measuring & reporting Improve assignment around improvement going evaluation of suppliers/ system on environmental priorities contractors/services providers, Improve incorporation of accountability and Reporting & and social data (e.g. authority Communication product development, mergers, emissions to air, water, land, of risk analysis in Comply with recognized acquisitions, etc. resources consumption, business planning standards (GRI accidents, discrimination (internal and external risk) Improve risk planning, AccountAbility, UN Global grievances, etc.) mitigation and control Compact, ISO, OSHA, etc.) • Regulatory review approaches entrepreneurial Performance evaluation environment in order to What How Why Deliverables facilitate sustainability Performance evaluation is about valuating the The most relevant evaluation tools related to The objective of performance evaluation is to • Sustainability and business KPIs externalities of circular economy efforts in a circular economy are sustainability and business understand the value of the circular economy • Net positive valuation changes. structured way in order to improve the KPIs, which can be incorporated in the business efforts and continuously be able to evaluate the • Sustainability benchmarking understanding of the circular economy efforts. performance metrics. business case for the circular economy efforts.
Customer engagement What How Why Deliverables KPI Description Responsible Progress Action no. 1 Detailed description of action no. 1 Name of person/function responsible 1 Action no. 2 Detailed description of action no. 2 Name of person/function responsible 2 Customer engagement is essential in supporting Deloitte will conceptualise the customer The objective of customer engagement is to • Conceptualisation of the Action no. 3 Detailed description of action no. 3 Name of person/function responsible 4 Action no. 4 Detailed description of action no. 4 Name of person/function responsible 2 Action no. 5 Detailed description of action no. 5 Name of person/function responsible 3 Action no. 6 Detailed description of action no. 6 Name of person/function responsible 1 the client’s circular economy business models. engagement based on various types of analyses incorporate circular economy efforts in the customer engagement Action no. 7 Detailed description of action no. 7 Name of person/function responsible 2 KPI Description Responsible Progress Action no. 1 Detailed description of action no. 1 Name of person/function responsible 1 Action no. 2 Detailed description of action no. 2 Name of person/function responsible 2 and share valuable customer engagement business case and make sure they are leveraged • Impact measurement Action no. 3 Detailed description of action no. 3 Name of person/function responsible 4 Action no. 4 Detailed description of action no. 4 Name of person/function responsible 2 Action no. 5 Detailed description of action no. 5 Name of person/function responsible 3 Action no. 6 Detailed description of action no. 6 Name of person/function responsible 1 expertise. optimally. • Take-back systems Action no. 7 Detailed description of action no. 7 Name of person/function responsible 2
Contacts
Mathieu Hestin Riikka Poukka Director, BIO by Deloitte Manager, Sustainability Services Deloitte France Deloitte Finland Telephone no. Telephone no. +33 155616913 +358 (0)50 5758217 [email protected] [email protected]