Master’s Degree Thesis
Development of a Framework for Circular Economy within Furniture Manufacturing Companies
Author: Mohamed Mustafa Supervisor: Ambrose Dodoo
Semester: VT19 Course code: 5TS04E
Table of contents 1. INTRODUCTION ...... 8 1.1 Background ...... 13 1.2 Problem Definition ...... 15 1.3 Aim & Objective ...... 16 1.3.1 The Specific Objectives ...... 16 1.4 Importance of the study for the Furniture Industry ...... 16 1.5 Delimitation ...... 17 2. LITERATURE REVIEW & THEORY ...... 19 2.1 Literature ...... 19 2.1.1 Necessity for adopting sustainable concepts ...... 19 2.1.2 Drive for integrating circular economy and sustainable framework ...... 20 2.1.3 Issue of implementing a circular framework ...... 21 2.1.4 Strength & weakness of circular economy ...... 22 2.2 Theory ...... 23 2.1 Sustainable Solutions ...... 23 2.2 Circular Economy ...... 24 2.3 Product End-of-Life (EoL) ...... 26 2.4 Resource Efficiency ...... 30 3. METHODS & CASE COMPANIES ...... 32 3.1 Research Methodology ...... 32 3.1.1 Comparative Design ...... 32 3.1.2 Ethical Consideration ...... 32 3.1.3 Literature Study ...... 33 3.2 Data Gathering Methods ...... 33 3.2.1 Qualitative Research ...... 33 3.2.2 Semi-structured Interview ...... 34 3.2.3 Questionnaire ...... 34 3.3 Case Companies ...... 35 3.3.1 Interior Cluster Sweden ...... 35 3.3.2 Gemla Fabriker ...... 36 3.3.3 Abstracta ...... 37 4. RESULTS/ ANLAYSIS ...... 39 4.1 Summary of Findings ...... 51 5. DISCUSSION ...... 53 6. CONCLUSIONS ...... 55 6.1 Approaches for circular economy targeted by the companies ...... 55 6.2 Diverse opportunities gained from implementing circular economy ...... 55 6.3 framework for circular economy fitting for furniture manufacturing companies...... 56 7. FUTURE STUDY ...... 63 8. REFRENCES ...... 64 Articles ...... 64
Books...... 67 Certification ...... 68 Figures ...... 68 Interviews ...... 73 Websites ...... 73 Appendix ...... 86
Abstract
The fast spreading industrialization revolution around the world has resulted in a rapid cycle of production and consumption of resources. Resulting in sustainable solutions being a fundamental need and resolutions which include efficient resources use. The concept of Circular Economy includes specific practices which take into consideration reusing resources through sustainable solutions resulting in the minimization of waste as well as the use of resources more efficiently. This study shows that organization approach circular economy in different ways, resulting in various definitions. Furthermore, the study emphasizes on the importance of developing a framework for circular economy when seeking to implement the concept.
This research aims to develop a framework for the implementation of circular economy in consideration to furniture manufacturing companies. Furthermore, this research focuses on four theories: circular economy, sustainable solution, resource efficiency, and product End-of-Life (product EoL).
A mixed method approach consisting of a semi-structured interview and a survey were used to help reach the aim of this study. The results from the interview two furniture manufacturing companies show that the companies use different aspects of the circular economy. In conclusion, companies with goals of being more sustainable should start considering circular economy principles from an early stage. This includes having a strict rule of only approving environmentally friendly materials. This also leads to the benefit that the practices of refurbishing and reusing allows for products to live for numerous lifetimes.
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Keywords
• Circular economy: A concept used to target sustainability. The concept includes several principles and practices, including the usage of resources more efficient & reusing products and materials (Ellen Macarthur Foundation, 2017).
• Sustainable development: Change of misusing resources and practice of identifying the human needs and ambitions (UN World Commission On Environment and Development, 1987).
• Sustainable solutions: developing innovative solutions which impact the environment beneficially (UN World Commission On Environment and Development, 1987).
• Re-use: A practice which include reusing a given product (Vezzoli & Manzini, 2008).
• Re-furbish: A practice of making a product look new (King et al., 2006).
• Environmental friendly: Avoiding any harmful impacts on the environment (Avdan, 2016).
• Resource efficiency: The use of earth resources in a practice which is considered sustainable (European Commission, 2017).
• Product end-of-life is a definition regarding a given product when it reaches the end use (King et al., 2006).
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Figures
Figure 1: 12th Goal a cross-cutting issue towards other goals (European Union, 2019) ...... 11 Figure 2: Guiding principle of Circular Economy ...... 14 Figure 3: The steps within Sustainable Solutions in this study ...... 23 Figure 4: Towards Circular Economy (Ellen MacArthur Foundation) ...... 25 Figure 5: The practices of refurbishment and reuse (Shanghai HuaiTu Network Technology, 2019) ...... 28 Figure 6: Procuess of Product EoL ...... 29 Figure 7: Difference between a standard business model and one that includen reusing and refurbishing ...... 30 Figure 8: Issue reported by the European Commission ...... 31 Figure 9: Chair manufactured by Gemla Fabrikers (Gemla, u.d.) ...... 36 Figure 10: Soundcapes manufactured by Abstracta (Abstracta AB, 2019) .. 38 Figure 11: SCALA WALL (Abstracta AB, 2019) ...... 38 Figure 12: CLARA Headboard manufactured by Gemla Fabrikers (gemla, 2014 ...... 43 Figure 13: LILLY manufactured by Abstracta (Abstracta AB, 2019) ...... 44 Figure 14: Product life-time from Gemla Fabrikers (Gemla- Sustainability, u.d.) ...... 50 Figure 16: Divisions within an Ogranizations ...... 60 Figure 17: Framework for Circular Economy ...... 61
Tables
Table 1: Waste from four materials
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Acknowledgements
This thesis was conducted during the spring semester of 2019 at Linnaeus University. The research concludes the Master of Science – Innovation through Business Engineering and Design. The idea of this degree was proposed by the author. There are several individuals I would like to express my sincere gratitude to for their contributions to the research and whom without this study would not have been possible.
First of all, I would like to thank my supervisor Ambrose Dodoo for his patience, expertise, assistance and encouragement throughout the study.
I would also like to thank Anna Rosenqvist CEO of Interior Cluster Sweden, for her assistance in contacting specific furniture manufacturing companies. I am grateful to Thomas Stenqvist floor-manager, Göran Dahlkvist furniture developer, & Lenus Åberg furniture developer of Gemla Fabrikers. Furthermore, Erik Graesén product-development-manager, Eva Lang environment-quality manager, & Eddie Gustavsson product developer of Abstracta for their support and possibilities presented throughout the investigation.
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1. INTRODUCTION
The world population calculated in 2019 is approximately 7.6 billion people, and the increase of humans per year is estimated at 82 million people per year. The Megacities will account to roughly 70% of the population by 2050 (SCB, 2019). According to Sharon Omondi, a megacity is defined as “A megacity is defined by the United Nations as a city which has a population of 10 million or more people.” Omondi states that there are currently 37 megacities around the world, e.g. Tokyo, Cairo, Rio de Janeiro, Moscow, Los Angeles (European Commission , 2017). These major cities are responsible for almost 75% of the world's consumption resources (Madlener and Sunak, 2011). Additionally, the increasing rate of the population has led to a significant increase in the consumption of resources (Avdan, 2016; United Nations, 2018).
A study from 2016 shows that the process of extracting natural resources has increased (World Resources Forum, 2019). Three years later, World Resources Forum (2019) mentions that there is a necessity for using natural resources more efficiently.
World Resources Forum (2019) reports that within the last twenty-five years the global extraction of resources has increased, totaling to approximately 40 billion tons. Nevertheless, in 2005 the global extraction of resources was calculated to approximately 58 billion tons, demonstrating a significant increase of approximately 45%. The increase of extracting natural resources will result in severe environmental harm (Ellen Macarthur Foundation, 2017). Additionally, Lieder and Rashid (2016) argue that this generation will not leave any resources for future generation. Due to this concern, pro-longing the
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earth's resources should become a vital goal and will only profit the environment.
The furniture industry is one of the oldest manufacturers and is considered to be a major sector in regard to consumption of natural resources (Encyclopædia Britannica, 2019). The Waste and Resources Action Programme, did an investigation in 2010 and identified that within the UK the furniture waste made up half of the country’s waste (The Waste and Resources Action Programme, 2012).That stated, it is clear that innovative sustainable solutions need to be considered by the furniture industries.
In 2014 the European Commission recommended an "A Zero-waste" allowing for a sustainable solution as well as stirring towards a circular business model (European Commission, 2014). The EU Commission has set increasing strict legislations towards harmful environmental impacts e.g. Environmental Protection Act: is an environmental law regarding waste, the law strengthens environmental protection through managing hazardous activities which impacts the environment (Swedish Enviromental Protection Agency, 2018). Furthermore, EU Commission is suggesting industries to consider environmental solutions (European Commission, u.d.).
Presently the production of the world of furniture counts to nearly 450 billion dollars and that calculation includes extensive amount of quantity of wood, cotton, and additional materials (The World Counts, 2019). Sweden furniture industry count at 2 286 companies, the industries calculated to a total of 12800 employees. The cumulative production of furniture in Sweden determined at 23 billion SEK (SCB, 2019).
In a study about Circular Product Design the author states the importance for furniture manufacturing industries to reduce their consumption of resources and to develop more sustainable economic solutions (Avdan, 2016).
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The definition of sustainable development originates from World Commission on Environment and Development which defines is as follows "Sustainable development is the advancement identifies the needs of the present without jeopardizing the future generation's needs" (UN World Commission on Environment and Development, 1987). When addressing the topic of sustainability there are three aspects to be considered: social, economic, and environmental intentions (European Commission, 2017). This leads to the topic being a more challenging issue that industries around the globe face on daily basis.
In September 2015, 17 different goals were adopted by the United Nations regarding sustainable development aimed to be achieved by 2030. Currently, 193 countries have adopted these 17 sustainable goals (United Nations, 2018). The goals are broad covering numerous issues currently needing solutions. The goal regarding sustainable development is number 12: Ensure sustainable consumption and production patterns. This goal assists companies to adopt sustainable solutions through specific practices, including a circular business model amongst others. Furthermore, the goal targets a significant reduction of waste through the concept of reusing resources (United Nations, 2018). There are several benefits in reaching this 12th goal. A few of those benefits include achieving competitive advantages amongst companies and reduction of the harmful substances that impact the environment e.g. waste (Ellen Macarthur Foundation, 2017). Other benefits include: increasing employment, improving health, and consequently striving to reduce poverty (European Union, 2019).
Figure 1 below shows how the 12th goal is a “cross-cutting” matter and that when solved benefits 5 other of the 17 goals.
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Figure 1: 12th Goal a cross-cutting issue towards other goals (European Union, 2019)
As mentioned, Figure 1 presents how goal 12 takes into consideration Goal 3: Good health and well-being, Goal 6: Clean water and sanitation, Goal 13: Climate action, Goal 14: Life below water, and Goal 15: Life on land, making the 12th goal an essential issue to target and consider innovative solutions (European Union, 2019).
By operating to Ensure sustainable consumption and production patterns the effects are: minimizing waste, which impacts on the environment negatively and is the issue of Good health and well-being. Furthermore, more clean water for everyone by securing sustainable solutions for natural resources the issues of Clean water and sanitation & Life below water. The issue of Life on land is targeted by minimizing the consumption of resources e.g. Wood it endures more land for which life could exist e.g., forests
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Nevertheless, the 12th goal is currently a very critical and complicated matter facing humanity (European Commission, 2017; Ellen Macarthur Foundation, 2017; Lieder & Rashid, 2016). Due to the constant increase in population, which results in a rapid pace of consumption, a change is needed, an adjustment into minimization of the consumption of resource (Avdan, 2016; Geissdoerfer et al., 2017). The change that is needed should include a transformation from a standard linear business practice. A program which exercises the idea of reusing resources and designing products from waste, and adopting a global sustainable chain including everything and everyone should be implemented (Ellen Macarthur Foundation, 2017; McDonough, 2009; Prieto-Sandoval & Ormazabal, 2018; Secretary-General, 2018; United Nations, 2018).
A study conducted by McKinsey Center for Business and Environment, in Europe, in 2015 provides evidence presenting that circular economy would aid in the increase of resources, a technological revolution, and environmental benefits. Moreover, the idea is believed to generate an economic benefit of €1.8 trillion by the year 2030 (Mckinsey & Company, 2015). There are several definitions to Circular economy. In this study we choose the definition” Circular Economy is a concept that aims in evading the standard business model and make use of a more circular business model” (Ellen Macarthur Foundation, 2017; Lieder & Rashid, 2016). Due to the different definitions there is the need in identifying how industries target the concept of circular economy (Kirchherr, et al., 2017).
This study aims to identify how two furniture manufacturing industries approach the concept of circular economy. Moreover, the investigation will include a suggestion for the development of a framework for furniture manufacturing industry wanting to implement the concept of circular economy.
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1.1 Background
The concept of a circular economy and circularity cannot be traced back to one single date or author, instead of to diverse ideas and discussion conducted on improving the given surroundings or environmental impact. The development of analyzing a product life-cycle in relation to environmental issues begun in the 1960s, those issues included mostly the use of fossil fuels and its harmful impact towards the atmosphere. However, in the 1970s environmental concern begun to gain global attraction (Avdan, 2016). In 1989 Pearce and Turner introduced the concept of circular economy. It was introduced as a new business model, unlike the standard one, a circular system that aims in human life on Earth (Pearce and Turner, 1989).
Circular economy is a concept once implemented and applied; it focuses on consumption and product life-cycle (Sariatli, 2017). Additionally, it aims in redefining growth and targets a so-called “positive society with wide benefits” provided to everyone and everything (Ellen Macarthur Foundation, 2017). In detail, its emphases on reducing the economic activity from the production and consumption of resources (United Nations, 2018), in addition, designing a purpose out of the resource which is waste. Ellen Macarthur Foundation (2017) states that circular economy is based on various principles; designing to reduce waste and keeping the materials of a product in use as long as possible.
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Figure 2: Guiding principle of Circular Economy
Figure 2 presents the principles of circular economy. Figure 2 present how through circular economy principles; designing out of waste and using resources efficiency results in benefiting the environment (Ellen Macarthur Foundation, 2017, McDonough, 2009). Presently, the concept of circular economy is considered by various organizations to improve their environmental awareness in addition to achieving competitive advantages (Avdan, 2016).
Nonetheless, environmental legislation is considered vital, corporations can receive major lawsuits of it chooses to ignore the legislation. However, certification provided to organizations which include environmentally friendly consumption and production methods e.g., ‘ISO 14001 quality system which provides the given companies with structured environmental legal guidance to follow from preventing any environmental harm. Furthermore, Cradle-to- cradle is a certificate within the concept of circular economy. given to organization which aim in constant improvement, furthermore manufacturing
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products through five given guidelines; material health, material re-utilization, renewable energy and carbon management, water stewardship, and social fairness (McDonough, 2009).
1.2 Problem Definition
The fast spreading of industrialization around the world and the significant increasing rate of the world’s population has resulted in a rapid cycle of production-consumption of resources (Avdan, 2016; European Commission, u.d.). A change is needed, including the use of resources more efficiently and innovative sustainable solutions for reusing products instead of them transiting to waste (United Nations, 2018).
The concept of circular economy brings an opportunity for products to be reused and recycled (Avdan, 2016). This results in finding value in waste, instead of dumping and causing harm to the environment (Sariatli, 2017).
There are various studies that state that politicians, practitioners, and scholars are currently targeting the concept of circular economy in a several manners (Kirchherr et al., 2017). The concept is expected to create economic growth through creating job opportunities and new business, stabilizing a complete supply chain during which minimizing environmental impacts (Kalmykova, Sadagopan, & Rosado, 2018). However, a clearer framework is needed to successfully implement circular economy.
Due to this, it is imperative for the development of circular economy and sustainability to research how the concept is diversely defined and targeted (Ellen Macarthur Foundation, 2017). This will lead to the construction of a framework that better explains circular economy and its integration in a circular business model which is a need facing furniture manufacturing industries today (Verstraeten-Jochemsen, et al., 2018).
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1.3 Aim & Objective
As previously mentioned, the concept of circular economy provides a transit towards a circular business model, including reusing resources, avoiding harmful impacts on the environment, and minimizing waste through considering waste as value (Ellen Macarthur Foundation, 2017). However, the concept is distinctly targeted by organizations desiring to be more environmentally friendly. Due to this motivating a common understanding for circular economy is a need (Kirchherr, et al., 2017).
The objective of this study is to investigate how two furniture manufacturing industries differently approach the concept of circular economy today. The aim of this research is to develop a framework that helps companies in implementing circular economy in regard to manufacturing of furniture.
1.3.1 The Specific Objectives
1. What approaches for circular economy are targeted by the companies 2. What diverse opportunities gained from implementing circular economy 3. To purpose a framework for circular economy fitting for furniture manufacturing companies.
1.4 Importance of the study for the Furniture Industry
An investigation was conducted by the EU Commission researching ten European countries purchasing behavior. This investigation was conducted through a postal survey. The result of the investigation showed that roughly 83% of the respondents had bought furniture within the last three years, and
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70% of them bought more than a single furniture product, furthermore the result indicates that the furniture industry production will increase as well as consumption globally (European Commission; Eco-label Furniture, 2004).
Another report conducted by Eco-label Furniture investigates 28 European countries in 2004. Table 1 shows the total waste of these 28 countries and that waste resulted from three main diverse sectors, i.e., wood, metal, and textile.
Table 2: Waste from four materials
1.5 Delimitation
In previous years, a standard business model has been profitable in summarized as "extract, create, and dispose of, resulting in waste”. However, presently there is stricter legislation regarding the environmental awareness meaning new solutions are an obligation (Lieder et al., 2017). Bircher et al. (2017) states that within the literature the concept has not gained a common definition or standard method concerning the concept.
How diverse scholar and associations define the concept of circular economy will not be the primary goal of the research nonetheless particular definitions of circular economy will be included in relation to the case companies. This research considers circular economy based on information given from the interviews and is therefore limited to that definition.
The research leans toward constructing a framework for the implementation of circular economy in regard to a furniture manufacturing company. This framework is a result of theory and interviews. That stated, this framework
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changes depending on the type of company, it’s definition of circular economy, and its goals.
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2. LITERATURE REVIEW & THEORY
In this chapter the author of the research presents the literature review in relation to the investigation followed by the theories.
2.1 Literature
2.1.1 Necessity for adopting sustainable concepts
Verstraeten-Jochemsen, et al. (2018) state the change is unavoidable, additionally, the increase of humanity is inevitable, at this time the human population is calculated at approximately 7, 6 billion people (SCB, 2019). However, Avdan (2016) & Ellen Macarthur Foundation (2017) state change and development are needed to generate success. Nevertheless, the increase rate of humanity has result in increased consumption of resources, considering this factor, humanity is endangering the earth resources for the future generation, innovative in addition more developed sustainable solutions is a necessity (Ellen Macarthur Foundation, 2017; European Commission, 2017; Avdan, 2016). Furthermore, presently there is stricter legislation for organization regarding the environment (Avdan, 2016; Lieder, M. & Rashid, A., 2016), government are recommending their local industries to shift towards a more sustainable practice, various organization are considering sustainable business models due to the strict environment legislations (Prieto-Sandoval, et al., 2018).
The European Commission in 2014 proposed an "A Zero-waste" program allowing for sustainable solutions as well as stirring towards a circular economy (Ellen Macarthur Foundation, 2017; European Commission, 2014). Prieto-Sandoval & Ormazabal (2018) & Ellen Macarthur Foundation (2017) states that circular economy is a concept that aims in developing a positive
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society in benefiting globally. It directs reducing consumption of resources and designing innovation of given waste, pro-longing resources life, which can also be defined as resource efficiency.
2.1.2 Drive for integrating circular economy framework
In previous years, a standard business model has been profitable (Avdan, 2016). However, the standard business model is summarized as "extract, make, and dispose of waste, however, presently there is stricter legislation regarding the environmental awareness meaning new solutions are needed (Lieder et al., 2017). However, the European Commission, (2017); Prieto-Sandoval & Ormazabal, (2018) states, there is an alternative to the current waste issue as well as the significant consumption of resources. Geissdoerfer, et al., (2017; European Commission, (2015) mentions a solution to the waste issue as well as a reduction to the consumption of resources, a sustainable resolution is defined as circular economy.
Sumter, et al., (2018) mentions numerous countries governing people are recommending organization transition to circular economy. Geissdoerfer et al., (2017); European Commission, (2015) mentions an investigation was conducted showing numerous European countries shift towards a circular economy, the result of the investigation concluded that there was a reduction in the countries greenhouse-gas emissions by up to 70% and an increase in the countries workforce by 4%. However, Howard et al. (2018) state that numerous organizations are implementing the concept of circular economy from previous exiting framework for circular business model nevertheless organization are unique and inconsistent making it challenging to integrate framework from a various company into another.
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2.1.3 Issue of implementing a circular framework
Numerous enterprises approach the concept of circular economy through specific practices, e.g., re-using waste materials, recycling the used resources, designing new solutions, another significant aspect of circular economy is the idea of creating a value of waste. If conducted in the right manner the concept provides a beneficial factor in the long term concerning the environmental impact (Sariatli, 2017; Verstraeten-Jochemsen, et al., 2018; Ellen Macarthur Foundation, 2017). However, a mutual definition towards circular economy has not been distinguished, making this factor a necessity (Lieder & Rashid, 2016; Martins, 2018). Nevertheless, according to Verstraeten-Jochemsen, et al. (2018), a framework was built to introduce circular economy to a given organization. Moreover, Verstraeten-Jochemsen, et al. (2018) states that the first step of transiting to circular economy is a framework which can be assessed by everyone within the company. Having a framework regarding circular economy is essential to converting rightfully towards circular economy, this will allow the designers from early phases consistently consider circular economy (Avdan, 2016; Verstraeten-Jochemsen, et al., 2018). However, Geissdoerfer, et al. (2017) states that building a framework requires conducting a literature review first to identify previous methods used. Verstraeten-Jochemsen, et al., (2018) explain this factor is crucial if desiring to convert to circular economy, analyzing the previous methods used to identify which are similar or diverse aspects where considered, will assist in shifting the given organization towards circular economy. Nonetheless, Sariatli (2017) argues that the value of the framework of circular economy has resulted in the long-term. Furthermore, De los Rios (2017) states another issue with converting towards circular economy is that constructing an innovative design solution for the product end life.
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2.1.4 Strength & weakness of circular economy
When implementing circular economy, there are specific practices which strengthen or weakens the concepts activities within the company (Sariatli, 2017).
Verstraeten-Jochemsen et al. (2018) state that to receive the achievement obtained from integrating circular economy, a framework which can be assessed by all personal strengthen to obtain the achievements. Furthermore, King et al. (2006) state that in a circular economy, resources are used more efficiently; the practices of reusing and refurbishing are principles of circular economy which allow a product and the resources to live for numerous lifetimes.
Ellen Macarthur Foundation (2017) mentions that operating with materials that are considered harmful towards the environment weakens circular economy within the organizations. Furthermore, Martins (2018) states withdrawing from the use of resources which are considered harmful towards the environment strengthens the aspect of circular economy, within circular economy resources are considered significant and practiced being preserved and prolonged.
Moreover, Geissdoerfer et al. (2017) suggest if an organization is collaborating with a supplier which is considered using methods which results in harm towards the environment that given collaboration should be dismissed, any aspect of environmental harm towards the environment is considered a weakness of circular economy.
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2.2 Theory
Figure 3 below show how the four chosen theories in this study are related to each other. Furthermore, figure 3 presents how the theory of resource efficiency and Product EoL fall under circular economy and how circular economy falls under sustainable solutions. The following sections 2.1 to 2.4 will explain each concept.
Figure 3: The steps within Sustainable Solutions in this study
2.1 Sustainable Solutions
First and foremost, the sustainability and sustainable solutions principles roots from much older discussions (Meadows, 1972). Nevertheless, the topic of sustainability and sustainable solutions were first introduced in a report named "Our Common Future" by the (World Commission on Environment and
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Development) in 1987, the concept was defined as "development that meets the needs of the present without the harming the future generation needs.
As mention earlier, a report conducted by the United Nations in 2008 proposes that by 2050 the megacities, e.g. (New York, Paris, Tokyo) will have 70% of the human population (SBC, 2016), bearing in mind humanity is steadily increasing (Avdan, 2016; Lieder et al., 2017), making it tougher to determine the approximate figures of the consumption of the megacities (Madlener and Sunak, 2011). Sustainable development aims in identifying the customer’s needs as well as considering reducing the environmental impact resulted from the manufacturing. Presently, organizations recognizing sustainable development are gaining competitive advantages (Prieto-Sandoval et al., 2018; Kirchherr et al., 2017).
UN-World Commission On Environment and Development, (1987). Conducted a report defining sustainable development that it aims in change, in misuse of resources the practices of technological development, in addition to the potential of identifying the human needs and ambitions.
2.2 Circular Economy
There are several definitions to the concept of circular economy, European Commission (2015) reports there is a resolution towards the consumption of resources issue as well as a solution to the waste problem. This solution is defined as circular economy. Ellen Macarthur Foundation (2017) defines the concept of circular economy as the aspects of resourcing product to maximize the waste issue resulting in advantages to the environment. However, Kalmykova et al. (2018) defines the concept of circular economy as a concept in which sustainable solutions are examined for the use of resources.
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The author of this study has chosen to mix both definitions for a broader/narrower definition of the concept of circular economy.
Figure 4, shows four sorts of practices within circular economy, categorized in terms of prevailing economic and environmental value.
Figure 4: Towards Circular Economy (Ellen MacArthur Foundation)
Figure 4 also shows the distinguishing between a biological and technological cycle within a circular economy (Ellen Macarthur Foundation, 2017). As shown in the figure 4, circular economy products undergo numerous cycles of maintenance. This is to allow the life cycle to become optimized or extend the life process. Circular economy includes the practice of reusing i.e. allowing the products to be used for a second life rather than turn to waste (Vezzoli & Manzini, 2008; Avdan, 2016).
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In recent years, the concept of circular economy is used in diverse manners. However, the real aim of the concept is to guide the world to a sustainable society and equality for everyone (Ellen Macarthur Foundation, 2017). Presently circular economy is approached by various organization and applied differently, minimizing the company’s environmental impact in addition to achieving competitive advantages (Prieto-Sandoval et al., 2018; Howard et al., 2018). An investigation was conducted examining seven European countries turn towards circular economy. The investigation resulted in each nation reducing the green-gas emissions by up approximately 70% (Madlener and Sunak, 2011). Ellen Macarthur Foundation (2017) states that circular economy is based on various principles: design out waste & keep products and materials in use as long as possible, as shown is section 1.1 figure 2: Guiding principle of Circular Economy.
2.3 Product End-of-Life (EoL)
King et al. (2006) defines product endo-of-life as the aspect of considering a second life for a product. A given product life cycle begins with the extraction of the raw material. Once the material is decided the next phase is the production phase, and finally manufacturing marketing (Martins, 2018). However, the last phase is not included is the End-of-life (EoL). This is the phase considered when the customer disposes of the product (King et al., 2006).
Madlener and Sunak (2011) & Avdan (2016) state that governing administration is recommending industries that there should be a reduction of their waste, and consider a sustainable solution, e.g., re-furbish and re-using. Considering these two topics within the development phase will result in a beneficial circular economy model and minimize the consumption of
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resources (King et al., 2006). When considering product EoL there include multiple phases and opportunities which assist with the re-utilization of a product including the components or the materials composed within the product (Lee et al., 2011).
Reuse: Numerous products or the materials within the product are considered to have a negative environmental impact when the product transits to waste (Castellani et al., 2015). However, the concept of “reuse” gives products a second use. Moreover, a second use of the components is consisted within the product is considered within the aspects of reusing (Vezzoli & Manzini, 2008; Avdan, 2016). Reusing products is an aspect to strengthen circular economy activities within a company (Ellen Macarthur Foundation, 2017). Reusing given products has the potential to provide several benefits one of which is environmental; moreover, the process of reusing includes using fewer resources. Another benefit is that the concept of reuse reduces the pollution derived from productions as well as the waste when the product reaches the end-usage (Castellani et al., 2015).
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Figure 5: The practices of refurbishment and reuse (Shanghai HuaiTu Network Technology, 2019)
Figure 5 displays a picture demonstrating reusing. The figure shows the product is displayed as waste however when refurbished the given product has the possibility of being reused and eventually leading to lesser waste for the environment and issue facing humanity presently (European Commission, 2014).
Refurbishment: Is defined as the improvement in a product; this aspect is approached through repairing a given (King et al., 2006).
Refurbishing is the method of repairing a given into the status it was initially designed in (Rathore et al., 2011). The increasing environmental legislation shows significant potential for the concept of refurbishing. Moreover, refurbishing is not only beneficial for the environment but also has an economic potential (Min & Galle, 1997). When considering circular economy to prosper, numerous guidelines are needed to be included within the circular business model, e.g., upgrade, reuse, sharing, refurbishment (Min & Galle, 1997; Rathore et al., 2011). Macarthur suggests that rrefurbishment is a practice
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which strengthens circular economy within the company (Ellen Macarthur Foundation, 2017).
Figure 6: Process of Product EoL Figure 6 above shows the occurrence of a products life from the extraction of their source until reaching the end-life of the product. Furthermore, figure 6 shows the opportunities that are available for product end-of-life (EoL) is incorporated. Once the product reaches the end-life, it should refurbished and then reused by the user if desired to, resulting in beneficial environmental impact as well as maintaining loyal customer due to products multiple life cycles.
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Figure 7: Difference between a standard business model and one that includes reusing and refurbishing
Figure 7 present how including refurbishing and reusing within a business model diverse from a standard business model. Through refurbishing the product and apply a new look, then reused by the user for a second life, concluding in lesser waste of products as well as receive the fullest value for the product (Ellen Macarthur Foundation, 2017; Kirchherr et al., 2017; Sariatli, 2017).
2.4 Resource Efficiency
Resource efficiency is defined as the use of earth’s resources in a practice which is considered sustainable, including minimizing the environmental impact due to extracting given resources (EUROPEAN COMMISSION, 2017). In 2017, the European Commission reported that by the year 2050 we will need an equivalent of two planets to sustain us, due to the significant consumption of resources. Numerous businesses have noticed the advantages of being more efficient with the use of resources. Industries will need a
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sustainable framework where resource efficiency is included, greater reuse of resources and innovative solutions to them (Sariatli, 2017).The issue of consumption of resources is a difficulty facing humanity presently however through the aspect of reusing resources and reduction of extracting resources the issue is targeted (European Commission, 2017). The figure below shows the issue reported by the European Commission previously.
Figure 8: Issue reported by the European Commission
Figure 8 present how by the year 2050 we will need an equivalent of two planets to sustain humanity (European Commission, 2017). If the issue is not targeted humanity will need an equivalent of three planets by the year 2081.
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3. METHODS & CASE COMPANIES
In this chapter, the author presents the methods and case companies. The purpose of this chapter is to provide sufficient information about the methodology used to collect the data and the reason towards chosen them. furthermore, the case companies which have collaborated in this investigation will include in the following chapter.
3.1 Research Methodology
3.1.1 Comparative Design
Bryman & Emma, (2017) state that comparative design is a research design in which the researcher is inquiring more than one similar case and analyzing a comparison, due to this the research included comparative design, for desiring researching regarding circular economy within two diverse furniture manufacturing corporations. Furthermore, Huisman & Tight (2013) mentions that comparative research is receiving notice within the last years, an accumulating interest in comparative research means an increase in needing to identify.
3.1.2 Ethical Consideration In this thesis investigation, the research is a collaboration with numerous organization which participated in distributing knowledge and information which is considered confidential as well as relevant to this thesis report. Prior to the start of the research, a confidential agreement with sent by the author of the report to the case companies; Interior Cluster Sweden, Gemla Fabrikers, and Abstracta. The confidential agreement includes that the researcher is obliged from sharing information with other organizations. Ethical consideration is applied within the interviewees with the organizations. In detailed, the research provided a clear clarification regarding the question
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which could appear in the interview to avoid any misinterpretation. The interviewees were informed of the recording would occur within the interview, this factor is essential due to any valid data would be shared the researcher would have a copy from it, these aspects need to be shared with the interviewee before the actual interview to avoid any misunderstanding (Bryman & Emma, 2017).
3.1.3 Literature Study A literature study is used regularly to collect significant information regarding a topic (Bryman & Emma, 2017). Due to the topic being a demand currently in the world, the investigation included a literature study to identify were literature stand concerning the concept of circular economy and sustainability. The literature study recognized the recent issues with circular economy in addition to pinpointing the previous theories and methods used in similar studies in addition to the results which occurred from them (Bryman & Emma, 2017). Furthermore, the literature study identified practices which will either strengthen or weaken circular economy activities within an organization. Furthermore, the investigation included only scientific journal and websites regarding the circular economy.
3.2 Data Gathering Methods
3.2.1 Qualitative Research The research methodology used to execute this project will have been identified as qualitative research, this is due to qualitative research being a method practiced when requiring receiving a deeper understanding of an assigned topic and gathering data the analyzing to reach a general conclusion (Bryman & Emma, 2017), when conducting qualitative research, a common tool which is used interviews (Bryman & Emma, 2017). Therefore, qualitative research is used within this investigation. This will be applied through two
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interviews with two distinct furniture manufacturing companies and literature study.
3.2.2 Semi-structured Interview Fontana & Prokos (2007) specifies that semi-structured interview is more flexible than a standard interview and tend to obtain more information about a topic, however interviewing manager is often challenging due to their status and powers level. Yet, if applied interviewing managers can prove beneficial, it gains accesses to a group of people from a senior level perspective (Bryman & Emma, 2017). Due to this, semi-structured interviews were conducted with management level individuals to receive a management perspective while considering numerous employees operating within, nevertheless lower-level employees will be interviewed as well. The investigation included a series of a question arranged in a specific order to motivate responses regarding circular economy and the implementation occurrence. However, the interviews were not strict towards the questions developed follow-up questions occurred. Bryman & Emma (2017), allowing for follow-up questions motivate for a more significant amount of data.
The investigation included a questionnaire within the semi-structured interview to motivate responses regarding circular sustainability and circular economy. The investigation included interviews with two product development leader or manager from the diverse organization due to desiring to investigate how to approach and implemented a circular economy from a perspective of management level with numerous employees operating within from two diverse organizations.
3.2.3 Questionnaire There are two different manners of managing a questionnaire sending a questionnaire by mail, or postal services are called a postal questionnaire. However, this method lacks validity due to unable to identify participant
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attitude towards the questionnaire, i.e. (not entirely confident about the participation), the other form of conducting a questionnaire is through attending a gathering with the participant (Bryman & Emma, 2017). Bryman & Emma (2017) states that conducting a questionnaire is profitable when collecting data about a specific subject. Due to this, a questionnaire was developed and included in the semi-structured interview. Furthermore, the investigation included a questionnaire to motivate the approaches towards circular economy and the implementation of the concept concerning the case companies (see in the Appendix). Moreover, Breslin & Buchanan (2008) states that conducting a questionnaire is a primary data gathering tool.
3.3 Case Companies
3.3.1 Interior Cluster Sweden
Is a Swedish furniture and interior cluster organization. Whose aim is generating growth and employment within the furniture industries. Interior Cluster Sweden want the furniture industry to be more sustainable and to achieve a goal of an entire value chain. The company maintains a connection with furniture companies which have agreed to their terms, including sharing ideas which benefit the environment as well as, communication regarding change in addition to employment possibility.
The researcher has come in contact with an employee from Interior Cluster Sweden. The company has agreed to assist the author in contacting two furniture manufacturing company working with the concept of circular economy and sustainability, for the possibility of achieving the research objective.
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3.3.2 Gemla Fabriker
Gemla Fabriker is a stationed in a small town in Sweden called Diö, Helgeå. Is Sweden oldest furniture manufacturer, founded in 1861.
Within the 1800s, a craftsman from Bohemia settled in Diö; however, the craftsman possessed knowledge of so-called Wiener furniture, that knowledge set the foundation to the crafts later developed in Gemla Fabriken Ab (Thomas, 2019; gemla, u.d.).
Presently, Gemla Fabrikers works with quality furniture providing the product to numerous organizations, e.g. (restaurants, schools, and hospitals). The company works only with wood material that is certified by the state. Moreover, the company is considered very environmentally friendly and works closely with the concept of sustainability. The company goal is to manufacture quality furniture allowing for renovation which will last a longer lifetime, which is their method of contributing to a better environment.
Figure 9: Chair manufactured by Gemla Fabrikers (Gemla, u.d.)
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Figure 9 presents a product manufactured by Gemla Fabrikers and designed by Tore Englund. Uniquely handcrafted to live for numerous lifetimes (Thomas, 2019; Gemla Fabrikers, u.d.).
3.3.3 Abstracta
Is a design company working with the production of soundscapes. Soundscapes is an acoustics atmosphere with "experienced hearing" as defined by the company (Abstracta, 2018). The company is posted in Lammhult, Sweden.
In recent years, there has been a revolution sound landscape's significance for the human health, creativity, and performance capability of improving human's performance. Multiple diverse organization is desiring to convert to not only look satisfying although sound satisfying. Abstracta is among the first of organization within the acoustic field. Presently, they offer a broad range of innovative quality manufactured with the acoustic function, providing unique furniture globally. The company is a member of a collaboration named Lammhult Design Group. The collaboration aims in developing and creating positive experiences through modern design for a global audience. The collaboration is very strict towards environmental legislation and is continually working with developing more innovative solutions towards their design.
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Figure 10: Soundcapes manufactured by Abstracta (Abstracta AB, 2019)
Figure 10 presents an example of the company’s product which furniture on the wall named soundscapes providing acoustic atmosphere consisting of renewable and environmentally friendly materials.
Figure 11: SCALA WALL (Abstracta AB, 2019)
Figure 11 presents an example of the company’s product named SCALA WALL consisting of 100 % recyclable materials designed by Anya Sebton. (TMF - Trä- och Möbelföretagen, u.d.; Abstracta AB, 2019).
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4. RESULTS & ANLAYSIS
In this chapter shows the results, presents research gathered from two furniture manufacturing companies, and analysis the usage of the concept of circular economy. For the purpose of the research topic, the author met with employees from diverse position within the company as well as the Floor Manager of Gemla Fabrikers. Additionally, the author conducted an interview with the product development manager of Abstracta and numerous personnel within Abstracta.
• The goals of the companies
Result: In response to the first question of the interview the Floor Manager and employees from Gemla Fabrikers states that the company is aiming to be internationally known for its unique product, which is to produce a product that will last for numerous lifetimes (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020). However, Abstracta’s goals are to provide innovative and sustainable furniture globally (Erik, 2019; Eddie, G., 2020; Eva, L., 2020)
Analysis: As previously mentioned in section Literature Study, United Nations (2018) emphasize that there is a necessity for organizations to be more sustainable and to start considering sustainable solutions for the manufacturing and production of products. As shown from the responses, both company’s aim on a future which includes producing sustainable products. However, a difference noticed from the results of the interview is that Gemla Fabrikers is aiming on international recognition from their products whilst Abstracta is aiming on providing sustainable products internationally. In summary, both companies have a somewhat similar goal of being more sustainable and environmentally aware but their difference in vision leads to different path.
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• What is required to be sustainable?
Results: Gemla Fabrikers argued “To be sustainable associations need to operate only with renewable and environmentally friendly materials” Materials which have been accepted by The Food and Agriculture Organization (FAO) (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020).
Abstracta responded “To be sustainable associations need to strive and achieve sustainable certifications and introduce the certification to other organizations to be recognized for our sustainable methods” (Erik, 2019, Eddie, G., 2020; Eva, L., 2020).
Analysis: As stated in the previous paragraph regarding that there is a necessity to be more sustainable. However, associations define what is required to be sustainable definition as shown from the responses. Gemla Fabrikers defines to be sustainable as the aspect of operating with limited resources, which have been accepted by FAO (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020). However, Abstracta defines to be sustainable as the aspect of receiving environmental certification. Abstracta have received certification ISO 1400; ISO 14001 certification given to association standardizing the 14001 development of products with minimal environmental harm (Abstracta, 2019). Distinctly the companies define their definition towards being sustainable. Nevertheless, each of the definition is practiced and targeted by the companies.
• How are you currently targeting sustainability?
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Results: Gemla Fabrikers stated that they are targeting sustainability by producing products consisting mainly of wood which has been accepted by the FAO. Furthermore, they craft in manner for the products to survive a hundred years (Thomas, 2019, Göran, D., 2020; Lenus, Å., 2020).
Abstracta answered “we are currently targeting sustainability through collaborating with various environmentally friendly associations in Denmark and Sweden to consider innovative sustainable solutions for the products” (Erik, 2019; Eddie, G., 2020; Eva, L., 2020)
Analysis: As seen in the responses, Gemla Fabrikers practices production of a products which lasts a long lifetime (Gemla- Sustainability, u.d.), resulting in lesser waste which is a significant issue facing humanity presently (European Commission, 2014). However, Abstracta produces products designed through collaboration with various organization to identify innovative sustainable solutions towards their development of products (LAMMHULTS DESIGN GROUP, u.d.). The aspect of numerous associations co-operating to identities solutions towards present issues is a principle of circular economy (Secretary- General, 2018; United Nations, 2018).
• Are you using any non-renewable or not environmentally friendly materials?
Results: Gemla Fabrikers admitted that they include leather within their products (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020)
Abstracta acknowledged that they include a polyester in various products (Erik, 2019; Eddie, G., 2020; Eva, L., 2020)
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Analysis: As seen by the responses, both companies currently use materials which are non-renewable or non-environmentally friendly materials.
Gemla Fabrikers uses leather within a product named CLARA Headboard (gemla, 2014). The use of Leather is not considered environmentally friendly (Pringle, 2017). Nevertheless, Gemla Fabrikers products are considered to live for 150 years (Gemla- Sustainability, u.d.). Constructing a product which will last for an extended period is being more sustainable than constructing products which get dispose of shortly after (McDonough, 2009). In the paragraphs below, the author discusses these products.
When discussing this: It is easy to say what goals and aims a company is targeting to be more sustainable. Nevertheless, many companies do this for show or acknowledgement. Both companies have clear sustainable goals and methods to reach those goals. However, in regard to the discussion of harmful substances both companies admitted to using. However, the interesting topic would be how they are planning on being more sustainable, what other products can they use instead of leather and polyester. Another question, is in regard to if a product lives for several years is it acceptable for it to include harmful substances?
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Figure 12: CLARA Headboard manufactured by Gemla Fabrikers (gemla, 2014
Figure 12 present the CLARA Headboard designed by Sara Helder & Gert Wingårdh in 2014 (gemla, 2014). Figure 12 show A product manufactured by Gemla Fabrikers which consisting of leather.
Abstracta includes polyester within a product named LILLY (archiproducts, 2018). The use of Polyester is not identified as environmentally friendly material (Tseng et al., 2007). Nevertheless, Abstracta intend to be more sustainable through advising their buyers to include hemp rather than polyester within various products (Erik, 2019; Eddie, G., 2020; Eva, L., 2020); archiproducts, 2018). Hemp is considered more environmentally friendly (European Commission, u.d.).
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Figure 13: LILLY manufactured by Abstracta (Abstracta AB, 2019)
Figure 13 present the acoutsitc product LILLY designed by Hallgeir Homsvedt & Runs Klock and launched in 2018 (Abstracta AB, 2019). Figure 13 present a product consisting of polyester.
• Reasons for implementation of Circular Economy?
Results: Gemla Fabrikers answered “we desire to design products in which the product is returned and renewed and then sent back to the customer, causing the product to live numerous lifetimes” (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020).
Abstracta: “we want to motivate our designer to only consider products that are of renewable resource and environmentally friendly materials” (Erik, 2019; Eddie, G., 2020; Eva, L., 2020)
Analysis:
As previously mentioned in chapter 2 the literature review & theory. associations are continuously discussing the issue of minimizing the consumption of resources and considering sustainable solutions. This includes the use of resources more efficiently (European Commission, 2014; Geissdoerfer et al., 2017). Implementing circular economy can result in
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minimizing the consumption of resources through specific practices and principles (Ellen Macarthur Foundation, 2017). As seen by the responses, both companies integrated circular economy due the environmental achievements obtained from circular economy. Nevertheless, the concept was implemented in distinct manners as well as in different departments within the company to reach diverse desired goals.
• What approaches are you taking towards Circular Economy?
Result: According to Thomas, Gemla Fabrikers approaches the concept by creating a circular business model in which the product is used in a recurring manner, through including the aspect of refurbishing and reuse (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020).
Abstract approaches the concept by strictly including circular economy principles within the design phase (Erik, 2019; Eddie, G., 2020; Eva, L., 2020).
Analysis: As seen by the responses, the companies define and approach circular economy in different ways. Gemla Fabrikers approaches circular economy through the aspects of refurbishing and reusing, allowing for a customer to return with the product and receive refurbishing for the product then reusing it for a second life (this method is shown in section 2.2 Figure 3: Towards Circular Economy (Ellen MacArthur Foundation) and Figure 5: The practices of refurbishment and reuse (Shanghai HuaiTu Network Technology, 2019) in section 2.3. This aspect targets circular economy principle of resource efficiency and minimizing harmful environmental impacts. Through allowing a customer to return and receive a second life for the products concludes in minimizing waste as well as using resources more efficiently (Vezzoli &
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Manzini, 2008). Abstracta approaches circular economy through including it within the design phase. It is vital to implement circular economy from an early stage (Verstraeten-Jochemsen et al., 2018). Considering this aspect Abstracta developed products consisted of 100 % recyclable materials manufactured by Abstracta (Abstracta, u.d.).
• What is imperative when implementing or operating with circular economy?
Gemla Fabrikers recognize that when implementing or operating with circular economy that a fundamental principle, including sustainability to be vital (Thomas, 2019, Göran, D., 2020; Lenus, Å., 2020).
Abstracta recognizes including circular economy from an early stage to be essential, allowing for sustainable solutions for the products (Erik, 2019; Eddie, G., 2020; Eva, L., 2020).
Analysis: As seen in the responses, the companies diversely consider what is imperative towards circular economy. Gemla Fabrikers crafts quality products a critical pillar which is to produce chairs which will last for generations (Gemla Fabrikers, u.d). Gemla Fabrikers considers it is vital when implementing circular economy that all employees are familiar with the topic. Allowing for a company to be build including a fundamental principle.
Abstracta considers including the concept of circular economy from an early stage as a vital aspect, allowing for the development of products with renewable and environmentally friendly materials (Erik, 2019; Eddie, G., 2020; Eva, L., 2020; TMF - Trä- och Möbelföretagen, u.d.). Furthermore, maintaining a process of minimal environmental impacts concerning the
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production of products concludes in achieving environmental certification (RISE Certification, 2018).
• What do you consider to be vital role when working with circular economy?
Results: Gemla Fabrikers is built with a principle that all employees are familiar with (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020), which is to develop products with quality end environmentally friendly materials which will last for generations (gemla, u.d.). Abstracta consider designers to be vital when working with circular economy (Erik, 2019; Eddie, G., 2020; Eva, L., 2020).
Analysis: The case companies different define which employees play a vital role. While Gemla Fabrikers considers that all employees should be familiar with the concept (Gemla Fabrikers, u.d.), permitting for a company to be built on the foundation of including an essential norm to be sustainable. Abstracta define the designers to be the vital role, resulting in sustainable solutions to the product from early stages (Abstracta AB, 2019).
• What is your employees’ attitude towards circular economy?
Results: Gemla Fabrikers is built in the 1980s with a specific pillar; producing high- quality products that are certain to live for a generation if cared for properly. All employees of the companies are familiar with the pillar and the fact that the company constant aim to be sustainable (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020). Abstracta includes the concept within the design team, the
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designers like working with the fact of benefiting the environment (Erik, 2019; Eddie, G., 2020; Eva, L., 2020).
Analysis: As stated throughout this research, the case companies have different definition for circular economy and differ methods of reaching the goals. However, as seen from the results both companies pride themselves in their sustainability aspect. It is obvious the companies’ employees’ attitudes towards the concept of circular economy are highly positive. Allowing for an organization to consider sustainability as a fundamental pillar. Furthermore, this aspect concludes in all employees familiar with the idea and motivating to consider innovative solutions.
• What opportunities do you see in the use of circular economy?
Results: Gemla Fabrikers has gained the possibility of developing products with environmentally friendly material and maintaining customer for more extended periods (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020). Abstracta had gained the possibility of developing products only using renewable materials as well as numerous organizations desiring to collaborate (Erik, 2019; Eddie, G., 2020; Eva, L., 2020).
Analysis: Implementing circular economy can result in diverse achievement profiting the associations and the environment (Ellen Macarthur Foundation, 2017). In Gemla Fabrikers a given customers with 20 to 100 furniture products will return to receive refurbishment, and later products are eligible to be reused, resulting in minimizing the environmental impact of the waste, including reducing the consumption of materials (Gemla, u.d.). This allows the
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organization to gain competitive advantages Ellen Macarthur Foundation, 2017).
Abstracta has gained the development of products with minimal environmental impacts resulting in environmental certification; ISO 14001 certification given to association standardizing the development of products with minimal environmental harm (Abstracta, 2019). Due to these numerous environmentally friendly organization desiring to collaborate with the various organizations to cooperate innovative sustainable solutions. Lammhults Design Group a collaboration of numerous organizations aiming in developing and creating positive experiences through modern designs for a global audience (LAMMHULTS DESIGN GROUP, u.d.).
• What are your results from the use of circular economy?
Result: Gemla Fabrikers has gained the possibility of maintaining customers, that keep coming back for generations (Thomas, 2019, Göran, D., 2020 Lenus, Åberg., 2020).Abstracta had gained the possibility of developing products only using renewable materials as well as numerous organizations desiring to collaborate (Erik, 2019, Eddie, G., 2020, Eva, L., 2020) due to their environmental awareness.
Analysis: The use of circular economy has resulted in Gemla Fabrikers need to construct a circular business model. Through this model a quality product lasts for 50 years and then allowing customers to return and receive a second life for their products. This eventually leads to the possibility of a product to last 150 years and maintaining loyal customer for a more extended period (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020; Gemla- Sustainability, u.d.).
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Figure 14: Product life-time from Gemla Fabrikers (Gemla- Sustainability, u.d.) Figure 14 shows the process of a Product life-time from Gemla Fabrikers (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020; Gemla- Sustainability, u.d.). Figure 14 presents how a product can last for 150 years, even though during construction the product was aimed to survive 50 years. However, through the possibility of it then being sent back to receive refurbishment it extends its lifeline and allows for a second life of 50 years. Thereafter, repeating the process and allowing the eventually resulting in a product that will have a life of approximately 150 years. Another result from circular economy is that practice benefits the environment. This by reducing the waste of products as well as the use of resources more efficiently (Gemla- Sustainability, u.d.).
However, circular economy has resulted for Abstracta with the desire of various associations craving to collaborate due to their unique sustainable solutions for example Lammhults Design Group (LAMMHULTS DESIGN GROUP, u.d.). Furthermore, developing product with environmentally friendly materials. Maintaining this aspect for Abstracta has conclude in development of product through solely renewable material resulting in environmental certification (RISE Certification , 2018).
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4.1 Summary of Findings
Organizations implement the concept of circular economy due to desiring a sustainable business model. This model includes fundamental goal regarding being environmentally friendly and strengthening sustainable activities within the organization (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020; Erik, 2019; Eddie, G., 2020; Eva, L., 2020); Abstracta, u.d.; gemla, u.d.). Through the implementation of circular economy results in operating to consider sustainable solutions for using resources more efficiently (European Commission, 2014; Geissdoerfer et al., 2017). An organization is desiring to transmit towards a sustainable business model; however, various activities either strengthen or weakness that factor (Howard et al., 2018).
Within an association, if all employees are familiar with an aspect will result in that aspect being constant included when operating. This factor is essential if desiring to achieve a successful circular business model that all personnel of the company are familiar with the concept of circular economy, this aspect helps strengthen circular economy activities within the company. Furthermore, including the concept within all departments — allow for an organization to be known for its environmentally friendly methods, concluding in collaboration with various environmentally friendly associations (Geissdoerfer et al., 2017). Furthermore, the design phase/product development group need to consider sustainable solution at an early stage (Sariatli, 2017), which strengthen the possibility of applying sustainable solutions in advance, within a circular economy material is preserved, and waste is avoided, resulting in innovative solutions for the product before the occurrence of waste (Ellen Macarthur Foundation, 2017). Also, concedes for the development of products using renewable mater (Abstracta, u.d.). Implementing circular economy evades the use of harmful
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environmental materials (Geissdoerfer et al., 2017), the use of harmful environmental impacts is considered a weakness of circular economy (Ellen Macarthur Foundation, 2017). However, associations target sustainability through the use of circular economy in diverse manners (Sariatli, 2017; Erik, 2019; Eddie, G., 2020; Eva, L., 2020; Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020). The concept includes operating under specific practices; avoiding the use of non-renewable material, continuously consider sustainable solutions before the product reaches its end, and the use of resources more efficiently (Martins, 2018; Gemla Fabrikers, u.d.; Abstracta AB, 2019).
Gemla Fabrikers approaches the concept of circular economy through the practices of refurbishment & reusing, concluding in the use of resources and materials for numerous lifetimes (Gemla Fabrikers, u.d.), this aspect allows gaining the most value of the materials (King et al., 2006; Ellen Macarthur Foundation, 2017). Furthermore, this practice enables the company to maintain customer for more prolonged periods (Vezzoli & Manzini, 2008). Considering their customers are various association the company obtains major collaboration with numerous organizations (Thomas, S., 2019; Göran, D., 2020; Lenus, Å., 2020; Gemla Fabrikers, u.d.). Nevertheless, according to Ellen Macarthur Foundation (2017), the aspects of refurbishing and reusing products is defined as circular economy.
Abstracta includes circular economy mostly within the design phase (Erik, 2019; Eddie, G., 2020; Eva, L., 2020). Nevertheless, the aspect is considered a difficulty within implementing circular economy (Sariatli, 2017). It is suggested that achieving to implement circular economy in early stages results in more various opportunities. This aspect amongst other things has led to Abstracta developing a product that consists only of environmentally friendly materials, see section 3.3.3 figure 11: Scala wall (Abstracta AB, 2019).
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5. DISCUSSION
In this chapter, the author presents the discussion. The purpose of this chapter is to interpret the results and their meaning and compare the data. The chapter discusses the results/analysis in relation to literature and tries to find and explain from it the most important patterns.
Due to the spreading industrialization revolution around the world, the increase in humanity has resulted in a rapid cycle of production-consumption of resources. This has led to the subject of using resources more efficiently and considering innovative sustainable solutions a necessity (European Commission, 2017). Implementing circular economy aims for s developing a positive society which benefits the environment and everyone globally — developing products with strict principles, practices which include reducing the consumption of resources and avoiding harmful environmental impacts concluding in innovative sustainable solutions (Ellen Macarthur Foundation, 2017). However, associations approach the concept of circular economy in distinct manners, causing the concept to be approached differently, and making this issue a need to be investigated.
Due to this, the investigation led to the suggestion of development of a framework for implementing or transiting towards a circular economy. Permitting for an organization to include a vital sustainable principle that will result in all employees of a company being familiar with the principle and incorporating the concept within their operations. Furthermore, the framework includes principles of circular economy and has the capability of being accessed by everyone within the company. Moreover, it is essential as well for organizations to co-operate with other associations desiring in
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benefiting the environment resulting in numerous associations collaborating in benefiting the environment. This results in competitions between companies and companies finding ways to become the “more environmental choice”. Another benefit is standardizing the feature of the production of products with minimal environmental harm thus resulting in environmental certification (RISE Certification, 2018). As seen in results, there are several ways and phases in which companies can include circular economy. One of those ways is including circular economy principles within an early stage of the design-stage. This results in developing products consisting of only renewable and environmentally friendly materials. This in turn has several significant benefits towards the environment, see section 3.3.3 figure 11: Scala wall (Abstracta, 2019; Erik, 2019; Eddie, G., 2020; Eva, L., 2020).
Another way of incorporating circular economy is by implementing refurbishing and reusing within a manufacturing companies’ products. This results in developing products with the possibility of a lifeline of 150 years. This also allows for minimization of waste and the use resource efficiency. Regardless of the phase in which circular economy is incorporated, the companies achieve environmental benefits and competitive advantages, see figure 14 chapter 4.
Implementing circular economy from early stages is essential when desiring to receive the advantageous obtained from the concept. Furthermore, a framework for circular economy is essential. The framework should be seen and accessed by everyone within the company. The given practices and principles are vital when desiring to be sustainable motivating. A reasoning for this is including the practices and principles in relation to the development of a framework for furniture manufacturing companies.
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6. CONCLUSIONS
This chapter concludes the research by analysing the result and discusses the outcome. Furthermore, the author also discusses the specific objectives.
6.1 Approaches for circular economy targeted by the companies
Gemla Fabrikers; approaches the concept through developing a circular business model with their customer, in which the product is utilized for multiple lifetimes (Gemla Fabrikers, u.d.), through including the aspect of refurbishing and reuse (Thomas, 2019; Göran, D., 2020; Lenus, Å., 2020).
Abstracta; includes the concept of a circular economy within the product development group or design phase (Erik, 2019; Eddie, G., 2020; Eva, L., 2020; Abstracta , 2019), thus providing sustainable solutions.
In Conclusion, this study focuses on two approaches. While both have great advantages, it is recommended to integrate both of these approaches. In this way, companies can both develop products that compromise of material friendly substances. As well as incorporate the refurbishing and reusing of material. This also has the benefit of products living for numerous lifetimes.
6.2 Diverse opportunities gained from implementing circular economy
Gemla Fabrikers; has gained the possibility of developing products which survive for 150 years (Gemla- Sustainability, u.d.), concluding in minimization of waste for their yearly outcomes. Considering this aspect, Gemla Fabrikers consider targeting the issue of using resources more efficiently and considering sustainable sustains towards them.
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Abstracta; has gained the possibility of developing product with minimal environmental impacts, see section 3.3.3 figure 11: SCALA WALL (Abstracta AB, 2019).
6.3 framework for circular economy fitting for furniture manufacturing companies.
The 5 principles wsere established based on numerous sources, explained in the following section: Principle 1 was gathered from the literature concerning Cradle to Cradle (McDonough, 2009). This principle was also collected based on the investigation with Abstracta, regarding the idea of only developing material using renewable and environmentally friendly materials (Erik, G., 2019; Eddie, G., 2020; Eva, L., 2020).
Principle 2 was gathered from the investigation with Gemla Fabrikers regarding the practices of refurbish and reuse (Thomas, S., 2019; Göran, D., 2020; Lenus, Å., 2020). Furthermore, Principle 2, 3, and 4 are considered aspects of what is defined as of pure circular economy or turning towards a circular economy business model (Ellen Macarthur Foundation, 2017).
Principle 5 essentially consists of knowledge regarding the 17 sustainable development goals set by the United Nations desired to be reached by 2030 (United Nations, 2018). The author of the report refers to all of them as principles due to the issue being various difficulties facing humanity presently. These difficulties need to be known by the associations when transiting towards a circular model, allowing an organization to be present with the difficulties facing the united Nation (United Nations, 2018; Ellen Macarthur Foundation, 2017).
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Some of the principles presented in this chapter have been modified and renamed or added in by the author based on literature gathered mostly from; Cradle to Cradle, United Nations, Ellen Macarthur Foundation.
Principle 1 Preserve and Prolong the Earth and its Resources
This principle includes operating with limited resources. Resources which are renewable and not hazardous to the environment, the principle is vital to preserving the earth’s resources for the future generation. Non- renewable resources are not fitting in an economy wishing to be more sustainable. From an early stage, designers and developers need to consider a solution using limited resources.
Principle 2 Refurbish & Reuse
Desiring to receive the most value of a product or the given component composed if it, is a crucial issue facing industries presently. Allowing for a product to be developed with the intention that in the end-life of the product, the material will be refurbished and finally reused for a second life. Furthermore, in addition to principle 1, these two principles are vital to be considered by the designers from an early stage, allowing for in advance to identify a solution for the products end-life or value for the resources used to manufacture the product.
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Principle 3 One-man waste is another man treasure
In addition to the 1st principle, an organization needs to consider waste as value. Materials should be obtained rather than made to waste. Undesired materials from one company can be beneficial for another organization, allowing for collaboration as well as profiting the environment. Furthermore, waste gathered within the company from the manufacturing process, that given material could be collected and gained from. All employees of an organization need to be aware of the idea of damaging the environment and implementation of circular economy. Personnel of the organization should be alert of the concept and its principles.
Principle 4 Alliance with the environment
If the given organization has any collaboration with other companies which are not environmentally friendly, that given company need to execute that collaboration. In a circular economy, material and resource are preserved and prolonged. Furthermore, the organization should consider associate itself with an environmental organization to reach the goal of a complete circular economy chain. Cooperating to identify innovative solutions to benefit their customers as well as the environment around them.
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Principle 5 Sustainability for everyone
United Nations have set 17 difference goals regarding sustainable development, which is aimed towards the year 2030. The goals are based on provides a blueprint for peace and prosperity for people and the planet. The goals include the difficulties facing humanity presently, e.g., ending poverty ultimately, improve health and education everywhere, reducing inequality, and economic growth (Secretary-General, 2018). An organization wishing to become more circular should be informed of the development goals and the issues, allowing the organization to be globally known for its environmental awareness.
The 5 principles are essential to be applied within particular parts of an organization. Considering furniture manufacturing organization is divided into three departments, i.e. product development & design phase, production & manufacturing, management & board of directors, this will allow for the 5 principles to be recognized where they should be applied and practiced.
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Figure 15: Divisions within an Organizations
Figure 15 shows the three department in a method of a product production process including the management division. Firstly, the design phase, then the production & manufacturing part, and finally the management & board of directors.
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Figure 16: Framework for Circular Economy
Figure 16 shows where the 5 principles should be practiced and approached. Figure 16 explains that product development/ design phase department practice the principles 1 & 2, which include the idea of 1- Preserve and Prolong the Earth and its Resources; allowing designers to practice developing product including only renewable resources, as well as identifying use solution for renewable material. 2- Refurbish & Reuse; the idea allows the designers from an early stage develop products which have multiple life cycles.
Principle 3 is considered in the production and manufacturing phase. Principle 3; allows for waste to be considered as beneficial value. The increased amount of waste is an issue facing humanity presently (Ellen Macarthur Foundation, 2017; European Commission, 2014). Nonetheless, principle 3 acknowledge that waste could be beneficial by constructing design from waste.
Principles 4 & 5 are to be considered within the management and the board of directors of an association. Moreover, Principle 4 allows for organization only
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to associate itself with environmentally friendly associations. For the possibility of collaborating to identify new solutions to benefit their customers as well as the environment around them. Furthermore, Principle 5 includes the idea of maintaining knowledge about the United Nations 17 sustainable development goal set for the year 2030 out by the United Nations (United Nations, 2018). This principle entails recognizing present matter and the practices towards mending the issues.
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7. FUTURE STUDY In this chapter the author presents future study if possible. The purpose of this chapter is to identify other aspects which are important when considering transiting towards circular economy.
Further studies could involve a more in-depth analysis of a furniture manufacturing company. This research covered the development of a framework for circular economy during mostly the implementation phase. Nevertheless, there are other aspects to include circular economy within e.g., transportation of products & packaging products to buyers.
Transportation of products: Transportation is one of the largest sectors and the largest source of CO2 emissions (European Federation for Transport and Environment AISBL, 2019). when implementing circular economy, the concept concerns sustainable solution within all department, any aspects which are considered to cause environmental harm guidelines of circular economy operates to avoid and minimize those aspects.
Packaging products to buyers: within circular economy, environmental bags are considered favorably rather than standard plastic bags which conclude in significant waste.
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8. REFRENCES
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Figure 4: Towards a Circular Economy (Ellen MacArthur foundation) Available at: https://www.ellenmacarthurfoundation.org/circular economy/concept [Accessed 3 March. 2019]
Figure 9: Chair manufactured by Gemla Fabrikers (gemla, u.d.) Available at: https://www.gemlaab.se/epages/gemlaab.sf/en_GB/?ViewObjectPath=%2FS hops%2Fgemlaab%2FCategories%2FOM_OSS [Accessed 15 February 2019].
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Figure 11: CLARA Headboard manufactured by Gemla Fabrikers (gemla, 2014). Available at: https://www.gemlaab.se/epages/gemlaab.sf/sv_SE/?ObjectPath=/Shops/geml aab/Products/%22CLARA%20HEADBOARD%22 [Accessed 3 March 2019].
Figure 13: LILLY manufactured by Abstracta (Abstracta AB, 2019). Available at: https://Abstracta.se/sv/produkt/lily/ [Accessed 20 April 2019].
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Figure 14: Product life-time from Gemla Fabrikers (Thomas, 2019; Gemla- Sustainability, u.d.) Available at: https://www.gemlaab.se/epages/gemlaab.sf/en_GB/?ObjectPath=/Shops/gem
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Abstracta Erik, G., 2019. [Interview] (2 March 2019).
Eddie, G., 2020 [Interview] (13April 2020)
Eva, L., 2020 [Interview] (13 April 2020)
Gemla Fabriker Thomas, S., 2019. [Interview] (16 February 2019).
Göran, D., 2020. [Interview] (2 December 2020).
Lenus, Åberg., 2020 [Interview] (2 December 2020).
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Gemla Fabrikers, n.d. Craftmanship. [Online] Available at: https://www.gemlaab.se/epages/gemlaab.sf/en_GB/?ViewObjectPath=%2FShops% 2Fgemlaab%2FCategories%2FOM_OSS [Accessed 15 February 2019]. Gemla- Sustainability, n.d. Sustainability. [Online] Available at: https://www.gemlaab.se [Accessed 15 March 2019]. Howard, M., Hopkinson, P. & Miemczyk, J., 2018. The regenerative supply chain: a framework for developing circular economy indicators. International Journal of Production Research, pp. 1-19. Huisman, J. & Tight, M., 2013. Theory and method in higher education research. 1st ed. Emerald: s.n. Kalmykova, Y., Sadagopan, M. & Rosado, L., 2018. Circular economy – From review of theories and practices to development of implementation tools. Resources, Conservation and Recycling, pp. 190-201. Kirchherr, J., Reike, D. & Hekkert, M., 2017. Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation & Recycling, Volume 127, pp. 221-232. Lagerstedt, J., 2003. Functional and environmental factors in early phases of product development - Eco functional matrix, Stockholm: PhD Thesis, KTH. LAMMHULTS DESIGN GROUP, n.d. Lammhults Design Group. [Online] Available at: https://lammhultsdesigngroup.com/ [Accessed 14 Febuary 2019]. Lieder, M. & Rashid, A., 2016. Towards circular economy implementation: A comprehensive review in context of manufacturing industry. Journal of Cleaner Production. Journal of Cleaner Production, Issue 115, p. 36–51. Martins, N. O., 2018. The Classical Circular Economy. Ecological Economics, Volume 129, pp. 32-39. McDonough, W., 2009. Cradle to cradle : remaking the way we make things. London: Vintage. Mckinsey & Company, 2015. Europe’s circular-economy opportunity. [Online] Available at: https://www.mckinsey.com/business-functions/sustainability/our- insights/europes-circular-economy-opportunity [Accessed 24 April 2019]. Meadows, D. H., 1972. The Limits to Growth. A Report for the Club of Rome’s Project on the Predicament of Mankind.. New York: Universe Books. Min, H. & Galle, W., 1997. Green Purchasing Strategies: Trends and Implications. Journal of Purchasing and Materials Managemen, Issue 3, pp. 10-17.
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Patel, R. & Davidsson, B., 2011. Forskningsmetodikens grunder: Att planera, genomföra och rapportera en undersökning.. Lund: Studentlitteratur. Prieto-Sandoval, J. & Ormazabal, 2018. Towards a consensus on the circular economy. Journal of Cleaner Production, Volume 179, p. 605–615. Prieto-Sandoval, V., Jaca, C. & Ormazabal, M., 2018. Journal of Cleaner Production, pp. 605-615. Rathore, P., Kota, S. & Chakrabarti, A., 2011. Sustainability through remanufacturing in India: a case study on mobile handsets. Journal of Cleaner Production, 19(15), pp. 709-172. RISE Certification , 2018. Certificate. [Online] Available at: https://www.dropbox.com/sh/t1ghg4ilpox8row/AABoXBq__BIxk8K8R7lO- lbSa/Abstracta%20General%20certificats%20ISO?dl=0&preview=ISO+14001.pdf &subfolder_nav_tracking=1 [Accessed 2 March 2019]. Sariatli, F., 2017. Linear Economy Versus Circular Economy: A Comparative and Analyzer Study for Optimization of Economy for Sustainability. Visegrad Journal on Bioeconomy and Sustainable Development, Volume 6(1), pp. 31-34. SCB, 2019. Population statistics. [Online] Available at: https://www.scb.se/en/finding-statistics/statistics-by-subject- area/population/population-composition/population-statistics/ [Accessed 4 April 2019]. Secretary-General, 2018. Sustainable Development Goal. [Online] Available at: https://sustainabledevelopment.un.org/sdg12 [Accessed 24 March 2019]. Shanghai HuaiTu Network Technology, 2019. [Online] Available at: https://pngtree.com/freepng/a-cracked-cell-phone_3477183.html [Accessed 27 May 2019]. Swedish Enviromental Protection Agency, 2018. About the Swedish Environmental Protection Agency. [Online] Available at: http://www.swedishepa.se/About-us/ [Accessed 2 May 2019]. TMF - Trä- och Möbelföretagen, n.d. SCALA - Abstracta. [Online] Available at: https://www.tmf.se/bransch/miljo--hallbarhet/hallbar-design/13- examples-of-sustainable-swedish-design/scala---abstracta/ [Accessed 20 April 2019]. UN World Commission On Environment and Development, 1987. Report of The World Commission on Environment and Development: Our Common Future, s.l.: s.n.
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Appendix
Questionnaire
1. What is the company’s long-term vision?
2. What is the company’s current mission?
3. How significant is sustainability in relation to improving the
consumption of materials by us as humans?
4. What is required to be sustainable?
5. What are you given attitude towards the concept of circularity?
6. Which personal/stakeholder play an important role when working
with circularity?
7. How many employees within the company work with the concept of
circularity?
8. How does the company target the concept of circularity?
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9. What opportunities has the concept of circularity provided?
10. In which parts of the production chain is circularity approached?
11. Does your company approach the aspects of re-using or recycling?
12. Does the company have any collaboration with other companies
regarding circularity?
13. Is there any limitation or barriers the company considers (e.g.
Endangered material)?
14. Does the given company use any non-renewable material?
15. What are the factors which make you consider circularity (legislation,
environmentally friendly)?
16. How did the implementation of circular economy occur?
17. What is imperative when working with circular economy?
18. How many employees operate under your station?
19. What is the desired result to be achieved from the concept of
circularity?
20. Has that given result been achieved?
21. Since the implementation of the concept what changes of have
occurred?
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