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The Circular Economy Opportunity for Auckland and How Business Can Realise It

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The Circular Economy Opportunity for Auckland and How Business Can Realise It The Circular Economy Opportunity for Auckland and how business can realise it Photo: Chris McLennan THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 1 Auckland could liberate up to $ BILLION8.8 in additional economic activity and reduce carbon emissions by 2,700 ktCO2e in 2030 SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 2 Executive summary Auckland could liberate up to These are the results of a new study carried out by A circular economy de-couples resource use 1 $8.8 billion in additional economic Sapere Research Group working with the Sustainable from economic growth. Lifecycles of materials are Business Network (SBN), in partnership with Auckland maximised, usage optimised and at the end of life all activity and reduce carbon Tourism, Events and Economic Development. materials are reutilised. It is restorative by design and emissions by 2,700 ktCO e in 2030 The work was supported by Fuji Xerox NZ, Inzide underpinned by the use of renewable energy. 2 Commercial, Junk Run, 3R Group and the Ministry for A circular economy goes beyond an improvement by shifting from the current linear the Environment. to the dominant linear economy. It is a viable take, make and waste model to a Modelling analysis across Auckland’s economy replacement for it. Shifting to it would generate huge circular economy. has identified the potential contribution to the city’s economic, environmental and societal benefits. Gross Domestic Product as between $6.3 - $8.8 billion Applying circular economy thinking to Auckland will by 2030. install environmental and economic resilience into the The analysis focuses on food, transport and the built city. It will trigger a new era of business innovation. environment. These three sectors have a significant At the same time it will radically reduce the costs of our input into Auckland’s economy. They have also been economic activity and the material inputs it requires. identified by SBN’s work in New Zealand and research overseas to be the sectors best positioned to make the transition to the circular economy. These sectors tend to include high waste, high cost and heavily polluting activities in the current linear economy model. The carbon reduction opportunity across them is identified as 2700 ktCO2e in 2030. 1 A circular economy for Auckland - scoping the potential economic benefits, Sapere Research Group, April 2018 SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 3 New business models like the shared economy, This report spells out the benefits of taking the lead, For these opportunities to be realised, we must think ‘business as a service’ and renewable technologies and how business can start to do that, by: and work differently across the entire value chain. We are already with us. The challenge now is to follow must adopt new business models. It will not be easy, • connecting entire processes within our economic the world-leading countries and cities reshaping but it is necessary. system through innovation their economic operating systems to prepare them The trajectory is clear and momentum is building, now for where these models are taking us. Because the • establishing procurement processes that favour is the time for Auckland businesses to ‘go circular’. circular economy is inevitable. It is the only viable products and services with a circular economy model with which we can successfully meet the approach needs of a growing population on a planet within our • actively working with non-government planetary boundaries. organisations, government ministries and others to In New Zealand we have the added opportunity to promote the circular economy align and refine circular economy thinking through • targeting investment to accelerate the transition to cooperation and collaboration with the business a circular economy models and worldview of the country’s indigenous people. Doing so successfully would lead to the • sharing and supporting training in the circular development of a holistic economic mindset economy that would also assist to dissolve current cultural • working to inform and influence the government boundaries. policies required to enable the transition Photo credit: Todd Eyre Photography Ltd SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 4 Contents Executive summary 3 SECTION TWO A sector focus 31 Foreword 6 Auckland – becoming Food 32 a circular city 16 About this report 7 Opportunities for business 34 What’s already happening 18 Key actions Introduction 8 to catalyse change 35 The benefits – boosting the economy while cutting carbon emissions 24 Transport and Logistics 36 SECTION ONE Opportunities for business 38 Six key levers 25 The circular economy 9 Key actions to catalyse change 40 What’s in it for business? 12 How to make it happen – the enabling factors 26 Circularity at work 14 Construction 41 Think and operate in systems 26 Opportunities for business 42 Closing time for Reset procurement 27 business as usual 15 Key actions to catalyse change 44 Make circularity desirable 28 Fund the transition 29 Conclusion 45 Share knowledge and Acknowledgements 46 develop skills capability 29 Use data 30 Set the rules to enable the transition 30 SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 5 Foreword The way we do business worldwide One of the ways this can be done is by transitioning Globally, countries such as Sweden, Scotland and is putting enormous stress on the Auckland to a circular economy: an economy which Japan are leading the charge on shifting to a circular seeks to de-couple resource use from economic economy, the principles of which are being embraced environmental and societal systems growth, keep resources in use for as long as possible, by some of the world’s biggest brands as well as the upon which our markets and extract the maximum value from them, then recover many local organisations referenced in this report. and regenerate products and materials at the end of Auckland, Tourism, Events and Economic companies are entirely dependent. their use. Development (ATEED) is delighted to partner with SBN From an economic development perspective, to develop an economic insights paper based on this Every year developed economies use between the circular economy represents new business comprehensive report. three and four times the amount of resources that opportunities in growing global markets including are sustainable for the long term. If left unchecked, Circular Economy: A new dynamic for Auckland new business models in transport, waste to value the environmental damage being done to our planet Businesses provides economic perspectives on a opportunities in the food sector and the re-use of threatens to disrupt our global markets and economies. circular economy. construction materials. This report, entitled ‘The Circular Opportunity for Auckland with its innovative, entrepreneurial business The World Economic Forum states that the circular Auckland and how business can realise it’, by the culture has the opportunity to position itself as a economy’s potential for innovation, job creation Sustainable Business Network (SBN) with economic circular economy city for the world. A co-ordinated and economic development is huge with estimates analysis by Sapere Research Group, is the first approach is paramount, with central and local indicating a trillion-dollar opportunity on a world scale. quantification of the potential business benefits of government, communities, businesses and individuals Auckland moving to a circular economy. The new economic analysis outlined in this SBN report working closely to spearhead the impetus for this indicates Auckland could benefit from up to $8.8 essential change. The report looks at the financial and carbon reduction billion worth of additional economic activity a year by benefits Auckland could gain from shifting from the making the shift from the current linear take, make, current linear economy to a circular economy. waste model to a circular economy. Patrick McVeigh, General Manager, Sustainable development is a priority for all Business, Innovation and Skills – For Auckland businesses, pursuing process and product communities, cities and countries. For Auckland, and Auckland Tourism, Events & innovations that reflect circularity will create new forms New Zealand, there is a very real need for all residents Economic Development (ATEED) of value, open up new markets and support sustainable and businesses to make a contribution to becoming a growth by reducing reliance on finite resources. lower carbon economy. SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 6 About this report This report provides an indication It is based on economic modelling by Sapere The report was developed by the Circular Economy of the potential economic and Research Group. It represents the first such analysis in Accelerator, a new team of business innovation a New Zealand context. experts created by SBN. The Circular Economy carbon reduction benefits Accelerator’s aim is to collaborate with New Zealand The report expands on the Sustainable Business businesses, government and other groups to hasten Auckland can realise from Network (SBN)’s previous research into the key the installation of a circular economy in New Zealand. focus areas for enabling the transition to a circular embracing the transition to a To find out more go to circulareconomy.org.nz economy.2 Facilitated workshops and interviews with circular economy.
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