Moving Towards A Circular Economy - Norden.diva-portal

Agito Medical A/SSectorAalborg, DenmarkEEEwww.agitomedical.comGood circular business caseFrom its base in the Danish city ofAalborg, Agito Medical has expanded and established facilities inFrance, Germany, Netherlands andSpain. Although already one of themarket leaders in pre-owned medicalequipment, Agito Medical anticipates further expansion. Demand formedical equipment from healthcareinstitutions worldwide is set to risewith an ageing population and anincreasing incidence of lifestylerelated diseases.Value creation modelRepair9

Norsk OmbrukExtending lifetimesThe small Norwegian business NorskOmbruk has developed a professional and fast growing businessmodel for repair and re-sale of usedlarge household equipment such asfreezers, fridges, stoves, washingmachines.Serious business is thekey to successThe reuse market is generallygrowing in Norway. Reuse of usedhousehold equipment is widespreadin Norway but is mainly performedby direct sale via the internet or inmany cases by the informal sector,unlicensed companies or individuals. Norsk Ombruk has thereforesucceeded in building a reliableand robust business concept incollaboration with the retailers andtake back systems for large household appliances. With its 12 full-timeemployees Norsk Ombruk processesabout 6.000 units for reuse per year10and has a turnover of about 10 mill.NOK. The company also import newequipment for sale.The business model is structuredaround a few simple but effectiveelements: Effective logistic with trackingof individual products fromcollection points, through therepair process along to theend customer. Agreement with one of thelargest WEEE take back systemsin Norway (ERP Norway) Collection agreements withselected electrical retailers andmunicipal collection sites. A modern repair facility withskilled staff and establishedtest- and repair procedures andchecklists. Customer networks of secondhand shops for used large household equipment.Beneficial for environment andeconomyThere is particular focus on reusing relatively new, and thus alsoenergy-efficient products, which willensure environmental benefits. Theproducts which are taken in for reusewill have many years of remaininglifetime and only minor needs forfurther repair.Reused products are cheaper thantheir new counterparts, so are alsomore economically accessible formany people, particularly those on atight budget. As long as the businessoperates by law, jobs are created forthe benefit of society as a whole.A number of other Nordic companies – including Swedish greentech,Norwegian ATEA and Danish refurball provides a similar service wherethey take in used IT equipment forrepair, and re-sell.

SectorEEENorsk Ombruk ASStokke, Norwaywww.norskombruk.noValue creation modelReuse and Repair11

GodsinlösenTurning unwelcome accidents into environmental efficiencyWhen accidents happen replacement or reimbursement through aninsurance policy is a welcome relief.But what happens afterwards to thedamaged belongings? Back in 2012two Swedish entrepreneurs found abusiness opportunity in redeeminggoods in general and damaged electronics in particular. They discovered that while such goods may beuseless to insurance policyholders,up to 90 % of all modern electronic devices can be refurbished orrenewed.B2B collaborationThe business model Godsinlösenrose, and now recycles and resellsdamaged insured goods, operatingin collaboration with insurancecompanies and policy holders. Onrequest by insurance companies,Godsinlösen retrieves damagedgoods from policyholders andensures that they are handled, bybeing either reused or recycled, as12effective and transparent as possiblein line with environmental standards. This service not only generatesimmediate economic gains but alsohas a positive effect on the environment. Reuse reduces resource useand emissions linked to manufacturing of new goods.Resale outletRedeemable goods are sold inReturhuset, a retail store owned bythe company. A large share of thegoods are portable electronics likemobile phones, laptops and tablets.The net income from this aftermarketis shared between the insurancecompany and Godsinlösen. Thisbusiness model thus allows theservice provided by Godsinlösen tobe mainly self-financed, and oftencreates a profit to the insurancecompany.Massive savings are achievedThe company has been establishedon the principle of circularity. Allactivities aim to close material loopsby repairing EEEs. There are severallarge and small companies on themarket, which offer similar servicesof EEE repair, but not many workdirectly with insurance companies.The staggering global demandfor mobile phones upkeep a highdemand for precious metals used infabrication. Godsinlösen claims tosave 27kg of CO2 emissions per reused mobile phone. Since inceptionin 2012, the company has saved 47tonnes of CO2 by selling 416 laptopsreclaimed by insurance companies.At this time, Godsinlösens activitiesare concentrated mainly in SouthernSweden. However, the company hasambitions to expand to Stockholmand Gothenburg, which will entailcollaborating with more suppliers ofused EEE.

SectorEEESWAPping for more valueAn additional service is the Gödsinlosen SWAP, where the insurancecompany offers a replacement phonerather than repair or cash reimbursements. Swapping the phone with arefurbished phone from Godsinlösensaves time used to administrate arepair and time spent on each insurance claim. It also lessens the riskof fraud. To the claim holder, a cashallotment for a used phone mightbe less valuable than receiving arefurbished phone.Danish SA Service delivers a similarservice where they cooperate withten of the largest insurance companies in Denmark around assessing,repairing and re-delivering damagedwhite goods.Value creation modelRepairGodsinlösen Nordic ABStaffanstorp, Sverigewww.godsinlosen.se13

XellaSustainable construction, strong businessXella Denmark, part of the international Xella group, producesinnovative Autoclaved AeratedConcrete (AAC) blocks which areCradle-to-Cradle certified. From rawmaterial extraction, through the usephase, and finally as waste, sustainability is a guiding principle in thewhole life cycle of their products.Big scale, minimalenvironmental impactXella supplies building materialsmade of AAC and limestone underthe names of Ytong and Silka. Asthe corporation counts some 6.700employees, a turnover close to 200mio Eur, 98 factories located in 20countries and sales representativesin 30 more, minimising the environmental impacts of both the sourcingof raw materials and transportationof products to customers has agrand impact. The inorganic raw14materials – limestone, sand andwater – are sourced within a 200 kmradius of each factory.New business in certifiedconcreteCompliant with the strict new 2020European building standards, theYtong Energy AAC block was developed and Cradle-to-Cradle Basic certified in 2011. It is 100% recyclableinto new products. Thanks to goodinsulation capabilities, it enables thebuilding of energy-neutral houses.After the C2C certification andintroduction of Ytong Energy on themarket, Xella’s turnover in Scandinavia has doubled since 2011.Re-use and re-cycling in allproduct life-cycle stagesThe circularity of Xella’s businessmodel consists in the many re-useand recycling possibilities duringthe whole life cycle of AAC blocks. Inthe production phase, lime slurry, awaste product from the productionof limestone, is used as a sourceof energy for the production of AACblocks. The produced energy morethan covers Xella’s needs and excessenergy is sold on the market.Production waste is collected,dispersed in water or used for theproduction of new blocks. Moreover,up to 88% of water vapour used inhardening the blocks is re-used,while percolate is used as processwater for facility heating. FinishedAAC blocks are transported to construction sites on re-usable woodenpallets and covered in recyclableplastic wrapping. In addition, allconstruction cut-offs as well as alldemolition material at the end of lifeof the buildings can be transportedback to Xella’s factory and be usedfor the production of new AAC blocks.

SectorXella Danmark A/SBuilding, constructionLøsning, Denmarkand developmentwww.ytong.comNothing is wastedThe environmental and economicbenefits of Xella’s business modelin both operations and the futureproduct offerings of Ytong and Silkabuilding materials, is more thangood business. Xella calculatesthat a family house built using itsproducts will save 10–15 tons CO2over 70 years and will benefit from5% lower energy consumption everyyear thanks to the insulating abilityof the materials.Value creation modelProduct designAs such recyclable building materials become ever more popular,economic as well as environmentalsavings are realized by both customers and the company.15

Houdini SportswearKeeping the great outdoors greatFor Swedish sportswear manufacturer Houdini, creating responsibleand sustainable products is theall-encompassing raison d’etre oftheir product design. Lotta Giornofelice established Houdini in 1993,wanting to make technical productswith a ‘less is more’ philosophy. Theresult is a multitude of sustainabilityinitiatives.Sustainability in the entirevalue chainHoudini’s holistic approach tosustainability pivots the Re-project,which encompasses the initiativesRent, Repair, Recycle and Reuse.Houdini offers rental of shellgarments, repair services, recy-16cling of old garments and secondhand sales, all aimed at prolongedproduct lifetimes or once worn out,creating new products from the usedones. In 1995, a life-time repairservice was launched in order tomake Houdini garments last as longas possible.Since the early days, Houdini hasfocused on using the “right” fibresin terms of both sustainability andlongevity. In 2006 Houdini partneredwith Teijin in the closed-loop polyester recycling system Eco Circle andby 2007 they sold the first sustainable labelled Houdini products madefrom recycled fibres. Houdini hasalso sought to reduce the numberof suppliers in favour of maintainedcontrol as well as on designing products to be “simple” with a limitedmix of different materials in order toimprove on recyclability. To reducewaste levels, Houdini created theScrap Me Up project in 2010, whichuse scrap fabrics from factories tomanufacture limited editions.Rent or buy second handHoudini gear can also be rented. Thisis an advantage for those who onlyuse shells a few weeks of the yearand for those who are not entirelysure which type of shell garment thatthey want. This is also an advantagefor the environment, since garmentsare not left hanging unused in the

Houdini Sportswear ABNacka, Swedenwww.houdinisportswear.comcloset. Both entire sets and separate items can be rented for eithera weekend or a full week. Houdinistores are also open for resell of second hand Houdini gear. The pricingrange from 50–70% off the pricefor new items, while the first ownerwill get 50% of the second handsale. When buying a Kids Houdi thecustomer is offered up to 300 SEK inexchange for a used Houdi garment.The Houdis are then resold in storesfor the same prices as was given.Acclaim and inspirationHoudini’s efforts have not goneunnoticed. CNBC choose Houdini asone of the 25 most creative European companies in 2010 for its sustain-ability efforts. Houdini also receivedSwedbank’s Sustainability Prize in2012 for companies able to combinefast and profitable growth with a fullon commitment to sustainability.Other sportswear and clothingcompanies are also actively pursuingsustainability as a core businessgoal. Among the most famous areColumbia sportswear, Patagoniaand Timberland. In Sweden, otherfamous examples of a clothes company incorporating sustainability issues in their activities is Boomerang,which takes back their clothes anduses them in furniture upholstering,and Filippa K which also resells usedFilippa K garments in their stores.SectorTextileValue creation modelProduct design,Service and function,Reuse, Repair17

Úrvinnslusjóður & NofirRecovery and recycling of fishing nets in the NordicsState-owned Úrvinnslusjóður, theIcelandic Recycling Fund, worksthrough state legislation towardsincreasing national recovery andrecycling rates on various types ofproducts including used fishing nets.Iceland’s large fleet of fishing shipsdiscards a great amount of fishinggear each year and the legislationallows the industry to make specialagreements with Úrvinnslusjóðurin order to ensure collection andrecycling of the nets.Essential collaboration withindustrySince 2005 LÍÚ, now SFS (FisheriesIceland), has been responsible foroperating and financing a collectionsystem for retired fishing nets basedon an agreement with IRF. As long asthis agreement is in place, fishingnets made of synthetic materialsare exempted from recycling fees.18Fishing is a crucial part of the Icelandic economy generating between35–40% of Iceland’s GDP. Thus including vessel owners in the systemhas been a high priority in order tosafeguard their mutual interests. Theremaining industry was also included, for instance by appointing fourout of six board members being fromthe Úrvinnslusjóður fund.How it worksIn practice, the vessel owners andcrew manually separate the netsfrom wires and ropes. Hereafterthe vessel owners may themselvestransport the nets directly to a recycler or pay for transport through thesystem collection stations. The netscollected in Iceland are mainly transported abroad for final recycling.The bar is set highÚrvinnslusjóður works with clear recycling targets, and is continuouslybecoming more and more ambitious;from 45% in 2006 to 50% in 2007and 60% in 2008. Today the recovery of fishing nets is estimated to bearound 80% and the majority of bothnets and wires goes to recycling.Fishing ropes, however, remaindifficult to recycle due to the blendof different materials.A Norwegian pendant15.000 tons of plastic equipmentfrom the fishing and fish farmingindustry is discarded each year inNorway alone. In Norway, someprivate and competing schemeshave been implemented in order todeal with all this material during thelast years.

Nofir is one of the leading companies recycling discarded equipmentfrom fishing and fish farming recycling, with a nationwide collectionsystem. In 2012 Nofir was grantedsupport from the EU Eco Innovatonscheme and have since collectedmaterial all over Europe and latelyalso in North-America. By 2014 theNorwegian system had collected4 886 tonnes of material, mainly inNorway. Other Norwegian operatorsreport similar good recycling results.Both the Icelandic and the Norwegian systems are simple and couldinspire other countries to increasethe recycling of fishing nets. Notonly does it contribute to reducingresource use but it also helps reducethe amount of fishing equipmentdiscarded in the oceans.Icelandic Recycling FundReykjavik, Icelandwww.urvinnslusjodur.isSectorTextileNofir ASwww.nofir.noValue creation modelRecycling &Waste Management19

ViggaBaby clothes on demandCircular economy thinking is thecornerstone of the Danish babyclothes brand Vigga. The businessis based on the philosophy, that if ababy romper is only used a few timesbefore your baby outgrows it andthe romper then ends up in the attic,almost any effort in sustainable production will most likely be opposedby the rompers short lifetime. Viggahas therefore created a subscriptionservice for baby clothes.new packs of Vigga clothes. Thesmaller sizes are usually only witheach user for a short amount of time,because babies grows quickly inthe beginning. Larger sizes mightthus stay for longer with each baby.However, it all depends on the specific needs of each customer, and itonly takes a click on the screen anda visit to the mail box to receive thenext size.Design and quality is crucialClothes on demandThe basic idea is that once the babyis born, you take out a subscriptionfor baby clothes from Vigga. By mailyou then receive a pack of selectedpieces of clothes for your baby in thesuitable size. As your child grows,you then replace the clothes with20The Vigga collections are designedto suit all kinds of children in allkinds of shapes. The design is therefore carefully carried out, so thattrouser legs and shirt sleeves can berolled up and down, and necklinesare suitable for large heads.Further, each piece is designed withreuse in mind, and the clothing hasbeen tested to last for the circularbusiness model. The clothing is thusof such a quality that several children can enjoy the clothes. Finally,once the clothes is worn out, theclothes will be used to produce newproducts, so that nothing is wasted.Careful attention to productionand social responsibilitiesVigga wears one of the textileindustry’s most stringent certificatesGOTS, which is the acronym forGlobal Organic Textile Standard.GOTS is an international, recognizedlabeling system which guaranteesthat Vigga clothes are made of atleast 95% organic material and thatproduction is both environmentally

ViggaCopenhagen, Denmarkwww.vigga.usand socially responsible. This e.g.mean that all bleaches, dyes anddetergents that are used in production must meet a number of strictrequirements for environmentalhealth. Further, the clothes isproduced by cotton, which is grownwithout the use of pesticides andother hazardous chemicals. Finally,although not part of the GOTScertification, the clothes are washedand cleaned at a Swan labeled drycleaner between each user.GOTS certification is also a guarantee that the suppliers do not usechild labor, that employees have theright to organize and that workersare not discriminated against orunder paid.Value creation modelDesign,Service and function,ReuseSectorTextiles21

Arla FoodsZero waste programmeArla Foods is a cooperative dairycompany owned by 13 500 European dairy farmers, selling foodproducts to consumers in more than100 countries. Arla is the world’sfifth largest dairy company and theworld’s largest producer

Circular Business models in the Nordic countries - case presentations and policy recommendations The concept of a 'Circular Economy' is currently high on the political agenda. World business leaders, policy makers, academics and NGOs argue that a move towards a more circular economy is necessary in order to help solve global environ-