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This collection features a selection of inspiring examples of the circular economy, compiled in the context of the Switch to Circular Economy Value Chains programme (SWITCH).

Launched in 2020, SWITCH is a five-year initiative that assists EU multinational companies and their suppliers from developing countries to switch to more circular economy approaches and practices in three selected value chains: [Plastic Packaging](https://knowledge-hub.circle-lab.com/switchtocircular/search?collections=832%3D0&framework_elements__5=111), [Textile & Garments](https://knowledge-hub.circle-lab.com/switchtocircular/search?collections=832%3D0&framework_elements__5=99), and ICT and Electronics.

The overall objective of SWITCH is to support the “transformation towards a circular economy”, and to contribute to sustainable growth, low carbon and climate resilient development, decent jobs creation, and a safer, healthier and pollution-free environment.

SWITCH is co-funded by the European Union and the Government of Finland, and implemented by UNIDO, in collaboration with Chatham House, Circle Economy, and the European Investment Bank.
Learn more at www.switchtocircular.eu

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Switch to Circular Economy Value Chains

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Business case

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Providing goods on the Internet, through mail order, or television, or providing goods in stores, including apparel, electronics, furniture, food and drug, etc.

Retail

Producing basic and specialty chemicals, inks, agricultural chemical such as fertilisers and pesticides, plastics including packaging, and rubber

Chemical and Plastic

Using bio-based materials such as bioplastics, mushroom-based materials, etc.

Alternative bio-based materials and inputs

Transforming waste products, materials for reuse within other industries

Open loop upcycling

Using waste materials that have been processed and recycled to produce new products within other industries

Using open loop recycled materials

Working together with stakeholders and parties in other unrelated industries to implement circular economy strategies and opportunities

Cross-industry projects, pilots

Working together with the community and engaging them in the company operations

Joint product development

Impacts

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Industries

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The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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 The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters and bio-based materials development company Origin Materials to accelerate the development of innovative packaging solutions made with 100% sustainable and renewable resources. Today it announced that PepsiCo, Inc. has joined the Alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint. The Alliance also provided a progress report in its goal of developing and launching a PET plastic bottle made from bio-based material. Launched in March 2017, the Alliance uses biomass feedstocks, such as previously used cardboard and sawdust, so it does not divert resources or land from food production for human or animal consumption. The technology being explored by the Alliance represents a scientific breakthrough for the sector, and the Alliance aims to make it available to the entire food and beverage industry. Read the full press release  

The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters, and bio-based materials development company Origin Materials  to accelerate the development of innovative packaging solutions made with 100% sustainable and renewable resources. On Sept. 11, NaturALL announced that PepsiCo, Inc. has joined the alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint. The alliance also provided a progress report in its goal of developing and launching a PET bottle made from bio-based material. Launched a year ago in March, the alliance uses biomass feedstocks, such as previously used cardboard and sawdust, so it does not divert resources or land from food production for human or animal consumption. The alliance says the technology it is exploring represents a scientific breakthrough for the sector, which it aims to make available to the entire food and beverage industry. “Creating more sustainable packaging requires innovation through the value chain. Producing PET from sustainable bio-based sources that do not diminish food resources and are fully recyclable is a great example of such innovation and an important contributor to PepsiCo’s sustainable packaging program,” says Mehmood Khan, PepsiCo Vice Chairman and Chief Scientific Officer. “Through our Performance with Purpose agenda, PepsiCo is committed to reducing the carbon impact of packaging in line with our goal to reduce absolute emissions of greenhouse gases by 20 percent by 2030; bio-based PET has the potential to reduce significantly the carbon footprint of our PET bottles, a huge contribution to our efforts in this area. We are excited to add PepsiCo’s R&D capabilities to the alliance and look forward to seeing what the combined efforts of the alliance members can achieve.” “PepsiCo is a welcome addition to the alliance because we share the goal of making renewable plastic a reality,” says Origin Materials CEO John Bissell. “Through the combined efforts of its members, the NaturALL Bottle Alliance is setting the bar for sustainability for an entire industry.” Commentes Frédéric Jouin, Head of Research and Development for plastic materials at Danone, “We are very enthusiastic about PepsiCo joining the alliance. By bringing together major players and pooling our complementary expertise and resources, we can make 100-percent renewable and recyclable PET plastic at commercial scale a reality. We also expect to see additional opportunities for this breakthrough technology.” Massimo Casella, Nestlé Waters’ Head of Research and Development, adds, “We are pleased to welcome PepsiCo into the NaturALL Bottle Alliance. Their addition is further proof of the importance of this disruptive technology. The alliance has taken an important step in working together to tackle the challenges around plastic packaging. Developing 100-percent bio-based PET is one way Nestlé is working to use more materials from sustainably managed renewable resources.” Progress report After producing samples of 80% bio-based PET at pilot scale in 2017, the alliance has made further progress toward its goal of bringing its technology to full commercial scale. It has selected a site in Sarnia, Ontario, Canada, with the assistance of Bioindustrial Innovation Canada, and has begun construction of its demonstration-scale plant. The major process equipment has been fabricated, and modules are under construction for this plant, which is expected to have a capacity of 18,000 tons of biomass and be fully operational by 2020. Following that milestone, the alliance plans to increase production to 95% bio-based PET and achieve full commercial-scale soon after. Alliance members plan to continue their joint R&D efforts to increase the level of bio-based content, with the ultimate objective of reaching 100%.

 WHERE WE ARE TODAY
Today, we systematically look to collaborate with public authorities and private companies to optimize formal Extended Producer Responsibility (EPR) and Deposit Return Scheme (DRS) systems. In fact, Danone helped pioneer the concept of EPR in France with the founding of Eco-Emballages (today known as CITEO).
In countries where collection systems for recycling are informal, we work with local communities governments and partners like the Inter-American Development Bank to improve standards for waste collection and invest in recycling infrastructure. Danone and the Danone Ecosystem Fund have launched projects to support waste pickers in 7 countries, including by ensuring they work in a safe environment, are paid appropriate wages and afforded greater social protection. As of 2018, close to 6,000 waste pickers have been professionally empowered, and more than 45,000 tons of waste are recycled each year through these projects.
Finally, our brands have been working to engage consumers in the circular economy and support cutting edge research innovation.  For instance, evian® is taking part in a research mission with The Ocean Cleanup, a Dutch non-profit start up that has developed scalable advanced technologies to help rid the oceans of plastic, while Danone AQUA has pledged to recover more plastic than it uses in Indonesia, including through interception of marine littering. 

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PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated $79 billion in net revenue in 2021, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Pepsico

Danone S.A. is a French multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are branded Dannon in the United States.

Danone

Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since 2014. 

Nestle 

Origin is the world's leading carbon negative materials company. The Origin platform turns the carbon found in biomass into useful materials, while eliminating the need for fossil resources and capturing carbon in the process.

Origin Materials

<p>The NaturALL Bottle Alliance is a research consortium formed in 2017 by Danone, Nestlé Waters and bio-based materials development company Origin Materials to accelerate the development of innovative packaging solutions made with 100% sustainable and renewable resources. PepsiCo, Inc. has joined the Alliance to advance the shared goal of creating beverage containers with a significantly reduced carbon footprint.</p>