Business case

Impact on the health and happiness of human populations

Well-being

Impact on the ease of innovation, and facilitating uptake of innovations

Innovation

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Reduced use of virgin materials and/or an increase of the use of secondary and bio-based materials

Reduce Material Consumption (SDG12)

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)

Reduced use and withdrawal of water and rate of recycling and reuse of water

Save Water (SDG6)

Reduced use of fossil fuel energy sources and/or increased use of renewable energy

Reduce Energy Consumption

Providing healthcare services, such as hospitals, medical facilities and patient care services, medical research and clinical trial services, pharmaceuticals and drug development, and genetic engineering services

Healthcare Services

Designing products so they use as little materials, water, energy, etc. as possible during use

Design for resource efficiency

Utilising data and models to to identify, enable and/or implement circular strategies (eg. effective resource use & logistics planning, circular business models & design)

Data analytics, modelling

Other

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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 It's widely recognised that the healthcare sector has a large and costly environmental footprint. Hospitals in particular account for some of the most energy-intensive facilities, yet many traditionally have been slow to embrace resource efficiency. A study by the University of Chicago found that the industry stands to save up to $15bn over 10 years by adopting more sustainable practices - it's an opportunity that hasn't gone unnoticed by Johnson & Johnson (J&J), the world's sixth-largest consumer health company.   Earthwards recognition is reserved for the company’s most improved products, which must achieve three significant improvements across seven impact areas  J&J’s product stewardship lead Al Ianuzzi says customer demand is increasing for more sustainable products – highly significant when you consider that healthcare is one of the highest growing industries in the world. Globally, he says, the sector spends more than $200bn a year on medical and non-medical products. It’s also constantly innovating: around 25% of J&J’s 2015 sales came from new products introduced within the past five years. These two drivers sit at the heart of the company’s product stewardship programme, Earthwards, which Ianuzzi helped pioneer back in 2009. Earthwards was launched as the company had a hunch that the market would demand greener products that could deliver added value and performance. It’s an approach that uses lifecycle data to identify the environmental and social impacts of a product, and identifies opportunities to dematerialise them. Earthwards recognition is reserved for the company’s most improved products, which must achieve three significant improvements across seven impact areas: materials, packaging, energy, water, waste, positive social impact and product innovation. “Our criteria for Earthwards I think is the most stringent of any company I’m aware of … they have to have three sustainability improvements compared to a previous version of that product,” says Ianuzzi. Earthward bound Back in 2011 Ianuzzi’s team set a goal to have 60 Earthwards-recognised products by 2015 – a goal it achieved a year early. “Right now we have 87 [Earthwards-recognised] products, reflecting approximately $9.2bn in J&J revenue during 2015. But that number is understated as it doesn’t account for all the different variations of a particular product,” says Ianuzzi. Later this month, the company is due to formally launch a new, far more ambitious target as part of its upcoming 2020 citizenship & sustainability goals, which includes a target of creating 20% of company revenue from Earthwards-recognised products by 2020. “If we achieve this, we hope to have at least 175 Earthwards-recognised products by the end of 2020. It doesn’t sound like a lot of products, but in terms of revenue, it’s a huge impact,” says Ianuzzi. To help achieve this, the company has now incorporated Earthwards into its new product development process. Every new product and package has to go through three steps: identifying regulatory, corporate and supply chain risks; understanding lifecycle impacts and associated hotspots for that product category; encouraging the product brand teams to make three improvements. Once these three steps have been completed, the product is then independently verified. Much of this work relies on a deeper level of supply chain engagement. “We used to think our biggest impacts as a company were at our manufacturing facilities, but really they’re in the raw materials we choose and the lifecycle of those products,” notes Ianuzzi. “It’s really difficult in some cases to find out where all of the component parts of a product are coming from. Trying to understand where each of these raw materials are sourced from is very complex.” As with any engagement process, Ianuzzi acknowledges there can be challenges as well as opportunities – especially as J&J deals with more than 78,000 suppliers. “We may be only one of hundreds of companies [that a supplier] is dealing with, we don’t always have that leverage. But there are other suppliers that are like-minded, that are thinking with a sustainability lens. They are easier to partner with and so we gravitate towards them strategically.” Proof points Supplier innovation will be a key focus going forward. The company plans to facilitate at least five innovation sessions this year with key partners, to brainstorm ideas that can potentially be taken to market. “We will prioritise which ones would be most impactful and then those resulting projects will be investigated by the supplier,” Ianuzzi says. When a product does achieve Earthwards recognition, the outcomes are impressive. One example is J&J’s work with DePuy Synthes, part of the J&J companies portfolio. DePuy Synthes manufactures replacement knees and through adopting the Earthwards approach for its Attune Knee system, the company reduced the number of instruments required for surgery by 36% compared to a previous version of the knee. Further savings were acquired in the instrument sterilisation process, which now uses 22% less energy and 25% less water. Packaging was also reduced by 25%. The Band-Aid brand has also had the Earthwards treatment, resulting in 29% dematerialisation savings. The manufacturing process for this product line now requires 30% less energy compared to the previous process, and shipping efficiencies have increased by 60%. As a result, the product has achieved a 42% reduction in GHG emissions of raw material transport. Ianuzzi says the Earthwards approach is also driving wider benefits in the supply chain, particularly around risk. “The first step of Earthwards centers around understanding risk, so for instance, regulatory risk like the REACH regulations. We also look to identify materials of concern up front – we want to understand what raw materials or chemicals might be on a NGO list, or in a conflict area, so we can evaluate them and steer away from them if necessary.” Asked how much J&J has invested in Earthwards so far, Ianuzzi says it’s hard to give a definite figure as the programme is built into the company’s R&D budget, but says in 2015 J&J invested more than $9bn in R&D to bring new products to market. In terms of how return on investment is stacking up, he says there are a lot of proof points for Earthwards. “Nobody is buying a product just because it’s more sustainable,” Ianuzzi maintains. “The product needs to perform, with sustainability built into that performance. In terms of business value for our customers, relationship building is so much better when you’re doing this from a sustainability perspective. It gives customers more security and confidence, and enables us to have discussions about other, non-price issues.” Maxine Perella  

Johnson & Johnson

<p>Johnson &amp; Johnson (J&amp;J) is the world's sixth-largest consumer health company. The company's product stewardship programme, Earthwards, was launched as the company had a hunch that the market would demand greener products that could deliver added value and performance. It's an approach that uses lifecycle data to identify the environmental and social impacts of a product, and identifies opportunities to dematerialise them. Earthwards recognition is reserved for the company's most improved products, which must achieve three significant improvements across seven impact areas: materials, packaging, energy, water, waste, positive social impact and product innovation. When a product does achieve Earthwards recognition, the outcomes are impressive. One example is J&amp;J's work with DePuy Synthes, part of the J&amp;J companies portfolio. DePuy Synthes manufactures replacement knees and through adopting the Earthwards approach for its Attune Knee system, the company reduced the number of instruments required for surgery by 36% compared to a previous version of the knee. Further savings were acquired in the instrument sterilisation process, which now uses 22% less energy and 25% less water. Packaging was also reduced by 25%. The Band-Aid brand has also had the Earthwards treatment, resulting in 29% dematerialisation savings. The manufacturing process for this product line now requires 30% less energy compared to the previous process, and shipping efficiencies have increased by 60%. As a result, the product has achieved a 42% reduction in GHG emissions of raw material transport. Read more at:</p>

Resource efficient design

Article / Report

Direct and indirect reduction in economic costs

Cost Savings

Direct and indirect effects that increase revenues or the potential for new revenues, for example from new products, customer segments, partnerships or business models

Revenue Potential

Scalability

Enacting measures that optimise material use such as 3D printing, etc.

Material efficiency

Providing repair services or maintenance services for products or parts

Product maintenance, repair

Activities to clean, decorate, and restore products back to working condition for original or new purposes

Refurbishment, remanufacturing, renovation

Designing products so they produce as little waste as possible during production

Design for minimal waste

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

Cross-industry projects, pilots

Working together with industry peers to engage in business activities or exploratory projects that advance the circular economy

Joint industry ventures, projects, pilots

**Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation**

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The manufacturing industry’s recovery from COVID-19 remains incomplete and uneven: some high-income regions achieved record-high manufacturing value added per capita in 2022 but levels in LDCs were not much higher than the 2015 baseline. 
In the aftermath of the pandemic, data show that higher-technology industries recovered faster and proved to be more resilient, pointing to the need to promote innovation and technology transfer in a way that benefits all countries. 

Inclusive and sustainable industrial development has been incorporated, together with resilient infrastructure and innovation, as Sustainable Development Goal 9 in the 2030 Agenda for Sustainable Development.

To achieve Goal 9 by 2030 it is essential to support LDCs, invest in advanced technologies, lower carbon emissions, and increase global mobile broadband access.

This goal's target includes:
- develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all;
- promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries;
- increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets;
- by 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities;
- enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending;
- facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States;
- support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities;
- significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.

Sources: [https://sdgs.un.org/goals/goal9](https://sdgs.un.org/goals/goal9)
[https://sdgs.un.org/topics/industry](https://sdgs.un.org/topics/industry)

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9. Industry, innovation and infrastructure  

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Narrow strategies reduce material and energy use. Currently, material use is highly inefficient and ineffective; we can deliver similar social outcomes by using much less and phasing out fossil fuels, for example. This doesn’t mean being worse off, but rather focusing on using materials efficiently: think in terms of riding a bike instead of driving a car, eating less meat, and living in a space that suits your needs. Using less is a core tenet of the circular economy—yet currently, the threshold for sustainable consumption, 8 tonnes per person, is being surpassed by 1.5 times. 

Narrow

Regenerate strategies phase out hazardous or toxic materials and processes and substitute them with regenerative biomass resources. A circular economy aims to mimic natural cycles—by shifting to more regenerative farming practices, for example—while also maximising the share of circular biomass that enters the economy. Regeneration can happen both at the systems level (by designing regenerative processes) as well as at the product level (by switching synthetic to organic fertilisers, for example).

Regenerate

Cycle strategies aim to cycle and reuse materials at their highest value: they maximise the volume of secondary materials re-entering the economy, ultimately minimising the need for virgin material inputs and therefore also narrowing flows. Of course, virgin materials will always be needed to a degree: all materials degrade and can’t be cycled infinitely, use energy, and require blending with virgin materials to maintain strength and functionality.

Cycle

Intensifying product use (e.g. via product sharing or multifunctional products).



🏢 Rethink

Replace typical brick and mortar wall with a dry-stacked wall with interlocking bricks will limit the amount of mortar required and ease the deconstruction efforts at the end of service life for the subsequent use.

More efficient use and/or manufacture of products through the use of fewer natural resources and materials.

🏢 Reduce

Reuse of discarded yet still usable product, for the same purpose, by a different user.

🏢 Reuse

The doors, windows, service installations, and even furniture are flexible compared to the building structure. If dismantled carefully, they can be reused elsewhere for the same or different purposes.

Repair and maintenance of broken or malfunctioning product, to enable continuation of its original function.



🏢 Repair

Refurbishing and/or modernising an older product, so that the improved version can be used in the product’s original function.


🏢 Refurbish

Using parts of a discarded product in a new product of the same function.

🏢 Remanufacture 

Using discarded products or their parts in new products with a different function.


🏢 Repurpose

Processing of materials to achieve the original high-quality or reduce to low-quality.



🏢 Recycle

Currently, the best practice worldwide for dealing with concrete and brick debris is to recycle it. The debris is collected, transported, manually or mechanically sorted, washed, crushed, and recycled into new building materials and products.

Incineration of materials, recovering their energy.

🏢 Recover

Currently, the best practice worldwide for dealing with concrete and brick debris is to recycle it. The debris is collected, transported, manually or mechanically sorted, washed, crushed, and recycled into new building materials and products.


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**These 17 Goals recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.**

The SDGs build on decades of work by countries and the UN, and especially on the Millennium Declaration adopted in September 2000 at UN Headquarters in New York which let to the elaboration of eight Millennium Development Goals (MDGs) to reduce extreme poverty by 2015.

In 2015, the Paris Agreement was signed. A major blueprint came out of this: The Sustainable Development Goals: 17 overarching goals—and 169 targets—that governments are aiming to meet by 2030. Significant progress has been made in terms of poverty, health and inequality, but there's still a way to go. This is where the circular economy comes in: by circulating resources multiple times, the circular economy tackles issues of scarcity and allows all to access what they need—without overburdening the earth. If it's implemented in a holistic way—affording attention to social considerations and the fair distribution of resources— it also offers a pathway for achieving the SDGs; and the link between the two is ever-growing. To read more about the link between the SDGs and the circular economy, click [here](https://www.circle-economy.com/blogs/how-the-circular-economy-can-help-us-reach-the-sustainable-development-goals).

It is the Division for Sustainable Development Goals (DSDG) in the United Nations Department of Economic and Social Affairs (UNDESA) which provides substantive support and capacity-building for the SDGs and their related thematic issues. TheDSDG plays a key role in the evaluation of UN systemwide implementation of the 2030 Agenda and in advocacy and outreach activities relating to the SDGs. In order to make the 2030 Agenda a reality, broad ownership of the SDGs must translate into a strong commitment by all stakeholders to implement the global goals. DSDG aims to help facilitate this engagement.
Alongside this, the annual High-level Political Forum on Sustainable Development serves as the central UN platform for the follow-up and review of the SDGs.
In addition, the UN Secretary-General presents an annual SDG Progress report, which is developed in cooperation with the UN System, and based on the global indicator framework and data produced by national statistical systems and information collected at the regional level.

To read more information: [https://sdgs.un.org/goals](https://sdgs.un.org/goals)

Sustainable Development Goals (SDGs)

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This framework goes beyond the famous 3R (Reduce, Reuse, Recycle) and provides 10 R-strategies to guide how circular design and manufacturing can keep resources in use and waste out of the environment. 

They are applied to the built environment sector here as part of the [Realdania ](https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.realdania.org/&ved=2ahUKEwiF74KezMyJAxUpUaQEHURhOOEQFnoECBYQAQ&usg=AOvVaw0o-XWvSka80KCHtCG6XDS3) project.



🏢 10R Framework 

 This feasibility case study examines how the MedTech industry can transition to a Circular Economy through collaborative innovation. It introduces the “White Dot” system – an approach to transform medical waste into valuable resources while ensuring healthcare compliance and economic viability for all stakeholders. 

Germany

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Philips

We Are the Global Design and Innovation Firm for a Circular Economy.

Indeed Innovation

<p>The White Dot feasibility study demonstrates how medical waste can be transformed into value through a digitalized system. 12 industry leaders show that implementing circular practices in healthcare can be cost-neutral or profitable while meeting strict regulations.</p>