Capital Equipment Coalition Report 2020.pdf

Capital Equipment Coalition 

Business case

Producing electrical equipment and machinery for industrial use

Capital Equipment

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

Refurbishment, remanufacturing, renovation

Raise awareness and run information campaigns about  strategies for and impacts of the circular economy in different contexts.

Communication and awareness

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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ASML

ASML proactively supports the circular economy concept as we believe it is essential to ensuring the future success and competitiveness of the semiconductor equipment industry. In 2019, we further engaged with our suppliers in order to introduce ‘As-new’ modules into our mainstream manufacturing. ‘As-new’ modules are suitable for multiple product lifecycles: they are returned from field upgrades and, after a thorough re-qualification process, restored to as-new conditions and performance. Over the past year, we successfully set up re-manufacturing plans in collaboration with more than 10 of our largest suppliers. This resulted in an improved material availability for our supply chain, a positive environmental impact, a deeper insight into the reliability of our products and opened the way to a new shared business model. Because of the positive feedback on common value creation, we are now working on opening the conversations with the rest of our main suppliers to further scale ASML’s circular economy efforts

Mainstream 'as-new' Modules through Supplier Engagement


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This collection features circular practices across several industries in Taiwan: Agriculture & Food, Textiles and Fashion, Buildings, Furniture and Appliances, Vehicles, Packaging and Containers, Electronics and Chemicals, etc. 

Circular Taiwan Network (CTN) is a leadership initiative in Taiwan that brings together governments, businesses, universities, and NGOs to facilitate the transition to a circular economy. CTN aims to enhance understanding and implementation of the circular economy across Taiwan. We catalyze collaborations in the hope that more circular policies and sustainable business solutions may be created and that the circular economy may flourish in Taiwan. CTN has published two books, ‘Circular Economy’ and ‘Circular Taiwan’, along with several specialized reports, to promote awareness and practices of circular economy in Taiwan.

To learn more about Circular Taiwan Network visit [https://circular-taiwan.org/en/](https://circular-taiwan.org/en/)

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Circular Taiwan Network

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Producing electric cables and wires, power-generating equipment, including solar modules, motors, power turbines, as well as electronic equipment and instruments, including computer chips, communication equipment, analytical instruments, lasers, display screens, point-of-sales machines, security system equipment, and healthcare equipment

Electrical and Electronic Equipment

Providing repair services or maintenance services for products or parts

Product maintenance, repair

Providing upgrade programmes or upgrade services for products or parts of products

Product upgrade

**Ensure sustainable consumption and production patterns**

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The world is seriously off track in its effort to halve per-capita food waste and losses by 2030.The COVID-19 pandemic has had significant impacts on consumption and production patterns, with disruptions to global supply chains and changes in consumer behaviour. 

Responsible consumption and production must be an integral part of the recovery from the pandemic. 
But the global economy also needs to speed up the decoupling of economic growth from resource use by maximizing the socio-economic benefits of resources while minimizing their negative impacts. 

Reporting on corporate sustainability has tripled since the beginning of the SDG period, but the private sector will need to significantly improve reporting on activities that contribute to the SDGs. 

This primarily entails environmentally sound management of "toxic chemicals" A substantial use of chemicals is essential to meet the social and economic goals of the world community, and these can be used with a high degree of safety when best practices are followed.  Gross chemical contamination, with grave damage to human health, genetic structures reproductive outcomes, and the environment, has been continuing within some of the world's most important industrial areas, and restoration will require major investment as well as the development of new techniques.
Effective control of the generation, storage, treatment, recycling and reuse, transport, recovery and disposal of hazardous wastes is another similar challenge. 
In addition,  solid wastes include all domestic refuse and non-hazardous wastes such as commercial and institutional wastes, street sweepings construction debris, and, in some countries, human wastes. As hazardous waste is frequently intermixed with other waste, this poses particular management challenges.
Finally, this target ensures that radioactive waste is safely managed, transported, stored and disposed of, with a view to protecting human health and the environment. 

To deliver SDG12, it is crucial to implement policies that support the shift to sustainable practices and decouple economic growth from resource use.

Sources: [https://sdgs.un.org/goals/goal12](https://sdgs.un.org/goals/goal12)
[https://sdgs.un.org/topics/chemicals-and-waste](https://sdgs.un.org/topics/chemicals-and-waste)

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12. Responsible consumption and production

Ensure sustainable consumption and production patterns

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



🏢 Repair

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.

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 

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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 surpasses the famous 3R (Reduce, Reuse, Recycle). The nine strategies Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, and Recycle and Recover provide a clear and actionable roadmap for a circular transition. 

Strategies at the top of the hierarchy, such as Refuse, Rethink, and Reduce, are the most effective at increasing a construction project's circularity level. These strategies focus on avoiding or minimising resource use and waste from the project's conception.

That is why a clear hierarchy exists where higher-level R strategies are preferred, and lower-level strategies are deemed more linear. 

In the original 9R framework, the last strategy, Recover, is often considered non-circular since it consists of energy recovery from material waste incineration, which is why it was left out of the scope of this case study collection.

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.

🏢 9R Framework

 Thanks to its “modular and upgradeable designs” and machine “organ donation” strategy, ASML can extend the product lifecycle of each module.According to Moore’s Law, the number of transistors that can be placed on an integrated circuit doubles every two years. However, due to the high price of machines, companies typically hesitate to replace all machinery in a short period of time. ASML uses “modular and upgradeable designs” and machine “organ donation” to allow Taiwan to keep up with innovation.Modular and Easy-to-Disassemble DesignWhen process technology needs to be upgraded, ASML can continue to use 40% of its original components;the other 60% are taken out and upgraded, of which 50% are replaced with new modules and 50% are replaced with remanufactured modules with the quality of new stuff. Through modular designs, ASML can greatly extend the product life of its machinery and reduce waste. This makes it possible to avoid replacing entire units.Refurbish and RemanufactureIn addition to the modular approach for designing new machines, ASML has also implemented an “organ donation” strategy to disassemble some of the machines that have been discontinued, dismantling the modules that still perform well and remanufacturing them into high-performing machines. After testing individual modules and complete systems, they are sold at 60% off the original price and used in emerging IoT manufacturing processes. This not only extends the service life of each module, but also allows customers to buy machines that meet their needs at cheaper prices.BenefitsThe target for component reuse rate is to reach 95% by 2025, having risen from 85% in 2021 and 87% in 2022 to 88% in 2023.Through refurbishment and remanufacturing, 95% of the units manufactured by ASML over the past 30 years are still in use.


Taiwan

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Thanks to its “modular and upgradeable designs” and machine “organ donation” strategy, ASML can extend the product lifecycle of each module.

Extending the Lifespan of Semiconductor Equipment Through Module Upgrades and
Remanufacturing

Thanks to its “modular and upgradeable designs” and machine “organ donation” strategy, ASML can extend the product lifecycle of each module.