SYSTEMIQ publishes circular economy report ahead of Climate Week



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The systems change company SYSTEMIQ published a report on the circular economy on behalf of the SUN Foundation and with the assistance of the Ellen MacArthur Foundation.

Ahead of this year’s Climate Week, an annual showcase of leading climate action, the ‘Everything-as-a-Service’ (XAAS) report provides insight into how global communities can transform models of climate change. current consumer “take-do-eliminate” circular structures in which companies provide product as a service. The report suggests that such models have the potential to stimulate economic growth and competition – reducing total cost of ownership (TCO) by almost 40% – with increased “positive environmental impact”.

XAAS models refer to the combination of tangible products and intangible services, comprising a jointly capable system that meets the needs of the end user, according to SYSTEMIQ. Circular economy strategies encouraged include a sustainable and circular design; use phase intensification; maintenance; repair; reuse; refurbishment; refurbishment; and recycling. The report targets the consumption use stage, as emissions from this stage make up the majority of the product lifecycle footprint, according to the systems change company – 50% for IT equipment; 60 percent for capital goods; and 80 percent for cars.

The article consists of assessments of the circular economy, obtained from more than 50 experts in the field through a series of interviews. He says a transformation to a circular economy would drastically shift ownership to individual businesses, and away from the consumer, leading to an extension of the product lifecycle by requiring said businesses to prevent their products from entering the flow. of waste. Companies are encouraged to optimize the productivity of resources by means such as the design of more durable products and the integration of maintenance; repair; reuse; refurbishment; refurbishment; and retraining in their systems thinking.

The XAAS report focuses its attention on the manufacturing sector, exposing the ways in which circular systems can be designed and how these systems can be catalyzed by digital technology, political support and collective industry action. The paper presents a toolkit that presents four building blocks with which cyclic ecosystems can be built – value proposition design; business model and financial design; design of circular products and operating models; and ecosystem design. It also features design parameters, to optimize both economic impact and sustainability, as well as three in-depth dives showcasing successful transitions to XAAS models in cars, industrial equipment and white goods.

XAAS models ultimately promote the circularity of materials, according to SYSTEMIQ. An example of the effect it can have that the report describes, if such a model is designed ambitiously, is the decarbonization potential of battery electric vehicles (BEVs) of 25-45% through Car-as- models. a-Service. Other examples outlined in the report exist in reducing the footprint of metal laser cutting machines by 37-65% through Equipment-as-a-Service models, and in reducing the laundry room footprint. 24-35% residential through the use of White-Goods-as-a-Service models.

The report indicates, however, that there are challenges in scaling up the approach. This suggests that if the four building blocks of design are not applied correctly and companies do not adopt sustainable strategies in a holistic way, the potential rebound effects – such as increased consumption and technological obsolescence. – could prevent the impact of circularity from reaching its full potential.

Despite this concern, across all sectors of the industry, companies are already engaging in XAAS models, according to the report. These include – Rolls-Royce (power-by-the-hour), Michelin (tires-as-a-service), ShareNow (carsharing), Signify (lighting-as-a-service), CWS (workwear-as -a-service), -a-service) and TRUMPF (equipment as a service).

Sophie Herrmann, partner at SYSTEMIQ, commented: “People don’t need cars, they need mobility; they don’t need washing machines, they need clean clothes. XAAS offers an alternative way of doing business that meets the needs of society with efficient management of resources and reduced environmental impact. Our report explains why and how innovative and daring XAAS models can bring the much needed transition to a circular economy. “

Dame Ellen MacArthur, Founder and Chairman of the Trustees of the Ellen MacArthur Foundation, said: “Waste and disposables are integrated into today’s economy, fueling climate change and limiting opportunities for long-term economic prosperity. term. Everything-as-a-Service (XAAS) shows how, in a circular economy, we can change that and harness the power of design and innovation to deliver better results for businesses, their customers and to the environment.

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