The Circular Economy as the New Normal
This case study explores the steps that must be taken to apply circular thinking in the real world. It gives examples, shares experiences, and discusses the importance of a multi-stakeholder approach. It also describes the need for upscaling and innovation from a pragmatic and programmatic approach and shows how implementation gaps can be bridged.
Why is cooperation in the value chain needed at a multi-stakeholder level? If capitalism and industrialization are responsible for social and environmental degradation, what economic reforms are needed to create a circular economy?
Value Chain Collaboration
If you decide to start, collaborate with other interested parties. Value chain collaboration is complex. It is difficult to overlook the value chain and how to determine the roles and responsibilities of individual organizations. It is not always clear whether choices will have a positive or negative impact on other parties within the value chain. The circular economy strives to create win-win situations within a value chain: production and use of products and services should be considered a mutual challenge. A value chain that strives for maximum value retention stimulates long-term collaboration instead of short-term gains. Value chain collaboration demands an integral approach. Therefore, organizations with a circular business model face challenging situations when working together with linear organizations.
Collaborate
Van Houtum is an organization with an inspiring history regarding circular entrepreneurship. In 2014 the company wanted to produce hygienic paper made of old juice cartons in its factory in Limburg (NL). It was technically possible to do, but it was challenging to ensure an appropriate amount of old juice cartons as input for the production process. The organization was occupied for almost two years in making sure the business case was positive. Van Houtem worked together with the juice carton association, Suez and local and national governments to get access to all the juice cartons collected in the Netherlands. Value chain collaboration requires change in and between organizations. Sometimes it commences with one player in the chain, but players 'outside' or 'above' the chain may also have an important role to play. For example, the FrieslandCampina co-operative covers a larger part of the chain. But ports, financial institutions or philanthropic organizations could also be the initiators of value chain collaboration.