Triodos believes in the sustainability of a circular economy. A circular economy changes our concepts of ownership and puts the focus of products and services on performance. We believe this innovative thinking will optimize the use of materials and minimize waste.
New model, new opportunities
At present we produce and consume in a linear economy where raw materials are used to produce a product that is easily discarded at the end of its useable life. As non-renewable raw materials become more and more scarce, this wasteful linear model is starting to show its shortcomings. The circular economy, however, presents a new and exciting model that allows us to continue to live with a high standard of living without further resource depletion and without waste. Through a focus on performance and services, and through a concerted effort to make waste part of the resource cycle of new products or new services, the circular economy offers a sustainable way out.
Performance based consumption
The new school of thought means a completely different approach as consumers will only pay for the use and performance of a product, not the ownership. Manufacturers retain ownership of their products and the products are returned to them after a set period of use by the consumer. It therefore becomes in the best interest of the manufacturer that its products are durable, are energy efficient and are easy to disassemble or given a new life. For example, imagine a fully furnished office with products that have been manufactured with recyclable materials – light fixtures, chairs, even computers. These remain the property of the producers, and at the end of their use, they are collected for full reuse in a new generation of products.
Not just theory
This performance based consumption is not just a theory. Turntoo, the fruits of the vision of Dutch architect Thomas Rau, is proving that it works. There are several Turntoo projects currently operating or waiting in the pipeline. At his own office, Rau and Philips Electronics have a ‘Pay per lux’ contract, where Philips owns the light installations and Rau simply pays the light they emit. As a result, Rau can take advantage of any new innovation that further reduces energy and materials consumption, as it is in the interest of Philips to produce a ‘light-emitter’ that is optimally recyclable and efficient. Another participant in the Turntoo platform is US-based carpet manufacturer Interface, who is a pioneer in the production of carpets from recycled carpets. Read also the article on biobased materials.
Link to C2C
There is of course a seamless fit between the circular economy and the concept of Cradle to Cradle (C2C) design as the very nature of C2C design is based on the re-use of all parts and materials of a product. Office supplies company Herman Miller has committed itself to C2C design and has already acquired formal C2C certification for a number of its products. The company has also set significant sustainability targets for the year 2020, including zero landfill. Herman Miller’s competitor Steelcase is also committed to C2C and is a partner in Turntoo.
Editor’s note
Triodos seeks change agents and sustainability leaders in all sectors for its sustainable investment universe. All companies mentioned in this article, Philips Electronics, Herman Miller and Interface are considered such change agents and are therefore included in the Triodos sustainable investment universe. Furthermore, Thomas Rau was the architect for Triodos international headquarters building in Zeist, The Netherlands.
Note: The issues explored in this article are relevant for sustainable investments on the stock market. Triodos Bank believes that our socially responsible investments are a powerful means of promoting our values and working for greater sustainability, while enabling us to offer a complete range of attractive investment options to customers who choose to invest on the stock market.