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The Circular Economy
Opportunity for Auckland
and how business can realise it
Photo: Chris McLennan THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 1
8.8
Auckland
could liberate up to
$
BILLION
in additional economic activity
and reduce carbon emissions by
2,700
ktCO2e in 2030
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 2
Executive summary
Auckland could liberate up to These are the results of a new study carried out by A circular economy de-couples resource use
Sapere Research Group1 working with the Sustainable from economic growth. Lifecycles of materials are
$8.8 billion in additional economic Business Network (SBN), in partnership with Auckland maximised, usage optimised and at the end of life all
activity and reduce carbon Tourism, Events and Economic Development. materials are reutilised. It is restorative by design and
The work was supported by Fuji Xerox NZ, Inzide underpinned by the use of renewable energy.
emissions by 2,700 ktCO2e in 2030 Commercial, Junk Run, 3R Group and the Ministry for
A circular economy goes beyond an improvement
by shifting from the current linear the Environment.
to the dominant linear economy. It is a viable
take, make and waste model to a Modelling analysis across Auckland’s economy replacement for it. Shifting to it would generate huge
has identified the potential contribution to the city’s economic, environmental and societal benefits.
circular economy. Gross Domestic Product as between $6.3 - $8.8 billion
Applying circular economy thinking to Auckland will
by 2030.
install environmental and economic resilience into the
The analysis focuses on food, transport and the built city. It will trigger a new era of business innovation.
environment. These three sectors have a significant At the same time it will radically reduce the costs of our
input into Auckland’s economy. They have also been economic activity and the material inputs it requires.
identified by SBN’s work in New Zealand and research
overseas to be the sectors best positioned to make
the transition to the circular economy. These sectors
tend to include high waste, high cost and heavily
polluting activities in the current linear economy
model. The carbon reduction opportunity across them
is identified as 2700 ktCO2e in 2030.
1
circular economy for
A
Auckland - scoping the
potential economic benefits,
Sapere Research Group, April
2018
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 3
New business models like the shared economy, This report spells out the benefits of taking the lead, For these opportunities to be realised, we must think
‘business as a service’ and renewable technologies and how business can start to do that, by: and work differently across the entire value chain. We
are already with us. The challenge now is to follow must adopt new business models. It will not be easy,
• connecting entire processes within our economic
the world-leading countries and cities reshaping but it is necessary.
system through innovation
their economic operating systems to prepare them
The trajectory is clear and momentum is building, now
for where these models are taking us. Because the • establishing procurement processes that favour
is the time for Auckland businesses to ‘go circular’.
circular economy is inevitable. It is the only viable products and services with a circular economy
model with which we can successfully meet the approach
needs of a growing population on a planet within our
• actively working with non-government
planetary boundaries.
organisations, government ministries and others to
In New Zealand we have the added opportunity to promote the circular economy
align and refine circular economy thinking through
• targeting investment to accelerate the transition to
cooperation and collaboration with the business
a circular economy
models and worldview of the country’s indigenous
people. Doing so successfully would lead to the • sharing and supporting training in the circular
development of a holistic economic mindset economy
that would also assist to dissolve current cultural
• working to inform and influence the government
boundaries.
policies required to enable the transition
Photo credit: Todd Eyre Photography Ltd
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 4
Contents
Executive summary
3 SECTION TWO A sector focus 31
Foreword 6 Auckland – becoming Food 32
a circular city 16
About this report 7 Opportunities for business 34
What’s already happening 18 Key actions
Introduction 8 to catalyse change 35
The benefits – boosting
the economy while cutting
carbon emissions 24 Transport and Logistics 36
SECTION ONE
Opportunities for business 38
Six key levers 25
The circular economy 9 Key actions
to catalyse change 40
What’s in it for business? 12 How to make it happen –
the enabling factors 26
Circularity at work 14 Construction 41
Think and operate in systems 26
Opportunities for business 42
Closing time for Reset procurement 27
business as usual 15 Key actions to catalyse change 44
Make circularity desirable 28
Fund the transition 29 Conclusion 45
Share knowledge and
Acknowledgements 46
develop skills capability 29
Use data 30
Set the rules to enable
the transition 30
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 5
Foreword
The way we do business worldwide One of the ways this can be done is by transitioning Globally, countries such as Sweden, Scotland and
Auckland to a circular economy: an economy which Japan are leading the charge on shifting to a circular
is putting enormous stress on the seeks to de-couple resource use from economic economy, the principles of which are being embraced
environmental and societal systems growth, keep resources in use for as long as possible, by some of the world’s biggest brands as well as the
extract the maximum value from them, then recover many local organisations referenced in this report.
upon which our markets and and regenerate products and materials at the end of
Auckland, Tourism, Events and Economic
companies are entirely dependent. their use.
Development (ATEED) is delighted to partner with SBN
From an economic development perspective, to develop an economic insights paper based on this
Every year developed economies use between
the circular economy represents new business comprehensive report.
three and four times the amount of resources that
opportunities in growing global markets including
are sustainable for the long term. If left unchecked, Circular Economy: A new dynamic for Auckland
new business models in transport, waste to value
the environmental damage being done to our planet Businesses provides economic perspectives on a
opportunities in the food sector and the re-use of
threatens to disrupt our global markets and economies. circular economy.
construction materials.
This report, entitled ‘The Circular Opportunity for Auckland with its innovative, entrepreneurial business
The World Economic Forum states that the circular
Auckland and how business can realise it’, by the culture has the opportunity to position itself as a
economy’s potential for innovation, job creation
Sustainable Business Network (SBN) with economic circular economy city for the world. A co-ordinated
and economic development is huge with estimates
analysis by Sapere Research Group, is the first approach is paramount, with central and local
indicating a trillion-dollar opportunity on a world scale.
quantification of the potential business benefits of government, communities, businesses and individuals
Auckland moving to a circular economy. The new economic analysis outlined in this SBN report working closely to spearhead the impetus for this
indicates Auckland could benefit from up to $8.8 essential change.
The report looks at the financial and carbon reduction
billion worth of additional economic activity a year by
benefits Auckland could gain from shifting from the
making the shift from the current linear take, make,
current linear economy to a circular economy.
waste model to a circular economy. Patrick McVeigh, General Manager,
Sustainable development is a priority for all Business, Innovation and Skills –
For Auckland businesses, pursuing process and product
communities, cities and countries. For Auckland, and Auckland Tourism, Events &
innovations that reflect circularity will create new forms
New Zealand, there is a very real need for all residents Economic Development (ATEED)
of value, open up new markets and support sustainable
and businesses to make a contribution to becoming a
growth by reducing reliance on finite resources.
lower carbon economy.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 6
About this report
This report provides an indication It is based on economic modelling by Sapere The report was developed by the Circular Economy
Research Group. It represents the first such analysis in Accelerator, a new team of business innovation
of the potential economic and a New Zealand context. experts created by SBN. The Circular Economy
carbon reduction benefits The report expands on the Sustainable Business
Accelerator’s aim is to collaborate with New Zealand
businesses, government and other groups to hasten
Auckland can realise from Network (SBN)’s previous research into the key
the installation of a circular economy in New Zealand.
focus areas for enabling the transition to a circular
embracing the transition to a economy.2 Facilitated workshops and interviews with
To find out more go to circulareconomy.org.nz
circular economy. key stakeholders across sectors have been conducted
to build on that knowledge and apply it to Auckland.
2
systems innovation
A understanding of the current
ongoing programme of work status of the Circular Economy in
commencing in 2014 involving NZ and the key leverage points
multiple stakeholder interviews, and opportunities to accelerate
surveys, workshops, events the transition to a more crcular
and projects to provide a deep economy.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 7
Introduction
In many ways the worldwide Every year developed economies use between The associated increase in greenhouse gases
three and four times the amount of resources that are generated from industry, agriculture and transport
opportunities for New Zealand sustainable in the long term.3 If things don’t change, is adversely impacting our climate, health and
business have never been greater. we may find ourselves spending more time and effort biosecurity.6 This is pushing costs up across the entire
fighting over the remaining resources than putting economy. It is also driving increased regulation and
them to good use. restrictions on businesses’ licence to operate.
The global population continues
The way we use resources is incredibly wasteful. Left unchecked, the environmental damage being
to grow. Populations of emerging They are often used only briefly and then discarded. done to our planet threatens to disrupt our global
nations are increasingly 1.3 billion tonnes of waste is generated worldwide markets and economies.
every year. This is expected to increase to 2.2 billion
procuring the goods and services tonnes per year by 2025.4 Just the financial and
Our current economic model needs a fundamental
redesign.
of prosperity. But the current environmental costs of disposal are putting a brake
on progress. We waste time and money dealing with
extractive economic model this is waste. And by 2050 there could be more plastic by
based on has become the major weight in the ocean than fish.5
barrier to further progress. It is
putting enormous stress on the
environmental and social systems
upon which our markets and
businesses are entirely dependent.
3
ress Release from Global
P 5
he New Plastics Economy:
T
Footprint Network, 2014 Rethinking the future of
4
World Bank Urban plastics, Ellen MacArthur
Development Series Report, Foundation, 2016
Chapter 3 “Waste Generation” 6
Why climate change matters,
Ministry for the Environment
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 8
Section One The circular economy
At last, a compelling, prosperous,
business model for a low carbon future
A circular economy de-couples resource use from economic growth.
Lifecycles of materials are maximised, usage optimised and at the
end of life all materials are reutilised. It is restorative by design and
underpinned by the use of renewable energy. A circular economy goes
beyond an improvement to the dominant linear (‘take-make-waste’)
economy. It is a sustainable and viable alternative to it. It represents a
system shift to a new global operating system, one that will generate
sustainable economic, environmental and societal benefits.
Photo credit:BUSINESS
SUSTAINABLE Chris McLennan
NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 9
The ‘butterfly diagram’ Figure 1: Outline of material flows in a circular economy
(right) is from the Ellen Photo credit:Ellen MacArthur Foundation
MacArthur Foundation,
the leading global circular
economy advocacy
organisation. The graphic
illustrates how materials
flow through a circular
system.
Resource value is maximised across
the value chain and leakages in the
system are minimised via feedback
loops. Technical materials
(e.g. manufactured products) are kept
separate from biological materials (e.g.
food) with the aim of keeping technical
materials in continuous high value
circulation and out of the biosphere,
while biological materials can be used
to regenerate nature (e.g. return
to soil as compost).
Technical materials are fed back into
the system through maintenance,
reuse, remanufacture and recycling
(which tends to be the lowest value
option).
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 10The circular economy
has been estimated to represent a
USD$4.5 trillion economic opportunity
by 2030.7 It:
• provides an innovation platform for • improves resilience by lessening
new services and business models the exposure to interruption and
price shocks for virgin materials from
• reduces costs by reducing the need
overseas supply chains
for material inputs into the system
• improves environmental outcomes,
• optimises the use of assets via sharing
including reducing carbon emissions,
economy platforms
pollution and waste
• increases the lifecycles of products via
• restores natural capital such as soil
repair and remanufacturing services
and water quality
• develops and expands waste to value
• drives better societal outcomes, such
opportunities
as generating new local employment
Crucially, it does all this and more within a coherent, comprehensive
system design framework. This is the only way to ensure these
processes are both self-sustaining and interlinked into an
all-encompassing approach.
7
he Circular Economy Could Unlock
T
$4.5 trillion of Economic Growth,
Accenture Strategy, September 2015
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 11What’s in it for business?
Circular economy thinking is Airbnb, Bookabach and Yourdrive are all examples of printing process that uses recycled plastic bottles.
the sharing economy, which forms part of the overall Its aim is to reduce waste and 3D printing material
already enabling some of the circular economy. Airbnb has become the world’s costs to help accelerate community-based digital
biggest business success stories, largest accommodation provider,8 without owning any manufacturing. It is currently in the process of setting
property, by enabling underused private spare rooms up and running a pilot project.
both here and abroad. and houses to be rented out. Bookabach and Yourdrive
Air New Zealand has been working with AUT to
use the same model for holiday homes and cars.
create 3D printed parts for aircraft interiors, providing
eBay and Trade Me enable the extension of product significant cost savings.9
lifecycles by facilitating the sale of second hand goods
The Internet of Things enables automatic and remote
on a mass scale.
monitoring of the efficiency of a resource during
Circular economy thinking can also drive the use production, use and at the end of its use cycle. This
of emerging technologies like 3D printing, which means that all parts of the value chain can become
provides an opportunity for distributed, small scale more efficient. Once the time comes for a user to
and on-demand manufacturing. For example, discard a product or asset, this can aid in the asset
Photo credit: Yourdrive Auckland-based Reforge NZ is developing a new 3D retrieval, so components can be reused.
8
acebook, Airbnb, Uber, and
F 9
ir New Zealand to 3D print
A
the unstoppable rise of the its own aircraft interior parts,
content non-generators, Press Release, February 2016
Independent, 2015
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 12Photo credit: Alsco
•
New value can be generated from •
Products that have been designed at the
"For IKEA, becoming circular is a huge material previously seen as waste. outset to have longer lifecycles provide a
opportunity to innovate and find new ways to lever with which to disrupt existing markets.
• Repair and remanufacturing services have
meet people’s needs and dreams at home within the potential to generate increased revenue • ptimised resource use can be facilitated
O
the limits of the planet. By truly understanding as goods are kept in service by organisations retaining ownership of
people’s needs, we can design relevant offers for longer. products and selling their use as a service.
and meet customers’ needs in new ways.
We are just at the beginning, but are starting to
test a range of solutions, including exploring
new business models" 10
ngaging Customers in
E
Shaping a Circular Society
Håkan Nordkvist,
Håkan Nordkvist, Head of
Head of Sustainability Innovation, IKEA Group10 Sustainability Innovation,
IKEA Group.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 13Circularity at work “Once we sell
the benefits of the
products instead of the
products themselves, we
begin to design for longevity,
LanzaTech, originating from Auckland, is developing The Module Project is an emerging Auckland based Toast Ale in
multiple reuse, and eventual
gas fermentation technology for industrial waste company looking to disrupt the electronic goods the UK makes
gases. The sources include steel and alloy mills, sector. It has produced a wireless speaker, Decibel, brewing beer recycling”
municipal solid waste, organic industrial waste and designed to last a lifetime. All components are user from surplus Frans van Houten, Chief Executive
agricultural waste. The technology creates high-value upgradeable. bread. Officer and Chairman,
Royal Philips11
chemicals and gases. It has generated more than
Adidas is one of the
$200m in investment to date.
countless companies
Wishbone Design Studio uses recycled residential making products out of ocean
carpet for its Recycled Edition children’s bikes. plastic waste.
Innovations like this have fuelled growth of 25%
Caterpillar has established Cat Reman that
annually and distribution in more than 40 countries.
recovers materials through technology and restores
Wishbone Bikes is also disrupting the global toy
components to good-as-new condition.
market’s ‘throw away’ culture by incorporating aspects
like repairability and adaptability, where the bikes are Patagonia encourages customer repairs via its ‘Worn
adjustable to match the growth of a child. Wear’ initiative, driving customer loyalty.
Alsco provides a fully managed rental service for Photo credit: Decibel MUD Jeans leases jeans for a monthly fee. After the
uniforms and repairs, reconditions and reuses them to lease period of one year, customers can switch them
maximise their lifecycle. for another pair and continue leasing, return them for
Oh Rent Me is an Auckland based company that
recycling or upcycling purposes, or keep them. The
CHEP manufactures pallets, crates, and containers for allows you to rent designer clothing.
lease contract includes free unlimited repair services.
businesses and rents them out through its pallet and
Yourdrive is enabling spare capacity in the car market
container pooling service.
to be accessed through private rental, generating
Green Spot Technologies is developing flour from revenue for the car owner and the company.
apple waste.
Philips Lighting offers a ‘pay per lux’ lighting service
Why we need a circular
11
Auckland Drum Sustainability Services provides where customers pay for the amount of light (lux) economy, blog by Frans van
a national collection, remanufacturing and reuse they need and Philips retains control over the items it Houten, Chief Executive
Officer of Philips, published by
programme for bulk packaging drums. It collects and produces, enabling better maintenance, reconditioning the World Economic Forum,
supplies reconditioned and remanufactured drums. and recovery. January 2014
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 14Closing time for
business as usual
Successful business relies on responding
early to emerging trends and needs.
New Zealand is relatively small and remote. If New Zealand
businesses do not keep pace with the growing global
movement towards a circular economy they will simply be left
behind. This is likely to be experienced as increasing costs in
raw materials, reduced demand from increasingly conscious
consumers, and increased barriers to entry for overseas markets.
Knowing this, it is likely that the New Zealand government, like
those around the world, will be compelled to make increasing
aspects of the circular economy compulsory.
Businesses that act early on this will gain significant advantage.
Photo credit: Todd Eyre
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 15Section Two Auckland –
becoming a circular city
More than one half of the world’s people now
live in cities. This is predicted to be 70% by
2050.12 This means cities and the businesses
that fuel their growth will be at the heart of
the required economic redesign.
Photo credit: Chris McLennan
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 16A circular city embeds the Auckland, like many leading cities across the world,
principles of a circular is at the beginning of its journey towards circularity. The opportunities of a unique
The circular economy is the best methodology we Māori (holistic) perspective
economy across all its functions. have to secure economic prosperity that can keep
pace with population growth while operating within Māori have an important and unique world view
It establishes an urban system our planetary boundaries. (te ao Māori) in driving circular thinking and action in
that is regenerative and New Zealand.
Co-ordinated circular economy action at a
restorative by design. The idea city level is still in its infancy. But Auckland is
Māori have a holistic understanding of our
environment, and see the environment as an
of waste is eliminated. Assets well placed to take a lead. It has a well-proven
interconnected whole.
innovative, entrepreneurial business culture and a
are kept at their highest levels highly connected community, including a vibrant Māori express their connection with the environment
of utility at all times. Digital and dynamic indigenous culture. We can learn through Kaitiakitanga (environmental guardianship)
much from the indigenous notion of stewardship – a way of managing the environment. The Māori
technologies support processes (kaitiakitanga) and intergenerational thinking, which world view and Māori values, including tikanga
where appropriate. has strong links with restoring systems. (customary practice), whakapapa, manaakitanga
(acts of giving and caring for) and kaitiakitanga,
Auckland can achieve the benefits outlined in this
A circular city generates prosperity and economic as well as their intergenerational approach are all
report. It can go further, establishing itself as a
resilience while separating value creation from the congruent with Circular Economy thinking.
model circular economy city.
consumption of finite resources.13 The 21st century
Harnessing this thinking and the unique and strong
circular economy city is likely to become a global To do this we must embark on an unprecedented
indigenous culture we have in NZ will help drive
growth model, and a key target market for all kinds level of co-operation and co-ordination, not only
New Zealand’s transition towards a circular economy.
of goods and services. across business but communities, and central and
local government.
It is too early to cite cities that have gone entirely
circular. But there are a number of cities that are in Auckland generated 1.646 million tonnes of
transition. Amsterdam, Helsinki, Vancouver, London domestic and commercial waste in 2016. That’s
and Glasgow have all identified opportunities for a more than one tonne for every Aucklander.14 This is
move towards a circular economy. likely to increase unless a new approach is taken. 12
ircular Economy in Cities:
C 13
ities in the Circular Economy: An
C
Estimates suggest we’ll add 833,000 more people Evolving the model for a Initial Exploration, Ellen MacArthur
to Auckland in the coming decades, putting our sustainable urban future, World Foundation, 2017
population at 2.3 million by 2043. Economic Forum, 2018 Draft Auckland Council Waste and
14
.
Minimisation Plan 2018
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 17What’s already There are many great examples of organisations
already using circular economy thinking and
happening ways of operating in New Zealand. There are also
examples of established businesses that have
adopted inherently circular models from the outset.
Product as a service
CHEP
What they do:
CHEP is a global provider of supply chain products and services for the consumer
goods, fresh food, beverage, manufacturing and retail sectors. CHEP’s pooling
business model incorporates elements of both the circular and sharing economies.
CHEP retains full ownership of equipment. It has been CEMARS certified since
2014. 100% of its timber is supplied from certified sources.
Benefits of a circular approach:
Each time CHEP’s customers choose sharable and reusable options instead of one
way packaging, carbon emissions are reduced, waste is avoided and raw materials
are saved. See diagram for worldwide savings.
Image credit: CHEP
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 18Maximising value and lifecycles
via product stewardship
Inzide Commercial/ At the end of their usable life, tiles are Envirocon work and transport the waste to
sent back to the manufacturing plant, Envirocon, which transforms the waste
Interface Carpet Tiles stripped and remanufactured into new
What they do:
cement into cement ready to use again
What they do: carpet tiles. Envirocon is a voluntary product in Interbloc’s modular wall system.
stewardship scheme that involves
Inzide Commercial supplies In New Zealand this happens via the Benefits of a circular approach:
Auckland’s local cement organisations
sustainable flooring solutions for Ministry for the Environment accredited
and the construction company • The programme aims to divert
commercial interiors. Interface Interface ReEntry Programme product
Interbloc. 80,000 tonnes of waste concrete
carpet tiles incorporate multiple stewardship scheme.
and wastewater per year by 2022.
circular economy attributes. Designs Envirocon provides a facility for waste
Benefits of a circular approach:
influenced by the randomness of concrete to be brought to Interbloc • It reduces truck movements by an
nature allow for easy installation and • Ease of installation and which uses the waste to build cement estimated 1.4 million km per annum.
replacement of individual tiles. The replacement of individual tiles. walls. Cement companies finish the
TacTiles technology eliminates the
• The ReEntry programme has
need for glue to connect the tiles to
the floor.
diverted more than 44,000 cubic Auckland District Benefits of a circular approach:
metres of carpet tiles from landfill
(220 tonnes).
Health Board • The hospital initiative has resulted
What they do: in approximately 9,000 kg of plastic
waste diverted from landfill.
The Auckland District Health Board
is taking a leading role in reducing • Approximately 2,300 kg of
medical waste and redirecting non- recyclable plastics and cardboard
hazardous plastic waste, aluminium and material is recycled every month as
metal waste from landfill to recycling. part of a recycling programme for
home patients in partnership with
The DHB initially started recycling
Baxter Healthcare.
plastic tubing, oxygen masks and IV
bags. The plastic collected is recycled • The waste recycled as part of
in New Zealand to create playground the home patient programme is
outdoor matting. This is exported equivalent to about 300 cubic metres
Photo Credit: INZIDE Commercial
around the world. (uncompacted) of landfill per year.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 19Fuji Xerox Benefits of a circular approach:
Resene
What they do: • Fuji Xerox NZ’s MfE accredited Product
What they do:
Stewardship scheme diverts on average 700
Fuji Xerox New Zealand promotes the reuse and
tonnes of waste from landfill annually. The Resene PaintWise programme allows
recycling of its products through its Ministry for
customers to return paint cans, regardless
Environment (MfE) accredited Product Stewardship Its products are designed for easy separation and
of whether they are empty or half full, to
Scheme. This scheme is a free take-back service disassembly, ensuring where possible machines
be recycled. The paint is then donated to
offered to all of its customers for machines, used and parts get a second chance at life as refurbished
community groups who use the paint to cover
parts and consumables, ensuring they are reused and eco machines.
graffiti. Paint that cannot be donated is sent to
responsibly recycled rather than sent to landfill.
• By partnering with Close the Loop, Fuji Xerox NZ's solvent recovery so the ingredients can be used
Thanks to the scheme Fuji Xerox NZ has achieved a toner is also given a second life in a product called in other industries.
re-use and recycling rate of over 99.5% for returned TonerPave™.
Resene has created PaintCrete which uses the
equipment, which, when part of a lifecycle recycling
TonerPave is a low carbon asphalt that is more recycled paint ingredients in concrete which in
programme, helps reduce the carbon footprint of a
durable than standard asphalt and helps to reduce turn improves concrete quality.
road by up to 23%.
the carbon footprint of a road by up to 23% over its
Benefits of a circular approach:
lifecycle.
• Resene has helped recycle 120,000kg of
steel and repurpose 140,000 litres of partially
used paint since the launch of its PaintWise
programme in 2004.
• Over 300,000 packs have been collected
from Resene ColorShops over the past 14
years.
Photo credit: 3R Group
Image credit: Fuji Xerox NZ
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 20Sharing economy
Yourdrive The Compost Collective Cityhop
What they do: What they do:
What they do:
Yourdrive is a NZ based peer-to-peer car sharing Cityhop is a car sharing service that allows members
The Compost Collective is a collaborative
platform that enables people to rent privately owned to rent cars by the hour. Membership offers
project aimed at increasing the number of
cars. Owners generate income from sharing their businesses an alternative option to purchasing a pool
Auckland households engaged in composting
idle asset and renters gain access to a wide range car. Packages include the call centre, insurance, petrol,
and organic waste reduction. The Collective
of better value rental vehicles in dispersed locations. on-road costs, fleet team and staff benefits. This saves
operates ShareWaste.org.nz, an online
Over the last three years, Yourdrive has facilitated companies transport and parking costs, creating
platform to connect people who wish
more than 4,000 journeys and currently has over 600 efficiencies and eliminating administrative work.
to recycle their kitchen scraps with their
vehicles listed on the platform.
neighbours who are already composting, Benefits of a circular approach:
Benefits of a circular approach: worm-farming or keeping chickens.
• Reduced car ownership - 59% of Cityhop members
In addition, they run composting workshops
• Supporting the local economy. Since 2015, Yourdrive have sold a car or delayed the purchase of their
throughout the greater Auckland area.
has paid out more than half a million dollars to Kiwi next car because of car sharing. Cityhop estimates
vehicle owners. Benefits of a circular approach: 1,000 privately-owned vehicles have been removed
from the road as a result of the service
• Reducing car ownership. A survey of Yourdrive • 14,969 people have
renters found that 75% had reduced their vehicle been involved in the • Reduced parking and street
ownership after using Yourdrive. collective to date. congestion
• Increasing use of other sustainable transport modes. • Reduced carbon emissions
The same survey found that 68% of respondents
• Cityhop estimates it provides
increased their use of active-transport modes such
$5,000,000 back to Auckland
as walking and cycling after using Yourdrive.
annually through the benefits
of its car-sharing scheme
Photo credit: Cityhop
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 21Resource recovery / Waste to value
EcoStock Supplies Junk Run Critical Design NZ Offcut
What they do: What they do: What they do: What they do:
EcoStock Supplies collects food Junk Run sends junk to a better place. Critical Design is a community- Offcut produces hats made from
waste from food manufacturers, Whether commercial, construction or based organisation in Mount Roskill, off-cuts of fabric from a clothing
food distributors and food residential inorganic waste, it all goes Auckland, constructing high-value manufacturer. This fabric would
retailers. The company transforms through the Junk Run collection and furniture out of local waste. It provides traditionally be disposed to landfill.
it into high quality sustainable recycle/redistribution system. This low-income students with resources With every hat purchased, Offcut
animal feed. Most of this food is results in 70% of all waste collected and instruction on how to design plants a tree via one of its partner
in multiple layers of packaging. being diverted from landfill. Every and create. The revenue earned is organisations.
The company uses manual and job has real time data collection distributed among its members.
Benefits of a circular approach:
mechanised means to separate and analysis, enabling the provision
Benefits of a circular approach:
the packaging and prevent it from of detailed waste reports to help • Reduction of waste to landfill from
contaminating the stock feed. companies promote their own • Creating high-value furniture the fabric manufacturing industry.
sustainability message and goals. products out of waste.
Benefits of a circular approach: • Offcut has produced approximately
Benefits of a circular approach: • Diverting recyclables from being 1,500 hats, which equates to about
The initiative enables:
sent abroad or to landfill. 225kg of fabric diverted from landfill.
• 8007 cubic metres of waste diverted
• Over 175 New Zealand
from landfill in the last 12 months.
businesses to divert 30,000
tonnes a year of industrial food • Examples of diversion include
waste from landfill. refrigeration panels from an Auckland
commercial defit being utilised by a
• Over 2,000 tonnes of
Waikato mushroom farm and industrial
cardboard, plastic, metal and
kitchen equipment used as community
wood is recycled. Photo credit:
facilities. Critical Design
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 22Helensville Community Resource Rescue Green Gorilla
Recycling Centre What they do: What they do:
What they do: Resource Rescue recovers whiteware from Green Gorilla provides recycling and waste
Auckland's Inorganic Recovery Project, either minimisation services, skips and bins, and waste
The Helensville Community Recycling Centre is one
repairing appliances for reuse, or recovering management solutions for Auckland. The company’s
of 12 waste collecting centres that are members of
parts to be used in the repair of other focus is to maximise recycling and diversion from
Auckland Council’s Resource Recovery Network.
appliances. landfill. This helps its customers achieve their own
Once sorted, any items that can be reused or
sustainability initiatives.
upcycled are cleaned and sold at the centre’s shop. Benefits of a circular approach:
The centre also hosts sewing nights, where volunteers Green Gorilla’s 2.7ha waste processing facility
• 30 tonnes of appliances diverted from landfill
use waste fabric to create reusable bags. in Onehunga is dedicated to the recycling and
• 870 appliances refurbished/recovered processing of waste material. Initiatives include the
Benefits of a circular approach:
recycling of waste plasterboard into gypsum for the
• •$200,000 generated in revenue
• Between July 2017 and February 2018 Helensville agricultural sector, and the chipping of waste timber
Community Recycling Centre processed 393,732 into biofuel for Golden Bay Cement as a replacement
kg of waste with 73% diverted from landfill. Photo credit: GreenGorilla for coal.
• Approximately 250,000 kg of this waste is recycled Benefits of a circular approach:
and 40,000 kg is resold.
• The Green Gorilla Waste Processing Facility diverts
• Anything that isn’t sold is donated to local charities. approximately 75% of collected construction waste
from landfill.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 23The benefits –
8.8
Economic analysis
$
indicates the
boosting the economy economic potential
while cutting carbon for Auckland’s
emissions
transition to a
circular economy BILLION
could be up to an in GDP in 2030.
additional
The initial analysis draws on The analysis also indicates that
research from overseas and by transitioning to a circular
applies it to the Auckland economy. economy the city could reduce
This methodology suggests the carbon emissions (embodied and
opportunity ranges from $0.8-$8.8 generated) by around 2,700 ktCO2e
billion. Further analysis of specific in 2030 across the food, transport
opportunities in Auckland, drawing and the built environment sectors.
on local data across just three
sectors indicates a range of $6.3
-$8.8 billion benefit to the economy
– towards the upper end of the
initial estimation.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 24Six key levers
Previous analysis of the circular economy in New Zealand has been
completed by the Sustainable Business Network. This identified six
key drivers to overcome the barriers to this transition. They are:
Design for a circular economy existing linear offerings. It is imperative Businesses should invest in co- printing is facilitating local production to
rather than retrofit solutions. that increased effort is made to make operating and collaborating with other order, as opposed to mass production
longevity, upgrading, repair and reuse a organisations to create the necessary for prospective orders. In addition,
It is fundamental that product and
preferred choice among buyers. From a infrastructure. 3D printing has the ability to prolong
systems design incorporates ‘circular’
business-to-business perspective, ‘end product life cycles with printed spare
thinking, and avoids locking in linear Adopt new circular business models.
of life’ solutions and a focus on ‘whole of parts. A better understanding of how
pathways, from the outset. This means
life’ costs as opposed to initial cost need In particular, business models that move organisations can incorporate such
that, for example, products need to be
to be core parts of procurement policies. the customer away from ownership technology into their businesses is key
designed for longevity, incorporating
are crucial. In ‘product as a service’ to gaining the scale required to realise
the ability to repair, upgrade, reuse As well as actively and creatively
business models the manufacturer the benefits.
and disassemble so at the end of life promoting the circular economy within
retains ownership of the product while
precious materials can be harvested their own sectors, businesses should Develop the required enabling policy.
in use with the customer. In the sharing
and reutilised. support the continuing role for non-
economy business model, underutilised Understanding and implementing the
government organisations to raise
Businesses should look to partner with assets (e.g. cars) are shared, further right policies is crucial to achieving a
awareness on issues in the current
system thinkers and academic research encouraging customers to rethink the circular economy. The linear economy
economic system and promote circular
institutions to refine and apply circular need for ‘ownership’. still dominates. Appropriate new rules
economy solutions.
economy thinking to their sector. will be required to at least level the
Harness new technology, including
Develop the infrastructure required to playing field and mainstream this
Generate demand for circular 3D printing, Internet of Things and
support a circular economy. transition.
economy solutions. Artificial Intelligence.
Even if a product is designed for circular
While pioneering organisations are Fast emerging technology is creating
economy product stewardship, New
gaining early mover advantage, new opportunities to facilitate the shift
Zealand’s geographically dispersed and
current consumer demand for circular to the circular economy. The internet
relatively small population means the
solutions is not sufficient to compel has helped to enable the sharing
infrastructure for making this possible
many organisations to change their economy. The emergence of 3D
does not always exist.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 25How to make Think and operate
it happen – the in systems
enabling factors
Analysis of the Sustainable A fundamental approach businesses need
"Think
Business Network’s work to adopt, quickly, is to both think and like a system,
to date, together with a operate in ‘systems’, based on an applying act like an
workshop and interviews with an understanding of the relationships entrepreneur."
stakeholders across Auckland’s between a system’s constituent parts and Kate Conway,
RSA, London15
economy, indicate the following the way they work within larger structures.
thinking and actions are
We need to redesign how materials flow through A good example of a systems approach in action
fundamental across sectors the city. This can only be done successfully if the is the way Air New Zealand’s catering partner
to enable the transition to a whole system is considered. Co-ordination and LSG Sky Chefs and the Ministry for Primary
collaboration is required. Potential unintended Industries worked together on inflight waste16
circular economy. consequences need to be avoided and waste
The initiative has enabled 40 Air New Zealand
across the system needs to be eliminated,
inflight products, that were previously sent to
not just moved up or down the value chain.
landfill for biosecurity reasons, to be reclassified.
A systems approach recognises that no one
They can now be reused on future flights if
organisation has the power to shift a system,
removed from aircraft sealed and untouched.
let alone an economy. This approach creates
The initiative is expected to be able to reuse 150
the platform and necessity to purposefully
tonnes of products a year.
collaborate to develop circular solutions.
15
rom Design Thinking to
F 16
ir New Zealand leads the
A
Systems Change: How to way with inflight waste.
invest in innovation for Press Release, October
social impact, RSA, 2017 2017
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 26Reset procurement
It provides the motivation and incentives for suppliers • The quality of the furniture Vero selected during a
The way organisations procure and manufacturers to design out waste in the product, refurbishment 18 years ago enabled Junk Run to
goods and services profoundly or design feedback loops that maximise the value of reallocate 98.4% of it to communities in need rather
the materials. than landfill when it came to changing it.
influences the marketplace.
Sustainable procurement, or smart procurement, • Auckland Council is a procurer of $4 billion worth
Procurement criteria need to evolve. They must is the emerging best practice. It reimagines the of goods and services each year. This makes it an
enable more circular solutions to be competitive by purpose of procurement as delivering value for the obvious candidate for championing progressive,
demonstrating their value. The focus of procurement whole organisation, embedded within society and mature approaches to procurement that progress
should be on whole of life costs, rather than just environment. It’s not just about securing goods and us towards a circular economy.
initial purchase cost. This would mean solutions with services at minimal cost. It’s about mitigating risks,
•
Fuji Xerox and Interface products are specifically
longer life cycles could compete more effectively with uncovering inefficiencies, contributing to brand and
designed for recovery, reuse and, ultimately, to be
solutions with less longevity but lower initial costs. messaging, and building collaborations with suppliers
recycled at the end of life.
to drive innovation.
End of life solutions must play a greater role. If the
supplier doesn’t provide any end of life solutions, the If properly mandated, procurement teams can
customer often bears the cost of disposal. On the contribute to the circular economy in various ways.
other hand, putting responsibility for end of life on the They can buy fewer, better and longer lasting
supplier puts responsibility where it is most effective. products. They can use services instead of products
wherever possible. They can tender and contract on
outcomes rather than outputs. They can showcase
the organisation’s values through careful choice of
suppliers and continuing procurement-led innovations.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 27Make circularity desirable
Demand for more circular solutions Businesses providing circular solutions should harness Adidas harnessed the global popularity and influence
successful communication and marketing techniques of the Real Madrid and Bayern Munich football teams
needs to be stimulated. for their circular economy related messages and make to promote its range of sports equipment made from
A product may have a long life cycle, circularity desirable. waste plastic in collaboration with Parley.
repairability and full supplier- Imagine if the hugely influential Apple brand had Identifying and harnessing the influencers in Auckland
embraced circularity as part of its design ethos. It across sport, the arts and media could help make
provided end-of-life solutions. But would mean incorporating more modular design circularity desirable.
it won’t sell unless its core function elements to facilitate upgrades of elements of an
The recently launched ‘Bags Not’ campaign to
iPhone, such as the camera, rather than encouraging
is at least as good as its linear the replacement of the whole phone (as per the
encourage shoppers not to use plastic bags utilises
the likes of Dick Frizzell and Jaquie Brown to
competitors and its proposition modular Fairphone). The electronic device sector
communicate the message.
would have a very different landscape to the one we
resonates with customers. see now.
Utilising an association with sport is a route that
resonates with mass markets. Auckland has recently
seen how the Volvo Ocean Race’s visit to Auckland
provided a communication platform for the issue of
plastic in seas.
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 28Fund the Share knowledge and
transition develop skills capability
Investment and funding signals A circular approach is new to many organisations.
to business still often favour Couple this with rapid advancements in technology,
adherence to the linear economy. and a knowledge and skills gap exists.
We need to level the playing field and access Simple methods of bridging this gap include Innovation and Entrepreneurship. An example
targeted investment for circular solutions. platforms for sharing knowledge and case is the Auckland Climathon weekend, involving
studies. The Going Circular category of the 2017 Vector.17
Existing ways of doing that include the Waste
NZI Sustainable Business Network Awards,
Minimisation Fund (national), Waste Levy An open source approach can enable common
sponsored by Auckland Council, is an example
funds distributed by Auckland Council (Waste knowledge platforms from which businesses
of both. In its first year it attracted the highest
Minimisation and Innovation Fund), and can innovate. For example, the sharing
number of entries of any category in the 15-
Callaghan Innovation. In March 2018 the Ministry economy requires new types of insurance
year history of the awards. The online platform
for the Environment began requesting applicants or leases to accommodate multiple, rather
and regular learning and networking events
to the Waste Minimisation Fund highlight how than single, users. An open source template
of the Circular Economy Accelerator are other
their projects accelerate New Zealand towards would mean innovation can occur through
examples of ways to bridge the knowledge gap.
becoming a circular economy. the user experience, avoiding unnecessary
Engaging with programmers will leverage new administration.
There is also a major role for impact investing.
digital technology. This could take a ‘hackathon’
This where investments are made on the basis Platforms like backofanapkin.co.nz and
approach. This is where programmers and other
of social and environmental outcomes as well as Simmonds Stewart are used by start-ups and
experts tackle specific challenges in limited
financial gains. Ensuring this investment sector can provide inspiration for how simple and
timescales. This could be facilitated through
continues to grow and Auckland entrepreneurs accessible shared templates can be.
collaboration with education institutions already
can access such investments is crucial.
engaging businesses such as Unitec’s Tech
Organisations such as Ākina Foundation and the
Futures Lab and Auckland University’s Centre for Auckland Climathon 2017,
Icehouse have a key role to play in this. 17
Vector, October 2017
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 29Use data Set the rules to
enable the transition
Making data influential and actionable Appropriate national policy can ensure the
is central to advancing the circular benefits of a circular economy can be achieved
economy in Auckland. sooner rather than later.
Businesses need accurate data around material flows and losses A fundamental fiscal measure that is circular products, would also be very
of value to incentivise and enable investment in the circular often first cited by businesses is an influential. The European Commission,
economy. How much of a particular material is being wasted, increase in the Waste Levy. An analysis for example, is considering changes
when is it happening and what is its value? of the effect of possible changes to the in tax laws to allow lower or zero VAT
waste disposal levy last year indicated [GST] rates for products with recycled
An open source platform that collects waste data from
that increasing the levy from $10 per content. This is intended to boost the
organisations would be a starting point for making better
tonne to $140 per tonne could deliver demand for recycled materials.
collective decisions around waste. This could then be used to
up to $500m in net benefits to the
help map material flows through the city. A comprehensive analysis across
economy each year and create up to
sectors to determine priority areas and
There are several companies here in NZ exploring the use of the 9,000 jobs.18
the sector specific issues would be
Internet of Things, combined with artificial intelligence and/or
Banning or severely restricting the most required.
Blockchain technology. The Cacophony Project in Akaroa has built
troublesome materials, like micro beads
a prototype for identifying and killing predators to assist with the
or single use plastics, could help to
Department of Conservation’s national target to become Pest Free
focus innovation on circular economy
by 2050.
solutions. Compulsory product
Litterati is a platform that turns crowd-sourced Instagram photos of stewardship for certain sectors could
litter into GPS data points, identifying problem items and locations have a similar effect. A Wasted Opportunity: Using
18
to help influence companies to eliminate them. the waste disposal levy to
Other fiscal measures, such as a create economic &
change in the GST structure for environmental advantage for
Aotearoa, Eunomia, 2017
SUSTAINABLE BUSINESS NETWORK THE ECONOMY
THE CIRCULAR CIRCULAR OPPORTUNITY FOR AUCKLAND | 30A sector focus Three key sectors have been selected for high
level analysis based on their significance to
Auckland and ripeness for transitioning to a
circular economy.
1. Food 2. Transport 3. Construction
and logistics
Photo credit: Todd Eyre Photography Ltd
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 31Food
The Food and Beverage sector constitutes
approximately 4% of Auckland’s GDP.19
Food waste in the city represents a significant proportion of the
organic waste, representing around 19% of total waste to landfill by
weight in 2016 – 137,000 tonnes from domestic waste and 168,000
tonnes from commercial sources. It is the largest contributor to
greenhouse gas emissions of all waste materials sent to landfill.20
One third of food produced for human consumption is lost or wasted
globally, which amounts to about 1.3 billion tons per year.21
Food is lost or wasted throughout the supply chain, from initial
agricultural production down to final household consumption.
This represents an inefficient use of land, water, energy and other
inputs as well as unnecessarily increasing costs and greenhouse
gas emissions.
It presents an enormous opportunity for transitioning to a Photo credit: Todd Eyre
circular economy.
19
verview of Food and
O Key facts on food loss and
21
Beverage Sector of Auckland, waste you should know!
ATEED Food and Agriculture
Draft Auckland Waste
20
Organization of the
Management and United Nations
Minimisation Plan,
Auckland Council, 2018
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 32Current status
There are already some • Commercial organic collection services, such • Proactive community-based action is being
as the one offered by We Compost and the facilitated by the likes of The Compost Collective.
noteworthy waste solutions extension of domestic food waste collections
• Biogas from Auckland’s waste water is being
happening in Auckland. by Auckland Council are returning nutrients to
used to power the Mangere and Rosedale
the soil.
treatment plants. The plants aim to be electricity
Designing out food loss and waste is continually a • Significant proportions of commercial food neutral by 2025.22
constant concern for growers, manufacturers and waste are being processed into animal feed
retailers. But there is limited evidence of co-ordinated • Green Spot Technologies converts fruit and
by companies like EcoStock, or rendered into
collaborative approaches across the value chain to tackle vegetable by-products into high value-added
tallow and other products.
the systemic barriers to a circular economy in food. food products.
• The commercialisation of ‘ugly fruit’ (fresh
This would go beyond cutting waste in one organisation • Greater amounts of non-sellable edible food
produce still fine to consume but with
by just passing it up or down the value chain, into a waste, previously being sent to landfill, are
visual defects) is a welcome addition to our
circular economy approach to the sector as a whole. being distributed by the burgeoning food rescue
supermarket shelves.
sector with Kiwi Harvest being the key charity
• Reducing post-consumer waste is being organisation in Auckland. Of course the growth
addressed by the Love Food Hate Waste of the sector further illustrates the waste issues
campaign. within the food system.
• Household food waste collection services are
being rolled out by Auckland Council.
22
atercare plans to run
W
treatment plants on biogas,
Bernard Orsman, NZ Herald,
February 2016
SUSTAINABLE BUSINESS NETWORK THE CIRCULAR ECONOMY OPPORTUNITY FOR AUCKLAND | 33You can also read
