Circular Insights #39 – a decade of learning and sharing
Misleading soundbites | Impossibilities | 2023 projects | Circular economy stories | Podcast highlights
Catherine Weetman
Catherine Weetman MSc FCILT FRSA - Director, Rethink Global Catherine gives talks, workshops and advice on the circular economy and sustainability. Her award-winning book, A Circular Economy Handbook for Business and Supply Chains, published by Kogan Page, includes wide-ranging examples and practical tips. Catherine has over 25 years' experience in contract logistics, manufacturing, retail and supply chain consultancy, and her career spans food, fashion and logistics, including Tesco, Kellogg's and DHL Supply Chain. She is a Visiting Fellow at the University of Huddersfield, and a Mentor and Regional Organiser for the Circular Economy Club
Are you held back by last-century thinking?
It was great to be featured by Greenbiz in January, although after reflecting, I realised a couple of my ‘soundbites’ could be read to mean exactly the opposite of what I went on to talk about…! This blog unpacks those, explaining more about what I think is keeping business leaders stuck in ‘last century’ thinking, and how to avoid that trap.
122 Iain McKechnie: steps to a services-led strategy
Iain McKechnie of the Advanced Services Group helps clients develop services-led strategies, improving circularity and outcomes for the businesses and their customers.
The market for services, including rental, subscriptions and ‘X-as-a-service’ is growing rapidly, both for business to business and business to consumer markets, and services can be a gamechanger for businesses looking to shrink their footprint and adopt circular strategies.
It’s all part of a shift from a culture of ‘ownership’ to ‘usership’, with services emerging as a way to provide more convenient, flexible options for customers, avoiding the burden and hassle of ownership. Meanwhile, businesses can benefit from the stability of recurring revenue, predictable income streams and easier financial planning; and improve sustainability by using resources more efficiently. And providing services helps businesses get closer to their customers, with many more opportunities for contact and dialogues, discovering more about what customers value, and how to improve things.
The Advanced Services Group are specialists in servitization research and practice, with work that is grounded in the latest academic research, real industry insight, business know-how and experience.
The Advanced Services Group helps manufacturing companies and technology innovators on their servitization journey to develop services-led strategies and ultimately transform their business model to compete through advanced services. ASG has worked with over 300 businesses, multinational companies and SMEs to develop their growth strategies through services.
Iain tells us a bit about what Advanced Services Group does, and which kind of sectors are starting to move towards service-based models. Iain then explains how companies can transition from selling products, to moving along what ASG calls the ‘Services Staircase’, developing different kinds of services to create value for their customers.
Iain talks about the kind of benefits these companies are seeing – and how this is better for their customers, too. We hear what typically holds companies back from switching to services, and how they might get started.
Iain shares a couple of diagrams from the resources on ASG’s website – the Transformation Roadmap and the Services Staircase, and I’ve included links to those in the shownotes.
121 Claire O’Sullivan and Kitty Wilson Brown: Contemporary Hempery
Claire O’Sullivan and Kitty Wilson Brown are two inspiring people who are passionate about the properties and potential of hemp, especially for textiles. Their journey together led them to found a UK business, Contemporary Hempery. Hemp has amazing potential, for a wide range of products, and it’s brilliant for regenerative farming practices – so why aren’t we doing more with it? It’s useful as a textile, in construction, in food and personal care products, and as an alternative to plastic. But although cultivation is increasing and being encouraged by the European Union, elsewhere it’s a different picture.
Kitty and Claire outline some of the uses of hemp across different sectors, about the little-known history of hemp growing in the UK, and some of the ways it was used – many of them absolutely essential to our industrial evolution. We’ll also hear about some of the current issues, in terms of hemp production and processing.
Kitty and Claire also share the story of how they came together, the amazing coincidences that sparked their interest and what drove them to start Contemporary Hempery, to embark on this long and complex journey to rescue hemp for regenerative, contemporary textiles.
120 Priorities are changing
People’s priorities are changing, as we realise more stuff doesn’t make us happier– so how can businesses thrive by doing better, with less?
In this episode, Catherine suggests it’s time to bust one of the myths of the modern economy – people don’t want more and stuff! Priorities are changing, people are realising that more stuff doesn’t make us happier. Instead, people are discovering that life is better when we care for, share and treasure our stuff, and what’s more, that’s better for our planet and society.
But this presents a big challenge – a paradox – how can businesses succeed without selling more stuff, every year? Many of the Circular Economy Podcast guests are already doing just that, using circular strategies to thrive by doing better with less.
You probably already have big questions on this. It feels logical to say that new designs and innovations will always make life better, that people want to keep up with trends and the status that comes from having the latest thing,
And of course, that making new products underpins the success of a business … but Catherine shares research and insights from guests in the last series of podcasts to show why we need to question conventional wisdom, and choose alternative strategies that are fit for the current business landscape.
119 BONUS Ken Webster: the circular ECONOMY! Part 2
This is the 2nd part of the conversation with Ken Webster, one of the foremost thinkers in the circular economy field, where we explore concepts for a critical aspect that’s being ignored – the economy itself!
In this episode, we go deeper into the possibilities offered by a universal basic dividend, especially as we move to a world where artificial intelligence might completely change the nature of work.
Ken mentions his work with Earth4all, supporting the discourse and new thinking marking the 50th anniversary of the Club of Rome’s ground-breaking Limits to Growth report.
We move on to Ken’s mission to make these concepts easier to grasp and to help people get excited, plus the importance of getting really clear on the core idea, before trying to make this work in practical terms.
Ken explains the overlaps between the thinking around circular economy and complex, adaptive systems and highlights some of the glaring faultlines in mainstream economic thinking.
That leads us back to the Commons and regenerative and open systems, together with the key questions that should be at the heart of designing circular products, components and materials,
And we finish by hearing a bit more about Ken’s most recent books, including ABC&D: Creating a Regenerative Circular Economy for All – co-written with Craig Johnson, and his latest book, The Wonderful Circles of Oz: A Circular Economy Story, written with Alex Duff.
If you haven’t already, please do listen to the previous episode to hear Ken talk about the Universal Basic Dividend (not Universal Basic Income), and the importance of reviving the concepts of commoning, and the Commons.
119 Ken Webster: the circular ECONOMY!
This episode is different – I’m talking to Ken Webster and we explore some big themes and concepts for a critical part of the circular economy that often gets ignored – the economy itself!
Catherine says: Ken Webster is right up there as one of my circular economy heroes, and is widely acknowledged as one of the foremost thinkers in the field. From 2010 – 2018, Ken was Head of Innovation for the Ellen MacArthur Foundation, shaping current concepts of a ‘circular economy’.. Ken also co-wrote the book that first opened my eyes to the circular economy back in 2011 – Sense and Sustainability, co-written with Craig Johnson.
One of Ken’s best-known books, The Circular Economy: A Wealth of Flows, relates the connections between systems thinking, economic and business opportunity and the transition to a circular economy.
I’m very keen to read one of Ken’s most recent books, co-written with Alex Duff. Ken and Alex use a storytelling approach based on the The Wonderful Wizard of Oz to offer a new and compelling narrative about the future direction of our economy, calling for macro-economic system redesign. It’s called The Wonderful Circles of Oz: A Circular Economy Story – you’ll find links in the shownotes.
Ken’s written several more thought-provoking works on the circular economy, including ABC+D: Creating a Regenerative Circular Economy for All – also co-written with Craig Johnson, and we mention some of these as we go along.
This was a wide-ranging conversation about system-scale issues and concepts. I tried my best to keep up with Ken’s thinking as we explored some of the big ideas he has been working on, including:
• A Universal Basic Dividend – not to be confused with UBI, or Universal Basic Income. We discuss why a Universal Basic Dividend would be a good thing, how it would be funded and where the money would flow to.
• We move onto The Commons – what that really means, and how it could be better accommodated in our modern economies, in a meaningful and sustainable way.
• Ken talks about the rentier economy, and rentiers. If you’re not familiar with that term, it’s someone who earns income from capital without working – for example by owning property or land that is rented out to tenants; by owning shares or bonds that pay dividends or interest, and so on.
• We discuss why the economy isn’t working for the vast majority of people around the world, and what’s getting in the way of an ‘economy for all’.
• We talk about some of the signals for change, with people are starting to see the potential of a future with community, connection and caring – caring for each other, and for our Mother Earth. The potential of a future that’s not all about ‘Work, Buy, Consume, Die’.
I’ve split our conversation into two parts – the 2nd part will be out next week as a bonus episode.
118 Ann Stevenson: minding our language
Let’s talk about how we talk about the circular economy – the language we use, and whether it’s helping us… or getting in the way.
Ann Stevenson is the circular economy lead at Resource Futures, an employee-owned and non-profit distributing BCorp environmental consultancy in the UK. Ann has been working in the field of environmental consultancy for over 25 years, and one of her specialisms is understanding and managing risks in transitioning to a circular economy.
Ann became curious to know more about how we use language to explain and make the case for the circular economy, and to discover whether that is affecting how SMEs are moving towards more circular practices. The academic term for this kind of research is discourse analysis – aiming to understand how language is used in real life situations.
Ann recently completed a PhD, using discourse analysis to investigate perceptions of risks around the CE for established small manufacturing businesses, or SMEs, and she’s written a chapter with her key findings for a newly released book: Circular Economy: Meeting Sustainable Development Goals, published by the Royal Society of Chemistry. We’ve included links to Ann’s phD and the book in the shownotes.
We discuss some surprising findings, in particular how we tend to frame the workings and outcomes of a circular economy in ways that actually encourage and embed the wrong behaviours! For example, Ann explains how focusing on economic cost savings can lead us to focus on outcomes that are too narrow, and that might ignore important benefits – especially over the long term.
We can end up with unintended consequences, too – one example is when we talk about waste being a valuable resource – and Ann explains why that’s tricky.
117 James Rigg: a refurbishment revolution for electricals
James Rigg is CEO of Trojan Electronics in Wales, and has a wealth of expertise in value-adding circular solutions for electrical and electronics manufacturers and retailers. James has built on his experience across retail and more recently, leading growth across the Buy It Direct Group, and is now focussed on expanding Trojan Electronics Circular Solutions to help retailers and manufacturers recover value and at the same time, reduce e-waste. Trojan provides services to high-profile brands, and we’ll hear about some examples.
E-waste – the waste from end-of-life or unwanted electricals and electronics – is the world’s fastest growing waste stream, and is forecast to grow by 30% over this decade.
The Trojan Electronics team provides electrical repair, refurb and resell services in several ways – through their client’s own marketplace stores, through direct integration into the clients’ ecommerce stores, and through Amazon, eBay, Tik Tok, Wowcher and others.
Trojan is a £20M turnover business based in Swansea, south Wales, employing 150 staff in a purpose-built warehouse housing repairs and all its other services, and refurbishing over half a million items each year.
Ahead of our conversation, James sent me some customer research, digging into people’s attitudes to refurbished products, with some very encouraging findings, and we’ll hear more about that in the conversation. I can share a few of the standout figures now: over a third of the respondents had bought a refurbished or repaired electrical item in the previous 12 months, including smartphones, laptops or tablets, and household appliances. Only 1% of those people had a bad experience with that purchase, and almost 80% said they’d buy refurbished in the future. And even though people knew they’d bought a refurbished item, 24% of customers couldn’t tell the difference from the equivalent new product.
The survey includes some market research, highlighting predictions for the growth of refurbished electronics – the market was valued at around $85bn in 2021 and is forecast to grow at 12% each year over the next decade. James is happy to share the research, and I’ve included a link to the research paper in the shownotes.
James also shared information from Trojan’s clients who are offering refurbished products alongside new versions, and the results are very exciting. However, at some clients, attitudes are slow to change, with people reluctant to make the transition to selling refurbished products as well as new versions, and James explains some of the reasons behind this.
116 Chuck Fuerst: circularity for product returns
Chuck Fuerst is Chief Marketing Officer for software provider ReverseLogix.
ReverseLogix is the only end-to-end, centralized, and fully integrated returns management system built specifically for retail, eCommerce, manufacturing and 3PL organizations. The ReverseLogix platform facilitates, manages, and reports on the entire returns’ lifecycle.
When I first worked in logistics, back in the late 1980s, for most companies, most of the time, returns were a minor issue. When e-commerce came along, starting in the 1990’s, product returns began to increase, and over the last few decades – especially as companies have moved towards cheaper products, with less reliable information on sizing for things like clothing – returns have become a major issue for many businesses – whether that’s for manufacturers and retailers, and for both B2B and B2C models.
Chuck explains how the ReverseLogix software helps companies improve the process for getting products back into the system – whether that’s from e-commerce returns, returns of faulty goods, for repairs and warranty claims, and more. We’ll hear how ReverseLogix improves the customer returns experience, saves employee time with faster workflows, and helps businesses get insights into returns data – all of which improve profits and circular outcomes.