Circular economy: the keys to effective implementation

A popular concept at a time when resources are dwindling, short supply chains are gaining traction, and the government is publishing a roadmap on the subject, the circular economy must be part of your business strategy. How can you get started? What resources should you use? Voluntary standards, assessments and labels, training courses, and online tools are available or in development to help you. Here's an overview.

On April 23, 2018, the Prime Minister and the Secretary of State for Ecological Transition presented a roadmap for the circular economy. At the same time, the European Union is finalizing its own roadmap, which will revise four major pieces of legislation: the Waste Framework Directive, the Packaging Waste Directive, the Landfill Directive, and the Waste Electrical and Electronic Equipment Directive. What exactly is the circular economy? This concept, which emerged in the 1970s, has been attracting considerable interest in recent years. It is considered relevant and effective in minimizing the environmental impact of human activities in all respects: resource scarcity, biodiversity depletion, various forms of pollution, and climate change. What exactly is it? According to the Ademe definition, it is "an economic system of exchange and production which, at all stages of the life cycle of products (goods and services), aims to increase the efficiency of resource use and reduce the impact on the environment, while developing the well-being of individuals." In this respect, the circular economy is the opposite of the linear economy: it puts an end to the vicious cycle of produce-consume-throw away.

For ADEME, the issue can be approached from three angles: waste management, supply from economic actors, and consumer demand and behavior. Each of these angles has seven components: sustainable procurement; eco-design; industrial and territorial ecology; functional economy; responsible consumption; extending product life; and recycling. A sign that it is important to the authorities, the circular economy is even enshrined in law, specifically the law on energy transition for green growth of August 18, 2015. And many sectors of activity are adopting the approach, such as, most recently, the federation of beauty companies, which published its white paper on best practices on March 14, 2018. Even the MEDEF (French Business Confederation) has published a reference guide ("The circular economy: a strategy for growth and competitiveness for businesses") dated December 2014.

Voluntary standards for an effective approach

That's the theory. In practice, however, while everyone understands the importance of no longer producing, consuming, and throwing away without thinking, taking action is much more complex. And some concepts may seem overrated or a little vague. As Emmanuelle Moesch, project manager at the National Institute for Circular Economy, explains, This approach is above all a state of mind, which involves constantly questioning oneself. The most important thing is therefore to first learn its principles before incorporating it into all of your organization's processes. .

A fairly common mistake is to fall into the trap of the rebound effect or pollution transfer. In fact, believing that we are doing the right thing, we sometimes end up making things worse. Just because you implement a circular economy model doesn't mean you reduce your impact on the environment. , emphasizes Emmanuelle Moesch. If we are in an area where wood is scarce and, thinking we are doing the right thing by using a renewable material, we replace certain resources with this material by importing it from far away, this is not necessarily circular economy. Transportation can negate environmental benefits.

WASTE MANAGEMENT AND RECYCLING
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In the absence of unanimously agreed rules, how can an effective and virtuous approach be adopted? A future management system standard, based on the same model as ISO 14001 for environmental management, should help businesses and local authorities to see things more clearly. The circular economy is one of the priority themes of France's standardization strategy. , explains Corinne del Cerro, Head of Development for Environmental and Social Responsibility Markets in AFNOR's Guidance and Development Department. There are nearly 700 standards related to the circular economy, most of which are cross-cutting, and around 15 are currently being developed at European level, including extending product life and reparability. However, there is no dedicated generic standard. A group of experts specializing in the circular economy, formed at the end of 2017 within the "Waste Management and Recycling" standardization committee, has taken on the task. Since this article was written, the famous standard has been published under the title XP X30-901

Voluntary standardization: a European issue

The transition to a truly circular economy seems essential in Europe, the region most structurally dependent on resources from other continents. Hence the importance of introducing a voluntary standard, insists François-Michel Lambert, president and founder of the National Institute for Circular Economy: We must take advantage of the flaws in the current model to seize opportunities. A standard governing circular economy management in companies would consolidate all individual initiatives. Take the automotive industry, for example. Today, cars are stationary 90% of the time and occupied by an average of 1.4 people. Tomorrow, we will have shared vehicles and robot taxis. We will be at the crossroads between private cars and public transport. With one ton of material, we will be able to provide many more mobility services! This is therefore a matter of organizational disruption, and thus of new management. It is this new management that must be implemented in a structured, and therefore standardized, manner. 

While waiting for the birth of a standard available today under the title XP X30-901 at AFNOR Editions It should be noted that the regulatory landscape already covers certain aspects of the circular economy, such as responsible procurement (ISO 20400 standard), compost quality, the functional economy, eco-design, and bioplastics. Not to mention voluntary standards projects on planned obsolescence and deposits. And standards also mean monitoring indicators: the National Institute for the Circular Economy, together with the association Entreprises pour l'environnement, has begun work on centralizing these tools, which should help economic actors in their efforts.

ENVIRONMENTAL MANAGEMENT
Purchase the XP X30-901 standard

Complementary fun and informative tools

In addition to standardization, other tools can help deploy, frame, or improve a circular economy project. In this area, the publications of the Orée association are a reference. The AFNOR group, which is itself a member of Orée, has published a book entitled 100 questions sur l’économie circulaire (100 questions about the circular economy, AFNOR Éditions, 2016), which provides clear, concise answers to all your questions about the challenges, methods, and resources available. The circular economy is also on the agenda at AFNOR Compétences, the group's training subsidiary. Its 2018 catalog offers a one-day program entitled "Circular Economy: Understanding and Creating Your Innovative Business Model." The originality of this cross-disciplinary training program lies in its fun and highly practical approach. After reviewing the main principles of the circular economy, I give participants a hands-on experience of the reality through a business game, explains Ivan Grenetier, NuevoMund trainer. Participants draw inspiration from a practical case study and a scenario to work together to come up with ideas for moving towards this virtuous approach. The principle? Enter project mode to evolve a company's business model (partners, activities, added value, etc.) towards greater circularity: how to recycle and recover value from end-of-life products, how to turn a product into a service, etc.

ECO-DESIGN
Discover AFAQ Eco-design certification

Within companies, these distinctive features may be of interest to purchasing departments, which, by favoring suppliers of recycled products or suppliers who commit to recovering end-of-life products for local recycling, often engage in the circular economy without even realizing it. The AFNOR Group has entered the field of responsible purchasing support for both buyers and suppliers: mapping CSR risks for suppliers, a platform for evaluating and selecting suppliers, tools for assessing the CSR performance of purchasing departments, with the RFR (Responsible Supplier Relations) label or AFAQ 20400, based on the ISO standard of the same name, as the ultimate goal. , lists Mélodie Merenda, CSR project manager at AFNOR Certification.

We should also mention AFAQ Biodiversity, which assesses the maturity of an approach to protecting and taking biodiversity into account in a company's activities, and above all AFAQ Eco-design, which is closest to the fundamentals of the circular economy. This assessment proposes several solutions that address government concerns, Mélodie Merenda continues. For example, extending the lifespan of products, systematically considering end-of-life issues from the product design stage, or incorporating more recycled raw materials into new products. Finally, the TEEC (Energy and Ecological Transition for Climate) label, also cited by the ministry (which created it in 2015), guarantees that investments will be directed towards financing the ecological and energy transition. Green finance is even inspiring the European Commission, which presented its dedicated plan in early March 2018, including a proposed label for green financial products. Decision-makers therefore seem to agree: the future will be circular or... it will not be.

ENERGY TRANSITION
Discover the TEEC label

Three questions for Christian Levy, Vice-President of the Environment and CSR Strategy Committee at Afnor Standardization and member of the CGEDD (General Council for the Environment and Sustainable Development)

You are leading a group of experts (AFNOR, companies, professional federations, etc.) to develop a management standard dedicated to the circular economy. How far along are you?

It all started in 2017 with the decision by AFNOR's strategic committee to develop a framework document to help professionals sitting on standardization committees take the circular economy into account. A working group comprising representatives from the companies on our strategic committee drafted a document defining the circular economy and listing areas for action, impacts, etc. Member companies found this framework very useful, not only for the standardization approach but also for their own operational projects. This led to the idea of developing a voluntary standard providing guidelines for the management of projects involved in the circular economy, in the same spirit as those relating to quality, environmental, or energy management. Our first working meeting, attended by more than 50 people, took place on January 29. The agri-food strategic committee, which applied the grid to royal jelly production, and the cement manufacturers, who also tested the framework, reported on their experiences. A first draft standard and a timetable for the end of 2019 were established. On March 8, a second plenary meeting brought together some 40 motivated and proactive participants.

What is your goal?

We would like France to propose a draft voluntary standard by the end of 2018 at European level, or even internationally within the ISO. The text would include the three objectives of the circular economy and the seven areas of action defined by ADEME, with additional content. Any company wishing to embark on a circular economy initiative could then apply this 21-point cross-analysis grid, safe in the knowledge that it is speaking the same language as its neighbors. Several professional federations, which will be scrutinizing their projects against the draft standard, were due to share their conclusions with us at the April plenary session.

What is the schedule?

It's very tight, but it's doable! We will send the preliminary regulatory document to international bodies in September for a decision. At the same time, we will test it with our European partners to see if they want to join us. We are also considering participating in the G7, chaired by France in 2019: one of the themes could be the circular economy. We could organize workshops and discuss the draft standard.

Monitoring indicators: a guide to making better choices

What indicators should be used to determine whether an initiative is circular economy-based? In 2017, the National Institute for Circular Economy launched a working group with the association Entreprises pour l'environnement (EPE). A review of the academic literature reveals that output indicators dominate, but this is not appropriate for companies offering services. , explains Emmanuelle Moesch, project manager at the IEC.

Some companies have established indicators for themselves (quantifying the lifespan of their products, the rate of reuse of materials in their products, etc.), but these remain partial. A large proportion of indicators concern the downstream part of the chain, particularly waste. For the upstream part, progress in eco-design is monitored, even though this approach remains difficult to measure. Other indicators measure industrial and territorial ecology initiatives, but there is a lack of indicators for companies that are meaningful on a global scale. A guide providing an overview of these indicators is expected in October 2018, taking into account the rebound effect. It will complement the work currently being carried out within AFNOR to develop a management system standard. , comments Emmanuelle Moesch.

AFNOR solutions

Develop and monitor standards

• AFNOR Commission on Waste Management and Recycling
• AFNOR Commission on Bio-based Products
• ISO Working Group on Plastics and the Environment
• ISO Technical Committee "Environmental Management"

Purchase a publication

• The NF EN ISO 14006 standard
• The NF EN 62430 standard
• The NF ISO 20400 standard
• The NF U44-051 standard
• The XP X30-901 standard

Be vigilant and stay informed

• Buy the book "100 Questions to Understand and Take Action"

Get trained

• Expert opinion: "Circular economy: understanding and creating your innovative business model"
• Training course: "Eco-design: understanding and implementing the approach"

Become certified

• AFAQ ISO 14001
• AFAQ Eco-design
• European Ecolabel
• RFR label
• TEEC label