Can service drive the circular economy?

Sustainable Development Goals and Circular Design

Introduction

Recently, the Ellen McArthur Foundation launched its strategy for circular design, which aligns with the Sustainable Development Goals (SDGs) and emphasizes the need for organizations to adopt a holistic design perspective. This article explores the connection between circular design and emerging trends in fields like servitization.

The Value of Servitization and Circular Design

Servitization focuses on selling outcomes rather than products, aligning with the principles of the circular economy. By designing out waste and pollution and keeping products and materials in use, organizations can benefit both economically and environmentally. However, a lack of holistic thinking has been a barrier to progress in industries still rooted in linear business models. To fully implement a circular model, companies should apply design thinking throughout the entire process.

Maintenance and the Extension of Useful Life

To be genuinely circular, organizations should design products with service in mind from the outset. This involves considering service-related factors, like standardized components, while minimizing environmental impact and incorporating reuse, remanufacturing, and recyclability into the initial design phase.

Transitioning from a product-centric to a service-centric approach requires time but offers economic advantages for both suppliers and customers. The European Parliament recognizes the potential of a circular economy to increase competitiveness, foster innovation, spur economic growth, and generate jobs. Rethinking materials and products for circular use can drive innovation across various sectors.

Real-time insights into product performance and maintenance needs are crucial for planning product lifecycles based on customer needs. AI-enabled asset management systems with predictive maintenance capabilities enable organizations to stay on top of product performance and understand when maintenance or part replacement is necessary to meet Service Level Agreements (SLAs).

Return and Reuse of Materials

Bringing parts and assets back into inventory or repair depots can significantly impact net new purchases and resource consumption. Technician vans and forward stocking locations often hold unused inventory that can be repurposed for other service and maintenance initiatives. Product intelligence gathered from these processes can inform product designers, improving product maintenance, reliability, and efficiency.

Organizations must invest in the resources and tools needed to manage the reverse logistics of products and parts, including repair, refurbishment, or remanufacturing for industrial use.

Benefits of Circular Design

The shift towards a circular economy makes financial sense as it reduces costs, energy bills, carbon emissions, and landfill waste. It promotes reuse and recycling while driving energy efficiency and emissions compliance. The success of the circular economy relies on the collaboration between business and service teams.

SDGs, Targets, and Indicators

1. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Indicator: Adoption of sustainable practices in product design and manufacturing processes to minimize waste and pollution.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all, including women and young people.
   • Indicator: Creation of jobs through the shift towards a circular economy.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • Indicator: Adoption of AI-enabled asset management systems with predictive maintenance capabilities to improve resource-use efficiency and reduce waste.

Analysis:

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to SDG 12 (Responsible Consumption and Production), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation, and Infrastructure).

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the specific targets identified are:

– Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.

– Target 8.5: By 2030, achieve full and productive employment and decent work for all, including women and young people.

– Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. These indicators include:

– Adoption of sustainable practices in product design and manufacturing processes to minimize waste and pollution.

– Creation of jobs through the shift towards a circular economy.

– Adoption of AI-enabled asset management systems with predictive maintenance capabilities to improve resource-use efficiency and reduce waste.

These indicators can be used to measure progress towards achieving the targets under SDGs 12, 8, and 9.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: diginomica.com

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