From waste to wealth, circular economic models go beyond the ‘take-make-dispose’ principle to ensure more sustainable supply chains and products that have a second life.
The traditional economy is built on the idea of “take, make, dispose”. It’s linear, economically inefficient and unsustainable. But in a circular economy, companies look to take end-of-life products and push them back into the economy as a resource.
It’s a circular economic model that aims to keep resources in use for as long as possible, to extract the maximum value from them while in use, and to recover and regenerate products and materials at the end of their service life.
“So you’re continually using these resources and not using the planet’s finite resources,” explains Kirstie McIntyre, Global Director for HP Inc.’s social and environmental responsibility operations.
McIntyre is also a founding member of the Ellen MacArthur Foundation, a global organization focused on promoting the concept of a circular economy.
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“There are some big challenges in sustainability. There are challenges now, and they will be more acute in the future,” McIntyre says. “It also means companies need to question and innovate in fundamental ways. This isn’t just about a little bit of recycling.”
Circular economy theory questions how we can maintain a thriving economy within the limits of the planet, taking both resource depletion and climate change into account.
“When you work in sustainability, it can be quite depressing. There are plenty of smart people doing space exploration; Elon Musk is one of them. But I don’t think we can afford to wait for Elon Musk to find another planet for us to pull resources from, I think we’ve got to get on with this now, ourselves,” adds McIntyre.
HP’s framework revolves around doing more with less. It’s about moving away from simply recycling and into a functional circular economy. And it’s more than eco-printing for a “forest-friendly” future where more trees are planted than are cut down to enable printing operations.
“There are big sustainability issues in front of us. We have a large responsibility because we’re leaders in our industry. It’s about ensuring our products, where possible, have a second life. When that’s not possible, they’re taken apart so we can use the components,” says McIntyre.
Innovations that matter are innovations that have a positive impact. HP is just one of many companies working towards the idea of a circular economy; in 2018, trans-national consumer goods company Unilever revealed that its sustainable brands grew 46% faster than the rest of the business, delivering 70% of its sales growth.
Caroline Laurie is the Head of Sustainability at Kingfisher. In a digital-first world where transparency and provenance are becoming increasingly prevalent, Laurie believes that businesses can actually benefit from becoming more sustainable.
“Sustainability drives you to think differently about your business. Customers’ expectations of big business are getting higher, yet their trust in big business is getting lower. You’ll very rarely find consumers making a choice between two products. But what they want to know is that you’ve made that choice for them. It is often about range editing. Customers want to trust in brands to do the right thing,” explains Laurie.
In other words, sustainability done right brings consumer trust, and with it business, commercial, social, and environmental benefits.
“None of us can solve these issues on our own in isolation. This is about complete value chain re-engineering. This isn’t about philanthropy anymore, it’s about real commercial sense,” ends Laurie.
The war on plastic straws
Coffee shops are turning to glass and paper as alternative sipping options, with some restaurants even offering tubes of pasta as an alternative, more sustainable solution to the traditional plastic drinking straw. There’s a war on plastic straws, and it is the start of both companies and consumers becoming more conscious of the use, reuse, recyclability and disposal of plastics… but is our focus wrong?
“Customers rarely understand the relative environmental impact of different types of materials,” says Andrew Smith, the CEO and co-founder of Yuppiechef, the kitchen-focused e-commerce website.
“They believe plastic is bad and paper is good, but this is not always true. Plastic is often recyclable and can have very little environmental impact.”
Moving away from single-use plastic – and applying the principles of the circular economy – the New Plastics Economy initiative was formed towards the end of 2018 with the over-arching goal that plastics never become waste. The organization believes that instead they should re-enter the economy as part of products made from recycled plastic material wherever possible.
Technology has a massive role to play in creating a greener supply chain. For many, this means the use of artificial intelligence (AI), virtual reality (VR), and digital twins. A ‘digital twin’ is a 1:1 digital copy of a product, process or service, used to provide deep technical training on a device or service without requiring a physical representation of said device or service. According to research and advisory company Gartner, 50% of large industrial companies will use digital twins by 2021.
Jason Ried is the Founder and Managing Director of Fuzzy Logic, an innovative software development company based in South Africa’s Western Cape province that has created digital twins of large machinery for mines and automotive and healthcare companies.
“Using augmented reality solutions on mobile devices or headsets (like Microsoft HoloLens), we allow users to ‘see’ a digital representation of the machinery they’re being trained on as if it was really there,” explains Ried.
“Users can get a sense of the scale and design without needing the real thing in front of them. They are able to assemble and disassemble the machine as many times as required to fully learn its intricacies, while each action is digitally tracked and stored, allowing management to understand how well each user performed.”
From a sustainability point of view, there are major benefits in the creation and use of ‘digital twins’ in business: not only do digital twins save time and money, they enhance learning by increasing the quality of training and retained knowledge.
Once digital twins are integrated into business workflows, companies like Fuzzy Logic can further enhance productivity by overlaying digital data onto physical objects.
“Users might, for instance, see steps to repair a part, while info like current temperature and pressure display alongside the machine, updating in real time as users interact with it. This strengthens the link between digital and physical objects,” he says.
Ultimately, the concept of a circular economy is about doing more, with less. Gartner’s Managing Vice President, Steven Steutermann, says it best:
“The goal is to deliver customer value with minimal waste,” Steutermann says. “For such a system to be efficient, it must be automated, and this is where the previous factors come into play. Using technologies such as digital twins and AI in an automated fashion enables the supply chain to execute against circular economy principles by acting on its own and ultimately becoming its own ecosystem.”
The Ocean Economy: ‘Enormous Opportunity For Africa’
Recently invited by the Canadian government on a media tour showcasing its ocean economy, I was curious to find what Africa could learn from the maritime powerhouse Canada is.
Our tour started in St John’s, Newfoundland and Labrador. Larry Hann, our guide, explained that the cod fishing industry began in Newfoundland in the late 15th century, when Italian navigator, John Cabot, received funding by King Henry VII to do some exploring.
“The cod was so plentiful at that point that [Cabot]…thought his ship, the Matthew, was striking the bottom of the ocean when it was in fact striking cod,” said Hann.
It eventually made Newfoundland famous. By the 1980s, though, the waters teeming with cod seemed a distant myth. Overfishing by foreign vessels within their Exclusive Economic Zone had all but dried up the cod population.
In 1992, the Canadian government imposed a moratorium on cod fisheries in the northwest Atlantic, as cod stocks had fallen below 1% of earlier noted biomass, marking the largest industrial closure in the country’s history.
The collapse of the area’s cod fisheries is just one example of a global trend. After a century of overfishing and climate change, there could be a crisis looming over the ocean economy, including trade, tourism and fisheries, which the World Wildlife Fund (WWF) estimates to be at $24 trillion.
It’s not all doom and gloom in Canada’s ocean economy, though. Corporate and government bodies are working together in many areas to combat this. Institutions specializing in the ocean sector are driving the growth and innovation of Canada’s blue economy.
One such is the Marine Institute of Memorial University of Newfoundland, a center of marine learning and applied research. Glenn Blackwood, Vice-President of the institute, who has been involved in training in Namibia and Tanzania, said it’s necessary to start at entry-level jobs. “You can’t be captain the first day on the ships,” he explained, “but you train them to a very high level.”
“There is work to be done,” Blackwood continues, “because Africa has always been looked at as land-based.” This is despite the fact that “there’s enormous opportunity for Africa in the blue economy”, though Africa can only take advantage of this through investing in people.
“It’s the best investment you can make – if you invest in the people, then the oil and gas or fisheries resources… goes to the people,” he adds.
Nova Scotia is one of eastern Canada’s maritime provinces.
The commercial fishing industry here also has a history spanning centuries, and the ocean lapping its shores still shapes the local economy. Nova Scotia has in excess of 300 ocean companies, together employing over 35,000.
Explains Mayor Mike Savage of Nova Scotia’s capital Halifax: “Be it through ocean tech, fisheries, aquaculture, ship-building, ocean observation, marine-centered defence or transportation… [the ocean economy] runs deeply through our economy and culture.”
This is evidently the case, as Nova Scotia, and more broadly, Canada’s Atlantic regions, have consistently been leading ocean technology advancements for over a century. Some of these include industry-shifting inventions such as the variable pitch propeller and kerosene, which became the lighting source for ships in 1846.
It is on the back this history that they have developed institutions such as the Centre for Ocean Ventures and Entrepreneurship (COVE), an ocean technology business park that brings together people, ideas, industry and research. Their tenants include big corporations, such as IBM and Lockheed Martin, as well as startups and small entrepreneurs.
But Jim Hanlon, CEO of COVE, says one of the biggest obstacles relates to collaboration.
“There are three levels of government involved… one of the biggest challenges is getting them all to move at the same time.” Undoubtedly, this will also hold true for the African context. Cooperation will be vital in taking full advantage of our blue economy. He posits that, “you need a champion; you need someone who believes in this very strongly”.
One of their champions is Canada’s Ocean Supercluster, an industry-led collaboration focused on building ocean-related business activities, research capacity and technological expertise. One of their mandates is building a stronger ocean network, creating an ecosystem where all players achieve economic and sustainable prosperity.
Kendra MacDonald, CEO of Canada’s Ocean Supercluster, saw the many industries such as “shipping, defence, aquaculture, fisheries, natural health products”, share similar challenges, as they all do business in the ocean in silos. These shared challenges are around cost and risk. “The communication costs on water is still greater than on land,” she says.
Given that 38 of 54 countries are coastal, there’s potential for Africa to harness its vast coastline. My takeaway from Canada was that innovation can only be born from a foundation of skills and knowledge. Creating a network between the private sector, government and academia is vital.
There aren’t cookie-cutter solutions we can lift from Canada. We can, however, look at the methods they used to create a more efficient ocean economy sector, and investigate how it can be applied to Africa’s maritime context.
– Denham Pons is head of East Africa for the ABN Group.
Data Is The New Gold
The city of Johannesburg was established in 1886 after the discovery of gold. Gold is a mineral that has been deemed valuable for thousands of years. It does not rust and it is malleable.
Gold has been used in jewelry as well as in the semiconductor industry to build electronic circuits. You can bury gold for hundreds of years and the worst it can get is accumulate dust.
Because of its durability, gold has been used to store value in the form of money. In many countries, printed and minted money used to be linked to stored gold, which was reserved in the central bank. This way, central banks used to print as much money as they had gold reserves. There had been many attempts to move away from the gold standard beginning in the United Kingdom in the 1920s.
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However, the first successful move from the gold standard was in the 1970s during the Nixon Administration in America.
At this time, the United States (US) ran out of gold and moved from the gold standard and floated the US dollar. Floated currency is regulated by the laws of demand and supply and is closely linked to the economic productivity of a country.
The idea of gold as the most important economic asset has passed. Instead of entrepreneurs going to California to look for gold, as they did in the past, they now go to Silicon Valley to create companies that exploit the acquisition and sharing of data.
Facebook is one such company that has connected the world and expanded our friendships – although, in my opinion, it lowered the quality of those friendships.
Facebook’s most valuable asset is not the software that connects people, which can easily be replicated, but the data of the over two billion active users it connects.
The most valuable asset of Uber, the ride-hailing service that does not own a single taxi, is the data of the people who use it. The prime asset of Google, the largest library, which owns no physical library, is the index that takes customers to their desired websites.
Therefore, the new valuable asset is not gold but it is data. Data has become the new gold! With a population of 1.3 billion people and a total purchasing power parity gross domestic product (GDP) of $6.74 trillion, the population of Africa is growing at the rate of 2.6%.
Much of Africa’s demographic is youthful. Much of this population is increasingly connected to the internet.
In 2017, Facebook had 170 million subscribers, which constitutes approximately 15% of the total population of Africa and this subscription is growing. Companies such as Google reportedly give accounts in exchange of subscriber data. These companies have been reported to have sold this data to entities such as advertisers, political parties etc. The exchange of personal data for an account is unfair trade because the value of personal data is far greater than the value of an account.
What do we do to commercialize the vast African database?
Firstly, we need to develop technological capacity to gather, process and monetize the African database. To achieve these, we ought to improve and expand our educational institutions, paying attention to the development of programs in data science. We need to embed data science subjects such as data analytics and software engineering into primary, secondary and tertiary education.
Governments and the African Union ought to expand projects such as the Deep Learning Indaba as well as the African Institute of Mathematical Sciences that are developing mathematics, machine learning and artificial intelligence expertise in Africa.
To gather data, we need to politically organize ourselves to create economies of scale. Regionally, organizations such as the Southern African Development Community (SADC) and Economic Community of West African States (ECOWAS) should create regional data banks that collect, protect and store regional data.
Continentally, the African Union should coordinate data gathering and develop data protection policies. We need to create laws and policies that regulate data nationally, regionally and continentally.
– Tshilidzi Marwala is a professor and Vice-Chancellor and Principal of the University of Johannesburg. He deputizes President Cyril Ramaphosa on the South African Presidential Commission on the Fourth Industrial Revolution.
Everything You Need To Know About The Future Of Pesticides And Bees
Seeing a bee in the city often results in panicked humans running away out of fear of being stung. But the bees are likely less interested in humans than they are in the wildflowers they’re circling around, which are likely a safe and pesticide-free place for the bees to feed. Contrary to what we might assume, researchers have found that urban bees tend to live healthier lives than rural ones — they reproduce more, have more food stores, encounter fewer parasites and live longer.
Pesticides are a tricky topic — while they are great for the crops they are meant to protect, they harm the bees that agriculture relies on. Their use sparked debate at the Forbes 2019 AgTech Summit, where beekeepers discussed the impact of these chemicals for bees, and the potential research still needed to understand their effects, and how technology, urban settings and regulation will affect the future of pollinators. Here’s everything they said — and you need to know — about how pesticides affect bees.
What are pesticides, and how do they affect bees?
Farmers have traditionally used pesticides to control pests like weeds, insects, mold and mildew and animals like rats and mice, according to the National Institute of Environmental Health Sciences. But they weren’t supposed to affect bees, who are critical to our food system — their pollination impacts every third bite of our food, according to the Pesticide Action Network, a nonprofit that challenges pesticide use in farming.
The most harmful chemicals to bees are known as neonicotinoid pesticides. Scientists have found that bees can be poisoned by flying through a field sprayed with the chemicals, but usually bees find harm through drinking contaminated pollen, nectar and water over time, according to PAN. Exposure to these pesticides can detrimental harm to bees over time, weakening their immune systems, shortening their adult life cycle and increasing their disorientation, and could be a cause for Colony Collapse Disorder. While the U.S. Environmental Protection Agency banned 12 types of neonicotinoids in May — from companies Syngenta, Valent and Bayer — there are still 47 more types on the market.
Can technology help with pesticides use?
There’s lots of startups looking into technology to change pesticides use and how we define them, especially in Europe, said Dr. Fiona Edwards Murphy, co-founder and CEO of ApisProtect. Her company, based in Ireland, utilizes machine learning to gather data about bee hive health. But Carly Stein, founder of Beekeeper’s Naturals, said that to completely rely on these new solutions for pesticides wouldn’t necessarily be the right solution. “To think there is going to be a pesticide outlet that’s not going to be damaging in some way, shape or form is just a little bit naive,” Stein says.
If anything, removing pesticides all together could mean growers would have to resort back to older methods of pest control that could potentially be more harmful to the bees, says Stein, who was listed on Forbes’ 2019 30 Under 30. Instead, there should be further research into how pesticides interact with other chemicals, and the subsequent effect on bees. Her company — whose mission is to reinvent the medicine cabinet with bee-based products —outsources its production to regions with no pesticides use like Canada, and conducts third-party pesticides testing on all its raw materials to produce its organic products.
How can urban beekeeping help?
But there are locations that are more sustainable for beekeeping, though, and they might not be where you predict. Timothy “Paule” Jackson’s nonprofit, Detroit Hives, builds urban bee farms in abandoned lots in Detroit, Michigan. By planting wildflowers, it provides bees a safe place to feed with little to no pesticides, Jackson said. “We have so many bees where wildflowers are sprouting, and we’re not spraying any chemicals on these wildflowers that they are actually boosting the native bee population,” Jackson says.
Stein mentioned that urban bees are often healthier than wild bees because of urban bee farms like Detroit Hives. While she loves meeting urban beekeepers, the issue is that there aren’t enough of them to sustain commercial production in the U.S., she says.
How can growers help beekeepers?
While there may be no immediate solution to pesticides, what’s needed is a stronger line of communication between beekeepers and growers, said Ellie Symes, CEO Of The Bee Corp and winner of the THRIVE Sustainability Award. She’s noted that her company has actually started working closer with growers, helping bridge the gap of education between the two groups of agricultural workers. It’s helpful for at least beekeepers to know what crops are being sprayed with pesticides and when, she says.
“We are starting to see the different players working together, the chemical companies getting involved and being interested and that’s what matters,” Symes says. “We’ll figure this issue out, but everyone’s gotta be involved.”
=Haley Kim; Forbes Staff
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