The implementation of a circular economy has now become a declared goal of many companies. The term circular economy encompasses far more than just waste separation and the green dot. Rather, it is about extending the entire life cycle of products and raw materials and keeping them in circulation. Numerous environmental factors are causing a wide variety of problems: On the one hand, global warming is progressing in leaps and bounds. At the same time, resources are becoming scarce, while some parts of the world are sinking under mountains of garbage and huge plastic swirls are forming in the oceans. The extraction of raw materials such as timber, crude oil or metals is also usually accompanied by negative environmental impacts - from deforestation to groundwater contamination.

Cradle-to-cradle: an economic model with a future

In order to overcome challenges such as the high volume of waste or the enormous consumption of resources, the establishment of a sustainable form of economy plays a fundamental role: the circular economy is about keeping existing materials and products in a cycle for as long as possible - in other words, reusing, repairing and recycling them. In this way, the life cycle of products is extended and waste is reduced to a minimum. After a product has reached the end of its life, the resources and materials remain in the cycle as far as possible. This principle is known as "cradle-to-cradle", which means "from the cradle to the cradle". It therefore represents the sustainable counter-model to the linear economy, which is based on the principle of "cradle-to-grave" and is also known as the throwaway economy. It is a straightforward process from design through production until the product is used or consumed by the customer and finally ends up as waste in landfills or incineration plants. The circular economy is much more complex. However, the 3R's illustrate the simple guidelines:

• Reduce : This includes the conscious and reduced consumption of goods. Packaging that is not absolutely necessary is avoided. The focus is on a resource-conserving manufacturing process in which primary raw materials are avoided wherever possible.
• Reuse: The life cycle of products is extended by reusing products and materials. At the same time, the need for new production is reduced. Used but intact products should be kept in circulation through secondary use, for example by selling them in second-hand stores. Sustainable reusable alternatives such as to-go cups or vegetable nets should be promoted. The reparability of goods ensures that they remain in the cycle for longer.
• Recycle: Resources that have already been used and processed are brought back into the cycle and reprocessed so that they are available again as raw materials. Dependence on finite resources is reduced. If a product cannot be recycled or can only be recycled using a very complicated process, it should be used to generate energy as a last resort.

The right mindset makes the start

Although environmental awareness has continued to grow in recent years, the concept of the circular economy often still plays a subordinate role in strategic planning. Short-term economic interests usually still prevail or there are reservations regarding financial feasibility. In addition, many decision-makers are faced with the question of how to fundamentally approach the topic of the circular economy. Many factors and framework conditions need to be taken into account; previous ways of thinking need to be questioned.

The introduction of new sustainable business models, such as pay-per-use or product-as-a-service, can accelerate the move away from the linear economic system. Here, products are reused as required or repaired by the supplier in the event of a defect. The size of the company does not matter when it comes to contributing to the circular economy. SMEs or start-ups, for example, have the advantage of an agile corporate structure, short decision-making processes and are regionally based. Larger corporations have the financial and technical resources and expertise to implement transformation steps efficiently. Regardless of the size of the company, however, an investment is required in the form of manpower, financial resources and technical equipment.

The initial considerations in the direction of a circular economy can be manifold: Which product design and which materials are sustainable? Which raw materials have a good CO2 balance? How can water consumption be minimized? Which manufacturing and supply strategies can be used to achieve a self-contained circular economy? Digital solutions help to create the right concept.

The design phase is crucial

The earlier stages of development still have the greatest influence on the final product. Decisions made at this stage determine around 80 percent of the subsequent environmental impact. For example, it is decided here whether the product should be repairable. If detachable screw connections are available, individual components can be replaced in the event of a defect instead of disposing of the product. A modular design is therefore a major plus point. An environmentally friendly choice of materials is also important. Ideally, material should be used that has already gone through one or more product life cycles. Where possible, it is important to look at how the key requirements of the components can be met sustainably. The end product must still maintain a marketable price. Product data is crucial for subsequent recycling. For example, dismantling teams need to know precise information about the chemical composition of a battery. On this basis, they then calculate how these components can be recycled. Digital solutions help to find answers to urgent questions in order to promote the circular economy.

Life cycle assessment enables quantification

From a disposable to a circular economy: digital concepts ensure more sustainable business practices.

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Life cycle assessment solutions make it possible to quantify the environmental impact of a product, component or service. These solutions are based on numerous sources and databases that calculate the environmental impact. It does not matter which phase of the product life cycle the product is in. This provides measurability and an overview at any point in the value chain. One example of this type of life cycle assessment is the cloud-based Sustainable Innovation Intelligence solution from Dassault Systèmes. This is based on the ecoinvent environmental database and takes into account more than 18,000 data records on the impact of industrial and agricultural processes. The solution integrates this data into the areas of virtual design, product development, production technology, operations and logistics. Sustainability requirements can be defined at an early stage. This makes life cycle assessments particularly relevant in the design phase, as all important product properties are defined at this stage.

Combination with the virtual twin

Ideally, findings from a life cycle assessment are combined with the product's virtual twin. This allows different product designs to be checked for sustainability aspects. This enables manufacturers to simulate and test product recycling depending on certain scenarios. This speeds up development and subsequent processes such as production planning, manufacturing or after-sales service. For an optimally designed process, it is important that there are as few barriers as possible between these different areas and that, ideally, all data is seamlessly integrated.

If too many different, incompatible systems are in use, the flow of information is slowed down or data is even lost. In order to accelerate the sustainability transition, a standardized data platform should be used as a single source of truth - such as the '3DEXPERIENCE platform' from Dassault Systèmes - throughout the entire value chain. The life cycle assessment solution and the use of a virtual twin can both be mapped on the platform. Expert knowledge from different departments can thus be brought together and data processed in real time. The application scenarios are industry-independent - from use in the packaging industry for recyclable packaging to the reprocessing of electronic waste in the electronics industry.

Entrepreneurial activity becomes more sustainable

The author: Anna Jantke, DELMIA Industry Process Consultant at Dassault Systèmes

© Dassault Systèmes

In the coming years, companies will be confronted with requirements and guidelines to make products, processes and business activities sustainable. And the competitiveness of companies also depends on this goal. Changing customer requirements have long demanded innovative, sustainable products and solutions. Although the first steps have been taken, there is still a lot to do. The use of technology helps to identify problems and identify solutions to tackle the huge challenges of our time.