Oct. 12, 2017
Procurement: Advancing the Circular Economy Through Buying Power
At the Beanfield Centre in Toronto Recycling Council of Ontario hosted its third and final Knowledge Sessions event for 2017.
The objective of the Knowledge Sessions series was to introduce and expand on the concepts and applications of the circular economy, and make the connections to how this model supports waste reduction and resource efficiency through a series of outcomes:
- keeping resources in use for as long as possible
- extracting the maximum value from them while in use
- recovering and regenerating products and materials at the end of each service life to create new value in production
RCO’s role in advancing the circular economy is twofold. First, we want to pursue the most efficient use of resources and eliminate waste, which takes many forms, such as supporting effective policies and developing relevant resources. Second, we want to share information and knowledge amongst stakeholders to support marketplace integration, which was the spirit of our concluding workshop and forum: Procurement: Advancing the Circular Economy Through Buying Power.
It is estimated that OECD countries spend 12 per cent of their GDP on public procurement. In Canada, with a 1.9 trillion dollar GDP, it spends 230 billion dollars on procurement alone. If each of one of those dollars was tied to a circular requirement we could transition the marketplace and grow wealth while simultaneously reducing environmental impacts.
That’s why we organized a gathering of international experts and local professionals that are leveraging procurement opportunities to drive circular economic outcomes.
Senior Advisor World Economic Forum
Former Obama Administration Official U.S. EPA, Office of Land and Emergency Management
Dematerializing consumption and production is a key to a circular economy
Five circular economy approaches provide a clear framework for action
- sharing platforms
- circular supply chain
- recovery and recycling
- product life extension
- product as a service
The circular economy has the potential to support the global environmental conventions, and can drive economic growth, create employment opportunities, and decrease the risk of resource conflicts in low and middle-income countries
How do we advance resource efficiency/circularity in the supply chain:
- collaboration and information exchange for resource efficiency innovation across the lifecycle
- neutral forums for business innovation for collaboration
- resource efficiency must be a priority when engaging with supply chain networks
Public and private sector procurement practices are an important tool that sends market signals to stimulate innovation in product design, and helps create new markets for environmentally preferable products and services even if requirements can’t be immediately satisfied
Design with the “next life” of materials in mind – end of use is not the end of life
Most industries have unique opportunities to leverage the circular economy, including food and agriculture, fashion and textiles, construction, energy, chemicals, and electronics and high tech
Independent sustainable procurement specialist
A circular economy is an alternative to a traditional linear economy and provides resilience through:
- Sustainable consumption & production
- Decoupling resources from growth
- Market driven – creates wealth, jobs and growth
- Delivers accountability at all levels
- Meeting future demand
The circular economy offers major opportunities for Europe, and could generate between €300-350 billion in material savings alone, which could also lead to the creation of over 2 million new jobs
To avoid moving the problem along the value chain as so often happens it is important for municipalities to help drive circular outcomes as they stand to benefit substantially from adopting a circular approach
We are becoming more familiar with the concept of circular economy through the championing by organizations such as the Ellen MacArthur Foundation and the implementation programmes like WRAP in the UK and the Rijkswaterstaat in the Netherlands
The transition from traditional linear produce-consume-dispose models potentially has multiple benefits in terms of reducing costs and impacts (environmental & social) from production and consumption
National policy benefits go hand in hand with organizational benefits:
- reducing commodity price pressures
- resilience; limiting exposure to price volatility & reducing country/availability risks
- developing domestic circular industries that reduce dependency on imports
Since 2003 the resource limits and rapid growth in global demand erased the decline in commodity prices achieved over the previous century
Commodity price volatility is now a key economic concern, however, this does not imply that future commodity price increases are inevitable
Exposure to risk and volatility are inevitably more likely for both producers and consumers unless we adopt different strategies for growth
Judy Labelle, Advisor, Corporate Social Responsibility (CSR) and Reporting, and Laura Cocuzzi, Manager, Purchasing Planning and Performance, presented on how the Region of Peel has linked social and economic outcomes with procurement that supports environmental outcomes.
By developing sustainable procurement policy they can align vendor code of conduct and performance programs with their CSR principles. They underscored the challenges of ensuring environmental considerations and requirements are part of all aspects of municipal purchasing, and explained how their unique relationship is the basis for addressing that challenge.