Marcin Kulik


Rewards (Circular) Economy That Works

The old ‘take, make, dispose’ industrial model has been blamed for everything from global warming to dodgy drinking water, from the hole in the ozone layer to the threatened extinction of whole species of wildlife.

Now some of this criticism is actually unfair as industry is merely responding to societal demands for its products.

Each of us can recognise the folly of the single-use product, that drinks bottle or that cool coffee cup which we grab on the move in our busy working day, and toss in a bin when we are finished.

Besides, it’s not as if industry has not been seeking a viable business model for remanufacturing for years; it’s just that they have not prioritised it. Show an industrialist how to make money from the green economy and he will listen. And put it into practice if the public demands it — and it makes money.

So, instead of criticism, it is important to understand that to construct a viable circular economic model, collaboration, whether it be for industry, the consumer or governments, is essential if we are going to respond to the mounting problem of waste.

Traditionally, waste is understood as surplus or unwanted materials arising from industrial processes or indeed consumer end of use. But, following the circular economy model, whereby products and processes are designed with multiple life-cycles in mind, waste actually represents wasted opportunity, energy, finance and time.

The problem is indeed global. Co2 growth knows no border, therefore we are all ultimately responsible, and we have to be made realise that a fully functional circular economic model will deliver tangible results for our benefit.

It is a matter of education, firstly, and industrial companies large and small being shown how the circular economy is financially viable.

We have to accept that the environment will always take second place unless we transform environmental values from cost to revenue. A viable circular economy must redefine value, whether it be dollar or emotionally based, as it is perceived value that delivers customers. It is customer demand that directs industry to manufacture products.

Aravato has identified that there is a need for organisations that work within a circular economy model to be rewarded for their efforts. Delivering rewards drives organisation to re-evaluate their relationship to waste materials arising from their processes.

One vehicle for reward is the creation of a connection between waste and energy. For example, waste materials arising from manufacturing processes incur energy usage, as does collection and processing, such as incineration.

Aravato has delivered a unique data first capture model, that identifies current energy values resulting from waste activities. Secondly, it has introduces standards and lean principles to drive constant improvement strategies.

Such strategies, empowered with data values, can, if organisations participate, provide a positive Co2 value for what has been to date, low priority waste.

Organisations can clearly recognise the legislative imposition of negative Co2 costs, as they are there in black and white on their energy bills. But what if positive, highly validated Co2 values could be captured from defined waste strategies?

What if such positive values could be deducted from negative energy values? Firstly, organisations could be rewarded. But also, they could, in parallel, advance their environmental ambitions to a collaborative and viable circular economy via Aravato.

The construct of Aravato is to recognise that economic matters take precedence over the environment. De-livering an intrinsic link between energy and waste that leads to rewards, can alter perceptions and lead to re-evaluating waste strategies, knowing that new values can be achieved.

Such re-evaluation achieves buy in, for the benefit of us all, and the environment.

The 2014 report Supporting Excellence in UK Remanufacturing pointed out some of the barriers to remanufacturing, including business model viability, lack of co-operation/information flow and poor customer awareness, ie perceptions of remanufacturing products being somehow inferior, or “second hand”.

The report, co-authored by the Knowledge Transfer Network (KTN), the High-Speed Sustainable Manufacturing Institute (HSSMI), The Carbon Trust, and the Centre of Excellence for Remanufacturing (CRR), also noted the lack of developed IT systems for a remanufacturing context. It pointed to the lack of a software platform to support standardisation and information flow.

This is exactly what Aravato has set out to remedy.

The company’s ground-breaking SaaS platform, engaging cutting-edge technologies including Artificial Intelligence, Big Data, Predictive Analytics and Blockchain, has been designed to support and deliver value to each link in the circular economy chain, Waste Producer, Recycling Company and Re-Manufacturer.

Aravato has devised a scientific waste classification platform that considers materials from the prospective of the remanufacturer. This lets him:

Identify viable materials at source, Access technical specifications, Make decisions quickly.

In summary, Aravato has delivered a viable business model that enables the circular economy to flourish.

Leave a Reply

Your e-mail address will not be published. Required fields are marked *