Sustainability and circular economy are very present in all chemical or material companies. What are the technical and business challenges and opportunities? How can you turn these in advantages and growth?

1. 1.2 Circular economy in the chemical sector 1
CONFIDENTIAL Template Innovation Day 2018CONFIDENTIAL
CIRCULAR ECONOMY IN
THE CHEMICAL SECTOR
Paul Poelmans
BDM Adv. Materials
paul.poelmans@verhaert.com
TRACK 1 - CIRCULAR ECONOMY FOR A BETTER WORLD

2. 1.2 Circular economy in the chemical sector 2
CONFIDENTIAL
1. CE and Chemical Industry
• What is happening
• Sustainability and CE
• EU focus
2. Challenges and Opportunities
3. A road ahead
• Maturity assessment
• Ecosystem framework
• Eco-design
• Drivers to change
• Business model innovation
• Use of new technology
4. Next steps
CONTENT

3. 1.2 Circular economy in the chemical sector 3
CONFIDENTIAL
the Chemical Industry
and Circular Economy
It’s only one player in the circle.
It’s an important one !

4. 1.2 Circular economy in the chemical sector 4
CONFIDENTIAL
Every minute, one garbage truck of plastic
is dumped into our oceans.
Source: weForum.org
Source:Accenture

5. 1.2 Circular economy in the chemical sector 5
CONFIDENTIAL

6. 1.2 Circular economy in the chemical sector 6
CONFIDENTIAL
Strategies for Circular Economy in Europe
2015 2017
2018

7. 1.2 Circular economy in the chemical sector 7
CONFIDENTIAL
Supporting organizations

8. 1.2 Circular economy in the chemical sector 8
CONFIDENTIAL
SUSTAINABILITY CIRCULAR ECONOMY
GREEN CHEMISTRY
CRADLE-TO-CRADLE
ECO-DESIGN
INSIDE FOCUS
OUTSIDE FOCUS
SUSTAIN
= CONSERVE
INNOVATE

9. 1.2 Circular economy in the chemical sector 9
CONFIDENTIAL
Circular Economy
in your organization?
Challenges and opportunities

10. 1.2 Circular economy in the chemical sector 10
CONFIDENTIAL
• The full value chain will be affected
• The full organization will have be convinced. Are they connected, involved?
• Technology, policies and investment will be needed
• Customers will not be the first movers
• Materials / Products have to be treated like existing products price/quality
balance in B2C and B2B
• Consumers are not educated enough to make sure that recycling becomes easier
• Step out of a linear approach into a circular one will ask for trust
• Do we understand how a CE ecosystem looks like for our materials / products?
• Do we understand the drivers? Can we change / influence these?
• Do we know where to start?
• Legislation is based on a linear approach (taxes, incentives …)
• Resistance will come from inside and outside the company
• Others are already doing it. What are we missing?
• Do we have the right mindset?
• Do we understand the pain?
• Do we have the skills?
• Do we have a vision and strategy?
• …
Challenges

11. 1.2 Circular economy in the chemical sector 11
CONFIDENTIAL
• Localization versus globalization
• New products & services
• New business models
• New companies
• Material dependencies will change / lower cost
• More direct interaction with customers
• Work in ecosystems
• Environmental
• Energy consumption
• More and better recycling facilities
• …
Opportunities

12. 1.2 Circular economy in the chemical sector 12
CONFIDENTIAL
A road ahead

13. 1.2 Circular economy in the chemical sector 13
CONFIDENTIAL
VISION and STRATEGY
The BUSINESS VISION
is the STRATEGIC NOTE
in which the ADDED VALUE of CIRCULAR ECONOMY
for your organization is recorded
VISION
&
STRATEGY
customer organisation
growth
& finance
circularity
materials
What do you want to achieve?
How are you going to get there?
By when ?

14. 1.2 Circular economy in the chemical sector 14
CONFIDENTIAL
CE FOCUS POINT 0 1 2 3 4 5 6 7 8 9 10 11 12 13
budget and planning A
CE vision and strategy within the sustainable vision A B C D
commitment and motivation A B
risks and mitigation A B C
supply and logistics to support CE during product usage A B C
openess towards other parties in the ECO-system A B C D
allocation of roles and responsibilities A B C
CE mindset and knowledge in organisation A B C
skills in CE A B C
business case development A B
new business models A B
tools to support the management/monitoring of the CE model
(servizisation, …)
A B
design and develop a CE framework (ecosystem, products,
processes, partners …)
A B C
implement and manage the CE eco-system for CE products
and services
A B C
define and select the eco-system positioning A B C
product/market combinations for CE A B C D
developing products/services for circularity A B C
eco-design A B C
usage of CE materials A B
use of digital / new technologies to simplify CE implmentation
(monitoring, extended lifetime, re-use, PaaS …)
A B C D
development/use of new technology/materials to simplify the
CE business models
A B C D
STAGE
CE FOCUS POINT 0 1 2 3 4 5 6 7 8 9 10 11 12 13
budget and planning A
CE vision and strategy within the sustainable vision A B C D
commitment and motivation A B
risks and mitigation A B C
supply and logistics to support CE during product usage A B C
openess towards other parties in the ECO-system A B C D
allocation of roles and responsibilities A B C
CE mindset and knowledge in organisation A B C
skills in CE A B C
business case development A B
new business models A B
tools to support the management/monitoring of the CE model
(servizisation, …)
A B
design and develop a CE framework (ecosystem, products,
processes, partners …)
A B C
implement and manage the CE eco-system for CE products
and services
A B C
define and select the eco-system positioning A B C
product/market combinations for CE A B C D
developing products/services for circularity A B C
eco-design A B C
usage of CE materials A B
use of digital / new technologies to simplify CE implmentation
(monitoring, extended lifetime, re-use, PaaS …)
A B C D
development/use of new technology/materials to simplify the
CE business models
A B C D
STAGE
Readiness Assessment
http://www.matche.dk/

15. 1.2 Circular economy in the chemical sector 15
CONFIDENTIAL
ECO-SYSTEM MAP
PLAYERS IN THE VALUE CHAIN
PLAYERS IN THE ECO-SYSTEM
ORGANISATION
MOTIVATORS
BUSINESS MODEL
CE READINESS
CE AWARENESS
MISSING LINKS

16. 1.2 Circular economy in the chemical sector 16
CONFIDENTIAL
Change Management
Inside
your company
Outside
your company

17. 1.2 Circular economy in the chemical sector 17
CONFIDENTIAL
 CE ready
 PRODUCT re-DESIGN and BUSINESS MODEL for CE
developed by Verhaert
presented today
available Q3/2018
PRODUCTS for CE - ECO-DESIGN

18. 1.2 Circular economy in the chemical sector 18
CONFIDENTIAL
Drivers/Barriers

19. 1.2 Circular economy in the chemical sector 19
CONFIDENTIAL
Business model innovation
Product-as-a-Service
Sharing platforms
Product life extension
Raw material recuperation
Circular input

20. 1.2 Circular economy in the chemical sector 20
CONFIDENTIAL
IoT simplifies taking ownership
BigData and AI will drive SERVITIZATION
How will 3D-printing help you?
And what with VR/AR?
Or your synthetic colleague?
New materials
Driven by New Technologies

21. 1.2 Circular economy in the chemical sector 21
CONFIDENTIAL
Next steps

22. 1.2 Circular economy in the chemical sector 22
CONFIDENTIAL
Whatever the future may hold: it will be here faster than you can imagine.
The speed of change is continuously increasing, intensifying the urgency to take the
advantages of CE and to get rid of the pressure of scared resources, materials and energy.
If you want your company to be ready for this new world, start on the journey toward CE
now. Take a look at your current maturity; build a business vision and a CE strategy to
make sure your company will also be able to play a significant role in a Circular world.
Get to work, start small but don’t try to cut corners: grow in equilibrium by addressing all
the different aspects that are needed for mature cooperation between all stakeholders in
your eco-system.
Work closely together with Chemical Industry
NEW MATERIALS
RECYCLED MATERIALS
CALL TO ACTION

23. 1.2 Circular economy in the chemical sector 23
CONFIDENTIAL
IMPLEMENTATION APPROACH traditional/agile
Whatareyourobjectives?
Whereareyounow?
Howdoyouwanttogetthere?
readiness project
readiness project
readiness project
readiness project
STRATEGY & VISION
PEOPLE & ORGANISATION
PRODUCTS
PROCESSES
ECO-SYSTEM / VALUE CHAIN

24. 1.2 Circular economy in the chemical sector 24
CONFIDENTIAL
And there is hope !
Source: chathamhouse.org

25. 1.2 Circular economy in the chemical sector 25
CONFIDENTIAL
Questions / Remarks
thank you !
Paul
Poelmans
paul.poelmans@verhaert.com

26. 1.2 Circular economy in the chemical sector 26
CONFIDENTIAL
One group, five brands
Our services are marketed through 5 brands each
addressing specific missions in product development.
INTEGRATED PRODUCT DEVELOPMENT
ON-SITE
PRODUCT
DEVELOPMENT
DIGITAL
PRODUCTS
DEVELOPMENT
OPTICAL
PRODUCTS
DEVELOPMENT
VENTURING