Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

(Rick Simeone) #1

5.1 Implementation of the Circular Economy Concept 99


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or two approaches and are at a very early stage in their transformation towards a


circular economy. They are still in the process of implementing the circular economy


approaches they have selected. In case Eta the interviewee stated: „Currently almost


80 percent of our clothes are made according to our company-own certification [with


a certain stake of recycled resources] and in the area of handbags and hardware (e.g.


tents, back bags and so on) almost 20 percent include this material. Our objective


is definitely to reach 100 percent” (see Appendix: German Quote 49). The quote


demonstrates that case Eta focuses on expanding its commitment in the selected


circular economy approach instead of selecting additional approaches.


Another potential reason for the limited number of approaches chosen for im-

plementation is a lower success rate of the concept then initially anticipated. The


representative of case Zeta stated: “...we do not plan any further steps particularly


because the level of awareness [of the Cradle-to-Cradle certification] and also the


demand from the customer was pretty disappointing. The topic circular economy will


remain current and we are and will stay involved in some research projects but we are


not planning to expand our initiatives for now” (see Appendix: German Quote 50).


This statement emphasizes a certain disappointment in the concept, which leads


to a current stagnation of the investment and a limitation of the commitment to


the selected circular economy approach.


Maturity level is the third aspect that distinguishes the cases in their imple-

mentation of the circular economy concept. This aspect details the completion level


of the circular economy approach, as some approaches are implemented entirely


and some only partly.


As mentioned previously in cases Gamma and Epsilon, the organizations have

achieved the development of a circular product but do not know how to manage the


end of the product lifecycle. The lacking solution to the problem of the handling of


the end of product life prevents these organizations from fully implementing their


circular economy approach. Case Gamma is considering two options to handle the


end of the product lifecycle: “We do know that this work [removing the parquet from


the floor and refurbishing it] probably has to be done by a subcontractor. But in parallel


we are thinking of innovative administrative systems to offer the possibility to lease the


parquet instead of selling it” (see Appendix: German Quote 51). For Epsilon the situ-


ation is similar, and it is still unclear how the organization will recover the products


at the end of the lifecycle: “There are different possibilities to incentivize customers.


One is to offer a certain amount from the purchasing price in case the customer brings


back the chair after using. When doing this the customer probably will remember to


bring back the chair. That is the first option, another one is to offer different types to


finance, e.g. leasing” (see Appendix: German Quote 52). Both of those circular econ-


omy approaches are highly developed at the beginning of the product lifecycle but

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