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4.5.3 Challenges for the Implementation
The first challenge is that technological limitations hinder an exhaustive substitu-
tion of conventional materials with certified non-hazardous ones. Currently, the
organization is not able to exclusively use non-hazardous, non-toxic, environmen-
tal-friendly components in their manufacturing process. To develop the required
substitutes, close cooperation with suppliers is necessary because they are the ones
developing the environmental-friendly substitutes. The requirement for a successful
substitution is that the developed components have the same characteristics and
quality as the conventional ones. This requirement is challenging for the organi-
zation and its suppliers and is limiting the substitution of conventional products,
as the following quote reveals: “In general, obtaining a silver certification is enough
for us but if you have reached the technical boundaries and there are no substitutes
available it is annoying” (see Appendix: German Quote 13).
The second challenge is the higher prices for recycled resources. There is a largequantity of virgin wood available which means low prices. This exacerbates the com-
petitiveness of recycled resources. It is still cheaper to purchase new wood instead
of using recycled wood. Hence, economically it is not reasonable to close the loop
and to refurbish and reuse wood, as described by the interviewee: “This approach
only exists in theory. Today, it is economically unreasonable to use recycled resources.
It might be ecologically reasonable but in the wood industry we are sustainable, and
we have more wood in the forests than we need. More trees are growing back than
we are using” (see Appendix: German Quote 14).
The next challenge is the missing recycling infrastructure for parquet. Currently,there is no infrastructure that ensures the reuse of the reusable parquet. The product
itself is reusable but the options available to close the loop and retrieve the parquet
are economically unreasonable. An infrastructure involving third parties to remove
and reuse the parquet is necessary. The interviewee explains it as follows: “We expect
that in ten years from now we will have a functioning recycling infrastructure and
that there will be organizations removing it [the parquet]. These organizations will
remove the parquet and refurbish it and this will be paid for by the organizations
or us. Ecologically, it is not reasonable to drive 1000 km to remove the parquet. The
ecological advantage would be lost” (see Appendix: German Quote 15).
The long lifecycle of parquet makes it difficult for the organization to test conceptsin order to develop an infrastructure. Case Gamma expects the first customers to
return their certified parquet in approximately ten years from now.
The last challenge the interview partner mentioned is the requirement to movefrom niche to mass market. Expanding the amount of circular products in the
portfolio of the organization requires high investments in new, additional machines.