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

(Rick Simeone) #1

4.7 Case Epsilon 77


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components belonging to both the biological as well as the technical cycle. Except for


the foam all components are circular. Hence, they either go back into the technical


cycle and can be reused without any loss in quality (e.g. aluminum, plastic or steel)


or are biodegradable and therefore elements of the biological cycle (e.g. fabric).


The next circular economy approach the organization implements is circular supplies


at process level. The organization uses renewable energy in their manufacturing


process and has implemented a closed water cycle to cool down the production


machines. By doing so, the organization saves around 40 percent of drinking water.


A third circular economy approach the organization is engaged in is product

life extension. The lifecycle of its products has been extended. For example, its


chairs are made entirely of replaceable components. If a chair is broken, instead


of having to purchase a new chair customers are able to order the part of the chair


that is damaged. This circular economy approach is not only beneficial for the


environment due to material savings but also for the customer.


The fourth circular economy approach adopted is product as a service which in

case Epsilon is the leasing of office chairs and furniture. The organization offers


the option to lease chairs or furniture instead of buying it. Usually the organization


leases their products for two to five years. At the end of each leasing contract the


customer decides whether he/she wants to purchase, renew the leasing contract or


return the chairs.


4.7.2 Motivation to engage in Circular Economy


The first motivation to engage in circular economy is the company’s mission state-


ment. Early after founding the company, issues such as the reasonable handling of


resources or producing healthy, non-toxic products became important and part


of the company’s mission statement. The organization wanted to ensure that its


products did not include toxic and hazardous ingredients to human health and the


environment. Consequently, when familiarizing itself with the Cradle-to-Cradle


concept and the closed loop manufacturing process the organization saw a perfect


fit with its mission statement, as described in this quote: “Then there was this new


concept from California ‘Cradle-to-Cradle’ or circular economy. We were always


looking for certificates to certify sustainable production. This idea of Cradle-to-Cradle


or circular economy impressed us and fitted with what we were already doing” (see


Appendix: German Quote 27). The Cradle-to-Cradle concept not only helped the


organization to carefully examine every step of its production process to ensure


it was eco-friendly and only contained non-hazardous ingredients it also resulted

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