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