In a circular economy, assets are no longer sold. Rather, the assets are collectively maintained by a network of stakeholders involved in the ongoing functioning of the assets - the circular service (CISE) network.

A CISE network however requires unprecedented levels of cooperation and coordination between participants, leading to high administrative costs and the need for trust and transparency in the network. CISE networks are a totally different way of doing business, requiring different financial, legal and governance structures. Would it be possible for assets to be owned and procured by a network that creates value from them? Could this, simultaneously, reduce administrative costs?

The garden, outdoor power and power tools industries have developed a joint position paper on the different principles of the circular economy the industries are already applying.

Given the proximity to nature and to the natural environment, these industries are committed towards protecting the environment and are already taking measures to minimise the life-cycle impact of products in the environment addressing the following issues:

• Design of durable and reliable products
• Application of material efficiency and hazardous substances substitution
• Limiting noise and exhaust emissions
• Reparability and extending product lifetime
• Integrating recyclability and safe waste management aspects at the design stage
• Limiting packaging and its impacts
• New business models

More details on the specific measures can be found in the position paper.

This study delivers the first empirical findings on the relevance of digitisation to improving material efficiency based on the German company survey ‘IW-Zukunftspanel’.

German manufacturing firms have up to now only rarely digitised material efficiency measures to a great extent. If they are - particularly in large companies - they tend to be used for process optimisation. Around two fifths of the companies are at least moderately digitised in relation to the most important industrial efficiency measures, namely process optimisation and the use of new techniques, but there is still more than a third that is not at all. Companies have most frequently digitised cross-company materials cycles, but this instrument is only applied by two fifths of industrial companies. There is still potential for more digitisation of measures relating to product design, materials cycle management and new business models.

At least every other manufacturing company reuses residue and waste materials via internal circulation systems. Nevertheless, for two fifths of these companies digital networks do not play any part and in the case of a further two fifths, the part they play is minor. Only one in ten companies is heavily digitised. More than half of industrial companies use resource-saving measures that begin at the product design stage. To date, almost half of these companies are not digitally networked, or if they are, it is only to a small extent. One third of the industrial companies up to now have considered new business models as an efficiency-raising way. Of these, three out of ten have not been digitised yet with a further two fifths having only a minor level of digitisation.

Companies that have already embedded digitisation in their strategy are frontrunners for greater material efficiency, since they more frequently use material efficiency measures intensively, are more likely to recognise further potential savings and their efficiency-saving approaches are also clearly more often highly digitised.

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Eines von zwei Unternehmen macht Ökodesign digital

Since 2000, the “Slovenian Entrepreneurship Observatory” publishes a report annually providing analysis of the situation of Slovenian companies and insight into Slovenian entrepreneurship. In 2018 this report had a thematic focus on the circular economy (CE), with the authors centring in on the drivers and barriers to SMEs integrating CE into business practice.

This report first provides a theoretical framework for the CE, which aims to raise awareness and facilitate information exchange between companies and individuals looking to spread circular innovation. Simultaneously this report also provides an overview of the barriers companies face in transitioning towards circularity, which include a lack of comparable indicators to benchmark and track progress; cost of eco-design; administrative burden; access to finance and a lack of awareness about the concept itself: in 2017, a survey of businesses indicated only 32% had some understanding of what a circular economy is. This survey also revealed businesses perceive economic, environmental and regulatory opportunities as the main drivers towards circularity.

The report concludes with practical aspects of CE implementation at the level of enterprises, presenting a case study which highlights the situation and the possible use of eco-design in Slovenian SMEs operating in the construction sector and conclusions with recommended steps to overcome the barriers identified.