Case studies

Case study 1

The model linear economic model vs the circular

Stora Enso

Website: https://www.storaenso.com

One of the largest private forest owners in the world, Stora Enso is a market leader in sustainable goods including paper, wood, biomaterials, and packaging. According to company’s philosophy everything that is currently made of fossil-based products can be produced from trees in the future. In 2021, Stora Enso had 10.2 billion euros in sales and employed about 22,000 people. Shares of Stora Enso are traded on Nasdaq Stockholm AB and Nasdaq Helsinki Oy (STEAV, STERV) (STE A, STE R). Additionally, the shares are traded as ADRs in the USA (SEOAY).

With its renewable goods, Stora Enso addresses the challenges of global sustainability and adds value to the bioeconomy. The company concentrates on innovation while also satisfying consumer need for environmentally sustainable and circular solutions.

Characteristics of the subject and description of the problem

Stora Enso has made a commitment to advancing a more sustainable future that supports the bioeconomy rather than fossil fuels. The business support the use of wood as a renewable resource in the creation and consumption of goods. Products composed of wood fibers can adsorb carbon while also replacing non-renewable resources such as plastic, steel, concrete, and fossil fuels. The dedication of the company to renewable resources extends beyond its raw materials. Additionally, it is connected to logistics and supply chain, resource traceability and responsibility, and manufacturing and material efficiency. From the plantation or forest to the finished product, they work responsibly and in accordance with local laws and regulations. Along with their continued emphasis on human rights and direct involvement in the areas in which they operate, Stora Enso also continues to advocate for carbon neutrality. Every action the company does, strives to satisfy customers and position Stora Enso as the finest provider of renewable solutions.

Challenges & Contribution to environmental protection

The business strategy of Stora Enso places sustainability at the center of their business activities. Climate change, biodiversity, and circularity are the three areas where the company has the greatest influence and potential to modify the materials system.

Stora Enso has set new 2030 goals for these three key sustainability priorities through its enhanced science-based targets. Stora Enso pledges to cut its operational absolute scope 1 and 2 greenhouse gas (GHG) emissions by 50% by 2030 compared to the base year of 2019. Additionally, Stora Enso makes a bold commitment to reduce scope 3 GHG emissions by 50% from the base year of 2019, by 2030. The science-based targets have been accepted by the Science Based Targets initiative. The company commits to use active biodiversity management to achieve a net-positive impact on biodiversity in its own forests and plantations by 2050 . Finally, a collection of initiatives have been devised and launched to increase biodiversity on a species, habitat, and landscape level by the year 2030.

Solution introduced

Stora Enso produces wood-based solutions to help create a society that is more sustainable and circular. Stora Enso offer products and services through six corporate divisions: Biomaterials – sells pulp, Packaging materials – sells paperboard, Forest – sells wood, Packaging solutions – sells corrugated fiberboard, Paper – sells paper for printing and Wood products – sells construction products.

Case study 2

Circular Economy Business Model

Circular Computing

Website: https://circularcomputing.com/about/

Circular Computing is a British startup which remanufactures laptops. Its goal is to alter how people throughout the world purchase computers. The Circular Computing team developed a vision in 2015 to build the first factory in the world designed only for remanufacturing laptops. Circular Computing opened a remanufacturing and worldwide distribution hub in February 2017 in UAE, because of the country’s capacity to attract skilled and creative technicians.

Characteristics of the subject and description of the problem

In order for people to live in a better world with a brighter future, Circular Computing delivers sustainable laptops without sacrificing performance or quality. After breaking down each laptop into its component pieces, Circular Computing fixes and repaints the covers, palm rests, bezels, and keyboards to resemble the original models. These repairs and paints come in matt, gloss, and soft-touch finishes. The process of remanufacturing also includes replacing broken components. Each laptop then goes through Aiken testing and a least 3-hour stress test that puts all of the major components under heavy use. The startup then offers remanufactured laptops with a warranty of at least 12 months.

Hewlett-Packard (HP) which is a well-known computer manufacturer has taken an unprecedented step by promoting Circular Computing carbon-neutral laptops to customers alongside a brand-new model. Additionally, HP is currently undertaking a direct mail campaign in Denmark for the new Elitebook 840 G6 laptop, which also includes the Elitebook 840 from Circular Computing. The mailer explains that the Circular Computing Elitebook 840 functions and looks just like a brand-new machine under the headline “We believe in reincarnation.” This highlights a very important support for Circular Computing’s strategy for sustainability in IT market.

Challenges – Contribution to environmental protection

The goal of Circular Computing’s carbon reduction project investments is to mitigate the effects of global warming by collaborating with reforestation partners in Africa, India, and the USA. Circular Computing, plants five trees for every laptop it delivers and invests in people and the planet. Just 240 Circular Computing laptops are needed to cover a space the size of a football field with trees. Over trees lifetime the trees will absorb on average 600kg of CO2 and will help to compensate the carbon emissions associated with each laptop, including 3 years of use. So far Circular Computing has planted 267,783 trees.

The reuse and sustainability benefits per laptop are:

• 40-50% saving against the cost of new
• 380 kg of CO2 eq saved
• 1,200 kg of natural resources saved
• 190,000 l of water preserved
• zero eWaste as laptops are taken back and the process is repeated
• no labour or human rights issues (not ‘made’ in sweatshops)
• 5 trees are planted creating a CO2 reduction benefit of around 600 kg over 20 years
• sustainable IT.

Solution introduced

Many of the Earth’s finite resources, including water, precious metals, minerals, and greenhouse gas emissions, that are used in the initial production of every new laptop are directly avoided throughout the remanufacturing process. Additionally, the method prevents e-waste from growing as a result of the needless disposal of a functional laptop.

Through the unique Circular Computing remanufacturing process, 99% of the original materials required to make a laptop are reused while the remaining 1% is recycled and turned into pallets. There are more than 180,000 spare components in Circular Computing inventory, and nothing is ever thrown away.

Case study 3

Environment and the Linear Economic Model

Excess Materials Exchange

Website: https://excessmaterialsexchange.com

Excess Materials Exchange (EME) is a Dutch start-up that offers a digital business-to-business (B2B) matching platform for recycling materials or waste products. It provides the products or materials with a digital identification using barcodes, QR codes, and RFID chips. The digital identity offers a summary of the substance, source, toxicity, and safety of releasing such compounds. The software then makes recommendations for potential reuse options based on the materials’ monetary, environmental, and social value.

Characteristics of the subject and description of the problem

EME is a young, creative technology company that works with businesses to identify new, high-value reuse alternatives for materials, products and waste streams which are considered worthless.

EME is committed to fundamentally altering the waste game by introducing a cutting-edge method of doing business that quickly will become the standard. This will expedite the transition to a circular economy and help everyone to do his part to maintain a clean environment for future generations.

Challenges – Contribution to environmental protection

Too many valuable resources and materials are currently wasted or ill-designed, for which the planet pays a heavy price.

By demonstrating the economic and ecological value of materials, pressuring businesses to design and create their products in a more efficient and circular way, and setting up alliances, Excess Materials Exchange is dedicated to hasten the transition of the world to a circular economy.

Solution introduced

A digital platform offered by EME maximizes the utilization of the surplus commodities and products in the world by matching them to their most valuable applications.

According to EME’s experience, material flows have an average financial value increase of 110% and an average ecological footprint reduction of 60%. The EME approach depends on four tools:

1. Resources Passport: The Resources Passport is a standardized, modular format that gives any material a unique identity. This (digital) passport provides information on the item or product, such as its composition, origin, toxicity etc.
2. Tracking and Tracing: Using barcodes, QR codes, and chips as tracking and tracing identifiers, EME can successfully compare physical items to their digital twins, which is the Resources Passport. The ability to do so allows for the possibility of life-cycle observation.
3. Valuation: By quantifying the monetary, environmental, and social effects of materials, products, and waste streams, EME enables data-driven decision making between a range of potential next uses.
4. Matchmaking: EME links the material, product, or waste stream to a new, high-value reuse option across sectors using a combination of artificial intelligence and human knowledge.