Digital Business &

Circular Economy
The New Business Approach
Enric Montesa Andrés
• Economist. Innovation and Management Consultant.
• ALF Leader of Circular Economy
• Blockchain Working Group Coordinator of the COEV's
Digital Economy Commission
• AvalBit's Treasurer and coordinator of the Blockchain and
Crypto currencies training and education area
• Co-founder of the Institute of the Social Currency (IMS)

e-mail: emontesa@gmail.com
Twitter: @enricmontesa
LinkedIn: https://es.linkedin.com/in/enric-montesa-50758710
 Agenda of the meeting

1. What does mean being an ALF leader in the Circular Economy

2. What are the keys to the Circular Economy Promotion Program led by the
Foundations:
o ALF (Advance Leadership Foundation)
o COTEC
o Incyde
3. What is the Linear Economy?
4. What is the Circular Economy?
5. Sustainable Development Agenda of the United Nations
6. Action Plan of the European Union: closing the circle
7. Spain Circular 2030
8. The Big Consulting firms approach: Accenture, PwC and Boston Consulting Group
9. Doubts and questions
FIRST SUMMIT OF TECHNOLOGICAL INNOVATION AND CIRCULAR ECONOMY
Presentation of leaders
 FIRST SUMMIT OF TECHNOLOGICAL INNOVATION AND CIRCULAR ECONOMY

Main Objective:
To increase public awareness of how the Circular Economy and Innovation
are competitive advantages for companies, institutions, entrepreneurs
and the country as a whole, thus promoting a faster and more efficient
transition towards a sustainable economic model in Spain
What are we facing?
The Great Dilemma

Our Society faces a great dilemma:

• Opposing to growth by risking
economic and social collapse.
• To pursue growth unceasingly,
threatening the ecosystems on
which our long
term survival depends
Tim Jackson
Money and Finance = Growth
Consumption = Abundance and
Employment
 Ecological
footprint !!!

It is the biologically productive surface (forests, meadows, crops and seas) necessary to
produce the resources we consume and absorb the waste that we generate
Are we crossing
the red line?
“We are the World”

http://www.ipsnews.net/2013/01/experts-fear-collapse-of-global-civilisation/
Financial Collapse

Economic Collapse

Civilization
Collapse
Social Collapse

Ecological Collapse
 Economic Growth, Wellbeing
and future scenarios

Wellbeing
Utopian
vision

Happy
Degrowth Extractivism

Degrowth Growth

Victims and
Apocalyptics
Precarious

Dystopic
Disconfort

vision
 The World is
upside down !!!
 Linear
Economy
Planned
obsolescence Raw materials, water and
energy

Supplying materials
Global
manufacturing
Manufacturing

Distribution

Consumers
Consum

Waste Emissions, Pollution and

solid waste 18
 Raw
Water Energy
Materials
Predatory
Extractivism
growth

Linear
Economy

Degradation of
Not sustainable
ecosystems
Emissions Solid
Pollution waste
19
Change “Frame”

20
 Other
Economy
Is
possible
learn, unlearn,
and relearn

Ecological
Growth Comsumption
footprint
 Is there a future?
Biosphere Technosphere
+

Prosperity
Business vision

Linear Economy

CircularEconomy

- Degrowth Growth +
Catastrophic vision

Decline

Civilization
Collapse Sixth Extinction

-
What is the difference between circular
economy, Recycling and linear economy?
Welcome to the Circular Economy

25
 C2C:
From the Cradle to the Cradle

Our goal is pleasantly

diverse, safe, healthy and
global, with clean air,
water, soil and energy -
economically equitable,
ecologically and elegantly
joyful

26
 C2C:
From the Cradle to the Cradle

William McDonough

27
 5 rules of the Circular Economy

5
The smaller the circle, the
more profitable and efficient

2
the use of the resource
5

The circles have neither

The Circular Economy needs beginning nor end. The

Walter Stahel operational markets conserved value replaces the

added value

Continued ownership is The speed of the circular

4
profitable: reusing, repairing
and remanufacturing without
the costs of changing
ownership, saves the costs of
the double transaction
3
flow is essential. The
efficiency of resource
maintenance in the Circular
Economy increases as the
flow rate decreases

28
29
 Schools of thought

Biomimicry
Cradle 2 Cradle
Production
Management
Design
Blue economy
Industrial
Ecology

Performance
economy Business
Models
Permaculture

Sharing economy

Regenerative Design Roots

Systemic Thinking Natural Capitalism

 Circular economy:
Regenerating and restorative
Biosphere Technosphere
(Biological nutrients) (Technical nutrients)

Recycle
Biosphere Recursos Input

Industrial supplies
Rehabilitate
Recycled
supplier Remanufacture
biochemical

Manufacturer of
manufactured products
Re-use
Redistribute

Distributor and service

provider

Organic Technic
waste Waste

31
The surprising thing I learned sailing solo around the world | Dame Ellen MacArthur
https://www.youtube.com/watch?reload=9&v=ooIxHVXgLbc
 An investigation by McKinsey for
the Ellen Macarthur Foundation

2012

2013

2014

https://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/moving-toward-a-circular-economy
34
Where do we need to go?

35
Designing a restorative and regenerative
prosperity

Take Make Waste

Regenerating and
restorative
Designing a restorative and regenerative
prosperity

A Circular Economy based on

three principles

Design to Keep
minimize products and Regenerate
waste and materials in material
pollution use systems

37
http://www.undp.org/content/undp/es/home/sustainable-development-goals.html
38
 WHAT ARE THE OBJECTIVES OF
SUSTAINABLE DEVELOPMENT (ODS)?
• They are also known as World Goals

• They are a universal call for the adoption of measures to :

– End poverty,
– Protect the planet
– Ensure that all people enjoy peace and prosperity

• They are 17 and are based on the achievements of the Millennium Development Goals

• They include new areas such as:

– Climate change,
– Economic inequality,
– Innovation,
– Sustainable consumption
– Peace and justice

(among other priorities)

• The Objectives are interrelated, often the key to one's success will involve the issues most
frequently linked to another.

Source: http://www.undp.org/content/undp/es/home/sustainable-development-goals.html 39
 Brussels, 2.12.2015 COM (2015) 614 final
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

Closing the loop

EU Action Plan for the Circular Economy
40
 Action Plan of the European
Union for the Circular Economy

Production
Product design Consumption
Production processes

From waste to
resources:
Waste
boost the market of
management secondary raw
materials and the reuse
of water

41
Action Plan Priority areas

Critical raw Construction Biomass and

Plastics Food waste
materials & demolition bioproducts

42
SPANISH STRATEGY OF CIRCULAR ECONOMY

In order to promote the transition to a Circular

Economy model, the Spanish government
developed its own Circular Economy strategy

It is a key element towards a more innovative,

competitive and sustainable development and
growth model

It allows to maximize the available resources so

that they remain, the longest, in the productive
cycle and thus reduce the generation of waste

43
 5 business models that drive the
circular economy

https://www.accenture.com/t20150523T053139__w__/us-en/_acnmedia/Accenture/Conversion-
Assets/DotCom/Documents/Global/PDF/Strategy_6/Accenture-Circular-Advantage-Innovative-Business-Models-Technologies-Value-Growth.pdf
44
https://www.accenture.com/t20150523T053139__w__/us-en/_acnmedia/Accenture/Conversion-
Assets/DotCom/Documents/Global/PDF/Strategy_6/Accenture-Circular-Advantage-Innovative-Business-Models-Technologies-Value-Growth.pdf
45
https://www.pwc.com/gx/en/sustainability/assets/ai-for-the-earth-jan-2018.pdf
46
 A new Economy or just New
Business models, Managing
Critical Raw Materials and its
cost volatility?

Sharing Economy Managing Critical

Raw Materials

47
The soap opera
"last episode”?

Circular Economy

Zero Waste

Reduce
carbon footprint

Sustainable
growth

Zero
growth

1972 2012
40 years
Paradigm shift

A new
economic
system is
needed
49
D
Oubts

Q
uestions