世界經(jīng)濟(jì)論壇-產(chǎn)業(yè)循環(huán)轉(zhuǎn)型：伙伴關(guān)系的作用（英）-2024.1

IncollaborationwithBain&

CompanyandtheUniversityofCambridgeCircular

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Industries:The

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4Images:GettyImages,UnsplashContentsForeword34Executivesummary1Theneedforpartnerships52ThreearchetypesforcircularvaluecreationArchetype1CircularfeedstockArchetype2LifespanextensionArchetype3Circularplatformsandservices3Circularpartnershipstoacceleratethetransformation778893.1PartneringinArchetype1:Accessingfeedstock,securinguptakeandextendinggeographicalreach113.2PartneringinArchetype2:Accessingproducts,repairdataandcapabilities123.3PartneringinArchetype3:Creatingnewmarkets1314161725264CircularcoalitionstodriveprecompetitiveagendasConclusionAppendix:AdditionalcasestudiesContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.The?ndings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.?2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.CircularTransformationofIndustries:TheRoleofPartnerships2ForewordFernandoGomezKyriakosTriantafyllidisHeadofGrowthandStrategy,CentreforAdvancedManufacturingandSupplyChains,WorldEconomicForumJennyDavis-PeccoudSeniorPartner,

GlobalHeadofSustainability&Responsibility,Bain&CompanyHead,ResourceSystemsandResilience;MemberoftheExecutiveCommittee,CentreforNatureandClimate,WorldEconomicForumHernanSaenzJagjitSinghSraiSeniorPartner,

GlobalHeadofPerformanceImprovement,Bain&CompanyDirectorofResearchintheDepartmentofEngineeringandHeadoftheCenterforInternationalManufacturing,InstituteforManufacturing,UniversityofCambridgeInanerade?nedbyunprecedentedglobalTheexamplesinthispaperarenotmeanttoprovidesetpathsforotherstofollow.Rather,

theyaimtoinspirecompaniestoexplorethepotentialforpartnershipstohelpacceleratetheirowncircularjourney,enhancingtheresilience,pro?tabilityandsustainabilityoftheirbusinesses.challenges,theimperativefortransformativechangehasneverbeenmorepressing.Circularityoffersablueprinttohelpusnavigatethesedisruptivetimes,helpingbusinessestoincreasetheirresilience,reachnewmarketsandcustomers,andgrapplewiththeconsequencesofclimatechange,resourcetensionsandenvironmentaldegradation.Butitisnotajourneythatcanbetakenalone.Thiswhitepaperexploresafundamentalcatalystofcirculartransformation:partnerships.Thosewholeadthewayandformdisruptivecircularpartnershipswillbene?tfroma?rst-moveradvantage.Circularityleaderswillneedtoengagetheirpeers,theircompetitorsandtheupstreamanddownstreamplayersintheirvaluechains–andbeyond–inambitiouspre-competitiveandcross-industrycoalitionstoshapeasystemicchangethatgoesbeyondtheboundariesofoneorganization.Soloinitiativeslimitcompanies’abilitytoextractvaluefromcircularstrategies.Partnershipsaretheconnectivetissuethatpermitsthe?owofknowledge,informationandcircularmaterials–creatingdemandfornewcirculargoodsandservices,usheringinnewcircularbusinessmodelsandestablishingasharedcommitmenttobuildingacircularfuture.To

extracttangibleinsightsfromtheseconcepts,thepaperdelvesintoarchetypesofcircularvaluecreationandexploreshowtheyarede?nedbypartnershipsaimingtoin?uencecontrolandin?ectionpoints.Aswenavigatethechallengesofthe21stcentury,itisimportanttorememberthatourtruestrengthliesnotsolelyinourindividualundertakingsbutinourabilitytocollaborate.Throughpartnerships,wecanconstructacircularworldcharacterizedbysustainability,resilienceandprosperityforall.We

thankthemembersoftheCircularTransformationofIndustriescommunityfortheirinsightsandtheirinvaluableinputstothispaper.CircularTransformationofIndustries:TheRoleofPartnerships3ExecutivesummaryPartnershipsare

essentialtobuildthecirculareconomythattheworldneeds.Circulartransformationsareurgentlyneededinanincreasinglyresource-constrainedworld.Humanityconsumes70%moreresourcesthantheEarth’saspackaging.Thesecondaimstoreducethedemandfor,

andthereforeoutputof,manufacturedgoodsbyincreasingtheirusefullifespan;thisisappropriateforhigh-valueproductsthataredurableandgenerallythosethatcanbedisassembled.Thethirdarchetypereinventsthebusinessmodelastheenterpriseadoptsmorecircularwaysofworking;thisopensnewavenuesforcollaborationandbusinesspartnershipsandismostsuitedtohigh-value,upgradeableproductsorservices.ecosystemscanregenerate,materialsthatenterproductionprocessestodaycomefromcircularsources.

Adoptingcircular-1yetonly7.2%of2economyprinciplescanalsounlockvalueforbusinessesinmanyareas,includingimprovedresilience,additionalsourcesofrevenueandgrowth,resourceef?ciencyandenvironmentalsustainability.Creatingnewcircularvaluechainswillrequirenewpartnerships.Taking

acircularapproachinisolationlimitsacompany’s

capacitytoextractvaluefromsuchastrategy;partnershipsofferafasterandmorecost-effectiverouteforaccessingknowledgeandcircularmaterials,forinformingpoliciesandindustrystandards,andforcreatingamassmarketforcirculargoodsandservices.Incirculartransformations,businessesmayhavetolookbeyondtheirvaluechainstosourcecircularinputsorto?ndbuyersfortheirby-productsandspentmaterials.Theymayneedpartnerstocomplementtheirowncircularcapabilities,tohelptransformproductionprocessesortointroducenewcircularbusinessmodels.Asmorecompaniesenterthecirculareconomy,thesepartnershipsarelikelytogrowintomultistakeholdercoalitionsthatestablishnew,

circularecosystems.Indevelopingacircularstrategy,companieswillneedtoidentifythekeysourcesofvalue,orcontrolpoints,intheircircularvaluechains.Theseincludebothmaterial?ows,suchasaccesstocircularfeedstock,andinformation?ows,suchashowtorepairordisposeofcirculargoods.Acircularstrategywillalsoneedtoconsideraseriesofin?ectionpoints,includingthefactorsthatcanacceleratethecost-competitivenessofcirculargoods,increaseconsumercon?denceinrefurbishedproductsorcreatedemandfornewcircularofferings.Inplanningtheircircularstrategies,chiefexecutiveof?cersmustidentifythearchetypeorcombinationofarchetypesthatcandelivermostvaluetotheircompanies,whichcontrolandin?ectionpointsarecriticalforsuccessandwhatpartnershipsareneededtobuildtheirnewcircularvaluechains.Aclearcircularpartnershipstrategywillhelpcompaniesgainaccesstokeycontrolpointsandtiptherelevantin?ectionpoints.Thispaperidenti?esthreearchetypesforcircularvaluecreationandsharesusecasesonhowpartnershipsplayacrucialroleineachofthem.The?rstarchetypefocusesonreplacingvirginmaterialswithcircularones–forexample,usingrecycledplasticoraluminium;thisstrategycanbeappropriateformostmanufacturedgoods,andespeciallythosethathaveashortlifespan,suchCircularitymustbecomethenewstandardtoensuretheresilienceofbusinesses,economiesandtheplanet,anditcanhappenonlythroughpartnerships.CircularTransformationofIndustries:TheRoleofPartnerships4Theneedforpartnerships1More

thannineoutoftenexecutivescitedpartnershipsasacriticalenablerofthecirculartransformation.AwarenessoftheneedtodecoupleeconomicgrowthfromresourceconsumptioncanbeToday,

only7.2%ofallmaterialinputsintheeconomycomefromcircularsources.

Atthesame5tracedbacktoatleast1987,withtheBrundtlandCommission’sreportonsustainabledevelopmentfortime,globaleconomicgrowthisbeingcheckedbymaterialconstraints,suchastheacutescarcityofwaterinmanydrought-strickenagriculturalregionsandshortagesofcertainmineralsandmetalsforelectroniccomponentsofelectricvehicles,energytransitiontechnologiesandinformationtechnology(IT)systems.Scientistsbelieveabroaderadoptionofcircularityprinciplescouldreduceglobalmaterialsextractionandusebyone-third,easingconstraintsongrowthandenablingpeopletolivewithinthetheUnitedNations.

Butnearlyfourdecadeslater,3theglobaleconomyisstillextractingmorenaturalresourcesthantheplanetcanreplace.Scientistsreportthatsixoutofnine“planetaryboundaries”–whichmeasureenvironmentalhealthacrossland,waterandair–havebeenbroken.

Onlya4circulareconomycanreversethisover-extractionbyencouragingthemaximizationofthevalueofresourcesand?ndingnewusesforwhatwereonceconsideredwasteproductsandspentmaterials.environmentallimitsoftheplanet.6CircularTransformationofIndustries:TheRoleofPartnerships5Forcompaniesseekingtocurbgreenhousegas(GHG)emissionsandaddressscarcitiesofmaterials,circularitypromisestounlockvalueinfourareas:next-generationresilience;newsourcesofrevenue;resourceef?ciency;andenvironmentalsustainability.capabilitiesandassets.Theywillalsoneedtotransformtheiroperatingandbusinessmodelstobecomecircular.Asmorecompaniesengageinthecirculareconomy,thesepartnershipsarelikelytogrowintomultistakeholdercoalitionsthatestablishanewbusinessenvironmentforcircularenterprises.Thiswhitepaperpresents

a

framework(seeFigure

1)toexplainhowcompaniescanuseavarietyofresources

andprocesses

toattainthesebene?ts.Speci?cally,there

are

sixcriticalenablersthatcansupporta

companyinachievingcirculartransformationatscale,includinginternal

andexternaltechnologies,information,relationships

andmore.Thispaperlooksattheimportanceofpartnershipsinsomesuccessfulexamplesofcirculartransformations.Ratherthanprovidingastep-by-stepguide,thecasestudiesseektoillustratethewidevarietyofoptionsbusinesseshavewhenlookingforsolutionstotheircircularchallenges.The?nalsectionofthepaperoutlinesimportantrecommendationstohelpCEOsachieveasuccessfultransformation.Oftheseenablers,thecreationofpartnershipshasbeenidenti?edby94%ofexecutivesascrucialforunlockingthefullpotentialvalueofcirculartransformations.

Businessesmaytherefore7havetolookbeyondtheirvaluechainstosourcerecycledinputsorto?ndbuyersfortheirwasteandspentmaterials.CompanieswillneedtopartnerwithstakeholdersthatcomplementtheircircularTheoverallaimistoinspiremoreleaderstotakepartnership-basedactionanddrivethecirculartransformationoftheirindustries.FIGURE1

Operationsandbusiness-modelchangesrequiredforcirculartransformationVisionUnlockingnewvalueandgrowthinaworldoflimitedresourcesNext-generationresilienceNewsourcesofrevenueResourceef?ciencyEnvironmentalsustainabilityImpactBuild?exibilityalongthesupplychainandbereactivetoexternalshocksbycirculatingmaterialsGeneratenewsourcesofrevenuethroughcircularbusinessmodelsOptimizecostsbyincreasingrecovery,recyclingandreuseofmaterialsDeliveranet-zeroeconomywithreducedwasteAnythingas-a-servicemodelsRegenerateReduceCircularmarketplacesTRANSFORMINGSYSTEMSThecirculartransformationofindustriesTransformoperatingmodelsTransformbusinessmodelsRecycleReuseRemanufacture/refurbishRecoveryservicesEnablingservicesRepairSystem-widepartnershipsDatasharingTechnologyandinfrastructureFinancingAttractiveopportunitiesforinvestorsandpublicinstitutions

to?nancethetransformationRegulationandpolicyPeopleandcultureRobustschemesandincentivestoenabledata?owsalongthevaluechainsUpgradedskillsetsandcapabilities

alignedwithcircularmindsetsacrossfunctions-At-scale

coalitionswithinandbeyondcurrentvaluechainsInnovativeandstateof-the-arttoolstobuildcircularBroad,EnablersinterconnectedpoliciesalignedamongindustriesandregionssolutionsCircularTransformationofIndustries:TheRoleofPartnerships6Three

archetypes

forcircular

value

creation2Companiescanopttochoosecircularfeedstocks,toextendthelifeofproductsortoreinventtheirbusinessplatformsorservices.Thissectionillustratesthethree

broad

archetypesforcreating

valuethrough

circularity,

withanexampleofeach.Allthree

reduce

resourceextractionwhilemeetingcustomerneeds,andallthree

rely

onnewpartnershipstoachievecircularity

goals.Circular

feedstockArchetype

1Thisarchetypeentailsreplacingtheuseofvirginmaterialswithcircularfeedstocks–forexample,recycledplasticsoraluminium.Thisisdonebyconnectingtheproduct’s

endoflifetoitsbeginningoflife,byusingrecycledproductstomanufacturenewproducts.suchasBallCorporation,whichmakesaluminiumcans,cupsandbottles,primarilyforthedrinksindustry,canrecyclealuminiumusingonly5%oftheenergyusedtoproducevirginaluminium.Givenaluminiumkeepsahighvalueafteranend-of-lifecycle,

recyclingitisnotonlyenvironmentallybut8also?nanciallybene?cial.Archetype1isrelevantformostmanufacturedgoods,andespeciallythosethathaveashortlifespan,suchasaluminiumpackaging.CompaniesCircularTransformationofIndustries:TheRoleofPartnerships7LifespanextensionArchetype

2Thisarchetypeinvolvesreducingtheoutputofmanufacturedgoodsbyincreasingtheirusefullifespan.Strategiesincluderepairing,reusing,refurbishingorremanufacturingproductstonewdesignsthatmakecircularityeasiertoadopt.Itisappropriateforhigh-valueproductsthataredurableandcanbedisassembled.Thisindicateddemandforcircularsolutionsandledthecompanytorethinkitsentirevaluechainandrecon?gureitsproductdesign,fromtheuseofmaterialstomakingproductseasiertodisassemble,repairandrecycle.Workingwithanetworkofpartners,includingalocalcompanythathasthecapabilitytotransport,sortandre?newaste,SchneiderElectricdevelopedaplatformforrefurbishingoperationsthatgivescustomerstheoptionofpurchasingcircularproductswiththesamewarrantyasnewproductsandwiththeaddedenvironmentalbene?tsofcircularinputs.To

encouragecustomerstoreturnproducts,thecompanyhasaneasy-to-useplatformforthereturnofend-of-usegoods,sparingcustomersthetaskofdealingwithwastedisposalandtheassociatedcosts.In2023,22%ofthecompany’s

productfamilieshaveatleastonecirculareconomyofferavailable,withaplantoreach33%by2025.OnecompanypractisingthisapproachisSchneiderElectric,alargedigital-automationandenergy-managementcompany.SchneiderElectrichasdevelopedarefurbishingplatformtoextendtheusefullifeofequipment,withthegoalofreducingtheextractionofrawmaterialsneededtomanufacturenewones.SchneiderElectric’s

circulartransformationbeganwithasurveywhichrevealedthat30%ofcustomersdidnotknowwhattodowithitsproductsattheendoftheirlifecycle;94%wereinterestedinatake-backplatformmanagedbythecompany,and86%wereinterestedinbuyingrefurbishedgoods.Circular

platformsandservicesArchetype

3Thisarchetypereinventsthebusinessmodel,openingnewavenuesforcollaborationandbusinesspartnerships.Itismostsuitedtohigh-value,upgradableproducts.Thecompanyhasusedavarietyofpartnerstoprovidenewservicesonthisplatformtoimproveitsutilityincontrasttotraditionalservers.Manymedium-sizedbusinesseslackinternaldatacentresortheappropriateITstafftosupportthem.Tosolvethis,HPEpartneredwithCyrusOneandEquinix,datacentreandinterconnectionproviders,toprovidemid-sizedcompanieswithaccesstoexternaldatacentres,thusallowingthemtoavoidhavingtobuildtheirown.HPE(HewlettPackardEnterprise)isaninformationtechnologycompanythatdemonstratesthethirdarchetypalstrategyofreinventingbusinessmodelsviaitsas-a-serviceITofferings.In2019,thecompanyannouncedplanstotransitiontoanas-a-servicecompanythroughmoresubscription-based,pay-per-useandas-a-serviceofferings.ByenablingorganizationstoconsumeITonanas-a-servicebasis,HPEoffersthemtheabilityto?exiblyscaletheirITtomeettheirneedsandreduceITinef?cienciessuchascarbonandenergyuse,materialsandwaste,whichcontributesigni?cantlytoenvironmentalfootprints.Whilethecompanywillcontinuetoprovideitshardwareandsoftwareinalicence-basedmodel,thesenewofferingswillenablecustomerstochooseiftheywantamoretraditionalormorecircularas-a-serviceexperience.Thethreearchetypesarenotmutuallyexclusiveandmustbeconsideredaspartofadynamic,evolvingprocess.Anorganizationcanuseanycombinationofthethreetoachieveitsobjectives:forexample,usingrecycledmaterials(Archetype1)toremanufactureproducts(Archetype2)thataresoldasaservice(Archetype3).Anyarchetypalstrategywillaimtodeliverbene?tssoughtbyanorganization,suchasincreasingresilience,generatingnewrevenuestreams,achievingresourceef?cienciesandimprovingenvironmentalsustainability.CircularTransformationofIndustries:TheRoleofPartnerships8Circular

partnershipstoacceleratethetransformation3Companiesmustunderstandhowpartnerships,includingwithcompetitors,willenablethemtoaccesscontrolpoints,suchasmaterialsandinformation,andtipin?ectionpointssuchasexperienceandadoptioncurves.Acrossthesearchetypes,acircularstrategyisinformedbyidentifyingandactinguponcontrolandin?ectionpoints(seeFigure2).Controlpointsarethecriticalsourcesofvalueinavaluechain;in?ectionpointsmarkthemomentwhencircularproductsbecomecost-competitivewiththeirnon-circularequivalents.Controlpointsincludeinformation,suchasthetechnicalknowledgeofhowtoproduce,repairanddisposeofcirculargoods,andaccesstomaterials,includingcircularfeedstockandusedproductsfordisassembly.CircularTransformationofIndustries:TheRoleofPartnerships9In?ectionpointsaredeterminedbyeconomiesofscale(themorecirculargoodsthatareproduced,thelowertheirunitcosts)andbyconsumerdemand.Factorsthatcanacceleratethecost-competitivenessofcircularproductsincludetechnicalinnovationsthatmakecircularproductionlessexpensive;regulatoryincentives;newindustrystandardsforcircularity;andmeasuresthatincreaseconsumercon?denceinthequalityandenvironmentalbene?tsofcirculargoods.Identifyingthekeysourcesofvalueinacircularvaluechain,aswellasthecrucialin?ectionpoints,canhelpacompanydeterminethebestapproachwhenimplementingacircularstrategy.FIGURE2

Controlpointsandin?ectionpointsaffectedbycircularpartnerships1Information?ows3Experiencecurve–Traceability/originandauthentication––CapabilitiesVolume/scale––MaterialcontentTechnicalspecs(e.g.howtorepair)Control

In?ectionpointspoints2Material?ows4Adoptioncurve––Take-back–––RegulationEnd-of-lifemanagementStandardsCircularfeedstocksCommercialpush–PartnershipsareaneffectivewaytoputthedifferentelementsofacircularstrategyintoEacharchetypereliesondifferentcapabilitiesthatcouldbeaccessedthroughstrategicpartnerships.Forexample,partnershipscouldprovideArchetype1companieswithaccesstocircularfeedstocks.TheycouldprovideanArchetype2companywithmanufacturingcapabilitiesforproductrefurbishment.InArchetype3,partnerscanworktogethertodrivecommercialawarenessandacceptanceofnewas-a-servicebusinessmodels.Theexamplesbelowprovideanillustrationoftheuseofpartnershipstoin?uencecontrolandin?ectionpointsinthedifferentarchetypes.place.Whilecompaniescandevelopexpertisein-house,partnershipsofferafasterandmorecost-effectiveroutetoaccessingknowledgeandcircularmaterials,establishingpoliciesandindustrystandardsandcreatingamassmarketforcirculargoodsandservices.Thisisinadditiontoloweringproductioncostsandcreatingeconomiesofscale.Inacirculareconomy,itislikelythatpartnershipswillincludeawiderrangeofstakeholdersandcompaniesthanexistinlinearvaluechains,includingpotentiallywithcompetitors.Thecon?gurationandthegoalofthesepartnershipswilldependonthearchetypesadoptedtocreatecircularvalue.CircularTransformationofIndustries:TheRoleofPartnerships

103.1

PartneringinArchetype

1:

Accessingfeedstock,securinguptakeandextendinggeographicalreachArchetype1typicallyneedsrecycledcontenttouseascircularfeedstock.Thisisaparticularlypressingneedformanufacturersofproductssuchascomputerhardware,whichareunderpressuretoreducetheamountofelectronicwaste(andassociatedhazardousandtoxicsubstancessuchasleadandmercury)endingupinland?ll.is,arecycledplasticthatissuitablefordirectcontactwithfoodanddrinks–withanannualoutputofsome2billionbottlesayear.

Theproximityofthecompany’s

bottlingplanttotherecyclingfacilityreducestransportcostsandhasbeenanimportantin?ectionpointforthecost-competitivenessofrPET.InthecaseofWesternDigital,aglobaldata-storagecompany,thechallengeistorecoverhigh-valuematerialssuchasrareearthmetals,usingecologicallyfriendlyrecyclingprocessesthatneverthelessdeliverahighdegreeofpurity.Wipingdisksandsellingthemasrefurbishedisinmostcasesnotanoptionbecauseofdataprotectionconcerns.Spentdrivesarethussenttorecyclingcompaniestorecoverthevaluablematerials.Finally,IndoramaVenturesisworkingtoimproveitsprocessesforrecyclingPET,

bypartneringwithcompaniesthathavespeci?ccapabilitiesorpromisingtechnologyforadvancedrecycling.Indevelopingacircularstrategy,IndoramaVentureshasusedtheplaybookofArchetype1strategytosecurecircularfeedstockwithitssuppliersandtosecureitsuptakepartneringwithtechnologyproviderstoimproveprocesses.Ithasalsouseditwithclientsandinvestorstosecuredemandforrecycledproducts.Partnershavecontributedtothesuccessofitscircularstrategyinmaterialcontrolpoints(inputsfrombailersandproductsforclients)andinin?ectionpointsasinvestorsintherecyclingfacilitythatisproducingrecycledbottlesatscale.To

implementitscircularoperation,WesternDigitalmustcollaboratewiththeentiresupplychain.Upstream,itpartnerswithsupplierstoensurethepuritylevelsofrecycledmaterialaresuf?cienttoreplace100%virginmaterials.Downstream,itworkswithcustomerstorecoverdrivesforenhancedrecyclingorwhole-drivereusethatwouldotherwiseendupwithlowerrecyclingyieldandlimitedmaterialcircularity.Thecompany’s

goalistohaveagreaterthan90%recycledyield,includingrareearthmetalrecovery.Gemini,aglobalcircular-economyplatformbasedinBelgium,addressedsimilarissueswhensettinguparecyclingbusinessinIndia.Themainchallengewastosecureplasticwasteinsuf?cientvolumesforrecycling,asIndiauseslessplasticpercapitathanEurope.AsinthePhilippines,collectionwasachallenge,asitisdoneinformallyandoverlargedistances.Thisalsocomplicatesthelogistics,asthesmallamountofwastecollectedbyeachpickermustthenbeconsolidatedbyanaggregator.Meanwhile,Bangkok-basedIndoramaVentures,aworldleaderinthemanufactureofPET(apolymerresinofthepolyesterfamily),isworkingwithseveralindustrypartnerstoachieveacirculareconomyforsustainableplastics.

Thecompanyregards9recycledPET(rPET)asanewengineofgrowth,asitisacircularproductwithalowercarbonfootprintthanotherpackagingmaterials.To

tackleissuesofscale,Geminidevelopedtwotypesofpartnership.LikeIndoramaVentures,Geminipartneredwithaggregators,supplyingthemwithsmallbailingmachinestobeusedon-siteandtoincreasetheirowncapacity;thishelpedtominimizelogisticscosts.Second,GeminipartneredwithrecyclersinregionsnotcoveredbyitsfournewlybuiltplantsinIndiatoextenditsgeographicalreachandachieveeconomiesofscale.To

addresslabourissues,thecompanyformalizedwastecollectors,coveringsocialsecurityandwagesandprovidingfortheirfundamentalneeds,suchashygiene,sanitationandhealthbene?ts.Nevertheless,IndoramaVenturesfacedchallengeswhentryingtoscaleuptheuseofrecycledPETinitsoperationsinthePhilippines.The?rstobstaclewasthecollectionofplasticwaste,thefeedstockforrecycledPET.

InthePhilippines,wasteplasticsarecollectedbyindividualgarbagepickers.Thismakesconsolidationcostly.To

solvethisproblem,thecompanypartneredwithbailers–smallenterprisesthatconsolidateplasticwasteintolargebails.Inaddition,itsponsorededucationprogrammesinschoolstoraiseawarenessoftheimportanceofrecycling.Bypartneringwithreclaimersandbailers,Geminisecuredcircularfeedstock–akeymaterialcontrolpoint.Andthroughpartnershipswithotherrecyclingplantoperators,ithasextendedandaccelerateditsscaleofoperationsandgeographicalreachwithouttheneedforadditionalinvestment,greatlyacceleratingitslearningin?ectionpointinanewmarket.Next,thecompanyneededto?ndclientsthatwouldbuyrPETinlargevolumes.AmajorbottlingcompanynotonlyagreedtobuytherPET,

butalsobecameIndoramaVentures’partnerinajointventurethathasbuiltthePhilippines’largestrecyclingfacilityforfood-graderPETpellets–thatCircularTransformationofIndustries:TheRoleofPart