世界经济论坛-产业循环转型：伙伴关系的作用（英）-2024.1

IncollaborationwithBain&

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4Images:GettyImages,UnsplashContentsForeword34Executivesummary1Theneedforpartnerships52ThreearchetypesforcircularvaluecreationArchetype1CircularfeedstockArchetype2LifespanextensionArchetype3Circularplatformsandservices3Circularpartnershipstoacceleratethetransformation778893.1PartneringinArchetype1:Accessingfeedstock,securinguptakeandextendinggeographicalreach113.2PartneringinArchetype2:Accessingproducts,repairdataandcapabilities123.3PartneringinArchetype3:Creatingnewmarkets1314161725264CircularcoalitionstodriveprecompetitiveagendasConclusionAppendix:AdditionalcasestudiesContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,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,UniversityofCambridgeInaneradefinedbyunprecedentedglobalTheexamplesinthispaperarenotmeanttoprovidesetpathsforotherstofollow.Rather,

theyaimtoinspirecompaniestoexplorethepotentialforpartnershipstohelpacceleratetheirowncircularjourney,enhancingtheresilience,profitabilityandsustainabilityoftheirbusinesses.challenges,theimperativefortransformativechangehasneverbeenmorepressing.Circularityoffersablueprinttohelpusnavigatethesedisruptivetimes,helpingbusinessestoincreasetheirresilience,reachnewmarketsandcustomers,andgrapplewiththeconsequencesofclimatechange,resourcetensionsandenvironmentaldegradation.Butitisnotajourneythatcanbetakenalone.Thiswhitepaperexploresafundamentalcatalystofcirculartransformation:partnerships.Thosewholeadthewayandformdisruptivecircularpartnershipswillbenefitfromafirst-moveradvantage.Circularityleaderswillneedtoengagetheirpeers,theircompetitorsandtheupstreamanddownstreamplayersintheirvaluechains–andbeyond–inambitiouspre-competitiveandcross-industrycoalitionstoshapeasystemicchangethatgoesbeyondtheboundariesofoneorganization.Soloinitiativeslimitcompanies’abilitytoextractvaluefromcircularstrategies.Partnershipsaretheconnectivetissuethatpermitstheflowofknowledge,informationandcircularmaterials–creatingdemandfornewcirculargoodsandservices,usheringinnewcircularbusinessmodelsandestablishingasharedcommitmenttobuildingacircularfuture.To

extracttangibleinsightsfromtheseconcepts,thepaperdelvesintoarchetypesofcircularvaluecreationandexploreshowtheyaredefinedbypartnershipsaimingtoinfluencecontrolandinflectionpoints.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,resourceefficiencyandenvironmentalsustainability.Creatingnewcircularvaluechainswillrequirenewpartnerships.Taking

acircularapproachinisolationlimitsacompany’s

capacitytoextractvaluefromsuchastrategy;partnershipsofferafasterandmorecost-effectiverouteforaccessingknowledgeandcircularmaterials,forinformingpoliciesandindustrystandards,andforcreatingamassmarketforcirculargoodsandservices.Incirculartransformations,businessesmayhavetolookbeyondtheirvaluechainstosourcecircularinputsortofindbuyersfortheirby-productsandspentmaterials.Theymayneedpartnerstocomplementtheirowncircularcapabilities,tohelptransformproductionprocessesortointroducenewcircularbusinessmodels.Asmorecompaniesenterthecirculareconomy,thesepartnershipsarelikelytogrowintomultistakeholdercoalitionsthatestablishnew,

circularecosystems.Indevelopingacircularstrategy,companieswillneedtoidentifythekeysourcesofvalue,orcontrolpoints,intheircircularvaluechains.Theseincludebothmaterialflows,suchasaccesstocircularfeedstock,andinformationflows,suchashowtorepairordisposeofcirculargoods.Acircularstrategywillalsoneedtoconsideraseriesofinflectionpoints,includingthefactorsthatcanacceleratethecost-competitivenessofcirculargoods,increaseconsumerconfidenceinrefurbishedproductsorcreatedemandfornewcircularofferings.Inplanningtheircircularstrategies,chiefexecutiveofficersmustidentifythearchetypeorcombinationofarchetypesthatcandelivermostvaluetotheircompanies,whichcontrolandinflectionpointsarecriticalforsuccessandwhatpartnershipsareneededtobuildtheirnewcircularvaluechains.Aclearcircularpartnershipstrategywillhelpcompaniesgainaccesstokeycontrolpointsandtiptherelevantinflectionpoints.Thispaperidentifiesthreearchetypesforcircularvaluecreationandsharesusecasesonhowpartnershipsplayacrucialroleineachofthem.Thefirstarchetypefocusesonreplacingvirginmaterialswithcircularones–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-extractionbyencouragingthemaximizationofthevalueofresourcesandfindingnewusesforwhatwereonceconsideredwasteproductsandspentmaterials.environmentallimitsoftheplanet.6CircularTransformationofIndustries:TheRoleofPartnerships5Forcompaniesseekingtocurbgreenhousegas(GHG)emissionsandaddressscarcitiesofmaterials,circularitypromisestounlockvalueinfourareas:next-generationresilience;newsourcesofrevenue;resourceefficiency;andenvironmentalsustainability.capabilitiesandassets.Theywillalsoneedtotransformtheiroperatingandbusinessmodelstobecomecircular.Asmorecompaniesengageinthecirculareconomy,thesepartnershipsarelikelytogrowintomultistakeholdercoalitionsthatestablishanewbusinessenvironmentforcircularenterprises.Thiswhitepaperpresents

a

framework(seeFigure

1)toexplainhowcompaniescanuseavarietyofresources

andprocesses

toattainthesebenefits.Specifically,there

are

sixcriticalenablersthatcansupporta

companyinachievingcirculartransformationatscale,includinginternal

andexternaltechnologies,information,relationships

andmore.Thispaperlooksattheimportanceofpartnershipsinsomesuccessfulexamplesofcirculartransformations.Ratherthanprovidingastep-by-stepguide,thecasestudiesseektoillustratethewidevarietyofoptionsbusinesseshavewhenlookingforsolutionstotheircircularchallenges.ThefinalsectionofthepaperoutlinesimportantrecommendationstohelpCEOsachieveasuccessfultransformation.Oftheseenablers,thecreationofpartnershipshasbeenidentifiedby94%ofexecutivesascrucialforunlockingthefullpotentialvalueofcirculartransformations.

Businessesmaytherefore7havetolookbeyondtheirvaluechainstosourcerecycledinputsortofindbuyersfortheirwasteandspentmaterials.CompanieswillneedtopartnerwithstakeholdersthatcomplementtheircircularTheoverallaimistoinspiremoreleaderstotakepartnership-basedactionanddrivethecirculartransformationoftheirindustries.FIGURE1

Operationsandbusiness-modelchangesrequiredforcirculartransformationVisionUnlockingnewvalueandgrowthinaworldoflimitedresourcesNext-generationresilienceNewsourcesofrevenueResourceefficiencyEnvironmentalsustainabilityImpactBuildflexibilityalongthesupplychainandbereactivetoexternalshocksbycirculatingmaterialsGeneratenewsourcesofrevenuethroughcircularbusinessmodelsOptimizecostsbyincreasingrecovery,recyclingandreuseofmaterialsDeliveranet-zeroeconomywithreducedwasteAnythingas-a-servicemodelsRegenerateReduceCircularmarketplacesTRANSFORMINGSYSTEMSThecirculartransformationofindustriesTransformoperatingmodelsTransformbusinessmodelsRecycleReuseRemanufacture/refurbishRecoveryservicesEnablingservicesRepairSystem-widepartnershipsDatasharingTechnologyandinfrastructureFinancingAttractiveopportunitiesforinvestorsandpublicinstitutions

tofinancethetransformationRegulationandpolicyPeopleandcultureRobustschemesandincentivestoenabledataflowsalongthevaluechainsUpgradedskillsetsandcapabilities

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,

recyclingitisnotonlyenvironmentallybut8alsofinanciallybeneficial.Archetype1isrelevantformostmanufacturedgoods,andespeciallythosethathaveashortlifespan,suchasaluminiumpackaging.CompaniesCircularTransformationofIndustries:TheRoleofPartnerships7LifespanextensionArchetype

2Thisarchetypeinvolvesreducingtheoutputofmanufacturedgoodsbyincreasingtheirusefullifespan.Strategiesincluderepairing,reusing,refurbishingorremanufacturingproductstonewdesignsthatmakecircularityeasiertoadopt.Itisappropriateforhigh-valueproductsthataredurableandcanbedisassembled.Thisindicateddemandforcircularsolutionsandledthecompanytorethinkitsentirevaluechainandreconfigureitsproductdesign,fromtheuseofmaterialstomakingproductseasiertodisassemble,repairandrecycle.Workingwithanetworkofpartners,includingalocalcompanythathasthecapabilitytotransport,sortandrefinewaste,SchneiderElectricdevelopedaplatformforrefurbishingoperationsthatgivescustomerstheoptionofpurchasingcircularproductswiththesamewarrantyasnewproductsandwiththeaddedenvironmentalbenefitsofcircularinputs.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,HPEoffersthemtheabilitytoflexiblyscaletheirITtomeettheirneedsandreduceITinefficienciessuchascarbonandenergyuse,materialsandwaste,whichcontributesignificantlytoenvironmentalfootprints.Whilethecompanywillcontinuetoprovideitshardwareandsoftwareinalicence-basedmodel,thesenewofferingswillenablecustomerstochooseiftheywantamoretraditionalormorecircularas-a-serviceexperience.Thethreearchetypesarenotmutuallyexclusiveandmustbeconsideredaspartofadynamic,evolvingprocess.Anorganizationcanuseanycombinationofthethreetoachieveitsobjectives:forexample,usingrecycledmaterials(Archetype1)toremanufactureproducts(Archetype2)thataresoldasaservice(Archetype3).Anyarchetypalstrategywillaimtodeliverbenefitssoughtbyanorganization,suchasincreasingresilience,generatingnewrevenuestreams,achievingresourceefficienciesandimprovingenvironmentalsustainability.CircularTransformationofIndustries:TheRoleofPartnerships8Circular

partnershipstoacceleratethetransformation3Companiesmustunderstandhowpartnerships,includingwithcompetitors,willenablethemtoaccesscontrolpoints,suchasmaterialsandinformation,andtipinflectionpointssuchasexperienceandadoptioncurves.Acrossthesearchetypes,acircularstrategyisinformedbyidentifyingandactinguponcontrolandinflectionpoints(seeFigure2).Controlpointsarethecriticalsourcesofvalueinavaluechain;inflectionpointsmarkthemomentwhencircularproductsbecomecost-competitivewiththeirnon-circularequivalents.Controlpointsincludeinformation,suchasthetechnicalknowledgeofhowtoproduce,repairanddisposeofcirculargoods,andaccesstomaterials,includingcircularfeedstockandusedproductsfordisassembly.CircularTransformationofIndustries:TheRoleofPartnerships9Inflectionpointsaredeterminedbyeconomiesofscale(themorecirculargoodsthatareproduced,thelowertheirunitcosts)andbyconsumerdemand.Factorsthatcanacceleratethecost-competitivenessofcircularproductsincludetechnicalinnovationsthatmakecircularproductionlessexpensive;regulatoryincentives;newindustrystandardsforcircularity;andmeasuresthatincreaseconsumerconfidenceinthequalityandenvironmentalbenefitsofcirculargoods.Identifyingthekeysourcesofvalueinacircularvaluechain,aswellasthecrucialinflectionpoints,canhelpacompanydeterminethebestapproachwhenimplementingacircularstrategy.FIGURE2

Controlpointsandinflectionpointsaffectedbycircularpartnerships1Informationflows3Experiencecurve–Traceability/originandauthentication––CapabilitiesVolume/scale––MaterialcontentTechnicalspecs(e.g.howtorepair)Control

Inflectionpointspoints2Materialflows4Adoptioncurve––Take-back–––RegulationEnd-of-lifemanagementStandardsCircularfeedstocksCommercialpush–PartnershipsareaneffectivewaytoputthedifferentelementsofacircularstrategyintoEacharchetypereliesondifferentcapabilitiesthatcouldbeaccessedthroughstrategicpartnerships.Forexample,partnershipscouldprovideArchetype1companieswithaccesstocircularfeedstocks.TheycouldprovideanArchetype2companywithmanufacturingcapabilitiesforproductrefurbishment.InArchetype3,partnerscanworktogethertodrivecommercialawarenessandacceptanceofnewas-a-servicebusinessmodels.Theexamplesbelowprovideanillustrationoftheuseofpartnershipstoinfluencecontrolandinflectionpointsinthedifferentarchetypes.place.Whilecompaniescandevelopexpertisein-house,partnershipsofferafasterandmorecost-effectiveroutetoaccessingknowledgeandcircularmaterials,establishingpoliciesandindustrystandardsandcreatingamassmarketforcirculargoodsandservices.Thisisinadditiontoloweringproductioncostsandcreatingeconomiesofscale.Inacirculareconomy,itislikelythatpartnershipswillincludeawiderrangeofstakeholdersandcompaniesthanexistinlinearvaluechains,includingpotentiallywithcompetitors.Theconfigurationandthegoalofthesepartnershipswilldependonthearchetypesadoptedtocreatecircularvalue.CircularTransformationofIndustries:TheRoleofPartnerships

103.1

PartneringinArchetype

1:

Accessingfeedstock,securinguptakeandextendinggeographicalreachArchetype1typicallyneedsrecycledcontenttouseascircularfeedstock.Thisisaparticularlypressingneedformanufacturersofproductssuchascomputerhardware,whichareunderpressuretoreducetheamountofelectronicwaste(andassociatedhazardousandtoxicsubstancessuchasleadandmercury)endingupinlandfill.is,arecycledplasticthatissuitablefordirectcontactwithfoodanddrinks–withanannualoutputofsome2billionbottlesayear.

Theproximityofthecompany’s

bottlingplanttotherecyclingfacilityreducestransportcostsandhasbeenanimportantinflectionpointforthecost-competitivenessofrPET.InthecaseofWesternDigital,aglobaldata-storagecompany,thechallengeistorecoverhigh-valuematerialssuchasrareearthmetals,usingecologicallyfriendlyrecyclingprocessesthatneverthelessdeliverahighdegreeofpurity.Wipingdisksandsellingthemasrefurbishedisinmostcasesnotanoptionbecauseofdataprotectionconcerns.Spentdrivesarethussenttorecyclingcompaniestorecoverthevaluablematerials.Finally,IndoramaVenturesisworkingtoimproveitsprocessesforrecyclingPET,

bypartneringwithcompaniesthathavespecificcapabilitiesorpromisingtechnologyforadvancedrecycling.Indevelopingacircularstrategy,IndoramaVentureshasusedtheplaybookofArchetype1strategytosecurecircularfeedstockwithitssuppliersandtosecureitsuptakepartneringwithtechnologyproviderstoimproveprocesses.Ithasalsouseditwithclientsandinvestorstosecuredemandforrecycledproducts.Partnershavecontributedtothesuccessofitscircularstrategyinmaterialcontrolpoints(inputsfrombailersandproductsforclients)andininflectionpointsasinvestorsintherecyclingfacilitythatisproducingrecycledbottlesatscale.To

implementitscircularoperation,WesternDigitalmustcollaboratewiththeentiresupplychain.Upstream,itpartnerswithsupplierstoensurethepuritylevelsofrecycledmaterialaresufficienttoreplace100%virginmaterials.Downstream,itworkswithcustomerstorecoverdrivesforenhancedrecyclingorwhole-drivereusethatwouldotherwiseendupwithlowerrecyclingyieldandlimitedmaterialcircularity.Thecompany’s

goalistohaveagreaterthan90%recycledyield,includingrareearthmetalrecovery.Gemini,aglobalcircular-economyplatformbasedinBelgium,addressedsimilarissueswhensettinguparecyclingbusinessinIndia.Themainchallengewastosecureplasticwasteinsufficientvolumesforrecycling,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,sanitationandhealthbenefits.Nevertheless,IndoramaVenturesfacedchallengeswhentryingtoscaleuptheuseofrecycledPETinitsoperationsinthePhilippines.Thefirstobstaclewasthecollectionofplasticwaste,thefeedstockforrecycledPET.

InthePhilippines,wasteplasticsarecollectedbyindividualgarbagepickers.Thismakesconsolidationcostly.To

solvethisproblem,thecompanypartneredwithbailers–smallenterprisesthatconsolidateplasticwasteintolargebails.Inaddition,itsponsorededucationprogrammesinschoolstoraiseawarenessoftheimportanceofrecycling.Bypartneringwithreclaimersandbailers,Geminisecuredcircularfeedstock–akeymaterialcontrolpoint.Andthroughpartnershipswithotherrecyclingplantoperators,ithasextendedandaccelerateditsscaleofoperationsandgeographicalreachwithouttheneedforadditionalinvestment,greatlyacceleratingitslearninginflectionpointinanewmarket.Next,thecompanyneededtofindclientsthatwouldbuyrPETinlargevolumes.AmajorbottlingcompanynotonlyagreedtobuytherPET,

butalsobecameIndoramaVentures’partnerinajointventurethathasbuiltthePhilippines’largestrecyclingfacilityforfood-graderPETpellets–thatCircularTransformationofIndustries:TheRoleofPart