普华永道-循环经济蓄势崛起——能源、公用事业和资源企业布局未来能源转型（英文）-2020.12-23页_2mb

Summary of "Taking on tomorrow: The rise of circularity in energy, utilities and resources"

Core Content

This report explores the growing importance of circular economic models in the energy, utilities and resources (EU&R) sectors. It highlights how companies can leverage circularity to address current and future challenges, including climate change, resource scarcity, and supply chain resilience. The shift from traditional linear models—based on 'take, make, dispose'—to circular strategies that focus on reuse, recovery, and recycling is seen as a critical path to sustainable and profitable growth.

The report outlines the principles and strategies of circularity, emphasizing the need for companies to rethink their operations and supply chains. It also provides examples of how leading companies are integrating circularity into their business models, including the use of renewable energy, waste-to-value approaches, and cross-industry partnerships.

Main Viewpoints

• Circularity as a Strategic Imperative: The report argues that circularity is not just an environmental goal but a strategic tool that can help companies save costs, increase efficiency, and create long-term value.
• Adaptation to Global Challenges: The ADAPT framework (Asymmetry, Disruption, Age, Polarisation, Trust) is used to highlight the urgency of rethinking traditional business models in light of global crises.
• Renewables and Circular Strategies: The transition to renewable energy is a key step in circularity, but it also brings new challenges, such as managing the lifecycle of solar panels and batteries.
• Cross-Sector Collaboration: The report underscores the importance of partnerships across industries and with governments to build a more sustainable and resilient circular economy.

Key Information

Circular Economy Overview

• The circular economy is a shift from the linear model of 'take, make, dispose' to a more sustainable and efficient system.
• It aims to decouple economic activity from the consumption of finite resources by creating closed-loop systems.
• Circular thinking encourages the use of renewable inputs, maximising product use, and recovering by-products and waste.

Renewable Energy and Circularity

• Renewable energy adoption is accelerating, driven by both economic and environmental factors.
• Companies like Fortescue, Rio Tinto, BHP, and Shell are investing in solar and battery technologies to reduce emissions and increase sustainability.
• The report highlights the need for better recycling of solar panels and batteries, which are expected to generate significant waste by the 2050s.

Recycling and Resilience

• Metals such as aluminium, steel, and copper are nearly 100% recyclable, offering opportunities for resource efficiency.
• The global scrap collection rate is currently around 85%, with variations by end use.
• Recycling can enhance supply chain resilience, especially in the context of global disruptions like the pandemic.
• Examples include Nucor and Evraz using renewable energy to power scrap-based steel production.

Circularity Ecosystem

• A circular economy requires collaboration between multiple stakeholders, including steelmakers, utilities, and auto manufacturers.
• The chemicals industry plays a crucial role in enabling circularity by using waste as feedstock for new products.
• Companies like BASF and Shell are leveraging waste-to-value strategies to reduce environmental impact and create new business opportunities.

Decarbonisation and Innovation

• The chemicals sector faces significant decarbonisation challenges, as petrochemicals are a major driver of oil consumption.
• Innovations such as green hydrogen (produced from renewables) and blue hydrogen (from natural gas with CCUS) are being explored to reduce emissions.
• The Hybrid initiative by SSAB, LKAB, and Vattenfall aims to create the world's first fossil-free steelmaking technology using hydrogen and renewable energy.

Value-Adding Supply Chain Partnerships

• Circular supply chains promote collaboration, feedback, and mutual value creation.
• Circular procurement transforms suppliers into partners, shifting the focus from cost to value.
• The Opel-PPG partnership demonstrates how chemical leasing can reduce waste and improve resource efficiency.

Conclusion

The report concludes that circularity is a transformative force in the EU&R sectors, offering a pathway to sustainability, resilience, and value creation. While not all companies can achieve full circularity, integrating circular thinking into core strategies can lead to meaningful improvements. The report encourages businesses to explore the potential of circularity by embracing renewable inputs, waste recovery, and cross-industry partnerships. As the world moves towards a more sustainable future, the circular economy is not just an option—it is a necessity.