Last part of this special where the concept of Circular Economy in the paints and coatings industry will now be developed.
by M.Sc. Ph.D. Julián A. Restrepo R.*
In the first part of the article, a chronological summary of environmental concern was presented, which influences the main concept of the article and should be considered in the formulation of coatings. In the second part, the concept of Circular Economy was developed in a general area. Now, in the last part of this article the concept of Circular Economy applied to the paints and coatings industry will be highlighted.
The "Circular Economy" and industry
At this point, this question arises: what exactly do we mean when we talk about a circular model? In a "Circular Economy" the value of products, components and materials are kept in the production cycle for as long as possible at levels of maximum utility and the generation of waste is reduced to a minimum. Thus, resources are conserved within the economy when a product has reached the end of its useful life, in order to reuse them repeatedly and continue to create value [16].
The private sector has already begun, in an unstoppable way, this transition, which covers the entire life cycle of the product, from the extraction of raw materials, design, production and distribution, consumption to the generation and management of waste. This transversal approach makes the circular economy a driver of new opportunities, derived from sustainable management, which translates into new business possibilities and a source of competitiveness and economic growth, while positively impacting the environment [16].
According to the European Union (2015), improving efficiency in the use of resources along value chains could reduce the material inputs needed by between 17% and 24% by 2030, which would translate into a total savings potential of 630,000 million euros per year for European industry, or 8 % of annual turnover, while reducing total annual greenhouse gas emissions by 2 to 4 % [16].
Therefore, those companies that have a leadership vocation will be the first to take advantage of the opportunities of responsible resource management, although they will also be the first to have to face and anticipate the challenges of this transition [16]:
- Economic, such as the volatility of the prices of raw materials (commodities and imports), unstable supply and demand, or the lack of business success stories.
- Regulation, due to the lack of criteria and definition of waste and hazardous materials in an international context.
- Technicians, due to the existence of barriers to access to information, quality control standards, contamination of secondary flows of materials, among others
- Social, due to consumers' perception of secondary raw materials (materials that can be recycled and that are reinvested as new raw materials in the economy, such as glass, paper, cardboard, recycled nutrients, reused water, recycled nutrients, metals, etc.), among others.
A very interesting case to analyze is from the Brazilian cosmetics company Natura, which we will briefly review:
- In 2000 they launched their Ekos line, which implemented a new business model, for the inclusion of agro-extractive communities (suppliers of inputs for Natura). This line sought the conservation of biodiversity, while marketing products and services derived from it, as well as supporting communities.
- In 2007 they launched the concept of the Environmental Table, being a pioneer company in its use, for their products. The table provides 6 key indicators, related to the origin of the raw materials and packaging material of the products. This also involves a commitment of the company to a commitment to the customer, by being transparent with this type of information.
- In 2013 they launched the concept of SOU (conscious consumption), which seeks an intelligent consumption by users (Smart consumption), based on the principles of Eco-efficiency and Ecodesign, aimed at minimizing the use of materials and resources, causing the least environmental impact.
I personally find the case of Natura fascinating, since it is a company that belongs to the Latin American market and constitutes an important world reference in Sustainability and Corporate Responsibility. Their customers know that their products are not cheap, but they are convinced that the added value they pay for them is reversed in a lower impact on the environment.
How to aim for Corporate Sustainability?
My suggestion is that any company can establish a path to becoming a sustainable company, considering concepts such as measuring the carbon footprint, formulating materiality studies (see, for example, Figure 2) [39], conducting product life cycle analysis (LCA) studies, generation of indicators and Sustainability Reports, carrying out studies of socio-environmental risks and impact studies, among others. But from the point of view of the SDGs, we can say that Corporate Sustainability allows us to meet 9 of the 17 goals of the SDGs:
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry, innovation and infrastructure
10. Reducing inequalities
12. Responsible Production and Consumption
13. Climate action
16. Peace, justice and strong institutions
17. Partnerships to achieve the goals
On the other hand, from the point of view of the indicators, it is suggested to consider some:
- Reduction of energy consumption, reduction of carbon footprint and GHG emissions
- Increase the use of renewable energies and non-conventional alternative energies
- Reduce waste generation (water, soil and air)
- Packaging Material: Increasing the use of recycled material in its manufacture or use of biodegradable packaging material
- Provide products to the customer with environmental advantages
- Investing in communities and social development
Final comments
An important aspect to mention about Sustainability and "green products" is that there are many products that are designated as such, but really are not. This is known as greenwashing, which is a form of pseudo-ecologism, a fraudulent way of making propaganda or green marketing in a deceptive way or to falsely increase environmental benefits and to promote the perception that an organization's products, objectives or policies are environmentally friendly, in order to increase its profits. There is often evidence that an organization is performing a green facelift by looking at differences in spending: when significantly more money is invested in advertising being green than in truly green practices [40].
Eco-labels, eco-labels, seals or ecological logos, are symbols or distinctives that are obtained voluntarily and are granted to those products or services whose production, transformation or recycling produce a lower impact on the environment, because they meet a series of previously defined ecological criteria, either regulated by local legislation or ecological criteria, the most accepted of them, the analysis of their life cycle (LCA, life cycle assesment). They are usually granted by an independent institution called: "certification body" and that can carry a product or service that meets pre-established requirements for its category. This instrument seeks to provide consumers with verifiable, accurate and non-misleading information on the environmental aspects of products, stimulate the environmental improvement of production processes and encourage the demand and supply of products that affect the environment to a lesser extent [41].
Some critics say there is a lot of talk about the immense potential of the "Circular Economy" to change the way we produce, consume and dispose of. There are already several large companies that have incorporated their principles and seek to eliminate waste production, but there are few known examples of companies whose complete system responds to the circular economy. Therefore, with the aim of recognizing individuals and organizations, both public and civil or private, that make contributions to promoting the circular economy, the Circular Awards were created, which were presented within the framework of the World Economic Forum in Davos [42].
References
[16] http://www.foretica.org/tematicas/economia-circular-3/
[39] https://www.agorarsc.org/materialidad-12-principios-basicos-y-una-metodologia-para-la-estrategia-de-rse-i/
[40] https://es.wikipedia.org/wiki/Greenwashing
[41] a) Restrepo, J.A., "Environmental Seals, part I". Inpralatina, Vol. 18, No. 4, Jul/Aug 2013, pp. 18-21; b) Restrepo, J.A., "Environmental Seals, part II". Inpralatina, Vol. 18, No. 5, Sept/Oct 2013, pp. 22-27
[42] https://www.expoknews.com/10-ejemplos-de-economia-circular/
* M.Sc. Ph.D. Julián A. Restrepo R. Advisor and Technical Consultant in Coatings President STAR (Association of Andean Technicians in Coatings). Mail: [email protected] - Medellín, Colombia.
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