Working Draft Advancing sustainability through hyper circularity How new technologies can help companies realize circular strategies to avoid waste, benefiting both their business and the planet. Working draft 1 Authors ALPANA DUBEY ALEX KASS MEENA IYER alpana.a.dubey@accenture.com alex.kass@accenture.com meena.iyer@accenture.com Research Lead Digital Experiences, Bangalore Fellow and Global Research Lead Digital Experiences. Business and Technology Integration Executive Technology researcher in the areas of Human Computer Interaction, Artificial Intelligence, and Software Engineering Innovation specialist working at the intersection of technology, human learning, and human performance. Sustainability champion with practical experience in digital transformation and intelligent automation Working draft 2 Contents • How technology can help achieve hyper circularity • Why Hyper circularity matters • Vision: Achieving hyper circularity by inverting the end-of-life pyramid • Enablers for pyramid inversion • Realizing Hyper Circularity across new business models • Accenture offerings and example assets Working draft 3 HOW TECHNOLOGY CAN HELP ACHIEVE HYPER CIRCULARITY Leveraging Technology across three key dimensions of hypercircularity: Circular strategies are already playing an important role in organizations. However, the highest-level of circularity is yet to be achieved. We still need to improve along at least 3 key dimensions. In this POV, we show how the right approaches and technologies can help achieve this in multiple business contexts. 1. Moving further from disposal or recycling to a focus on ubiquitous re-use • Squeezing every ounce of useful life out of products and components requires carefully disassembling the product and finding buyers for the specialized components recovered, which is much more complex than simply breaking the product down. Technologies for Resell marketplace and quality check to match components to potential buyers and efficient disassembly process can help achieve this. 2. Creating efficient production processes to reduce waste of resources. • 3. Careful product design can reduce waste of resources during production process. Design for circularity can help designers to ensure that designers focus on waste in production process during design process. Creating intelligent, efficient recycling. • Recycling can be made more efficient if components and materials are properly extracted and segregated as this will cause less material mixing and therefore efficient processes. An efficient disassembly process can enable this. Working draft 4 WHY HYPER CIRCULARITY MATTERS: THE COST OF WASTE THAT CAN BE REDUCED A conscious attempt to waste management can play an important role in circular economy. Circular economy handbook identifies four kinds of waste that businesses should focus. The picture here shows those along with their market size and ways to address the waste problem. Each of these play a major role towards narrowing, slowing, or closing the loop. WASTED RESOURCES Material and energy that cannot be continually regenerated Ways to address: Introduce renewable and biobased materials, chemicals and energy Market size: $1.7trillion WASTED EMBEDDED VALUES Components, material and energy not recovered at disposal Ways to address: Increase recycling, upcycling, component harvesting and energy recovery Market size: Key terms WASTED CAPACITY Underutilized or unused products and assets Ways to address: Increase sharing, co-owning, co-using, resource pooling, etc. Market size: $0.6 Slowing the loop trillion WASTED LIFECYCLES Premature end of working life of products Ways to address: Lifecycle services for resell, maintain, repair, remanufacture, etc. $1.3 trillion Market size: $0.9 trillion Source: The Circular Economy Handbook: Realizing the Circular Advantage, 2020 Working draft Narrowing the loop Efficient use of resources. For example, using less energy or material during production process Extending the use of products. For example, using product for longer time, repurposing the product for other use Closing the loop Recycling of material and reducing leakage. For example, taking back most of the material so that they can be recycled or reused for better purpose 5 ACHIEVING HYPER CIRCULARITY BY INVERTING THE END-OF-LIFE PYRAMID With better use, reuse, and disassembly, we can make significant impact on circularity adoption End of life pyramid represents actions performed on product / component / material at the disposal time. Product end of life where majority reach to landfills Our vision is to invert the end-of-life pyramid by better reuse, disassembly, and efficient use of products. The basic concept is to drive up as much as possible the extent to which we circulate products and materials at their highest value, rather than disposing of them as is. The top image depicts that only a small fraction of products / material gets reused as of today when they reach to end of life. With right technologies and processes we can invert this by increasing reuse over recycling and make recycling more efficient by segregation of material. Product end of life where majority is reused Working draft 6 ENABLERS FOR PYRAMID INVERSION Efficient disassembly process An efficient disassembly processes can help in reusing the components. Technologies such as robotics and AI can help in creating a disassembly process where parts are extracted undamaged; therefore reusable. Resell marketplace Quality checks A resell marketplace to connect consumers to buy and sell used parts and products can help firms in realizing hyper circularity. Firms need to establish a financial incentives for its consumers to be part of such market and provide logistics to ease the process of selling on such marketplace. Quality evaluation is very crucial to assess fitness of products and its parts for reuse. Approaches for such evaluation will vary based on type of products. For example, for a food products chemical analysis will be more suitable whereas for an apparel image processing will be most suitable. Working draft Design for circularity Design for circularity makes sure that products are designed keeping waste in mind. That is, they are easy to disassemble when they reach to end of their life, they ensure less material waste, and use resource efficiently 7 THREE EXAMPLES: WAYS TO ADDRESS WASTE PROBLEM WITH HYPER CIRCULAR MINDSET Electronics Product Electronics industries brings untapped opportunities to slow and close the loop by providing users DIY repair and disposal support. For example, users of electronics products can be provided better support to increase the life of product with self repair. An automated assistance for disassembly can enables all the components to be reused in other products instead of being recycled or disposed of. WASTED CAPACITY WASTED LIFECYCLES Food Product An assistance to assess food condition through chemical sensors can help users decide if it can be consumed therefore avoiding fixed expiry labels. Assistant can also help them with recipes to reuse food products. A proper supply chain can enable users to give away food before they get spoiled / expired. WASTED LIFECYCLES Apparels Apparel owners can use a resell marketplace to sell apparels standing in their closet without being worn for years. A digital closet assistance can help user in styling and giving them new look with existing apparels, thus increasing reuse. Fashion firms can upcycle unsold apparels in this manner. Working draft WASTED CAPACITY WASTED LIFECYCLES 8 Realizing Hyper Circularity in Business Models Working draft 9 COMPANIES AT ALL LEVELS OF MATURITY ARE REALIZING TANGIBLE VALUE FROM CIRCULARITY Market Leaders Interesting Innovators Quantified Benefiters Leadership Innovation Value Creation • Fully circular CG&S business • All materials used can be infinitely recycled • Over 75% of products are certified ‘Cradle – to-Cradle’ gold level • Built the first LEED platinum certified manufacturing facility: carbon neutral, water neutral and landfill free • Modular phone disrupting the market with fully sustainable offering • Innovative design allows owners to open and repair phones without any specific skills • Product design and repair model extends phone life to 5 years • 154 million pounds of end of life material taken back from customers for remanufacture (2015) • Sustainable products, services and solutions accounted for 18% of company’s total sales and revenues in 2015 • Early pioneer of integrating circularity from product design, packaging and shipping through recycling and reuse • Developed the first computer made using certified closed loop recycled plastics • Using its global position to shift standards and policies towards a circular economy • An innovative sportswear brand • Revolutionised the material science behind water-repellent treatments for functional clothing • Challenges the industry by making clothes as pure as possible - all clothing is 100% biodegradable and could be used as fertiliser • $11 billion in recyclable materials are buried in U.S. landfills annually • Unique app matches independent garbage haulers and recyclers with companies to schedule on-demand waste pick-ups • Recent business valuation at $800 million by Forbes • Source: The Circulars dataset Working draft 10 COMPANIES ARE ADOPTING NEW BUSINESS MODELS What does hyper circularity mean for business models? Approaches to hyper circularity may be quite different for different business model as they offer varying opportunities to push towards circularity Agile : Personalized : Real-time adaptation to customer needs with a 'start-up' mentality Products and services tailored to meet existing and potential customer's individual needs Subscription : Costs of costly assets shared across the users Closed-Loop : Products are recovered and recycled reducing overall costs Working draft Circular Value Chain Pay-as-you go- Product as a Service : Asset Sharing method - Enable increased utilization rate of products by making possible shared use /access /ownership 11 BUSINESS MODELS AND OPPORTUNITIES FOR HYPER CIRCULARITY While each business model brings several strengths and limitations, here we show the opportunities to bring more circularity in each business model Personalized Closed loop Asset sharing Pay as you go Agile Strengths: Longer product use as customers are more attached to personalized products Strengths: Longer useful life and planned circular strategy Strengths: product use is high Strengths: product use is high Limitations: Possibility of in-efficient use as product moves among users Limitations: Possibility of inefficient use Strengths: Faster reaction to market demand Limitations: Limited reuse potential Opportunities: Introduce design for disassembly / reusability Limitations: Scope of iterations over circular strategy is small therefore changes not noticeable instantly Opportunities: bring agile mindset and increase collaboration with partners Opportunities: educate users in efficient use of product, Monitor products for efficiency Working draft Opportunities: Nudge service providers for frequent assessment of products for resource efficiency Limitations: More frequent / less effective implementation due to agility and short cycles Opportunities: Make learning curve steeper for long-term planning on right sized business models 12 ACCENTURE OFFERS A NUMBER OF TECHNOLOGY DRIVEN CAPABALITIES THAT CAN HELP DRIVE HYPER CIRCULARITY ACROSS A RANGE OF BUSINESS MODELS BUSINESS MODELS TECHNOLOGY VALUE LEVERS ACCENTURE OFFERINGS Agile REDUCE WASTE APPAREL DESIGN TOOLKIT Helps fashion designers in designing apparels that produces less fabric waste. Closed-Loop RESELL WITH TRUST A resell market through with price prediction, condition assessment and product cataloguing services to make fashion industry more sustainable Subscription HUMAN-ROBOT TEAMING TOOLKITS FOR DISASSEMBLY Suite of solutions to bring robots as a coworker in human based disassembly process for better reuse and efficient recycling UNDERLYING TECHNOLOGIES Internet of Things Intelligent XR • Sensors and Actuators • CAD software • 3D object scanners • Robotics simulation Robotics • Pose and gesture estimation • Path planning Personalized Asset Sharing (Product as a Service) INTELLIGENT PRODUCT SUPPORT ASSISTANT An Intelligent XR based assistant to help customers in efficiently using, repairing, and disposing products SUSTAINABLE DESIGN ADVISOR An AI based CAD analysis toolkit to help designer build more circular products with several metrics Working draft Digital Twins • Simulators • Augmented Reality • Computer vision Artificial Intelligence • Machine learning 13 Example Assets The next few slides captures the assets that Accenture offers to its clients to push towards higher level of circularity Working draft 14 REDUCED WASTE APPAREL DESIGN TOOLKIT Reduce waste apparel design toolkit narrows the loop by reducing fabrics wastage in apparel production process. Challenge The textile industry is the world’s second largest polluting industry both in terms of production and waste. Unsold inventory, cutting left-overs, roll ends, used apparel are either burned or dumped at landfills. Fashion and textile industries need to find more circular solutions to reduce their environmental impact. Designers need technological solutions that can help in reducing waste and overall cost. Original Apparel Pattern Optimized Apparel Pattern Solution Our solution guides designers in creating apparels that create less waste and therefore reduces cost. Our solution uses advanced AI algorithms to detect contours of apparel patterns and optimally place them to reduce cutting leftovers. This solution also predicts fabric waste and related cost as early as the design stage, thus helping designers make more sustainable design choices Outcome The Reduced Waste Apparel Design Assistants help designers in generating apparel design with low waste therefore causing less pollution and reducing cost. Working draft 15 RESELL WITH TRUST Resell with trust platform extends useful life of products by enabling users to resell unused apparels; thus slows the loop. Challenge The fashion industry is challenged with the mounting problem of waste that ends up in landfills each year. Consumers’ awareness of the ecological impact of the apparel industry has increased, and they are demanding apparel businesses to expand their commitment to sustainability. As a result, retailers must now adopt a resale strategy that can maximize their profits and minimize their climate impact. The resell market is expected to double in size to $77 billion over the next 5 years. However, issues like counterfeit products and nonstandardized resale price impact the resale industry adversely. Technological solutions can help bridge this gap and build trust in this industry. Solution Our solution uses advanced AI analytics to match the resell apparels with their original catalogue products. Deep Neural Network technologies are used to perform reverse product cataloguing and extract detailed features of the resell product. Such information helps in better inventory management and product search in this market. Advanced Computer Vision can also help assess the condition of the product and all these factors can help predict a fair and explainable resale price for the product. Outcome This solution helps build trust in the resell market through AI based resell price prediction, condition assessment and product cataloguing. It will help retailers, resellers, buyers and recyclers and make the fashion industry more sustainable. Working draft 16 HUMAN-ROBOT TEAMING TOOLKIT FOR DISASSEMBLY Human-Robot teaming toolkit for disassembly helps in extracting components without any damage so that it can be effectively reused or recycled. It helps in closing the loop and extending the loop with reuse. Challenge leg pickup align Plan generator Disassembly of products are very crucial for an efficient recycling process or reuse. Due to lack of tools for disassembly often products are crushed which causes material mixing and makes recycling inefficient. Moreover, a manual disassembly bring huge health hazard to people involved in disassembly process. For example, disassembling a battery may cause huge health and life risks. table Robot configuration table + leg leg tighten pickup table + leg Solution We have developed solution for human-robotics disassembly in which human work alongside cobots in disassembly process. Our solution leverages techniques such as dynamic plan generation,task distribution, automatic programming of cobots, and novel user interfaces to guide human-cobot interaction in following roles 1) human as a co-worker and 2) human as an instructor. align table + leg + leg Outcome University Collaboration - IITM The human-robot teaming toolkit helps in looping back the product parts in product life cycle at its highest value chain. A majority of parts can be reused through this solution; thus, saving on resources and reducing emission. Parts that cannot be reused can be recycled more efficiently as they can be separately treated / recycled with similar material. We are working with IITM to develop a solution for Human-robot disassembly process for Lithium-ion batteries (LiB). LiBs are going to be one of the top pollutants in near future and a right strategy is needed to handle the used batteries. We plan to develop a scalable robotics solution for the same. Working draft 17 INTELLIGENT PRODUCT SUPPORT ASSISTANT Intelligent product support assistant helps in nudging consumers to use, repair, and dispose products sustainably with end-to-end life support to consumers with unique AI and XR based application. Challenge Consumers have become more sustainable-aware these days. However, there is a lack of solution to assist consumers using, repairing, troubleshooting, and disposing product sustainably. Solution We developed Intelligent Product Support Assistant, i.e., a coaching / assistance framework that leverages multi-modal inputs captured by sensors and user actions, to coach consumers in various tasks such as product installation, assembly, usage, troubleshooting, repairing, dis-assembly, disposal etc. This assistant is an AR application that helps users in visualization of next steps in real-time. It uses AI techniques for Scene Analysis and Next Step prediction. Outcome The Troubleshooting Assistant aids in a sustainable product journey. We also envision resale and re-purchase of used parts. The Intelligent Product Support Assistant can help both consumers and repair personnel to sustainably use, troubleshoot and dispose off a product or its parts. Working draft 18 SUSTAINABLE DESIGN ADVISOR Sustainable design advisor helps designers in making sustainable design decisions so that products are modular and easy to disassemble. This reduces material mixing when products recycling is planned at end of life. It also helps in effective reuse of product parts. Solution We developed a data-driven solution that leverages information from 3D CAD models to generate a feasible disassembly sequence. Graph Representation Learning has been adopted to understand and process component relations to generate the sequence and direction of disassembly of individual components in the product. Outcome Challenge Every product that reaches its end of usable life needs to be discarded sustainably. EOL products are often landfilled or incinerated, leading to the loss of potentially valuable and recyclable materials, and leeching of toxic substances into the air or soil. Effective disassembly of products is a key enabler of circular economy strategies. Disassembly aids in product maintenance and repair, enables reuse of parts and significantly increases the recycling yield and purity for precious metals, critical metals and plastics from EOL products. Currently disassembly is largely manual, unstructured, human centric, and carries a range of health and environmental risks. Working draft The Disassembly Assistant provides an AI driven, automated and streamlined approach which makes the disassembly process more efficient and safer. Such a solution can see wide applicability in Robotic Disassembly, Digital Disassembly, Product Assembly Planning, Product Maintenance and Repair. 19 HOW DO WE ENGAGE? 6-12 months First 6 months Key Outcomes Key Activities Co-create Proof of Concept: Beyond 12 months Pilot Implementation Scale Pilot: Scale up • Pilot the identified solution in limited scale • Deploy solution at scale • Drive solution for clients with Industry-X partners • Implement Portfolio Governance & Modernization Strategy • Use case definition and Identify Industry X partners • Develop a POC to show our asset in the business context • Initial hypotheses • Pilot phase • Labs Offering Development • Opportunity Discovery • Report on outcomes from pilot • Work with Industry X partners and clients • High Level Business cases • Proof-of-concept and user study Working draft In conclusion Business models bring unique strengths when it come to adopting individual circular strategy but pose challenges in achieving a holistic approach towards circularity. There is still lot more to be done on choosing the right strategy for the products when they reach end of life. Strategies such as resell marketplace, effective disassembly, design for disassembly can pave a way to push towards Hyper circularity. Working draft 21 Thank You