The most interesting companiesin the circular economy in Finland

A list of companies to inspire economic change.

The most interesting companies in the circular economy is a list compiled by Sitra to showcase Finland's most inspiring

examples of the circular economy. During the first phase, the list will present the circular economy business models of 19

Finnish companies, but will expand to include as many as one hundred companies by the end of the year 2017. Indeed, Sitra

is using the list as a way to challenge Finnish companies to meet the changing needs of the world.

01/02/2017

Renewable, recyclable and biodegradable materials, as well as the principles of eco-design, are preferred for products and their design. Fossil fuels are replaced by renewable energy.

Renewability

Product-life extensionProducts are used according to their original purpose for as long as possible or repaired and refurbished for multiple re-uses, thus reducing the need for purchasing and manufacturing new products.

Sharing platformsDigital-based platforms are used to promote the increased use of goods and resources and the extension of their life cycle, such as by renting, selling, sharing and re-use.

The customer pays for certain functions or performance and avoids the risks of ownership. The total costs of ownership remain with the service provider, with revenue being earned by means of, for example, a leasing or rental agreement.

Product as a service

Resource efficiency and recyclingTechnological development enhances resource efficiency in value chains, processes and products, and allows for more effective recycling. Side-streams are valuable raw materials for recycled products and materials.

Five business models for the circular economy

Example companies on the list3 Step ITIT equipment life-cycle management

Lassila & TikanojaRe-use of pallets

ValtraRemanufacturingof gearboxes

EkoRentShared electric vehicle service

EnevoOptimisationof waste collection

LindströmWork uniformsas a service

RePackReusabledelivery packaging

ValtavaloLED lightingas a service

Shareit Blox CarPeer-to-peer car sharing service

SharetribeService for creatinga marketplace website

Swap.comInnovative online consignment and thrift store

KotkamillsEasily recyclableconsumer paperboard cups

NesteRenewable dieselmade from waste and residues

Grano and TouchPointNew uses for advertising banners in business giftsthrough company co-operation

Eko-ExpertRecycled blow-in insulation made from surplus mineral wool

EkokemUsed plasticas a recycled raw material

Rec AlkalineRecycled nutrients from alkaline batteries

RemakeDesigner clothing collection made from used clothes

Selected examples from the list

Remanufactured tractor gearboxes

View of the Sitra Circular Economy Team: "Valtra has managed to create a new and profitable business in the

remanufacturing of used gearboxes, making good use of their technicians' professional expertise. This extends a product’s life cycle and saves energy and materials compared to manufacturing new gearboxes. The customer

quickly receives a new gearbox to replace the broken one. A deposit scheme has been created to ensure the return of old gearboxes.

PRODUCT-LIFE EXTENSION

Solution: remanufactured Valtra Reman gearboxes for tractors• The customer can choose from several different models, which are available quickly and directly from the

warehouse. • Used gearboxes returned to the factory are dismantled, cleaned and refitted with new parts to replace worn or

damaged ones. The gearboxes are assembled, tested and painted like new products. • Remanufacturing uses approximately 85% less energy than manufacturing a new product.

Benefits for the customer • 30-40% cheaper than a new product.• An updated, as-new gearbox can be quickly reinstalled in the customer's tractor.• For dealers and maintenance services: easily scheduled, faster repair times.• Valtra pays the delivery costs and assumes liability for the proper function of the remanufactured gearboxes.

Revenue model and benefits for Valtra • The remanufacturing of gearboxes accounts for a siginificant portion of Valtra's business and is very profitable.

Since 2012, the turnover for Reman gearboxes has increased at an annual rate of 25-35%. • When ordering a Reman gearbox, the customer pays a deposit, which is approximately 50% of the gearbox price.

This deposit is repaid to the customer upon return of the old gearbox.• The strong expertise of Valtra's technicians generates new added value while saving the customer money and time. • Close co-operation and sharing information with product development helps to improve products.

Problem • Value is lost when used tractor gearboxes are taken completely out of use. • The manufacture of new gearboxes consumes a large amount of resources.

Optimisation of waste transport using data

View of the Sitra Circular Economy Team:"The large volume of data received from waste container sensors makes

it possible to optimise driving routes and even large-scale logistical entities. The collection and analysis of data and the user-friendly service reduce the CO2 emissions produced by waste collection. There is high

demand for the Enevo solution on the international market and the company has enjoyed strong growth in recent years."

PRODUCT AS A SERVICEPRODUCT AS A SERVICE

Solution: a waste collection concept for municipalities and cities that is based on the use of monitoring sensors to indicate the fill level of waste containers • An automatic estimate on the fill time and optimal emptying time is made every day based on sensor data.• A collection plan and schedule are optimised according to the estimates made and the size and type of collection

equipment. Information on the plan and schedule are then sent to the driver of the collection vehicle via a tablet application.

• The CO2 emissions and costs of collection decrease when the fill level of containers rises permanently.

PRODUCT AS A SERVICE

Benefits for the customer• Lower logistical costs (typically 25-50%) and CO2 emissions.• Overfilling, which leads to littering, is prevented, thus resulting in lower clean-up costs.• Increased service transparency: when, where and how many containers have been emptied.

Revenue model and benefits for Enevo • A monthly fee-based model, which covers sensors, data connections and the service itself. • If desired, customers can also purchase sensors for their own use.• The data collected by hundreds or even thousands of sensors is beneficial to the customer, thus making the threshold for

changing systems higher.

Problem • The repeated emptying of waste containers not full to capacity (in some cases only half full) incurs unnecessary logistical costs

and CO2 emissions.• Collection accounts for approximately half of all waste management costs.

An easy way to establish a marketplace for underused goods

View of the Sitra Circular Economy Team:"Sharetribe can justifiably be called the 'platform of platforms’. The service provided

by this fast-rising start-up allows private individuals or companies to establish a community marketplace website without needing special IT skills. This promotes the

utilisation of resources in the spirit of the sharing economy."

SHARING PLATFORMS PRODUCT AS A SERVICE

Solution: an easy way to establish a marketplace, where underused goods and facilities can be found by the people who need them• Using Sharetribe's technology, any individual or company can easily establish a marketplace website.• The website can be used to rent or sell underused goods and facilities.• Reselling and renting improves the usage rate of goods and facilities and reduces the need for new production.• The sellers and renters are given an opportunity to earn extra income, while the buyers save on the cost of making a new

purchase.

Benefits for the customer • The founders of a marketplace website can earn money by charging a percentage on payment transactions

being made through the website payment system. The total turnover of many Sharetribe customers comes from this percentage.

• Without the Sharetribe technology, developing a website would cost several times more and take months to develop. With Sharetribe, this can be done in a day. Otherwise, many customers would most likely never set up their own website.

Revenue model and benefits for Sharetribe• Marketplace founders are charged a monthly fee, which is based on the number of users their website has.• The growing trend for a sharing and peer-to-peer economy offers excellent conditions for business growth.

Problem • A large volume of underused goods and facilities is owned by people and organisations. For example, a power drill is used

for approximately 12 minutes over its life cycle and a passenger car is parked 92% of the time.• In addition to underuse, goods and facilities are produced far in excess of the actual need, which consumes our planet's

finite resources and contributes to climate change.

Renewable diesel made from waste and residues

View of the Sitra Circular Economy Team: "Nearly 80% of the raw materials used in producing Neste's renewable diesel comes from waste and residues. The CO2 emissions produced during its life

cycle are considerably lower than those of fossil fuels. Neste has demonstrated that, by innovating, even a large corporation can create an impressive new

business in a traditional industry."

RENEWABILITY RECOVERY AND RECYCLING

Solution: Neste's renewable diesel, which is made from renewable raw materials• The raw materials used in the product are waste and residue fats from the food industry as well as vegetable oils. Nearly

80% of the raw materials are waste and residues (2016). • The life cycle CO2 emissions of the product are 40-90% lower than those of fossil diesel.• This has been made possible by more than tripling the R&D investments in, for example, renewable raw material research

and the NEXBTL technology, over an approximate ten-year period.

Benefits for the customer (consumers, transport entrepreneurs, cities, distributors) • A cost-effective alternative for increasing the use of renewable energy and reducing CO2 emissions without requiring

an investment in new vehicles.• Less air pollution (particulate, NOx, HC and CO emissions).• A high-quality, odourless and high-performance fuel that is suitable for use in cold temperatures and does not require

any vehicle maintenance.• It can be used, distributed and stored like conventional diesel.

Revenue model and benefits for Neste• The sale of renewable products: 21% of the turnover and over 40% of the comparable turnover (402 million euros)

comes from renewable products (2015; cf. ~0% in 2007). • Neste is the world's largest producer of renewable fuels made from waste and residues.

Problem • Fossil fuels produce a large volume of CO2 emissions.• The planet's resources are finite, which is why the competition for raw materials is getting tougher. Many waste and

residue flows are not being utilised.

Used plastics as a recycled raw material

View of the Sitra Circular Economy Team:"A majority of plastics usually ends up in landfills, incinerators or nature. Ekokem is changing that in the Riihimäki Circular Economy Village, where

plastic waste collected throughout Finland is processed into recycled plastics. The company's business has also diversified from waste

processing to the supply of raw materials."

RECOVERY AND RECYCLING

Solution: recycling, sorting and processing used plastic into a recycled raw material• Plastic consumer packaging is collected throughout Finland and brought to Ekokem's Riihimäki Circular Economy Village (The

Finnish Plastics Recycling Ltd and Finnish Packaging Recycling RINKI Ltd).• Different types of plastics are sorted, washed, dried and granulated in the process, which combines new technologies. • The end product is a recycled plastic, whose properties are nearly identical to those of virgin plastic and contains impurities

of only a few per cent.• The annual plant capacity is 20,000 tonnes. Approximately one third of the plastics come from recycling collection, one third

from mixed waste and one third from commerce and industry.• The carbon footprint of recycled plastic is 85% smaller than that of virgin plastic.

PRODUCT AS A SERICE

Benefits for the customer• The price of recycled plastic is 20-25% lower than that of virgin raw materials. • The smaller carbon footprint provides brand and image benefits. • Greater security of supply with a raw material that is not so closely bound to oil price fluctuations.• Makes it possible to increase the recycling rate and meet legal obligations.

Revenue model and benefits for Ekokem• The company's service model has diversified along with the expansion of its operations from waste processing to

raw material supply.• This creates a new, profitable business with an industrial production revenue model. • Company partnerships and networking are enhanced.

Problem• Previously, the highest added value of waste plastics had not been utilised, instead ending up in incinerators or

landfills.• Plastics have an image of being unsustainable, even though they are a versatile raw material for many

applications. • Producing new plastic consumes oil, which contributes to climate change.

Finland's transition to a circular economy has begun. The goal: to become a global leader in the circular economy by 2025. This transition is outlined in the Finnish road map to a circular economy 2016–2025.The world's first national road map was drafted by Finns under the direction of Sitra. The road map consolidates individual actions, thus forming a larger entity. The circular economy will initially be promoted through five focus areas, where Finland already has many strengths. The most interesting companies in the circular economy list is an example of how companies are promoting the circular economy in the road map focus areas based on five business models. The first version of the list is published on Slideshare (in finnish).

Turning Finland into a circular economy pioneer!