Host: Roy Vercoulen, Founder of Circular IQ
Guest: Jacco Jochemsen, Circle Economy Consulting
Welcome to the first episode of Circularity: Why Bother?—a podcast series dedicated to providing sustainability managers and everyone interested in Circularity with actionable insights. Hosted by Roy Vercoulen, founder of Circular IQ, this series sheds light on the journey to circularity, offering tools, solutions, and inspiration to navigate the path to a more sustainable future.
In this first episode, Roy is joined by Jacco Jochemsen, a circular economy expert and consultant with over a decade of experience. Jacco is a well-known figure in the space, renowned for his work with Circle Economy Consulting and their groundbreaking Circularity Gap Report. Together, they tackle the fundamental question: why should businesses care about circularity?
Circularity as a Business Philosophy
Jacco frames circularity not as a simple sustainability goal but as a comprehensive business philosophy. Unlike initiatives like carbon reduction or biodiversity restoration, circularity requires rethinking supply chains, business models, and customer engagement. It’s a shift that touches every part of an organization.
Roy and Jacco emphasize the need for companies to view circularity as a driver of competitive advantage. From meeting regulatory demands to creating value for customers, circularity offers multiple entry points for businesses, whether through compliance, innovation, or operational resilience.
The Paralysis of Complexity and How to Start
Navigating circularity can be overwhelming for companies due to its multi-dimensional nature. Jacco advises starting with clarity:
- Identify the Business Driver: What is your company’s priority—compliance, customer satisfaction, or supply chain resilience? Use this as your foundation.
- Pilot for Quick Wins: Demonstrating small successes can rally internal stakeholders and build momentum for larger initiatives. For example, a pilot program involving new product designs or innovative services can spark enthusiasm and confidence.
Embedding Circularity into Corporate Strategy
A recurring theme is the need to align circularity with a company’s overarching corporate strategy. Jacco shares an anecdote about a client who initially treated circularity as a standalone initiative. By integrating it with the corporate goals of servitization, logistics excellence, and customer value, the company not only achieved regulatory compliance but also unlocked new growth opportunities.
Roy echoes this sentiment, emphasizing the importance of embedding circularity into the org chart and strategy to ensure buy-in across departments.
Real-World Inspiration: Swapfiets’ Subscription Model
Jacco shares a compelling example of circularity in action: Swapfiets, a subscription-based bike company. By leasing bikes rather than selling them, Swapfiets revolutionized its business model.
- Customer Value: Customers enjoy worry-free service, including repairs and theft protection.
- Supply Chain Innovation: Swapfiets uses data to improve product design, such as modifying parts to reduce repairs.
- Circular Collaboration: Suppliers lease parts to Swapfiets, creating a feedback loop that benefits the entire value chain.
This model showcases the tangible benefits of circularity, from cost savings to stronger customer loyalty.
Leveraging Data and KPIs for Circular Success
Jacco stresses the importance of establishing clear key performance indicators (KPIs) to measure progress. Whether tracking material inflows, product lifespans, or customer satisfaction, KPIs help businesses set baselines, align goals, and avoid confusion. He highlights the need for collaboration across the value chain, encouraging businesses to share data with suppliers and customers to unlock mutual benefits.
Resources for Getting Started
Jacco and Roy recommend several tools and resources for those beginning their circularity journey:
- Circularity Gap Report A global overview of circularity and its importance.
- CTI Framework Tools for aligning circularity efforts with European sustainability standards.
- Ellen MacArthur Foundation A rich repository of circular economy insights.
- Educational Resources MOOCs and publications from leading universities offer foundational knowledge.
Get Involved
As the discussion wraps up, Roy invites listeners to explore more about circularity and how Circular IQ can help businesses measure, improve, and report on their progress. Whether you’re looking for software solutions, consultancy, or insights into how circularity can create value for your organization, Circular IQ is here to guide you.
If you’d like to feature your circular economy story or join as a guest on a future episode, reach out to the Circularity: Why Bother? team through the Circular IQ website. We’re always looking for inspiring leaders, innovative solutions, and thought-provoking questions to bring into the conversation.
Lastly, don’t forget to subscribe to the podcast, leave a comment with your questions, and share your challenges. Your feedback helps shape the journey towards a circular future.
Stay tuned for Episode 2, where we’ll explore how circularity ties into broader ESG topics. Until then, start small, think big, and embrace the opportunities circularity can bring!
