Building Back Better
Over the past 100 days, COVID-19 has affected all parts of our lives and resulted in drastic changes to how industry is operating. We count ourselves very fortunate that the great majority of our work is desk-based and that, for the most part, it doesn’t particularly matter where those desks are located or if they’re actually kitchen tables. As lockdown tightened, many of our staff could quickly set about the business of supporting clients, delivering workshops and conducting zoom brainstorming sessions from wherever they happened to be. We empathise with those who have been less lucky than us at this time, sadly the impacts of global events such as this are rarely borne equally.
As Britain and Europe are starting on the path of recovery, there is a big question being discussed - what is the “new normal” and do we want to return to the “normal” of before? Even through this period, environmental issues have not been suppressed and the momentum has continued building. Lockdown has caused a paradigm shift in consumers and companies views on how integral sustainability is, (that is to say, critically so) in stark contrast to the views in the wake of the 2008 financial crash.
COVID-19 has highlighted how systemic risks in our linear economy can have dramatic impacts when exposed. With borders closed all around the world, the over-reliance on global supply chains led to many businesses being forced to minimise or even cease trading over the global lockdown period. This shows how unprepared and poorly resilient our system can be, even to crises’ we have had ample time to prepare for. At the same time, the pandemic has also highlighted how quickly people will make radical changes to their lifestyles for the sake of the greater good. Further to this it is likely that many businesses will now be assessing the viability of their bloated supply chains and looking for a more stable alternative.
In the UK, there has been a lot of discussion aiming to ensure that we go down the route of a green recovery to “build back better” - with backing coming from across a spectrum of industries. [1] “Build back better” supports the notion that any infrastructure, business, and technology investments that occur should align with the critical climate commitment of reaching net zero by 2050. [2] The net result of these investments will be achieving a more resilient system in tandem with increasing opportunities for green jobs. The European union has announced a green recovery strategy including a massive wave of renovation and further steps towards a more circular economy alongside strengthening of the Just Transition Fund. The World Economic Forum has launched the “Great Reset’ with every industry needing to be transformed – and ad-hoc fixes do not suffice in this scenario. Our linear economy has, if nothing else, been shown to be outdated and unsuitable for our 21st century world. With policy changing to address these issues, markets that support the circular economy have been having issues of their own.
The demand to build back better is not predominantly coming from government - many businesses are leading the charge. The aim is for this type of recovery to help secure their long-term future and success. One such example of why building back better is crucial is the current situation for the waste management sector. Some in the sector have been dealing with the reality of export markets crashing with the value of textiles dropping from £100 per tonne in March to £0 per tonne in April, with many of the markets around the world shut for trade. This is leading to stockpiles occurring throughout the country and capacity nearly being reached. Whereas the supply of WEEE has greatly decreased due to social distancing measures when Household Waste and Recycling Centres (HWRCs) in the UK reopened, the collection is only at 13% of normal levels. [3] This hit to recycling markets has come whilst the price of oil is at historically low levels. Thus, leading recyclers to warn that plastic recycling could cease to be profitable if the current scenario along with reduced operations at MRF’s persist without government intervention [4] In order to support the waste management sector and their goal to enable a more circular economy, there is need to address the infrastructure and financial support around the sector. The industry is calling for prioritisation of a review on EPR particularly for textiles to be completed by 2022 to improve sustainability along the chain. This would help recycled material markets to rebound after COVID-19, though is unlikely to solve many of the other pre-existing conditions.
Over the past few months, we have seen a growing desire to integrate adaptability throughout the supply chain, into product design and into manufacturing to better sure up businesses against future risks. Transitioning a business to achieve these aims needs collaboration and engagement throughout all the business units.
At Oakdene Hollins, we can offer that partnership to provide the support and research to correctly define and attain sustainability goals such as net zero carbon or zero waste to landfill. Circular economy has been heralded as the solution to solve this. Over the past year, we have ignited the change in multiple businesses to transition to become more circular through our science-based research. In a multinational technology company, we conducted analysis into the connectivity of supply chains and engagement of reverse logistics. This is allowing for hotspots of environmental issues to be easily determined and suitable and economic strategies to be implemented. An alternative route we can support businesses in is the lobbying around and supportive development of government policies such as EPR and DRS, aiming to stimulate crucial cross-industry innovation. This can be seen through our recent work on the topics of furniture and glass. Whatever the route that is pursued to stimulate the post COVID economy, the threat of climate change is not reducing.
[1] A solution to build back: the circular economy, Ellen Macarthur Foundation, 20202 https://www.ellenmacarthurfoundation.org/assets/downloads/emf-joint-statement.pdf
[2] Climate Change Act 2008 committed the UK to an 80% reduction in carbon emissions relative to the levels in 1990, to be achieved by 2050. In June 2019, secondary legislation was passed that extended that target to “at least 100%”.
[3] Suez. 2020. Webinar on Textiles, WEEE & wood, and the impact of HWRC closures.
[4] Letsrecycle.com, 2020. Plastic recycling “could cease to be profitable” https://www.letsrecycle.com/news/latest-news/plastic-recycling-could-cease-to-be-profitable/