Laura Gavinelli, CRIET University of Milan- Bicocca Andrea Alemanno, - PowerPoint PPT Presentation

Hosted by MEP Simona Bonafè Laura Gavinelli, CRIET University of Milan- Bicocca Andrea Alemanno, Ipsos Brussels 28th November 2018 European Parliament 1

What circular economy IS NOT Not always circular A new fulfillment or legal obligation economy is associated to correct concepts A fashionable practice (actually existing for and ideas centuries…) The common A matter related only to waste : not just recycling, perception on circular but also optimization of production inputs and reuse of materials to make them as much durable economy is probably as possible not so clear An opportunity only for large enterprises (although plenty of successful experiences come from SMEs …) 2 Hosted by MEP Simona Bonafè

So, what about circular economy? Strictly related to Circular economy is an economic system designed to be able to regenerate , in which the waste of a production ecodesign becomes largely raw material of a different production - becoming the second raw material - or when it is reused secondary raw or recycled to minimize or even cancel the waste, always putting the raw or semi-finished material in circulation materials (Circular Economy Network, 2018) dematerialisation Circular economy is regenerative and (...) is based on product service three principles: reducing waste and pollution, keeping system products and materials in operation, regenerating natural systems (Ellen MacArthur Foundation, 2014) industrial symbiosis 3 Hosted by MEP Simona Bonafè

So, what about circular economy? Our research question: Circular economy is an economic system designed to be able to regenerate , in which the waste of a production What impact does the becomes largely raw material of a different production - adoption of the becoming the second raw material - or when it is reused or recycled to minimize or even cancel the waste, always principles of a circular putting the raw or semi-finished material in circulation economy have on (Circular Economy Network, 2018) corporate Circular economy is regenerative and (...) is based on performance and three principles: reducing waste and pollution, keeping products and materials in operation, regenerating natural reputation? systems (Ellen MacArthur Foundation, 2014) 4 Hosted by MEP Simona Bonafè

Methodology & Respondents NGO & PA n.a. 19% Manifacturing 719 CAWI respondents 5% between 14% February – July 2018: 44% Services CEO e manager in 49% marketing & 25% communication, trading, media e 27% finance SME Big 47% 53% 15% 5 Hosted by MEP Simona Bonafè

Methodology & Respondents NGO & PA n.a. 19% 6 sections: Manifacturing 5% 1. awareness 2. motivations 14% 44% 3. actions taken Services 4. performance 49% 25% 5. corporate reputation 6. respondents 27% SME Big 47% 53% 15% 6 Hosted by MEP Simona Bonafè

Awareness Data in % on 4 to 5 point-scale evaluation are presented Sustainability is a 69% concept known to all 62% 7% countries , while circular economy is Sustainability known above all in 53% France (62%) and Spain 45% 8% (59%). The closest to the 80% concept of the circular 52% 28% economy are the large firms (61%) the 71% Circular economy manufacturing sector 12% 59% (57%), as well as the NGOs and the public 62% sector (62%) 46% 17% Q: How much do you know the following topics? 1-5 point scale, where 1 = totally unknown and 5 = totally known. Here, data in % related to 4+5 point-scale evaluation are presented 7 Hosted by MEP Simona Bonafè

Associations There are differences in 65% associations between 44% Cost effective countries 63% practice 73% 61% Large firms associate circular economy to an 72% efficient use of Radical approach to 33% resources (77%), the make and use waste 87% 62% material medium-sized to 56% economic efficiency (64%), while the small 72% ones see circular economy Waste 43% 53% management as a radical approach 60% (62%) 55% No significant 72% differences between 54% Resource&Energy 78% efficiency sectors 71% 55% Q: Thinking about the circular economy, how much do you agree with the following statements? 1-5 point scale, where 1 = totally disagree and 5 = totally agree. Here, 4+5 data % are presented 8 Hosted by MEP Simona Bonafè

3 clusters The 3 clusters represent 3 different ways of taking “circular actions” MATURE (44% of sample) 49% 42% 31% 49% 50% X Their attention to the circular economy is ABOVE THE AVERAGE OPEN (29% of sample) 36% 15% 32% 31% 27% Their attention to the circular economy is IN THE AVERAGE CLOSED (27% of sample) 15% 43% 37% 20% 23% Their attention to the circular economy is BELOW THE AVERAGE Starting from the level of knowledge and actions taken on waste treatment, reduction and recycling, an index was built with the following scores: 100 score in case of a 5-point evaluation; 65 score in case of 4 points, 35 score in case of 3 points, 10 score in case of 2 points, 0 score in case of 1 point. Based on the score obtained, the respondents were classified into 3 groups: CLOSED with a score lower than 650, OPEN with a 650 to 900 score, MATURE with a score higher than 900.

3 clusters The 3 clusters represent 3 different ways of taking “circular actions” MATURE (44% of sample) 40% 48% 35% 51% X Their attention to the circular economy is ABOVE THE AVERAGE OPEN (29% of sample) 30% 29% 32% 27% Their attention to the circular economy is IN THE AVERAGE CLOSED (27% of sample) Their attention to the circular economy is 30% 23% 33% 22% BELOW THE AVERAGE Starting from the level of knowledge and actions taken on waste treatment, reduction and recycling, an index was built with the following scores: 100 score in case of a 5-point evaluation; 65 score in case of 4 points, 35 score in case of 3 points, 10 score in case of 2 points, 0 score in case of 1 point. Based on the score obtained, the respondents were classified into 3 groups: CLOSED with a score lower than 650, OPEN with a 650 to 900 score, MATURE with a score higher than 900.

Drivers towards circular economy Market The owners ’ sensitivity to circularity is the 75% Employees strongest internal Regulatory institutions driver 76% 46% 68% 52% 42% Market , customers 29% and community are 29% 20% three important 24% 33% 64% 16% 46% 83% 21% external drivers for 72% Owners/ the respondents, Managers 40% except for the Community 48% «Closed» 61% 73% Financial Customers institutions Q: Please, indicate how much the following factors are aligning or have aligned your company to circular economy. 1-5 point scale, where 1 = not at all and 5 = totally. Here, 4+5 data % are presented 11 Hosted by MEP Simona Bonafè

Circular economy & performance Circular economy impacts above all on % mature the environmental - % closed performance and on the relationship with Environmental 29% 51% 83% +54 performance customers The more mature the Relationship 28% 51% 81% +53 with customers adoption of the circular principles, the Economic better the 18% 35% 67% +49 and financial performance performance Q: Thinking about the impact of circular economy on your company’s performances, how much do you agree with the following statements? 1-5 point scale, where 1 = no impact and 5 = total impact. Here, 4+5 data % are presented 12 Hosted by MEP Simona Bonafè

Circular economy & performance % mature In all 3 clusters, - % closed brand image and Environmental 29% 51% 83% reputation +54 performance gain the highest evaluation Relationship 28% 51% 81% +53 with customers Economic 18% 35% 67% +49 and financial performance Q: Thinking about the impact of circular economy on your company’s performances, how much do you agree with the following statements? 1-5 point scale, where 1 = no impact and 5 = total impact. Here, 4+5 data % are presented 13 Hosted by MEP Simona Bonafè

Circular economy & performance Brand image is evaluated with 4 to 5 % mature points by 37% of - % closed closed, 63% of open, Environmental 29% 51% 83% +54 and 87% of mature. performance Reputation is Relationship 28% 51% 81% +53 with customers evaluated with 4 to 5 points by 40% of Economic closed, 62% of open 18% 35% 67% +49 and financial performance and 87% of mature Q: Thinking about the impact of circular economy on your company’s performances, how much do you agree with the following statements? 1-5 point scale, where 1 = no impact and 5 = total impact. Here, 4+5 data % are presented 14 Hosted by MEP Simona Bonafè

Hosted by MEP Simona Bonafè Andrea Alemanno, Ipsos Brussels 28th November 2018 European Parliament 15

Ipsos’ approach to Corporate Reputation “ Supporters ” promote Corporate Advocacy Reputation, ultimately consolidating the TRUST is the pyramid key point of the Trust Keeping promises builds trust model Strong emotional attachment Favourability generates favourability “ Emotional attachment ” is at the basis Familiarity of Corporate Reputation 16 Hosted by MEP Simona Bonafè