Risks in circular business models innovation : a cross‐industrial case study for composite materials

AbstractCircular business models (CBMs) are key enablers to implement circular economy (CE), yet they entail risks, which often discourage organisations. This work aims to explore the main risk factors perceived by the manufacturing industry in transitioning to CBMs to enable the development of appropriate risk management strategies. A cross‐industrial multiple‐case study research design was used to explore risk factors across seven organisations planning the transition to CBMs for composite‐based products and involving three different CBM types—‘Circular Supplies’, ‘Product Life Extension’ and ‘Hybrid’. Results evidenced that risks are multi‐disciplinary but are not equally perceived across different CBM types. Customers' perceptions of CE products, economic cycle and take‐back systems were prevalent across all CBMs. Supply and technological risks were prioritised for ‘Circular Supplies’ CBM, whereas political and regulatory risks for ‘Product Life Extension’ CBM. This research contributes to the CE field by evaluating and prioritising the perceived risk factors in transitioning to CBMs and first disaggregating such risk factors according to CBM types. Critical risk patterns identified across different industries and CBM types enable mitigating actions to be prioritised

Risk assessment for circular business models : a fuzzy Delphi study application for composite materials

Circular economy (CE) implementation requires the transition from linear business models (BMs) to circular ones, with related uncertainties and multi-disciplinary risks, which often discourage organisations. However, there is still a lack of understanding of risks associated with this process. This work thus aims to identify, classify and prioritise key risk factors for innovative circular BMs in order to enable the development of appropriate risk management strategies. A fuzzy Delphi method was tailored to assess the risk factors obtained from the literature and was applied to the industrial case of composite materials. 24 major risk factors for innovative circular BMs were identified and classified into six categories. The probability and impact of the risk factors were evaluated by experts and the risk factors were then ranked by calculating their risk scores. The resultant major risks appeared to be related to the external context in which organisations operate. Among those risks, the greatest were those generated by take-back systems and low customers’ acceptance of CE products. This research is the first to address risks for circularity in a structured way and contributes to the field of CE by providing an extensive list and classification of risk factors for innovative circular BMs as they are perceived by industry, acting as a reference for academics and practitioners. Furthermore, it provides the first evaluation and prioritisation of risk factors within the CE domain, highlighting critical risks within the specific industrial context of composite materials and suggesting action priorities for the establishment of circular BMs

Environmental and Economic Assessment of Repairable Carbon-Fiber-Reinforced Polymers in Circular Economy Perspective

The explosive growth of the global market for Carbon-Fiber-Reinforced Polymers (CFRP) and the lack of a closing loop strategy of composite waste have raised environmental concerns. Circular economy studies, including Life Cycle Assessment (LCA) and Life Cycle Costing (LCC), have investigated composite recycling and new bio-based materials to substitute both carbon fibers and matrices. However, few studies have addressed composite repair. Studies focused on bio-based composites coupled with recycling and repairing are also lacking. Within this framework, the paper aims at presenting opportunities and challenges of the new thermosetting composite developed at the laboratory including the criteria of repairing, recycling, and use of bio-based materials in industrial applications through an ex ante LCA coupled with LCC. Implementing the three criteria mentioned above would reduce the environmental impact from 50% to 86% compared to the baseline scenario with the highest benefits obtained by implementing the only repairing. LCC results indicate that manufacturing and repairing parts built from bio-based CFRP is economically sustainable. However, recycling can only be economically sustainable under a specific condition. Managerial strategies are proposed to mitigate the uncertainties of the recycling business. The findings of this study can provide valuable guidance on supporting decisions for companies making strategic plans

Circular Economy Business Models for innovative hybrid and electric mobility through advanced reuse and remanufacturing technologies and services

Within CarE-Service project, all the post-use treatment steps enabling a Circular Economy approach are being investigated by collaboration of partners from STIIMA-CNR and Spanish National Research Council (CSIC) , in order to develop innovative processes and technologies. Through the battery recovery plan project receives the battery supply supports from Fiat Chrysler Automobiles (FCA) the OEM project partner. The facilitation of reuse and remanufacturing activities started with the analysis of disassembly tasks by Joint Research Center (JRC) and Envirobat Espana expertise and know-how knowledge, creating Standard Operational Sheets to support a human-robot collaboration during battery dismantling from pack level all the way to individual cells.CarE-Service project is a H2020 large scale demonstration project funded under the agreement No 776851. The goal of the project is to prove at large scale the feasibility of innovative circular business models applied to E&HEVs, that enable the offering of new highly customized and performance-based mobility services for European citizens. Such services and business models will affect customers’ behavior and will drastically change the current End-of-Life vehicles value-chain towards sustainability. The main objectives of the Project are: 1) Establish three new circular European value chains for the re-use, remanufacturing and selective recycling of high added-value parts of E&HEVs (batteries, metals and technopolymeric components). 2) Generate new service markets for the sustainable mobility of European citizens. New services will rely on the exploitation of the opportunities of circular economy on the one hand, and will be a necessary market for the long-term sustainability of circular business models on the other. 3) Demonstrate at European scale the economic, social, and environmental sustainability of new circular business models and services, taking into account potential drawbacks and side effects. 4) Create the conditions for a European wide exploitation of results.This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 776851Peer reviewe