321
3 The Shift from Conceptual Ambiguity to Operational
Clarity
Scaling circular economy applications to a global level does not come without its
complexities. In this section, three current programs at HP are described to demonstrate how circular economy principles are being applied now within a $130 billion
business (Fig. 17.1 ).
At its core, a circular economy aims to design out waste; products are designed
and optimized for a cycle of disassembly and reuse. For technical, durable products
(like computers and printers), the circular economy largely replaces the concept of
‘consumer’ with ‘user’. Unlike in today’s buy-and-consume economy, durable
products are leased, rented or shared wherever possible (Ellen MacArthur
Foundation & McKinsey Co. 2014 ). In addition, new innovative technologies are
required to fundamentally disrupt traditional manufacturing and supply chain models. New technological applications will enable greater collaboration in developing
business models, job creation and further innovation.
HP’s fi rst example concerns closed-loop plastic manufacturing. While this may
be considered a resource effi cient measure, for many companies it is the fi rst step to
circular thinking. A report by Ellen MacArthur Foundation & McKinsey Co. for
The World Economic Forum (Ellen MacArthur Foundation & McKinsey Co. 2015 )
has identifi ed polypropylene plastic as a high potential material to demonstrate real
change across supply chains. Our example shows the challenges and opportunities
with successful scaling at a global level:
Maintenance/upgrade model
Indigo, IHPS, accessories
HP parts
manufacturing
HP product
manufacturing
HP services
Materials recovery and reuse
Print supplies closed loop (rPET, rPP, r2P2),
hardware recycled content (PCs, printers)
Reuse/refurbishment
HP Renew
Product-as-a-service
Managed Print Services, PC-as-a-service
Use
r
HP
3D printing:
a circular
economy
enabler
Fig. 17.1 HP circular economy diagram (Hewlett Packard 2015 )
17 Multinational Corporations and the Circular Economy: How Hewlett Packard…
3 The Shift from Conceptual Ambiguity to Operational
Clarity
Scaling circular economy applications to a global level does not come without its
complexities. In this section, three current programs at HP are described to demonstrate how circular economy principles are being applied now within a $130 billion
business (Fig. 17.1 ).
At its core, a circular economy aims to design out waste; products are designed
and optimized for a cycle of disassembly and reuse. For technical, durable products
(like computers and printers), the circular economy largely replaces the concept of
‘consumer’ with ‘user’. Unlike in today’s buy-and-consume economy, durable
products are leased, rented or shared wherever possible (Ellen MacArthur
Foundation & McKinsey Co. 2014 ). In addition, new innovative technologies are
required to fundamentally disrupt traditional manufacturing and supply chain models. New technological applications will enable greater collaboration in developing
business models, job creation and further innovation.
HP’s fi rst example concerns closed-loop plastic manufacturing. While this may
be considered a resource effi cient measure, for many companies it is the fi rst step to
circular thinking. A report by Ellen MacArthur Foundation & McKinsey Co. for
The World Economic Forum (Ellen MacArthur Foundation & McKinsey Co. 2015 )
has identifi ed polypropylene plastic as a high potential material to demonstrate real
change across supply chains. Our example shows the challenges and opportunities
with successful scaling at a global level:
Maintenance/upgrade model
Indigo, IHPS, accessories
HP parts
manufacturing
HP product
manufacturing
HP services
Materials recovery and reuse
Print supplies closed loop (rPET, rPP, r2P2),
hardware recycled content (PCs, printers)
Reuse/refurbishment
HP Renew
Product-as-a-service
Managed Print Services, PC-as-a-service
Use
r
HP
3D printing:
a circular
economy
enabler
Fig. 17.1 HP circular economy diagram (Hewlett Packard 2015 )
17 Multinational Corporations and the Circular Economy: How Hewlett Packard…