HEADER MARKETING PROPOSAL

Ensuring a more sustainable value chain across Europe

By: Katia Juros, Aurora Zupanovic, Elena Rinck, Pauline Brin, Teodora Jocic

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Index

Background

01

05

Corporate Social Responsibility

Carbon Consumption and Value Chain

02

06

Comparison of countries

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Recommendations

European Policies

03

Green Transition

04

question:

Research

What actions are the European institutions taking, to ensure a more sustainable value chain across its member states?

01

background

01

What is a value chain?

Value chain is a set of wider activites that aim to create value for the customer, also including supply chain, which deals with the procurement, transformation and distribution of goods to final consumers.

How to make it more green?

• increase life cycle of products
• create green products
• utilize green technology
• change in policies and sanctions
• implement circular economy
• CSR

A sustainable value chain- should it be adopted?

02

“Each year, waste management produces enough energy from waste to power about a million homes.” European Office Data

ADVANTAGES

IMPROVEMENT

-Minimising over-production, changing transport times and methods, reducing stocks, rework or scrap.

-The results of recycling waste versus using new raw materials are : 92% for aluminium, 90% for copper, 87% for plastic, 56% for iron and steel and 68% for paper.

SOLUTIONS

RISKS

-Waste recycling: the WEEE -The ELV (End of Life Vehicles) -The REACH

-Brand image -compliance issues with European laws -customers’ health and potential penalties

-Green action reduces economic crisis

02

Carbon consumption and value chain

Carbon emissions globaly from 1940 to 2021

https://www.statista.com/statistics/450017/co2-emissions-europe-eurasia/

Carbon emissions in Europe from 1965 to 2020

https://www.statista.com/statistics/450017/co2-emissions-europe-eurasia/

Biggest emitters in the EU

https://www.statista.com/chart/19937/europes-biggest-greenhouse-gas-emitters/

How value chain affects carbon emissions

https://ghgprotocol.org//sites/default/files/ghgp/tools/GHGP%20Scopes.PNG

SOLUTIONS

NEW ETS

-Emissions trading system Ban the sale of carbon-emitting cars- Installing charging and fueling points

FIT FOR 55

- Reducing GHG for 55%- Compared to 1990 levels - CBAM ; Carbon Border Adjustment Mechanism

AWARENESS

- Reducing energy use - Reducing flights by plane - Recycling

ECOTAX

- On Carbon Emissions- Improved Carbon Pricing - Earn extra tax money

03

European policies

deforestation-free supply chain regulation (2021)

sustainable product intiative (2022)

Aim: making products in EU market more sutainable (durable, reusable, recyclable & energy-efficient

Aim: reduce EU consumption and production impacting forest degradation; prohibition of selling products that are not 'deforestation-free' laballed

problems:

problems:

• fast resource depletion from replacement
• lack of procurement information to customer
• chemical safety
• high waste

• greenhouse gases through fires
• removal of carbon sink capacities
• reduction of biodiversity

solutions imposed:

1. enecourage demand of 'deforestation-free' products
2. creation of EU forest strategy (Green deal)
3. digital product passport
4. authorites will carry checks to ensure compliance with regulations
5. regulations for labels

circular economy action plan

adoption 2020

aim: to reduce pressure on the usage of natural resources, creating sustainable growth and waste reduction; targeting the industries of textile, construction, electronics, plastics..

plastics

packaging

design sustainable products

• restriction on addition of microplastics in prdocuts
• develop: standardization, labelling, certification and regulatory measures
• EU plastic strategy (international)
• ensure free trade agreements reflect new regulations

• improve product: durability, reusability, repairability
• increase recycled content in products
• restrict single-use products
• ban on destruction of unsold durable goods
• incentives and reward schemes for companies

• reduce overpackaging through waste preventions methods
• driving design for re-use and recyclable packaging
• restriction on some materials
• reduction of complexity of packaging

revision of construction products regulation (2011)

conflict minerals regulation (2021)

Aim: incorporating circular economy into construction products and processes

Aim: Gold, Tin, Tantalum & Tungsted need to be sourced in 'conflict free' ways with minimal envrionmental impact

problems:

problems:

• 50% of total mineral extraction
• 30% of total EU waste
• 40% of EU energy consumption
• 36% emission of total greenhouse gases

• acid rain
• pollution of water, air during mining
• unethical work practices
• funding of illegal practices

Solutions proposed:

1. carry out audits on suppliers to ensure ethical procurement
2. choosing mines using eco-friendly practices and technologies (dust suppression)
3. annual supply chain due diligence scheme

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green transition

EU actions + Circular Economy opportunity

01

Background

SUpply chain Challenges in the green transition

The green transition will increase demand for critical minerals, high capacity batteries, and semiconductors.

Examples:

• Chile and Australia have the world's largest lithium reserves (44%, 22%) BUT 50 to 60% of global lithium processing takes place in China
• Democratic Republic of Congo (DRC) produces 70 % of the world's cobalt BUT 72% of global cobalt processing takes place in China
• China's dominance extends into lithium-ion battery production, where it has 77 % of global capacity

Supply chains for critical minerals and high capacity batteries are highly concentrated China dominates critical mineral supply chains through its leading position in the refining and processing stage

Europe needs to strenghten strategic supply chains

*European Parliamentary Research Service

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Industry alliances and strategic investment

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03

01

02

The European Raw Materials Alliance (ERMA)

The European Battery Alliance (EBA)

The strategic action plan on batteries

Circular Economy Vision

• Increased R&D in waste processing
• Circular electronics initiative
• Proposal for a new batteries regulation

Mobilise public and private investment by bringing together industry, Member States, and the European Investment Bank

Reduce dependency on third countries, diversify sources + responsible sourcing, efficiency, and circularity.

Focus on building up the entire battery value chain

"We must diversify our supply chains. [...] we must invest in circular technologies that re-use resources instead of constantly extracting them." Ursula von der Leyen, President of the European Commission

*EPRS, EBA, ERMA

03

Parliament

pushing for greater supply chain sustainability and transparency

Binding targets to reduce material consumption within planetary boundaries, provide harmonised circularity indicators to measure resource consumption, and expand the Ecodesign Directive with standards such as for recycled content, recyclability, and efficiency

Sustainability

Transparency

• Resolution on energy storage expressed concern over dependence on raw materials for battery production from sources causing environmental degradation, violating labour standards, and exacerbating local conflicts.

• A directive on corporate due diligence and accountability, with the aim of improving environmental, human rights, and governance issues.

*European Parliamentary Research Service

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Circular Economy approach

Seizing opportunity

Goal: Sustain the value of materials and resources as long as possible – reducing waste and consumption simultaneously

Circular economic models

Linear economic models

On a circular economy development path, European GDP could increase as much as 11% by 2030 compared with 4% in the current development scenario!

*Ellen Macarthur Foundation

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Prolonged Product Life Cycle

Thanks to Circular economy principles

Reduce

• We are expecting a 24% potential reduction of material inputs along all value chains in the EU by 2030

Remanufacturing

• Estimated EU market potential of €90 Bn by 2030

Reuse

• Reusable packaging systems can realize an economic opportunity of €9 Bn

Repair

• The expected market size of EU maintenance, repair and operations lies at 122 million €

Recycle

• The EU legislation indicates that 70% of packaging material must get recycled by 2030

*Encory

06

Benefits for companies

Facilitated cost reductions and continued supply

Economic

Conservation of resources and reduction of environmental pollution

Environmental

New market entries with job opportunities and interest groups

Socio-economic

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corporate Social responsability

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Corporate Social Responsability

irective

eporting

orporate

ustainability

The important changes are : - the scope was extended to all companies listed on regulated markets in the EU, with the exception of micro-enterprises - Companies must audit their disclosures to ensure sustainability. - Also follow a strict process by digitally recording their report and it must be digitally labelled

Vigilance Points

+ Info

The cost is not suitable for all companies such as SMEs

Problematics for the international companies

+Info

+ Info

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Corporate Social Responsability

The adoption, under the impetus of the French Presidency, of a common position of the Member States on this text constitutes a new decisive step in the development of a European regulatory framework for sustainable finance. Eventually, companies with more than 250 employees or listed companies will have to translate their environmental, social and governance policies into standardised, justified and certified information documents. This means more transparency for citizens, consumers and investors so that companies can play their full role in society. Greenwashing is over. Today, Europe is establishing the extra-financial reference standards of tomorrow, in line with our environmental and social ambitions.

Bruno Le Maire, French Minister for the Economy, Finance and Recovery

+ Info

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country comparison

How is each country contributing to a sustainable future?

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recommendations

Recommendations

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01

Increase rigidity of legal requirements for products to fit and create circular economy to avoid greenwashing

Requirements for recovery and recycling should apply only to one-use, disposable plastics, such as plastic packaging.

Pushing the attractiveness of 5R strategies and circular products in consumer market

To develop these European directives at the international level

+ Inf

+ Info

+ Io

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References

• https://www.europarl.europa.eu/RegData/etudes/ATAG/2021/696181/EPRS_ATA(2021)696181_EN.pdf

• https://eitrawmaterials.eu/european-raw-materials-alliance-contributes-to-europes-industrial-resilience/
• McKinsey. 2015. “Europe’s circular-economy opportunity” McKinsey Center for Business and Environment. September. https://www.mckinsey.com/business-functions/sustainability/our-insights/europes-circular-economy-opportunity
• Hannah Furling. 2016. “EU Remanufacturing Could Represent Up to €90B Annually, 600,000 Jobs by 2030.” Sustainable Brands. February. https://sustainablebrands.com/read/defining-the-next-economy/eu-remanufacturing-could-represent-up-to-90b-annually-600-000-jobs-by-2030
• European Commission. 2020. “Europe's moment: Repair and prepare for the next generation.” Press release. May. https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940
• Ellen MacArthur Foundation. 2017. “The New Plastics Economy: Catalysing action.” World Economic Forum. January. https://ellenmacarthurfoundation.org/the-new-plastics-economy-catalysing-action
• European Commission. 2018. “Waste and Resycling – Packaging Waste.” Press release. https://ec.europa.eu/environment/topics/waste-and-recycling/packaging-waste
• European Environment Agency. 2019. “Resource efficiency.” Publication. November. https://www.eea.europa.eu/airs/2018/resource-efficiency-and-low-carbon-economy/resource-efficiency
• https://www.bearingpoint.com/en-be/insights-events/insights/green-supply-chain-from-awareness-to-action/

Thank you!

Any questions?