135 Tuomo Laine: unlocking circular business models

Chris Allen, Sustainability Leader and Head of Circular Business Development at Decathlon UK. You’ve probably heard of Decathlon, which is the world’s largest sporting goods retailer, with over 1,700 stores in more than 70 countries. It’s a family-owned company, founded in 1976, and inspired by the belief that the best sports products should be accessible to everyone. Chris Allen has 15 Years experience in Decathlon spanning various retail management roles, including several years in Category Management and Head of Outdoor before being appointed to his Sustainability role in 2022. Chris has a degree in Sports Engineering and is an advocate of all things outdoors, and loves being out on his bike or at the local climbing wall. Decathlon describes itself as specialising in the creation and production of innovative sporting goods designed to delight and move people through the wonders of sport, including cycling, hiking, running, swimming and football. Decathlon sees its mission as ever-evolving and high-performance design, the best quality at the lowest possible price, and expert advice that customers of all ages, backgrounds and skill levels can access in-store or online, from anywhere, at any time. Decathlon has an integrated business model, with over twenty in-house brands as well as supplying well-known brands including Asics, Adidas, Garmin, Puma, Quiksilver, Reebok, Salomon, and many others. In the UK, Decathlon offers a 2-year warranty on its own brand products, has buy-back programme so customers can save money and trade in their old gear. It sells through it’s retail stores and online, and offers a 365-day returns policy, giving customers a whole year to decide if something is right for them. Chris will talk us through Decathlon’s approach, including how the buy-back, second-life and repair programmes work in practice, and how he’s working with the in-house and external product and design teams to implement a whole-systems approach to sustainability.

Michael Colarossi of Avery Dennison explains how Digital Product Passports can be a key enabler in the transition to a circular economy. Michael is head of Enterprise Sustainability at Avery Dennison, which specializes in global materials science and digital identification solutions. As part of the the leadership team, Michael is responsible for environmental, social and governance (ESG) strategy across the company’s worldwide operations. His work focuses on climate action, decarbonization, global supply chain transparency, digital product passports, circular labels and packaging materials. You might already know that the European Union is rolling out a new regulation meaning that nearly all products sold in the EU will require a Digital Product Passport (DPP). The initiative is part of the Ecodesign for Sustainable Products Regulation, and aims to enhance transparency and improve availability of reliable product data, by providing comprehensive information about each product’s origin, materials, environmental impact, and recommendations for disposal. The EU Digital Product Passport will include a unique product identifier, compliance documentation, and information on substances of concern. It will also provide user manuals, safety instructions, and guidance on product disposal. The EU intends that Digital Product Passports will enhance supply chain management, ensure regulatory compliance, and help companies identify and mitigate risks related to authenticity and environmental impact. For example, those products like mattresses, sofas and other home furnishings often contain multiple materials, including some natural fibres like wool and cotton, plus synthetics like polyester. The more we know about the make up of the product, the easier it is to decide whether and how it could be refurbished, remanfactured or recycled. The EU regulations will be mandatory for industrial and electric vehicle batteries from 2027, and other product categories, including textiles, are expected to follow by 2030. Michael Colarossi gives us a broader overview of Digital Product Passports, including what kinds of products are they useful for, and what forms they take. As Michael explains, the EU regulations only require the passport to provide details for the type of product – not for every individual unit of that product. We discuss why that more detailed approach would be better. We talk about the potential for Digital Product Passports to guard against fraud and misinformation This isn’t straightforward, and we talk about some of the barriers and difficulties from a company perspective, together with the advantages that help make a good business case for doing it, even without the legislation.

Anna De Matos is the founder of several community-focused sharing initiatives, and a force of nature. Originally from Brazil, Anna De Matos went to university in the UK and moved to Iceland in 2017. Inspired by a visit to Toronto's tool library, Anna started a tool library and repair café, and managed to bootstrap and crowdfund her way to establishing these – all whilst dealing with the serious challenges of autoimmune disease. Anna has degrees in Conservation and Restoration and is now channelling her skills and experience into helping people conserve and restore their things. She founded the Munasafn RVK Tool Library to promote shared resource use and has organized numerous repair café events, fostering a culture of repair and reuse within Icelandic communities. Anna’s skills go beyond organising and bringing people together, and she’s also created a technology add-on to MyTurn’s Library of Things software to provide a self-service kiosk option for Libraries of Things. Anna’s hands-on experience in running these initiatives provides her with unique insights into the practical needs of communities, which she has channeled into the creation of the Circular Library Network (CLN), helping communities around the world manage their own "libraries of things," promoting sustainability through shared access to essential items – so we can all get more, from less. Anna’s story is inspiring, and fascinating, with many forks in the road that led her to what she’s doing now.

Joel Tasche founded CleanHub, a Berlin-based company that provides a scalable solution to plastic pollution. CleanHub connects coastal communities to proper waste collection in places where that doesn’t exist, at the same time creating safe and dignified jobs. Brands can support the mission by funding the collection of waste that otherwise wouldn’t be collected. CleanHub accepts ALL types of plastic – not just the stuff that’s easy to turn into value. CleanHub’s AI technology tracks the entire process from collection to disposal, ensuring transparency. It’s verified by TÜV SÜD according to ISO standards Joel’s mission was sparked by a love of the ocean. As a traveler and surfer, he witnessed firsthand the heartbreaking reality of plastic pollution, everywhere he went. Whilst disheartened, Joel resolved to dedicate his working life to keeping plastic out of the sea. Many doubted he could make a difference. Fast forward to today, CleanHub has collected over 9 million kgs of plastic waste and partnered with more than 300 brands, helping them reduce plastic and collect more plastic than they use. Whilst we see images of ocean plastics, beach plastics and landfills, we’re perhaps less familiar with the dreadful working conditions of those trying to earn a living by collecting and sorting the waste. Resolving this is at the heart of CleanHub’s mission, and we’ll more about how it does that. Joel also talks about the complexities of plastic waste collection, how to scale new ventures, and how keeping ethics at the heart of your business really helps bring everyone along with you.

Are we focused on adding more fuel to get the circular economy going – when, really, the problem is too much friction?Those terms stuck with me a few years ago, from a book helping people to get new ideas going, and succeeding, by looking more closely at the 'frictions' that create resistance. The book, The Human Element is written by organisational psychologist Loran Nordgren and David Schonthal, a specialist in entrepreneurship, design, and innovation.They say that most people working to create change focus on increasing the appeal of the idea itself – we’re convinced that if we add enough value, people will say “yes.”' Whilst it’s definitely helpful to ‘sell the sizzle’ of our idea, to help move it forward, we tend to overlook the power of all the concerns, confusion, and other factors getting in the way of the change – the friction.Of course, fuel is necessary for success. Frictions, on the other hand, are difficult to spot. We are naturally convinced that our idea, our project, our new service, is the best thing since sliced bread. So it’s hard for us to see what’s getting in the way for our audience, customers, or investors. Understanding and overcoming frictions requires empathy. We have to see the world, and our idea within it, from the perspective of those affected.Over the last series of podcast episodes, we’ve talked about quite a few fuels and frictions relating to the circular economy. Reflecting on those conversations helped me see some recurring themes, including:Systems thinking, and the need for seeing a connected whole instead of separate parts, or sub-sectionsCulture, language and how we understand and interpret the circular economyMindsets – what’s our worldview, and does this mean we’re stuck in our ways?Information technology, especially ‘legacy’ software systems.In this episode, I’m going to pull out some of the fuel and friction insights shared by our guests. International speaker, author and strategic advisor, Catherine Weetman helps people discover why circular, regenerative and fair solutions are better for people, planet – and prosperity. Catherine's award-winning book: A Circular Economy Handbook: How to Build a More Resilient, Competitive and Sustainable Business includes lots of practical examples and tips on getting started.  Stay in touch for free insights and updates...  Read on for more on our guest and links to the people, organisations and other resources we mention.  Don't forget, you can subscribe to the podcast series on iTunes, Google Podcasts, PlayerFM, Spotify, TuneIn, or search for "circular economy" in your favourite podcast app.  Stay in touch to get free insights and updates, direct to your inbox...You can also use our interactive, searchable podcast index to find episodes by sector, by region or by circular strategy. Plus, there is now a regular Circular Economy Podcast newsletter, so you get the latest episode show notes and links delivered to your inbox on Sunday morning, each fortnight. The newsletter includes a link to the episode page on our website, with an audio player. You can subscribe by clicking this link to update your preferences. Links for the episode: Catherine's work: Circular Economy Podcast on LinkedIn: linkedin.com/showcase/circular-economy-podcast/ Circular Economy Podcast website: circulareconomypodcast.com Catherine Weetman on LinkedIn: https://www.linkedin.com/in/catherine-weetman-9419107/ A Circular Economy Handbook: How to Build a More Resilient, Competitive and Sustainable Business - buy from any good bookseller, or direct from the publisher Kogan Page, which ships worldwide (free shipping to UK and US) https://www.koganpage.com/CircEcon2 Interactive podcast index https://www.rethinkglobal.info/circular-economy-podcast-index/ Rethink Global www.rethinkglobal.info Sign up to get the podcast player and shownotes for each new episode emailed to your inbox Books, films, people and organisations we mentionedThe Human Element,

Peter McCafferty works on Zero Waste Scotland’s Circular Economy Business Support Service (CEBS). These services were launched back in 2017, and since then, Peter has worked with over 200 SMEs and large organisations, so he’s got a wealth of experience and insights to share with us, especially on the fuel and friction around the circular economy. Zero Waste Scotland is a not-for-profit environmental organisation funded by the Scottish Government and the European Regional Development Fund. Its purpose is to lead Scotland to use products and resources responsibly, focusing on where it can have the greatest impact on climate change. It aims to both inform government policy, and to motivate individuals and businesses to embrace the environmental, economic, and social benefits of a circular economy. Peter has over 13 years of experience of working in sustainability and resource management, and his role involves working with individual businesses to identify, shape and develop circular and sustainable business ideas through a mix of 1-1 coaching and engagement, as well as facilitating bespoke support via Zero Waste Scotland's dedicated CE Framework. Our discussion includes: What’s the big ‘why’ behind ZWS, and in a practical sense, how does it provide support for businesses in Scotland that want to adopt circular solutions? What kind of things are providing the ‘fuel’ for the circular economy, and why digital solutions are coming to the fore as key enablers of circularity. We discuss some of the barriers to circular approaches, including regulatory challenges, scaling issues, and underestimated waste reduction potential. These days, we’re all living in a VUCA world – volatile, uncertain, complex and ambiguous - and we discuss the importance of systems thinking, especially in getting to grips with the challenges of implementation and addressing complex global issues. We share our thoughts on the ongoing struggle with language and interpretation of circular economy, and Peter talks about the increasing focus on carbon footprinting and net zero policies, and how seems to be getting in the way of conversations for circularity.

Award-winning documentary film maker Rubén Abruña helps us dig into one of the oldest problems in civil society… All around the world, there are serious problems caused by the various ways we deal with our toilet waste – all the poop and pee we humans create every day. We waste drinking water - Flushing toilets use massive amounts of water – for example, in a country like Switzerland, each person will flush over 40 litres a day down the toilet. Often, the sewage from water toilets is mixed with household waste water, so it’s now contaminated with microplastics, cleaning chemicals, contraceptives and drug residues. And then, in most western societies, all that liquid waste is then mixed with industrial waste. So now we’ve got massive volumes of pretty toxic stuff to try and clean up, and separate into drinkable water and solid waste. In developing countries, millions of people still use open toilets, or have to defecate on the land around their houses. So here, there are massive issues with disease and vermin, and in some areas, even a safety risk from predatory animals. What’s more, we’re wasting precious resources, too. Our human pee and poop contains valuable nutrients, including significant quantities of nitrogen, phosphorus and potassium – NPK - the key elements that we need to growing food and other crops. Instead, we’re using expensive fossil fuels and synthetic chemicals to provide these macronutrients. Back in his homeland of Puerto Rico over 20 years ago, Rubén Abruña experienced a sanitation epiphany when he sat on a dry toilet for the first time. He was amazed that he could poop using no water, leaving no stink, and that the deposit could be safely composted into fertilizer, without polluting the environment. It drove him nuts that more people were not doing the same, and this prompted him to make the award-winning film “Holy Shit: Can Poop Save the World?” Rubén has over 30 years of experience in the film, television, and radio industries. He has written, produced, directed, and edited numerous documentaries, broadcast journalism stories, and educational programs in New York, San Juan, Miami, and Zürich.

Prof. Dr. Martin Stuchtey - a geologist, economist and entrepreneur - is challenging and helping to rethink industrial, farming and economic systems. He founded The Landbanking Group, a Nature Fintech aiming to bring natural capital onto our balance sheets in service of the Paris and Montreal agreements. Dr. Martin Stuchtey is a former Senior and Managing Partner at McKinsey & Co., where he co-founded and led the global sustainability activities. He then founded systems change company SYSTEMIQ, and is also professor for industrial systems in transition at the University of Innsbruck. Martin is an investor, multiple board member and owner of an organic farm in Austria. He’s authored numerous papers, press, radio and TV publications and a book, "A Good Disruption - Redefining Growth in the 21st Century". I was keen to ask Martin about a chapter he co-authored in a recent book published by Factor X – The Impossibilities of the Circular Economy: separating aspirations from reality. Then we move onto talk about The Landbanking Group, born out of Martin’s frustration with the lack of progress in pushing back against the current, extractive economy. Martin also realised that we need to rethink how we invest in nature as the fundamental building block of our future on this, our home planet. The Landbanking Group’s ambition is to change the way we make land-use decisions worldwide. Their first-of-its-kind platform allows land stewards to earn income from accruing natural capital (such as biodiversity, carbon, soil, water). It allows companies to invest into balance-sheet grade natural capital contracts (or “Nature Equity”). The Landbanking team aims to create the hardest currency for nature by combining the latest science and accounting practices into a coherent, transparent, and compliant way to invest into natural capital - because nature is critical infrastructure – for companies, economies and societies.

There is a simple solution to conserve, and reuse, more of the nutrients from food waste. In today’s episode, I’m talking to Julia Brenner, a soil scientist and co-founder of Melta, a company dedicated to transforming waste management and soil health. Julia and her business partner founded Melta in 2020, to solve two interconnected challenges faced by rural municipalities: the lack of accessible and cost-effective food waste solutions, and the difficulty of transporting organic fertilizers to remote areas. This is a brilliant example of something that is needs little investment, saves money, time and space, and can be adopted easily, all around the world. It is easy to scale out, and a great example of a local, regenerative solution to the typical ineffective, expensive and resource-intensive solutions that we see in western society. The Melta system uses the Bokashi process which is thought to originate from East Asia, centuries ago. The Bokashi process converts food waste and similar organic matter into a nutrient-rich soil additive which also improves soil texture. Melta’s innovative system for organic waste collection, processing, and utilization can reduce municipal waste transport by 70%, and producing a nutrient-rich fertilizer that is cheaper and easier for farmers to access. Julia studied soil restoration at the University of Iceland and then delved further into nutrient cycling and climate models at Oak Ridge National Laboratory. She continues to engage in collaborative field experiments with the Soil Conservation Service of Iceland and Icelandic Agricultural University. Julia is passionate about making “sustainability” a realistic and attainable goal, and is committed to bridging the gap between practical waste management and soil health. We discover why dealing with household food waste is such a big headache for rural municipalities; and how the bokashi process can easily become part of a system that’s better for households, farmers and the local council. Julia explains how the Bokashi process works in practice, and why households prefer it over other methods like putting food waste in with other refuse, or have separate food waste collection bins. As we’ll hear, the results are amazing – and the system is very simple, so it could be easily used in rural areas around the world.

Tuomo Laine is the CEO and co-founder of Twice Commerce, which provides software to help its clients unlock a range of circular business models. Tuomo is known for being straightforward and action-oriented, and for his dedication to using entrepreneurship for societal good. He is a member of the Unreasonable Group Fellowship, and is occasionally invited to lecture at Aalto University, to share his venture building experiences. Twice Commerce's mission is to uncouple economic growth from the extraction of new materials, and it helps a broad spectrum of clients, from large retailers to individual sellers. The platform aims to enhance the value of any kind of object – by extending product lifecycles, unlocking more usage and sales from each item, conserving resources, improving value chain gross margin and reducing the need for new manufacturing. This is all about creating more value through circularity, not finding ways to reduce quality or reduce the pay for workers. Twice Commerce's clients include Decathlon, Rab Outdoors, Intersport, Motonet and many others, covering clothing, outdoor equipment, tools and much more, and by enabling improvements to the bottom line, Twice Commerce helps clients align profitability with environmental stewardship. Tuomo and his colleagues are getting to the crux of how to redesign the typical one-way commerce software to facilitate circular solutions and to address the elements that are adding cost, complexity or dysfunctionality. This is all about unlocking productivity – not just labour productivity, but thinking about how to leverage more value from the inputs you’ve invested in every unit that comes off the production line.