A reflection on 2021 and forecast for 2022
..and just like that, the first month of 2022 has come to an end. 2021 brought us a continuation of the new normal, with people and businesses settling into the strange reality of living through the pandemic. The past few years have resulted in a huge shift in attitudes, and sustainability is at the forefront of many people’s minds - which was especially noticeable when COP26 was held in Glasgow in November. Despite the global challenges we are still facing, from an environmental perspective and beyond, we’d like to share our reflections on the circular economy sphere from 2021 and the optimism Oakdene Hollins has for 2022.
1. Making Scope 3 reporting a priority
Last year saw companies expanding their net-zero pledge beyond just Scope 1 and 2 emissions to include Scope 3 upstream and downstream emissions. Scope 3 emissions are generally the largest source of the impact a company can have on the environment and, although they are very difficult to measure, 2021 saw companies take their first steps on this journey through engaging with their suppliers about emissions.
2022 will bring an increased collaboration across the supply chain to ensure that data used in Scope 3 calculations is accurate. And to show that they are serious about their net-zero goals, companies will develop annual reporting processes to disclose their journey. The Streamlined Energy and Carbon Reporting (SECR) Regulation is expected to make Scope 3 reporting compulsory in 2023. With all this emphasis on understanding our full impact on the planet, we will hopefully see companies taking meaningful steps to reduce their carbon footprint and not just creating new marketing taglines.
2. Product life extension through remanufacturing
The digital age has increased the complexity of reverse-engineering products, especially when companies do not have access to the software needed for these processes. One sector that has truly seen the impact of this is the automotive sector. Many independent remanufacturers have raised concerns that OEMs not giving them access to the software needed is the biggest barrier they face. In addition to this, the increase in the sale of electric vehicles (EVs) means that remanufacturers are exploring ways of remanufacturing EV components.
This year we expect to see opportunities for symbiosis with OEMs and independent remanufacturers collaborating to develop processes for remanufacturing existing automotive parts and for new EV components coming onto the market. Regulations around the right-to-repair are becoming increasingly important in the appliance and electronics space, and - though we are slowly beginning to understand what these would mean for the automotive sector - currently such symbiosis is just hopeful thinking.
(To learn more about the barriers that the automotive remanufacturing sector faces, look out for our forthcoming report, written in collaboration with CLEPA.)
3. The expansion of extended producer responsibility schemes (EPR)
Last year saw the launch of the UK waste prevention programme. One key take-away from this is the proposed development of an extended producer responsibility (EPR) scheme for textiles; the consultation period on this will finish at the end of this year. The objective is to increase the reuse and recycling of textiles, reducing the amount of textiles going to landfill and incineration and encouraging sustainable design and material use.
Defra is eager for industry to start schemes on a voluntary basis and then go to government to ask for support to expand. There is currently little appetite for national government leadership, and this might lead to the rise of product stewardship schemes (in which whoever designs, produces, sells or uses a product takes responsibility for minimising the product's environmental impact). Prime examples of such schemes can be seen here, with our work with the British Coatings Federation. EPR schemes are also thought to begin focusing on activities highter up the waste hierarchy, such as waste prevention and reuse.
4. Public procurement processes enabling circular choices
In 2016, Public Health Wales sought suppliers who could reuse and remanufacture already owned furniture for a new set of offices. It is slowly becoming a priority for many public offices in the UK to have tender processes for reused, remanufactured or refurbished office furniture.
As we move back to the office and businesses find new ways of working, many offices are downscaling or changing structure. Both the private and public sector are looking for circular economy alternatives.
5. The rise of the conscious consumer
More and more consumers have become conscious of the way they shop and are making more environmentally and socially sound choices in the products they buy. Some large corporations and local businesses have taken notice. With the likes of IKEA even launching buy-back and recycling schemes and the rise in zero-waste stores found in cities around the UK, more and more companies are making sustainable options a priority, through choosing sustainable material and having transparent supply chains. Consumers want to know that the products they buy align with their values and providing information on where the material is sourced from and how much people are getting paid can help demonstrate that both values align.
This trend will continue, and with the recent launch of the Green Claims Code for fashion UK’s Competition and Markets Authority, consumers cannot be easily persuaded to fall for ‘greenwashing’ campaigns by retailers.
The world has a lot to look forward to in 2022, from the FIFA World Cup to Her Majesty’s Platinum Jubilee! We hope that one other thing on everyone’s mind is sustainability and what we can do to help reduce the damage we are causing to our planet.