CE Masterclass 5: Finance & Procurement · CE Masterclass 5: Finance & Procurement Closing the Loop...
Transcript of CE Masterclass 5: Finance & Procurement · CE Masterclass 5: Finance & Procurement Closing the Loop...
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CE Masterclass 5: Finance & Procurement
Closing the Loop 2013 Daan Dijk Rabobank
• How does the CE affect Financing ?
• How does it change procurement? • Example cases
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The closer the economy approaches the scale of the Planet the more it will have to conform to the physical behavior mode of the Planet i.e become Circular
Our House
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The Changing Investment Climate
Days of abundant resources and falling prices are over
Future success will depend on: Efficient resource use ( raw materials, energy,
water) Preservation of biodiversity ( natural asset base) Circular Business models
This will affect capital allocation and equity pricing
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Circular business models please!
Old interpretation of the circular economy
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Hard Nosed Sustainability metrics
Resource efficiency stress test integral part of risk assessment
• In 2007 Rabobank started to assess the Resource Footprint of its entire Loan and investment Book
• 2009 saw comparative resource productivity pilots with large corporates and F&A clients in NL and Brasil
• 2013 development of broader dashboard to monitor sustainable development of our clients
Corporate
Risk foto
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Pagina 6
Example: Large Corporate
Pagina 6
Profitable business under BAU scenario
But high resource footprint and bill are a liability Growth investments always win in terms of ROI
New perspective: Balancing Growth and Resilience Structured approach to financing resource efficiency
Rabobank helped to balance Growth and Resilience
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From Asset to Performance financing
What is better ? 1000 trucks with a 10 year life time 1000 trucks with a 20 year life time
7 Production as a maintenance cost
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The Emerging Performance Economy: the trailer life cycle case
8 From take, make & waste to 2nd life and full reuse of materials
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Future Business Models must adress…
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Resource Scarcity Changing Legislation Consumer Values
Drivers: cost, licence to operate, brand protection, capital attraction
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CE: Optimising Energy & Material Throughput
driver of corporate innovation and profitablity
Extracted Non-Renewable Resources Renewable Resources
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Upcycling in the Waste Market
EU waste market 2700 MT – Only 40% is recycled
NL waste market 60Mton, – 84% (50MT) recycling, 8MT energy recovery &
composting, 2MT landfill
– Decoupling of GDP & waste volume (-2%)
Turnover 12-13 bn EUR/a, (EUR 200/ton)
– 55% in wholesale of secundary materials .
– 45% waste collection (EUR 2 bn), preparaton for recycling (EUR 1,5 bn) and waste treatment (EUR 2 bn).
11 Waste to Value strategy clearly pays off
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Circular Economy Innovator
Water free and clean Dyeing of Textiles with Liquid CO2
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Cradle to Cradle Carpets Cradle
CEO Stef Kranendijk : ‘With Cradle to Cradle, DESSO is in it for the long haul”.
Treading new grounds
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The Scelta case
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• From small family business to global
player in mushroom products
• Leader in cost reduction , innovation
and customer service
• Resource efficient : residues to
neutraceuticals and cosmetics
Scelta : From healthy snacks to neutraceuticals
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Nijhuis Water: from Effluent to Nutrient
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• Global player in the Food-Water-Energy
nexus
• Waste Water treatment Projects
• Waste-to-Value projects
• Enabling aquafarming
• Industrial waste water , agri waste
water
(Agri-) Waste is a source of revenues
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Food & Agri Industry
Chemical industry
Bioneering: the new innovation wave
Agri and Chemical sector co-operate in Food, Feed and Functionals
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Brand management
17 PlantBottle collaborative Coca Cola, Ford, Heinz, P&G, Nike
“Over the long term, we beleive the cost of material made from plants is more stable than the cost of petroleum”
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$700 bn Resource efficiency Benefits in 2030 ( Mc Kinsey 2012) Local energy production initiatives EV to Grid and to Homes
Smart City Planning
Rotterdam wilhelminapier
More and more Communities are taking energy production into their own hands
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The future is in our hands
A renewable energy and material resource base for the
economy
Transition to a Circular economy
Co-operation in the value chain
Resources are finite, Human ingenuity and solar energy are infinite