CC BY
85
UDK 504.062; 330.15
A circular economy: an analysis of the businesses awareness level in the Baltic Sea Region countries
Ph.D. Sergienko Olga I. [email protected] Ph.D. Anastasia Pavlova S. [email protected] Violetta Savoskula A. [email protected] ITMO University 191002, Russia, St. Petersburg, Lomonosova ul., 9 Karvinen Meeri [email protected] D.Sc., professor Sorvari Jaana [email protected] Aalto University, Finland P.O. Box 15200, 00076Aalto, Finland Vaira Obuka [email protected] D.Sc., professor Maris Klavins [email protected] University of Latvia, Riga Blvd 19, Riga 1586, Latvia Karl Hillman [email protected] University of Gavle, Sweden 80176, Gavle, Sweden Sakari Autio [email protected] Lahti University of Applied Science, Finland Niemenkatu 73, 15140, Lahti, Finland
The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. Unlike the traditional linear economic model based on a «take-make-consume-throw away» pattern, a circular economy is based on the notion that all waste can be considered as valuable resources in an almost closed loop, where products and the materials they contain are highly valued. In practice, it implies reducing waste to a minimum. Current knowledge and performance on resource efficiency and circular economy of industrial enterprises were examined in companies in the Baltic Sea Region countries - Finland, Sweden, Latvia and St. Petersburg Region, Russia in the frameworks of two twinning international projects «ERREC 2.0; Environmental Responsibility and Resource Efficiency» and «LARELICE-P; Preparing Learning about Resource Efficiency Leading into Circular Economy», which have been realized simultaneously in 2017-2018 under financial support of the Intereg Baltic Sea Region program of the European Union and the Swedish Institute, respectively. Both projects were realized in active cooperation by five universities: Aalto University (Finland), Lahti University of Applied Sciences (Finland), University of Gavle (Sweden), University of Latvia, Riga and ITMO University (Russia). The main overall objective of the projects was to increase the level of education among young and elderly people to guarantee skilled work force. The specific objectives of the projects included the recognition of new technologies, innovations and joint activity models to support skills development in circular economy and resource efficiency in participating regions between companies and HEIs. Within the projects the survey between four countries and 51companies were prepared in order to evaluate the current knowledge and performance on resource efficiency and circular economy model as well as experiences and willingness to engage in university-industry collaboration. As the most important concept leading to circular economy respondents chose is sustainability in general (including concepts such as social/environmental/economic sustainability, corporate social responsibility, fair trade etc.), which chose 78,43% of companies. Following resource efficiency (waste minimization, energy efficiency, material efficiency etc.) - 76,47%, preventing pollution to air/ contamination of soil - 39,22%, water pollution control - 29,41% and climate change mitigation/adaptation - 21,57%. The results will promote the sharing of knowledge between universities and companies, offer valuable information on the competences needed in working life, and may lead to new cooperation between Baltic, Nordic and Russian companies and universities.
Keywords: circular economy, resource efficiency, energy efficiency, life cycle, waste, company, university, cooperation, survey.
DOI: 10.17586/2310-1172-2018-11-4-125-138
Экономика замкнутого цикла: анализ уровня осведомленности бизнеса
в странах региона Балтийского моря
Канд. техн. наук Сергиенко О.И. [email protected] Канд. экон. наук Павлова А.С. [email protected] Савоскула В.А. [email protected] Университет ИТМО 191002, Россия, Санкт-Петербург, ул. Ломоносова, д. 9 Карвинен Меери [email protected] Д-р физ. наук, профессор Сорвари Яна [email protected]
Университет Аалто 15200, Финляндия, 00076Аалто Вайра Обука [email protected] Д-р хим. наук, профессор Марис Клавинс [email protected]
Университет Латвии 1586, Латвии, Рига, Блвд 19 Карл Хиллман [email protected] Университет Евле 80176, Швеция, Евле Сакари Аутио [email protected] Университет прикладных наук Лахти 15140, Финляндия, Лахти, ул. Ниеменкату 73
Экономика замкнутого цикла - это модель производства и потребления, которая включает в себя обмен, лизинг, повторное использование, ремонт, восстановление и переработку существующих материалов и продукции в течение максимально длительного срока. При этом жизненный цикл продукции увеличивается. В отличие от традиционной линейной экономической модели, основанной на принципе «бери, делай, выбрасывай», экономика замкнутого цикла основана на представлении, что все отходы можно рассматривать как ценные ресурсы в почти замкнутом цикле, в котором продукция и материалы, имеют высокую ценность. На практике это подразумевает сокращение отходов до минимума. Современные знания и достижения в области ресурсной эффективности и экономики замкнутого цикла на уровне промышленных предприятий были изучены в компаниях в странах региона Балтийского моря -Финляндии, Швеции, Латвии и России (Санкт-Петербург) в рамках двух международных проектов-партнеров «ЕЕЯЕС 2.0; Экологическая ответственность и ресурсная эффективность» и «LARELICE-P; Исследование ресурсной эффективности, ведущей к циркулярной экономике», которые были реализованы одновременно в 2017-2018 гг. при финансовой поддержке европейской программы Intereg Регион Балтийского моря и Шведского института, соответственно. Оба проекта были выполнялись при активном сотрудничестве пяти университетов: Университета Аалто (Финляндия), Университета прикладных наук Лахти (Финляндия), Университета Евле (Швеция), Латвийского университета, г. Рига и Университета ИТМО (Россия). Основной целью проектов являлось повышение уровня образования среди молодежи, гарантирующего квалифицированную рабочую силу. Задачи проектов включали изучение новых технологий, инноваций и моделей совместной деятельности компаний и вузов для развития компетенций в области экономики замкнутого цикла и ресурсоэффективности в участвующих регионах. В рамках проектов был проведен опрос 51 компании в четырех странах для оценки текущих знаний в области экономики замкнутого цикла, достигнутых результатов по повышению ресурсной эффективности, а также возможностей сотрудничества университетов и компаний. В качестве наиболее важной концепции, ведущей к циркулярной экономике, респонденты выбрали устойчивое развитие в целом (включая такие понятия, как социальная/экологическая/экономическая устойчивость, корпоративная социальная ответственность, справедливая торговля и т. д.), данный вариант выбрали 78,43% компаний. Следующими по значимости компании выбрали: эффективность использования ресурсов (минимизация отходов, энергоэффективность, эффективность использования материалов и т. д.) - 76,47%, предотвращение загрязнения воздуха и почвы - 39,22%, очистка сточных вод - 29,41% и смягчение/ адаптация к изменению климата - 21,57%. Полученные результаты способствуют улучшению обмена знаниями между университетами и компаниями, предоставляют ценную информацию о необходимых трудовых
компетенциях и могут привести к развитию сотрудничества между балтийскими, скандинавскими и российскими компаниями и университетами.
Ключевые слова: экономика замкнутого цикла, ресурсная эффективность, энергоэффективность, жизненный цикл, отходы, компания, университет, сотрудничество, опрос.
Introduction
Due to the depleting resources and the polluting of the waste, the importance of circular economy and resource efficiency have increased also in the Baltic Sea Region, a highly heterogeneous area in economic, environmental and cultural terms. The unique features of the Baltic Sea, and its environmental pressures, demand a macro regional approach to combat its long-term deterioration. This has been long-recognized, including through joint action in HELCOM, although there is a need for increased coordination among sectoral policies [1].
The countries concerned share many common resources and demonstrate considerable interdependence; however actions in one area can very quickly have consequences for other parts, or the whole, of the region. In these circumstances, the area could be a model of regional co-operation where new ideas and approaches can be tested and developed over time as best practices examples. Within the existing financial and legal frameworks, there are great opportunities for effective action through closer cooperation and co-ordination.
Energy supply and security is a particular concern: though some countries in the region have substantial indigenous sources of energy, most must rely on imports. Therefore, interconnections need to be further developed and diversified to offset possible interruptions or other shocks. Human relationships are also important and can be strengthened by actions in the fields of education, tourism and health [2].
Besides the concern of saving natural resources, the economic driver to move towards circular economy is important. Circular economy and resource efficiency may improve the competitiveness of companies. EU published the Circular Economy Package at the end of year 2015 [3]. According to the package, regional actions are needed to move towards circular economy. The transition to a circular economy requires systematic changes, e.g. in waste management, and regions play a central role in the process [4]. To close the loops of material streams, such as agricultural waste and sludge, and to add skills and adapt new best available technologies and innovations, cross-border joint activities are required. It is recognized in the Environmental report, The South-East Finland - Russia ENPI CBC, that companies lack the financial resources or skills to develop environmental matters [5].
In Russia the transition to the principles of best available techniques and implementation of modern technologies was established in 2014 after adoption of amendments to the Federal law on Environmental Protection [6]. Since that time a number of pre-standards and further national standards on BATs implementation developed by the Russian Bureau of Best Available techniques have been put into operation thus forming a basis for the environmental industrial policy [7]. The best reference documents reflects technological parameters, such as consumption of raw material, energy, water and generation of waste, etc. associated with certain economy sector [8,9].With regard to waste generation technological parameters are established in all "vertical" BREFs, and a number of "horizontal" standards for the utilization of waste [10].
Under conditions of lack of investments aimed at industrial renovation the additional financial support instruments are needed to provide transition process. Meanwhile, more than 90% of all generated solid municipal waste is sent for disposal. The total area of land occupied by landfills and unauthorized dumps amounts 47.7 thousand hectares. These facts determine the urgent need for an in-depth analysis of circular economy and principles underlying it, as well as a practical implementation of these principles [11, 12]. Under the circular economy it is understood the economy, which is characterized by a restorative and closed nature. It is characterized by a minimization of consumption of primary raw materials and the volume of processed resources, which is accompanied by a decrease in the generation and disposal of waste in landfills. The following key features of the circular economy are highlighted in the literature: maintaining the balance of natural resources, optimizing resource consumption processes, and fostering economic and environmental efficiency of systems by revealing and designing out negative environmental externalities [13, 14]. However, this theoretical model despite the undertaken regulatory measures both in European Union and Russia is not fully implemented into practice. The concept of circular economy needs involvement of its stakeholders - promoters to be effectively implemented [15].
The significance of the relatively complex and new issue of circular economy is reflected on the rapidly changing working life and has brought a new demand to knowledge intensive level of education. The know-how of participating universities Aalto University (Finland), Lahti University of Applied Sciences (Finland), University of Gavle (Sweden) and ITMO University (Russia) is answering this need by supporting skills development in circular economy and resource efficiency across the border between companies and HEIs by introducing new technologies, innovations and joint activity models. The educational institutions in the Baltic Sea Region are facing the challenge to keep up with the development. Especially those fields of study, which require the understanding of the bigger picture, are changing in a rapid pace. Working with circular economy and resource efficiency requires swift delivery of information to those actors who can influence. Companies face the challenge of obtaining competent enough labor force and supporting the lifelong learning
of elderly staff. To support the companies in the transition towards circular economy and more resource efficient working methods, new innovative training needs to be developed. Also, university students are facing common territorial challenges, that is, the challenge in acquiring such experience which guarantees employment. To ensure the quality of education institutions are increasing cooperation among each other and with the labour market. The goal is to respond to the needs of the actual work field.
Methodology of the survey and selection of companies
The survey of the current practices in the companies around the Baltic Sea Region to implement resource efficiency, which promotes circular economy in the area, was conducted in 2017-2018. The survey has been sent to companies in varying sectors in Finland, Sweden, Latvia and St. Petersburg, Russia.
Each country appointed a person or a team to distribute the survey to their countries' companies. As the target was to gain responses from around 20 companies/ country, it was agreed that at least 40 companies should receive the survey. Moreover, as the main aim of the survey was to collect data to find suitable and interested companies for future educational collaboration, it was agreed that each country could choose freely, which companies they found best to contact with the survey. This was also to ensure a sufficient response rate. The survey was distributed to selected companies by emails and calling.
The survey consisted of two main parts: (1) the current knowledge and performance on resource efficiency and (2) experiences and willingness to engage in university-industry collaboration.
"The circular economy - where waste is minimized, and the value of products and resources are kept in the system for as long as possible - offers a number of benefits to Europe. These include the potential for economic growth and job creation, encouraging innovation, enhancing the security of supply chains and building economic and environmental resilience. It offers an opportunity to make the European economy more competitive and more sustainable - bringing benefits to industry, businesses and citizens" (European SMEs and the Circular Economy. Report. 2016) [16].
First part aimed at answering, what is current knowledge and performance on resource efficiency of the companies have in Sweden, Finland, Russia, Latvia SMEs, who responded to the survey. The participants were asked to answer the following questions:
1. Select up to 3 most important concepts, into which your company is committed at strategic level (please, answer from the point of view of your business operations)?
2. Which of the following sustainability-related certificates or standards does your company implement?
3. To what extent has your company implemented the following circular economy-related activities in practice? (Scale 0-5, 0=not at all, 5=To very great extent)
4. Select those phases of the production chain, in which your company implements resource efficiency. Specify also how you implement it in practice into the text box.
5. Select those phases in the production chain, in which your company has some specific development targets related to circular economy, and define the targets briefly into the text box.
The second part of the survey aimed at answering, what kind of collaboration the companies have had before, what kind of collaboration they are interested in, and based on those, what aspects should be taken into account when selecting companies for the next project.
For the second part "Experiences and willingness to engage in university-industry collaboration" the following questions were asked:
6. Does your company have previous experience in collaborating with higher education institutes? Please, select the experience you have, and indicate how many years you have collaborated (options: <1, 1-4, 5-10, >10 years)
7. How satisfied is your company with the collaboration with higher education based on your experiences? (Scale 1-5, 1=Not at all satisfied, 5=Very satisfied)
8. What kind of collaboration with higher education would your company like to create in the future ?
9. To what kind of resource efficiency-related positions does your company hire recently graduated engineers?
10. Select the five (5) most important skills you expect those graduates to have, from the viewpoint of implementing circular economy/resource-efficiency in your company.
The number and unequal distribution of respondents among the four countries restricted reliable drawing of conclusions. Some directive key results can still be presented and utilized when selecting the companies for the future collaboration.
Survey results
According to the survey results between 4 countries and 51 company most important concept respondents chose is sustainability in general (including concepts such as social/environmental/economic sustainability, corporate social responsibility, fair trade etc.), which chose 78,43% of companies. Following resource efficiency (waste minimisation, energy efficiency, material efficiency etc.) - 76,47%, preventing pollution to air/ contamination of soil - 39,22%, water
pollution control - 29,41%, than climate change mitigation/adaptation - 21,57%. In addition preventing/compensating biodiversity loss noted 9,8%, other sustainability-related concepts - 3,92%. I don't know position noted - 3,92% (Figure 1).
As a comparison can be used a survey requested by the European Commission (directorate-general environment and co-ordinated by the directorate-general for communication) "European SMEs and the Circular Economy" [16] made in April 2016 and published in June 2016 one of the key findings are (Figure 2):
- almost three quarters of companies (73%) undertook some circular economy related activity, with the most common being minimizing waste by recycling, reusing or selling it to another company (55%), or re-planning energy use to reduce consumption (38%);
- the larger the company, the more likely it is to have undertaken at least one activity related to the circular economy: 72% of the smallest companies have done so, compared to 89% of those with 50-250 employees;
- the higher a company's turnover, the more likely it is to have undertaken at least one activity related to the circular economy: 69% with the lowest turnover have done so, compared to 80% of those with the highest.
Figure 1. What are three most important concepts, into which your company is committed at the strategic level?
Q1T Has your company undertaken any of the following activities in the last 3 years? (% - EU)
Did not undertake drcutareconomy related activities 27
Undertook some
---------circular economy
related activity 73
Total base (N=10,618)
Figure 2. Q1 Has your company undertaken any of the following activities in the last 3 years? 1.1 Re-plan of the way water is used to minimize usage and maximize re-usage;c1.2 Use of renewable energy; 1.3 Replan energy usage to minimize consumption; 1.4 Minimize waste by recycling or reusing waste or selling it to another company; 1.5 Redesign products and services to minimize the use of materials or use recycled materials [15]
According to the survey results, which companies has of sustainability-related certificates or standards most has - environmental management system, ISO 14001 - 60.78 %, following cradle to cradle, EPC energy performance, LEED, BREEAM, FSC, PEFC CE-marking, etc - 29.41 %. The same amount of respondents noted - other, please define (29.41 %). Other certificates, which respondents mentioned is - environmentally certified building, BASTA, ISO 9001:2008 standard, OHSAS 18001, ISO 9001 - 2008, FSSC 22000 "Food Safety System Certification 22000", GreenZoom (Figure 3).
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Figure 3. Does your company implement sustainability-related certificates or standards?
According to the survey results, in question, what companies have implemented from circular economy-related activities in practice, the given answers shows:
- recycling of waste is in scale - 3.57 (0 - not at all, 5=To very great extent);
- energy efficiency (e.g. plans and actions to reduce energy consumption) is in scale - 3.55 (0 - not at all, 5=To very great extent);
- other material efficiency (e.g. re-designing products or services to minimize material use/using recycled materials, from products to services -strategies) - 3.06 (0 - not at all, 5=To very great extent);
- industrial symbiosis with other companies (utilization of surplus/by-products) - 2.86 (0 - not at all, 5=To very great extent);
- water efficiency (e.g. reduced use /increased re-use of water) - 2.8 (0 - not at all, 5=To very great extent);
- use of renewable energy - 2.31 (0 - not at all, 5=To very great extent);
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Figure 4. To what extent has your company implemented the following circular economy-related activities in practice?
(Scale 0-5, 0=not at all, 5=To very great extent)
In question, where is needed to select in which phases of the production chain, company implements resource efficiency the given answers were: production process design, e.g. selection of raw materials, processes, equipment -62.75 %; waste management - 60.78 %; product/service design - 29.41%; selection of supplier and contracting - 45.1%; product/service deliveries - 29.41% ; assembly, maintenance and support for the use phase - 17.65% (Figure 5). "Other activities, please define" were mentioned by 15.69% of respondents:
- we impact our customers' processes through the planning solutions we offer;
- own wind power plants;
- all suppliers must sign our Code of conduct;
- as a consulting company, the impact is more on the work of the office rather than on the use of resources for customer-oriented activities;
- the very design of the equipment we pay attention to make our equipment as convenient as possible when
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Figure 5. Select those phases of the production chain, in which your company implements resource efficiency.
Specify also how you implement it in practice into the text box
To the question, where is needed to select in which phases of the production chain, your company has some specific development targets related to circular economy the given answers were as following: production process design, e.g. selection of raw materials, processes, equipment - 50.98 %; waste management - 54.9 %; product/service design -35.29 %; selection of supplier and contracting - 19.61%; product/service deliveries - 17.65 % ; assembly, maintenance and support for the use phase - 15.69 % (Figure 6).
«Other, please define» were mentioned by 19.61 % of the respondents:
- All energy use will be renewable;
- Sustainable Development Goals;
- Water usage ratio, Energy Usage Ratio;
- the client is the king (at all stages of the chain);
- by providing advice, the appropriate technique is chosen depending on the needs of the client;
- there are no specific targets;
- short-term and long-term goal is to survive, because in fact we carry out a social function without receiving any support from the state;
- we realize separate collection completely at our expense, this activity is unprofitable. We survive by minimizing our own needs and grants «from God.»; Continue in the same spirit.
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Figure 6. Select those phases in the production chain, in which your company has some specific development targets related to circular economy, and define the targets briefly into the text box
The survey results showed that the previous experiences and companies' own development targets affect the willingness to and ways of collaborating intensively with higher education.
Most of the responded companies have offered internships and theses positions to students, and had research collaboration with HEIs (Figure 7). Some have also offered lectures and cases to university courses and/or received development ideas from courses. Other kind of collaboration that was mentioned in the responses included course planning, joint courses, data analysis, PhD collaboration and exchange of scientific news.
Klyear ■ 1-4 yrs 15-lDyrs ■ >10 yrs 0% 1D% 20% 4D% SDK 50% 70% 00%
Cases from companies
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Theses positionsfrom companies
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Figure 7. Collaboration experience of all the responded companies (n=51)
Companies from Russia were the most experienced in collaborating with universities, whereas the Swedish companies had slightly less experience (Figure 8). No clear trend, on the contrary, was observed between the companies of different sizes. The large companies had collaborated mostly around research, and by offering internships and theses positions, whereas the micro- and medium-sized companies were the most experienced in receiving development ideas and offering cases, in relation to their other experience.
Figure 8. Medians of overall previous experience in companies of different countries 0= no experience, 5=over 10 years of experience
Finally, the companies were asked to select five most important skills that they expect their future employees (recent graduates from HEIs) to have. The most valued skills were analytical and critical thinking, future orientation, being proactive and taking initiative, group work skills, and problem solving (Figure 9.).
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Ethical and nine-based thinking | Future orientation ana ability to anticipate^ Presentation and communication si ills | Iai hative/proictjve skills | Flexibility and creativity | Leadership stills | Organizational. planning and coordination stills | Ability to make and implement change; | Ability7 to mate decisions and tale responsibility j Group work skills Computational skills Negotiation skills Problem solving skills Teaching and supervising/tutoring skills | Social skills Networking skills Emphatic ability Holistic I systemic thinking skills |
Comprehension of theories and ability1 to apply
Search for informatioBkeepins up to date wiffi latest development/ability to lean) Interdisciplinary skills/ability to work in multjculmml environment
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Figure 9. The most important skills for future graduates according to respondents
The four countries differed only slightly in their expectations (Table 1). The skills needed were, however, somewhat dependent on the positions that the companies had to offer.
Table 1
The top 5 skills expected from future graduates in different countries
Finland Sweden Latvia Russia
Initiative/Proactive Future orientation Analytical and critical thinking Future orientation, ability to anticipate
Group work Analytical and critical thinking Initiative/Proactive Analytical and critical thinking
Problem solving Organizing, coordinating, planning Decision-making, taking responsibilities Initiative/Proactive, flexibility, creativity
Social skills Social skills Problem solving Social skills, problem solving organizing
Analytical and critical thinking Comprehension/ Applying theories Presentation, communication, time management, future orientation
In all kinds of positions analytical and critical thinking were valued as the most important skill, but for example social skills were specifically highlighted in positions related to customer services (project engineers and commercial engineers). Therefore, higher education should offer development possibilities in all these general working life skills, paying special attention to the five skills highlighted by all the responded companies.
Conclusion
In the rapidly changing working life, the importance of circular economy and resource efficiency has increased and brought new demands for more knowledge intensive level of education.
Circular economy and resource efficiency are relatively new, complex issues. However, due to significance of these there have been some efforts in the Baltic Sea Region countries to support the creation of new knowledge related to these issues.
The results of the survey given in the paper are used in the wider twinning projects on university-industry collaboration in the Nordic and Baltic region and Russia, which has started already in the end of 2018. The results will promote the sharing of knowledge between universities and companies, offer valuable information on the competences needed in working life, and may lead to new cooperation between Baltic and Nordic companies and universities.
The expected change, which all the projects provide, is the increasing common perception of the circular economy model and increasing amount of enterprises and people which gained the knowledge and skills for a new business model development.
Acknowledgement
This work has been supported by Intereg Baltic Sea Region program of the European Union within the project "ERREC 2.0; Environmental Responsibility and Resource Efficiency" and by the Swedish Institute within the project "LARELICE-P; Preparing Learning about Resource Efficiency Leading into Circular Economy".
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Статья поступила в редакцию 28.11.2018 г.
