Making progress: Europe’s vision for circular manufacturing

In September 1989, scientists Robert A. Frosch and Nicholas E. Gallopoulos published ‘Strategies for Manufacturing’ in a special issue of Scientific American magazine. “Innovation is a major agent of progress,” wrote the pair before digging into their vision for a scalable circular economy. 

The argument itself was remarkably straightforward: waste from one process can generate the raw materials for another – and for this to happen at the rate needed, manufacturing will need to be at the forefront of change. Throughout the 19th and 20th centuries, industrialisation had become a Pandora’s box that needed future-proofing. But nearly 35 years on, is Europe any closer to diminishing the impact of industry on the environment?

At its simplest level, aligning industrial and economic systems with values starts with process optimisation – or maximising their productivity while minimising waste and energy usage. But, to truly affirm its role as a driver of circularity, the sector must go deeper, explains Chris Iveson, CEO of FourJaw Manufacturing Analytics. 

“Many manufacturers still haven’t redefined their production processes to be fit for a circular economy,” he says. “Each element must be well thought through, starting with resources, be they raw materials or energy sources, which overlap with product design considerations, before, during and post-product lifecycle.” 

Iveson adds that a circular economy is not truly circular without a holistic view of the end-to-end supply chain and production process. For the sector to finally see the paradigm shift, it will need to take production, scarcity and sustainability concerns seriously, all while bringing customers along for the transition.

Buying into the new economy

The imperative for manufacturing build upon techniques such as ‘sustainable by design,’ ‘closed loop,’ or ‘product as a service’, is widely accepted. 

However, Simon Geale, executive vice-president of procurement at Proxima, makes the case that at the heart of every successful market is a bought-in customer who is paying for the value that they receive. He says: “If this is about being a catalyst for circularity, manufacturers need to be in on efforts to change the perception of value. Consumers need to feel emotionally bought into this new value model for it to endure.”

Technological advancements and design innovation are proving to be a pivotal piece of the puzzle. With the rise of building information modelling (BIM) and digitalisation, businesses have access to ever-improving tools and technologies that facilitate resource optimisation, waste reduction, and closed-loop systems – so they ought to be using them, David Harris, CEO of Premier Modular, points out. 

“Accuracy of component manufacture can virtually eliminate waste. At the same time, a focus on packaging (both in terms of quantity and material) and transport also limit environmental impact,” he says. “Designing materials for continued repurpose and remanufacture allows a fully closed-loop system to operate, truly delivering a circular economy.”

Big businesses’ green reach

Green manufacturing has its part to play in stimulating innovation and economic growth. It isn’t new. The clothing industry has been making fleeces and coats from recycled plastic bottles for years, and in tech, recycled metals have made their way into devices globally. 

But without big brands’ commitments to closing the loop, moving the dial will be difficult. Alex Hindson, head of sustainability at Crowe UK, says: “Global businesses with far-reaching supply chains are helping the industry and consumers to move in the right direction.”

Systemic change, he says, will require a mindset shift from regulators and manufacturers. Both must be prepared to establish partnerships along new value chains, ensuring that recycled raw materials become the norm and promoting the standardisation of components used by companies. “This also means creating and regulating a secondary market for these materials,” Hindson adds.

Some are quick to label sustainable production as ambitious and expensive. Corporate and government short-termism around the initial investment and challenges associated with new ways of manufacturing may hinder steps forward. 

Becky Gordon, regional sustainability manager (UKIME) at commercial flooring manufacturer Interface, sets out her stance on the issue. “Improving operational efficiency reduces costs and sustainable products appeal to buyers, be they consumers or other businesses,” she says. “Being able to fulfil this demand can truly boost economic growth while making the manufacturing sector more sustainable.” 

Leading the way

The European Union is exerting a significant influence in promoting circularity, particularly in the technology sector. From the Circular Economy Action Plan to its Eco-design directive and comprehensive waste reduction strategies, EU initiatives are not only setting a blueprint for other countries but also compelling market leaders in tech to address sustainability more seriously. So says Simon Bryant, VP at industry analyst firm CCS Insight. 

“The Netherlands, France, and those in Northern Europe are at the forefront of these efforts – and we’re seeing tangible outcomes,” he notes, pointing to increased recycling rates, a wave of sustainable product design, and cross-sector adoption of circular principles.

Undoubtedly, the future that these nations are marching towards will be underpinned by industrial systems that don’t cost the earth.

Unlike single-use plastics or fast fashion, unwanted electronics have historically flown under the radar as culprits of climate change. However, as technology increasingly touches every aspect of society, e-waste is giving the usual suspects a run for their money. 

The World Economic Forum reported in 2023 that waste electrical and electronic equipment (WEEE) was emerging as the fastest-growing waste stream globally, with an annual growth rate of 3 to 5%. Unless governing bodies, manufacturers and businesses come up with a coordinated strategy to lengthen product lifecycles, Europe will face an insuperable challenge in meeting its 2050 climate neutrality target. 

Since the EU’s first WEEE directive entered into force in 2023, regulations have struggled to curb the issue, and e-waste has remained notoriously difficult and expensive to recycle. In response to the well-intentioned mandate, 27 environmental NGOs openly addressed the European Commission, asking it to rework the directive to include more concrete re-use targets. 

“Current legislation on WEEE management in the EU is held back by a fundamental flaw,” Edoardo Bodo, environmental policy officer at Rreuse, remarked. Under the current guidelines, producers can meet environmental obligations by recycling indiscriminately – which often includes items that could have been repaired or refurbished. He continued: “Every time a functional piece of equipment is prematurely recycled instead of being repaired, we squander economic value and deplete valuable resources.” 

The average smartphone, for example, contains 40 different materials and can’t be disposed of as a single unit in the same manner as cardboard and certain plastic items. Instead, it must be disassembled and then shredded so that materials like steel, copper and aluminium can be extracted and reused. The cost of this process often outstrips the value of the materials that can be recovered, leaving recyclers operating at a loss.

This dynamic is a dangerous one. With the majority of consumers swapping their smartphones out for a newer model every three to four years, most are not designed with disassembly in mind. “Generally, in modern smartphones, the parts are glued in, making the device difficult or even impossible to repair or recycle,” says Miquel Ballester, Co-Founder and Head of Product Management at Fairphone. 

Beyond waste, many of the raw minerals and metals needed to make consumer tech are depleting as consumption soars. Ballester explains: “It’s impossible to currently manufacture a new phone using entirely recycled parts, but there are focus materials in each device where we can have a sustainable impact.”

James Murdock is the founder and chief marketing officer at the circular tech firm Alchemy. He says: “Phones used to deteriorate in value very quickly, but now a new iPhone, for example, has a real residual value two to three years after you’ve bought it.” It’s little wonder, then, that refurbished and remanufactured electronics have grown increasingly enticing. A recent study by technology retailer Currys finds that Brits are now more likely to buy second-hand technology than clothes.

“Refurbishing typically involves making smaller cosmetic improvements to newer devices and resolving a single fault with a product or part,” says Steve Haskew, head of sustainability and social change at Circular Computing. “Remanufacturing converts the product to like-new quality in both appearance and performance by testing and replacing individual components through a thorough five-hour remanufacturing process.”

Manufacturers must therefore design products to live three lives. First, the brand-new device is constructed via modular design and made from recycled materials. Second, there must be a valuable trade-in for consumers on their disused tech. And finally, the item’s materials will form part of a remanufactured product that looks and performs as it did when it started its first life on the factory conveyor belt.

Businesses can’t reach their emission targets alone. On their journey to a sustainable future, leaders must not only reduce emissions across their organisation, but also their entire supply chains. This includes scope 3 emissions -many of which are outside of businesses’ ownership or control – for example, from third party suppliers involved in the manufacturing, transportation and disposal of products.

A new approach to sustainability

The growing demand from businesses for sustainable products and technology is prompting leaders to carry out root and branch reviews of their supply chain – and this is a challenge that Canon is meeting head on.

“We’re a supplier of products and services for thousands of businesses,” says Peter Bragg, Sustainability & Government Affairs Director at Canon Europe. “We must do our part to help businesses reduce their emissions. We need to make sure that our products and services are helping our customers and partners to meet their own sustainability goals.”

When it comes to hitting ambitious emissions goals, collaboration between businesses is also important, and this aligns well with Canon’s corporate philosophy of Kyosei. This ethos promotes a way of living and working in which people work together harmoniously to contribute to a prosperous society. It also underpins the company’s vision for sustainability and its role as a responsible corporate citizen.

A heritage of sustainability

Canon’s sustainability journey began over 30 years ago when it launched the first global toner cartridge recycling programme to help reduce consumable waste. This recycling programme is now active in 23 countries and regions, while its ink cartridge programme is operational in 35. At the end of 2024, these initiatives had prevented 473,000 tons of plastic going into landfill, helping the organisation and its customers contribute towards a greener future.

It’s now set ambitious targets to achieve net zero emissions by 2050 and a short-term goal of reducing its product lifecycle CO2 emissions per product by 3% year on year. It is forecast that this will equate to roughly a 50% reduction in emissions from 2008 levels by 2030.

Designing for circularity

“In simple terms, this means asking ourselves as a business: how can we be as efficient as possible?” explains Bragg. “There’s a growing demand from businesses for sustainable products and technology and the challenge for us is to carefully consider the environmental impact of each of our products throughout their entire lifecycle – and extend their lifespan for as long as possible.”

The goal is a circular economy in which resources used for the manufacturing of products are repurposed and recycled for as long as possible. This process begins with designing new technology with sustainability in mind with every consideration taken to the lifecycle of parts and materials and ultimately how the technology will be reused at the end of life.

“We’re making smaller and lighter products which use fewer resources,” says Bragg. “Some of our multifunction devices and large format printers are also being designed for disassembly, making it much easier to put them through a refurbishment or remanufacturing process. Modularity is increasingly common, too, so you can upgrade specific components rather than buying an entirely new product.”

Every model has a lifespan, but many are now being given a second life and we have seen a growing number of consumers across EMEA requesting refurbished or remanufactured products to help meet their own sustainability goals.

“After five years many of our products are nowhere near the end of their lifespans and often customers have no commercial need to update to a new device,” says Bragg. “In line with this, we have launched initiatives such as our imageRUNNER ADVANCE CU range – a series of multifunction printers which is available across our European regions. This product range is refurbished in line with a set of strict refurbishment standards which allow us to guarantee the quality of the end product that we are delivering. It’s essential that we ensure that our customers receive the highest quality of product whether it is refurbished or brand new.”

Energy efficiency

Energy efficiency is crucial for Canon to achieve its sustainability goals and to help its customers fulfil their own.

In turn, Canon is striving to improve the energy efficiency of its manufacturing processes, and has converted 100% of the power used at four key manufacturing sites for its printing products to renewable energy. The company has installed solar panels within the grounds of these manufacturing sites and harnessed the renewable energy generated from these panels in its production activities.

These energy efficiency goals also extend to products once they’re in the hands of customers. For example, Canon uses energy-saving technologies, including on-demand fixing tech in its laser printers and office multifunction devices. This helps eliminate the need to apply heat while a printer is on standby, resulting in a reduction in the amount of electricity needed during operation. Other advances include printers that incorporate low temperature fixing toner which has resulted in a 15% reduction in power consumption for the user, when compared to previous models.

As businesses chase their sustainability goals, it’s clear that choosing a sustainable technology partner will be one of the biggest decisions they make.

When it comes to environmental regulations, Europe has been setting the tempo for the last decade or so, with policymakers currently on the hunt for new incentives to drive responsible production. Their latest proposals put the manufacturing industry front and centre of the move to facilitate conscious consumption and bring the continent closer to its circularity targets.   

In November 2023, the European Parliament voted in support of enhanced ‘Right to Repair’ rules aimed at offering consumers greater repair options for goods such as washing machines, televisions and smartphones and reducing the waste that results from consumers acquiring new products instead. The Right to Repair Directive (‘R2RD’) legislation was formally adopted by the EU in April 2024.

The legislation incentive

Arnaud Brunet, director general of the Bureau of International Recycling, says: “The right to repair debate is not new, but if successful, it is likely to set the tone for other regions around the world.” He points out that many businesses are recognising a strong demand for corporate responsibility from global citizens here, even before regulators.

“Some brands and manufacturers have positioned themselves as players in the second or third life of their own products, so the initiative may prompt global brands and manufacturers to endorse it as part of their strategy,” he adds.    

The proposal is seen as a step in the right direction, putting the onus on manufacturers to ensure their products have a longer use cycle and are made in a way that allows consumers to extend their life. But will this encourage businesses to focus on sustainability?

“Manufacturers and designers are perfectly capable of creating products that stand the test of time – but without legislation, sales targets disincentivise this approach,” says Josh Pitman, managing director at sustainable packaging firm Priory Direct. “Legislation will force innovation at the design phase and encourage full lifecycle-thinking on how items can be recovered, re-used and repaired.” 

A perfect policy?

Putting repair before replacement is one thing in theory – but putting it into practice is another. As it stands, the ambitions for this initiative are not entirely clear, and the results hard to measure. “Setting targets for the average useful lifespan for devices, with fines for non-adherence, would push this legislation further and give it teeth,” adds Pitman. “Businesses should get behind this initiative because sustainability is increasingly becoming a competitive advantage.”

While Right to Repair empowers consumers to engage in a future circular economy, some experts have spotted gaps in the policy. Matthew Cockerill, design and innovation consultant behind the world’s first ethical and modular smartphone Fairphone, believes that it falls short of circularity itself. “It doesn’t singularly divert us from the prevailing linear model of ‘take-make-waste’,” he says. “In some ways, it shifts responsibility onto consumers to prolong the lifespan of their products, offering a sense of environmental consciousness, but in reality, it primarily slows down the inevitable journey of these products towards recycling, landfill, or energy incineration.”

A more significant development, he adds, will be the forthcoming introduction of digital product passports (DPP) for specific product groups by 20227, which will provide consumers with comprehensive information at the point of sale, adding even greater transparency. 

“This information will encompass the product’s entire lifecycle, as well as details regarding the availability of repair services, spare parts, and repair manuals,” says Cockerill. “That extra layer of transparency will make the environmental impact of materials used and emissions more visible to customers, influencing their purchase decisions and compelling businesses to address these factors.”

Setting the gold standard

There is still a long way to go towards reaching global climate targets, but many believe that Europe’s policies, particularly the ‘Right to Repair’ initiative, have the potential to set a global standard for other countries to follow. 

According to Russ Ernst, CTO at Blancco Technology Group, the US is witnessing a surge of similar legislation. “There are currently several states in the US implementing a Right to Repair Act, and I expect more states will follow with similar regulations,” he asserts. four states have such legislation as of 2024, with Colorado planning to enact legislation in 2026 and Minnesota in 2027.

If the EU’s proposal gains a firm foothold, member states could be on the leading edge of sustainable consumption and production trends. What began as a localised policy may soon snowball into a collective global project.