Global consumption levels currently extend far beyond what planet Earth in terms of natural resources can regenerate in a sustainable manor and will by 2050 reach levels corresponding to what it would require three Earths to sustain. This overexploitation and unsustainable management of the Earth’s resources in combination with the necessity of mitigating climate change and reaching net zero CO2 emissions by 2050 require action across all sectors, not least the manufacturing industry. This thesis covers how large manufacturing enterprises can implement and utilize strategic targets and Key Performance Indicators (KPIs) to align with the principles of a Circular Economy (CE), and as a result, improve sustainability and business performance. Based on a case study conducted at Siemens Energy (SE) involving a literature study, interview study, and focus groups, a carefully selected set of strategic circularity targets and KPIs are presented to measure, evaluate, and drive circularity performance within large manufacturing enterprises. Since the thesis’ ambition was to provide valuable insights beyond SE, strategic circularity targets and KPIs specifically directed at SE were further generalized to be universally relevant for academia and other large manufacturing enterprises. Enterprises within the given sector share several key characteristics such as extensive material resource flows and complex value chains, hence strategic targets and KPIs emphasize material efficiency through decreasing virgin material dependency, increasing recirculation rates, and transitioning towards circular business models. While suggested targets and KPIs are universally directed at large manufacturing enterprises, individual organizations are recommended to conduct internal investigations and analyzes to further tailor and adapt strategic targets and KPIs towards the specific enterprise. In addition to strategic targets and KPIs, the thesis also presents an overview of opportunities, benefits, risks, and potential impacts for large manufacturing enterprises aspiring to increase circular initiatives, highlighting key principles to manage risk and capitalize on opportunities. The findings conclude that the main opportunity enabled by CE is to leverage synergies which align environmental, economic, and strategic corporate incentives, with key benefits including aspects such as decarbonization and reduced environmental impact, increased revenues and cost savings, risk management, and new business opportunities. Risks associated with CE include rebound effects, organizational insufficiencies, lack of material quality and safety, as well as a low product performance, which further can lead to potential impacts mitigating the positive effects of CE, or at worst setbacks causing a net negative output from implemented circular measures. In summary, the opportunities and benefits associated with CE are many, but implemented circular measures require risk awareness and continuous management to ensure efficiency.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-190075 |
| Date | January 2022 |
| Creators | Jansson, Jonas, Holmberg, Herman |
| Publisher | Linköpings universitet, Industriell miljöteknik |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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