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Disruption, Innovation, Opportunity - OCAD University...portfolio PREPARING FOR A CHANGE...

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R + + + - actions slowing action results B B R R R B R B limiting condition CARBON ENERGY URBANIZATION RESOURCES MENTAL MODELS ACTOR: PROJECT TEAM SUPERPOWER: INTEGRATED DESIGN ACTOR: GOVERNMENT SUPERPOWER: POLICY ACTOR: BUILDING OWNERS + OPERATORS SUPERPOWER: INVESTMENT ACTOR: INVESTORS + DEVELOPERS SUPERPOWER: CAPITAL PROVISION KEY INSIGHTS TRANSFORMATION MODEL CASE STUDY: ENABLING CIRCULAR DESIGN LIMITS TO GROWTH ARCHETYPE LIMITS TO GROWTH EVENTS Federal Government Provincial Government Project Manager Developers Architects, Designers Engineers Shift to Industry Association Certification Bodies + NGOs Constructor Waste + water Management Building Owner/ Manager Logistics Tenant Manufacturer (Local + Global) General Public End User Levers of Change External Governance Market Forces One-off contributor Project Team Municipal Government Local + global investors PATTERNS UNDERLYING STRUCTURES MENTAL MODELS LEADERSHIP The power of vision and strategy to build and lead a team towards success in circular economic modelling and execution PARTNERSHIPS The power of collaboration to support circular strategies at each step of the value chain OPEN INNOVATION The power of transparency to increase the intent, impact and speed of innovation across businesses and sectors EDUCATION The power of knowledge to challenge current paradigms and enable all future actors to embrace and execute circular strategies Built environment responsible for a vast environmental footprint that contributes 33% of global Canada's total greenhouse gas emissions in 2016 were 704 megatonnes (Mt) of carbon Built environment sector consumes over 40% of the world’s yearly extracted resources In 2018, built environment consumed 4 materials out of 84 gigatons in people- lives in cities today, and by 2030, almost 60% of the world’s population will live in urban areas 95% of urban expansion in the next decades will take place in developing world The world’s cities occupy just 3% of the Earth’s land but account for 60-80 % of energy consumption WASTE BARRIERS According to Statistics Canada data, CRD (construction, renovation and demolition) waste accounts for about 12% of all solid waste generated in Canada, most of which is currently The building sector is the largest energy consuming sector, accounting for over one-third of the final global energy consumption WATER Water usage in cement production varies from 147 to 3,500 litr Concrete production uses between 100 and 240 litres of water per cubic metre of concrete Already today, 3 live in areas that experience severe water scarcity during at least a quarter per year CURRENT STATE: Regulation and legislation is risk-based measurements that influence the market but sustain a linear built environment (e resources) FUTURE STATE: Governments (legislators and regulators) take a lead on policies that enable cirul EXAMPLE: Toronto's Circular Economy office has been recognized by the world’s premier circular economy award program for their research and innovation within the Solid Waste Management CURRENT STATE: Building owners manage their assets (short- and long-term) to guarantee the highest value of the building and operating mar FUTURE STATE: The value of a circular building is determined by function, level of circularity and user behaviour from the asset ownership model to provider of smart solutions and support for optimal use EXAMPLE: The Edge in Amsterdam is a model of sustainability and one of the smartest office buildings in existence recruiting tool for owners Deloitte, a satisfying side effect of a project designed to both redefine efficiency and change the way people work CURRENT STATE: The architects, designers, advisors, and engineers and constructors bring individual expertise to a linear and fragmented process FUTURE STATE: The project team employ an integrated approach, leveraging shared platforms, to apply a lifecycle perspective to design, construction and disposal EXAMPLE: Edmonton’s Mosaic Centre attributes an integrated project delivery collaborative approach to capturing a 12 % below market cost delivery rate, while completing the beauti- fully designed and built project 29% ahead of schedule com- pared to a comparable building project CURRENT STATE: Tenants view a building as an object that fulfill FUTURE STATE: Tenants prefer sustainability-certified buildings that create a healthy living and working environment programs meet targets, and their informed choices impact the entire building lifecycle EXAMPLE: Research shows buildings with sustainable certification outperform similar non-green buildings in terms of rental rates, occupancy levels, tenant satisfaction scores, and the probability of lease renewals Since 2004, 4,000 buildings have certified by LEED in Canada with the second highest number of LEED projects anywhere in the world. CURRENT STATE: Investors and developers undervalue sustainability aspects of their buildings: their shared motivation is profit maximization FUTURE STATE: Both actors increase collaboration with project teams and end users, increase operational efficiencies, build in full cost analysis and generate new business models like business as service EXAMPLE: Since 2017, pension fund Caisse de dépôt et placement du Québec has factored climate change into every investment decision, citing risk management, targets and actions to reduce its carbon footprint and profitable investment opportunities as drivers of it's institutional investor leadership role ACTOR: SUPPLIERS + MANUFACTURERS SUPERPOWER: MARKET SHARE CURRENT STATE: Manufacturers provide cost-driven primary resources, materials and products, with limited room for improvement and modifications FUTURE STATE: Suppliers expand their business by offering products with sustainable and socially just ‘material passports’ demonstrating transparency and circularity EXAMPLE: Interface carpets revolutionized the industry, pioneering the ‘product as service’ model by leasing carpet tiles, closing the loop on materials and water use, and generating or offsetting energy in manufacturing processing, capturing world leading market share in the process The goals of Paris Climate Agreement are reached and global warming is limited to ve pre-industrial levels, and climate disruption risks are reduced • Built environment = large carbon footprint Green Certification is expensive Construction creates waste/ leak in value chain Risk increasing Design is static = no incentive to innovate Risk adverse actors (engineers, contractors) Green washing/ blame shifting Resources are cheap Resolving symptoms, not structural issues Over-consumption/ emphasis on new as better Lack of care, misuse of items Disconnection of waste Increase in co-working/ shared spaces Demolition is cheap Government turn-over = short-lived green policies Investors: Financial ROI = Market premiums for green certifications Industry: Building Codes Government: Externalities priced effectively Actors: Fragmented project delivery / increasing demand Society: Rapid urbanization and urban population growth, shift in demographics Perception of prosperity Disenfranchisement Individualism within a capitalist system Trapped in status quo ACTOR: TENANTS SUPERPOWER: DEMAND BASED ON INFORMED CHOICES Today, the built environment encounters a “Limits to Growth” archetype As introduced by Donella Meadows, growth cannot continue unabated in an unrestricted positive reinforcing behavior eventually make themselves known and felt over time In our case, depleting resources of the Earth such as minerals, water, energy pollution and waste are now p e have approached limits to growth effectiveness and rate of growth will reverse accordingly plan for limits now, we are planning for failure Rebecca Black, Chantal Frenette, Jale Gonulkapan Suder, Steph Rebello WHAT: Circular Economy workshop at Kasian Architecture Interior Design and Planning WHY: Generate insights about key leverage points to help designers uptake circular strategies RESULTS: Choosing smart materials, designing for modularity and product take-back were favoured for immediate opportunities to design for circular products and services! FINANCIAL: Perceived and actual upfront costs and impact on profit margins associated with transitioning to the circular economy prevents many organizations from shifting to circular systems STRUCTURAL: Unclear understanding of the division of tasks, responsibilities and reporting for a circular system can block the strategic development or implementation of circular strategies OPERATIONAL: The challenge of coordinating circular infrastructure across supply chain and product (or service) lifecycle partners can delay transition to circular business opportunities TECHNOLOGICAL: Technological paradigm shifts requiring upfront R&D and design investment in circular products and services are often the largest and most immediate barrier to entering the circular economy ATTITUDINAL: A lack of understanding and shallow perception of the business value of circular solutions blocks the realization of circular business opportunities movement towards a more circular economy INCREASED CONNECTEDNESS INCREASED CAPACITY (RESOURCES) Figure 1 John Day in "Revisiting Limits to Growth After Peak Oil" http://www Product as a service Product Life extension Modularity Embedded Intelligence Closed-loop/ take back Smart material choices LEGEND MICRO MESO MACRO Policy Industry + sector Individual + organizational BUILDING RESILIENCE: Sustainable operations is a differentiator PREPARING FOR A CHANGE Integrated design process allows a life-cycle approach to commercial buildings NAVIGATING THE TRANSITION: Manufacturers, contractors, demolition and logistics teams, meet the demands of the life-cycle approach BUILDING RESILIENCE: Developers take leadership role in delivering projects to zero-carbon standard PREPARING FOR A CHANGE Investors demand carbon mitigation plans, as a way of de-risking their portfolio PREPARING FOR A CHANGE Resource-scarcity, and increased innovation in leveraging waste << RADI C A L I N N O V A T I O N < < << I N C R E MENTAL INNOVA TIO N << << RADI C A L I N N O V A T I O N < < < < I N C R E MENTAL INNOVATIO N << << RA DI C A L I N N O V A T I O N < < < < I N C R E M ENTAL IN N O V ATIO N < < NAVIGATING THE TRANSITION: New pricing for externalities - carbon, water and energy NAVIGATING THE TRANSITION: New standards are established to reflect market evolution Disruption, Innovation, Opportunity : The Power of Circularity A circular economy is one that is restorative and regenerative in design ate change, that sounds like a nice concept, but what is it really all about, and more to the point, what can it mean to you? Well in the commercial building sector, using circular strategies can mean a lot! In this poster, you’ll see how everyone involved in our built environment can use circular economic principles - designing out waste and pollution, keeping products and materials in use, and regenerating natural systems - to unlock innovation and generate wealth / value that isn’t b So find your SuperPower and run circles around our current linear process! You’ll be part of the #4 B I O S P H E R E BIOSPHERE BUILDING RESILIENCE: Integrate circular economy and climate resilience in all educational systems D E S I G N P R O D U C E D I S T R I B U T E U S E R E U SE R E C Y C L E The Circular Economy in the built environment P R O D U C T L I F E E X T EN SI O N E X T E N DE D P R O D U C ER R E S P ON S IB IL IT Y E X T E N D E D P R O D U CE R R E S P O N S I B I L I T Y P R O D U C T A S A S E R V I CE N E T Z E R O E N E R G Y A N D W A T E R U S E E M B E D D E D I N T E L L I G E N C E W A S T E A S R E S O U R C E / S M A R T M A T E R I A L C H O I C ES W A ST E A S R E S O UR C E D E S IG N F O R D IS A S S E M B L Y E X T E N D E D P R O D U C T R E S P O N S I B I L I T Y P R O M O T I N G A N D F A C I L IT AT I N G C I R C U L A R S T R A T E G IE S S H IFTIN G M AR K E T E X P E C TA TIO N S
Transcript
Page 1: Disruption, Innovation, Opportunity - OCAD University...portfolio PREPARING FOR A CHANGE Resource-scarcity, and increased innovation in leveraging waste < < R A D I C A L I NNOVATIO

R

+

+

+

-

actions slowing actionresults B

B

R

RR

B RB

limiting condition

CARBON ENERGYURBANIZATIONRESOURCES

MENTAL MODELS

ACTOR: PROJECT TEAMSUPERPOWER: INTEGRATED DESIGN

ACTOR: GOVERNMENTSUPERPOWER: POLICY

ACTOR: BUILDING OWNERS + OPERATORSSUPERPOWER: INVESTMENT

ACTOR: INVESTORS + DEVELOPERSSUPERPOWER: CAPITAL PROVISION

KEY INSIGHTS

TRANSFORMATION MODEL

CASE STUDY: ENABLING CIRCULAR DESIGN

LIMITS TO GROWTH ARCHETYPE

LIMITS TO GROWTH

EVENTS

FederalGovernment

ProvincialGovernment

Project Manager

Developers

Architects, DesignersEngineers

Shift to

Industry Association

CertificationBodies + NGOs

Constructor Waste + waterManagement

Building Owner/Manager

Logistics Tenant

Manufacturer(Local + Global)

General Public

End User

Levers of Change

External Governance

Market Forces

One-off contributor

Project Team

MunicipalGovernment

Local + globalinvestors

PATTERNS

UNDERLYINGSTRUCTURES

MENTAL MODELS

LEADERSHIPThe power of vision and strategy to build and lead a team towards success in circular economic modelling and execution

PARTNERSHIPSThe power of collaboration to support circular strategies at each step of the value chain

OPEN INNOVATIONThe power of transparency to increase the intent, impact and speed of innovation across businesses and sectors

EDUCATIONThe power of knowledge to challenge current paradigms and enable all future actors to embrace and execute circular strategies

Built environment responsible for a vast environmental footprint that contributes 33% of global

c � � � � � � � � � � � �

Canada's total greenhouse gas emissions in 2016 were 704 megatonnes (Mt) of carbon

d � � � � � � � � � � � � � � � � � ! " # $ % &

Built environment sector consumes over 40% of the world’s yearly extracted resourcesy

In 2018, built environment consumed 41 ' ( ) * + , - . / 0 2 3

materials out of 84 gigatons in

t 4 5 6 7 8

H 9 : ; < = > ? @ A B C D E F G I J K L M N O P Q

people- lives in cities today, and by 2030, almost 60% of the world’s population will live in urban areasa

95% of urban expansion in the next decades will take place in developing worldR

The world’s cities occupy just 3% of the Earth’s land but account for 60-80 % of energy consumption

S T U V W X Y Z [ \ ] ^ _ ` b e f g h i j k l m

WASTE BARRIERSAccording to Statistics Canada data, CRD (construction, renovation and demolition)waste accounts for about 12% of all solid waste generated in Canada, most of which is currently

n o p q r s u v w

The building sector is the largest energy consuming sector, accounting for over one-third of the final global energy consumption

WATER

Water usage in cement production varies from 147 to 3,500 litrx z { | } ~ � � � � � � � � � � � � �

Concrete production uses between 100 and 240 litres of water per cubic metre of concrete�

Already today, 3� � � � � � � � � � � � � � �

live in areas that experience severe water scarcity during at least a quarter per year�

CURRENT STATE: Regulation and legislation is risk-based� � �   ¡ ¢ £ ¤ ¥ ¦ § ¨ © ª « ¬

measurements that influence the market but sustain a linear built environment (e­ ® ¯ ° ± ² ³ ´ µ ¶ · ¸ ¹ º » ¼ ½ ¾ ¿ À Á Â Ã Ä Å Æ Ç È É Ê Ë

resources)

FUTURE STATE: Governments (legislators and regulators) take a lead on policies that enable cirulÌ Í Î Ï Ð Ñ Ò Ó Ô Õ Ö × Ø

EXAMPLE:Toronto's Circular Economy office has been recognized by the world’s premier circular economy award program for their research and innovation within the Solid Waste Management

Ù Ú Û Ü Ý Þ ß à á â ã ä å æ ç è é

CURRENT STATE: Building owners manage their assets (short- and long-term)

to guarantee the highest value of the building and operating marê ë ì í

FUTURE STATE: The value of a circular building is determined by function, level

of circularity and user behaviourî ï ð ñ ò ó ô õ ö ÷ ø ù ú û ü ý þ ÿ c � � � �

from the asset ownership model to provider of smart solutions and support for optimal use.

EXAMPLE: The Edge in Amsterdam is a model of sustainability and one of

the smartest office buildings in existence� � � � � � � � � � � �

recruiting tool for owners Deloitte, a satisfying side effect of a project designed to both redefine efficiency and change the

way people workw

CURRENT STATE: The architects, designers, advisors, and engineers and constructors bring individual expertise to a linear and fragmented process�

FUTURE STATE: The project team employ an integrated approach, leveraging shared platforms, to apply a lifecycle perspective to design, construction and disposal�

EXAMPLE: Edmonton’s Mosaic Centre attributes an integrated project delivery collaborative approach to capturing a 12 % below market cost delivery rate, while completing the beauti-fully designed and built project 29% ahead of schedule com-pared to a comparable building project

CURRENT STATE: Tenants view a building as an object that fulfills � � � � � � � � � � � ! " # $ % & ' ( ) * +

FUTURE STATE: Tenants prefer sustainability-certified buildings that create a healthy living and working

environmente , - / 0 1 2 3 4 5 6 7 8 9 : ; < = > ? @ A B C D E F G H I J K L M N O P Q R S T U

programs meet targets, and their informed choices impact the entire building lifecycleV

EXAMPLE: Research shows buildings with sustainable

certification outperform similar non-green buildings in terms of rental rates, occupancy levels, tenant satisfaction scores,

and the probability of lease renewalsW

Since 2004, 4,000 buildings have certified by LEED in Canada with the second highest number of LEED projects anywhere in

the world.

CURRENT STATE: Investors and developers undervalue sustainability aspects of their buildings: their shared motivation is profit maximizationo

FUTURE STATE: Both actors increase collaboration with project teams and end users, increase operational efficiencies, build in full cost analysis and generate new business models like business as serviceb

EXAMPLE: Since 2017, pension fund Caisse de dépôt et placement du Québec has factored climate change into every investment decision, citing risk management, targets and actions to reduce its carbon footprint and profitable investment opportunities as drivers of it's institutional investor leadership role

ACTOR: SUPPLIERS + MANUFACTURERSSUPERPOWER: MARKET SHARE

CURRENT STATE: Manufacturers provide cost-driven primary resources, materials and products, with limited room for

improvement and modificationsX

FUTURE STATE: Suppliers expand their business by offering

products with sustainable and socially just ‘material passports’ demonstrating transparency and circularityY

EXAMPLE: Interface carpets revolutionized the industry,

pioneering the ‘product as service’ model by leasing carpet tiles, closing the loop on materials and water use, and

generating or offsetting energy in manufacturing processing, capturing world leading market share in the process

The goals of Paris Climate Agreement are reached and global warming is limited to

Z [ \ ] ^ _ ` a ve pre-industrial levels, and climate disruption risks are reducedd

• Built environment = large carbon footprint• Green Certification is expensive• Construction creates waste/ leak in value chain• Risk increasing• Design is static = no incentive to innovate• Risk adverse actors (engineers, contractors)• Green washing/ blame shifting• Resources are cheap• Resolving symptoms, not structural issues

• Over-consumption/ emphasis on new as better• Lack of care, misuse of items• Disconnection of waste• Increase in co-working/ shared spaces• Demolition is cheap• Government turn-over = short-lived green policies

• Investors: Financial ROI = Market premiums for green certifications• Industry: Building Codes• Government: Externalities priced effectively• Actors: Fragmented project delivery / increasing demand• Society: Rapid urbanization and urban population growth, shift in demographics

• Perception of prosperity• Disenfranchisement• Individualism within a capitalist system• Trapped in status quo

ACTOR: TENANTSSUPERPOWER: DEMAND BASED ON

INFORMED CHOICES

Today, the built environment encounters a “Limits to Growth” archetypef

As introduced by Donella Meadows, growth cannot continue unabated in an unrestricted positive reinforcing behaviorg h i j k l m n p q r t u v x y z { |

eventually make themselves known and felt over time}

In our case, depleting resources of the Earth such as minerals, water, energy~ � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �   ¡ ¢ £ ¤ ¥ ¦ § ¨ © ª « ¬ ­ ® ¯ ° ± ²

pollution and waste are now p³ ´ µ ¶ · ¸ ¹ º » ¼ ½ ¾ e have approached limits to growth¿ À Á Â Ã Ä Å Æ Ç È É Ê Ë Ì Í Î Ï Ð Ñ Ò Ó Ô Õ Ö × Ø Ù Ú Û Ü Ý Þ ß à á â ã ä å æ ç è é ê ë ì í î ï ð ñ ò ó ô

effectiveness and rate of growth will reverse accordinglyõ ö ÷ ø ù ú û ü ý þ

plan for limits now, we are planning for failureÿ

Rebecca Black, Chantal Frenette, Jale Gonulkapan Suder, Steph Rebello

WHAT: Circular Economy workshop at Kasian Architecture Interior Design and Planning

WHY: Generate insights about key leverage points to help designers uptake circular strategies

RESULTS: Choosing smart materials, designing for modularity and product take-back were favoured for immediate opportunities to design for circular products and services!

FINANCIAL: Perceived and actual upfront costs and impact on profit margins associated with transitioning to the circular economy prevents many organizations from shifting to circular systemsc

STRUCTURAL: Unclear understanding of the division of tasks, responsibilities and reporting for a circular system can block the strategic development or implementation of circular strategiess

OPERATIONAL: The challenge of coordinating circular infrastructure across supply chain and product (or service) lifecycle partners can delay transition to circular business opportunitiese

TECHNOLOGICAL: Technological paradigm shifts requiring upfront R&D and design investment in circular products and services are often the largest and most immediate barrier to entering the circular economyp

ATTITUDINAL: A lack of understanding and shallow perception of the business value of circular solutions blocks the realization of circular business opportunities� � � � � � � � � � � � � � � � � � � � � � � � � � � � � ! " # $ % & ' ( )

movement towards a more circular economym

INCREASED CONNECTEDNESS

INC

RE

AS

ED

CA

PA

CIT

Y (R

ES

OU

RC

ES

)

Figure 1F * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ? @ A B C D E G H I J K L M N O P Q R S T U V W X Y Z [ \ ] ^ _ ` a b d f g h i j k l n o q r t u v w x y z { | }

John Day in "Revisiting Limits to Growth After Peak Oil" http://www~ � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �   ¡ ¢

Product as a service

Product Life extension

Modularity

Embedded Intelligence

Closed-loop/ take back

Smart material choices

LEGEND

MICRO

MESO

MACRO

Policy

Industry + sector

Individual + organizational

BUILDING RESILIENCE:Sustainable operations is a differentiator

PREPARING FOR A CHANGEIntegrated design process allows a life-cycle approach to commercial buildings

NAVIGATING THE TRANSITION: Manufacturers, contractors, demolition and logistics teams, meet the demands of the life-cycle approach

BUILDING RESILIENCE:Developers take leadership role in delivering projects to zero-carbon standard£

PREPARING FOR A CHANGEInvestors demand carbon mitigation plans, as a way of de-risking their portfolio

PREPARING FOR A CHANGEResource-scarcity, and increased innovation in leveraging waste

<< RADICAL INNOVATION <<

<< INCREM

ENTA

L INN

OVATION <<

<< RADICAL INNOVATION <<

<< INCREMEN

TAL IN

NOVATION <<

<< RADICAL INNOVATION <<

<< INCREM

ENTA

L INN

OVATION <<

NAVIGATING THE TRANSITION: New pricing for externalities - carbon, water and energy

NAVIGATING THE TRANSITION: New standards are established to reflect market evolution

Disruption, Innovation, Opportunity :

The Power of CircularityA circular economy is one that is restorative and regenerative in design¤ ¥ ¦ § ¨ © ª « ¬ ­ ® ¯ ° ± ² ³ ´ µ ¶ · ¸ ¹ º » ¼ ½ ¾ ¿ À Á Â Ã Ä Å Æ Ç È É Ê Ë Ì Í Î Ï Ð Ñ ate change, that sounds like a nice concept, but what is it really all about, and more to the point, what can it mean to you? Well in the commercial building sector, using circular strategies can mean a lot!

In this poster, you’ll see how everyone involved in our built environment can use circular economic principles - designing out waste and pollution, keeping products and materials in use, and regenerating natural systems - to unlock innovation and generate wealth / value that isn’t bÒ Ó Ô Õ Ö × Ø Ù Ú Û Ü Ý Þ ß à á â ã ä å æ ç è é ê ë ì í î ï

So find your SuperPower and run circles around our current linear process! You’ll be part of the #4ð ñ ò ó ô õ ö ÷ ø ù ú û ü ý þ ÿ Y � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6

BIOSPHERE

BIOSPHERE

BUILDING RESILIENCE:Integrate circular economy and climate resilience in all educational systems

DESIG

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RO

DU

CE

DISTRIBUTE

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S

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RE

US

E

RECYCLE

The Circular Economy in the built environment

PRODUCT LIFE EXTENSION

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DE

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EXTENDED PRODUCER RESPONSIBILITY

PRODUCT AS A SERVIC

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NE

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NE

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WA

TER

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EMBEDDED INTELLIGENCE

WASTE AS RESOURCE/ SMART MATERIAL CHOICES

WA

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SO

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CE

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DIS

AS

SE

MB

LY

EXTENDED PRODUCT RESPONSIBILITY

PROMOTING AND FACILITATING CIRCULAR STRATEGIES

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