Collaborative and circular business model

Collaborative and circular business model
©photon_photo, image #133543535, 2017, source:
Energy, Materials, Water, Waste, Carbon
All sectors
High cost
Annual saving:
10 - 50 %
Payback time:
1 - 5 Year(s)
Resource savings: Raw material:
Varies, depending on the model, and often results in indirect savings In CMS models, minimum 10-20 % savings of chemical inputs have been shown
Resource savings: Energy:
Varies, depending on the model. For example, in ESCO models, energy saving depends on the level (partial, full…) of retrofitting activities, and can range from 15 to 50 %
Resource savings: Waste:
Varies, depending on the model. Example: 10-50 % of waste is avoided in CMS or IPM models because exact amounts of chemicals/pesticides are applied
Associated cost savings: Raw material:
10 - 20%
Associated cost savings: Energy:
15 - 50%
Associated cost savings: Waste:
10 - 50%
Total cost savings:
Total cost savings can range depending on the model applied and combination of activities
Co2 emission reduction:
Varies and depends on the sectoral focus and activities, e.g. CO2 reductions achieved in sustainable energy-related models such as ESCO
Premises and operation areas:
Product and design, Production processes, Supply operations
Size of company:
Micro (less than 10), Small (less than 50), Medium (less than 250), Large (more than 250)
Advancement in applying resource efficiency measures:
Beginner, Intermediate, Advanced
What is in it for you:
New business, revenue generating niche, cost savings due to reduced use of resources and avoiding maintenance costs.
Descriptive information:

Changing the company business model can involve new services, products and approaches to sourcing resources and dealing with customers. The motivation could be to capitialise on a new value proposition aimed at current or new customers or to enter a totally new market niche.

Some new business models can result in substantial material- and energy savings via a shift from the 'traditional model' focusing on selling more products to models that emphasise the functionality, services, or benefits of the product. The resource efficiency is achieved because the service provider is motivated to extend the life-span of the product by making it more durable, reducing the need for spare parts, making it more energy efficient and improving the maintenance of the product.

Some business models focus on offering a certain quality standard or performance of a service. For example, promoting 'high-quality lubricants' for car engines instead of simply selling 'engine oil', or 'comfortable walking' instead of 'floor carpets'.

Some models focus on optimising the inputs, such as the energy, chemicals, detergents, or fertilisers. Examples here include energy service companies (ESCO), chemical management services (CMS), integrated pest management (IPM) and performance-based pest management (PPMS).

Renting- and sharing-based models are not new, but digital developments now make it easier, safer and more reliable to do it. The most known examples are car-pooling models like BlaBlaCar and short-term room- or house-letting services like Airbnb.

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