NET ZERO PRODUCTS AND CIRCULAR ECONOMY – A POINT OF VIEW

Net Zero Products And Circular Economy – A Point Of View

Thank you for reading Net Zero Products And Circular Economy – A Point Of View

Introduction to Net Zero Products

Net Zero by 2050 – A history

Carbon Neutrality and New Product Development

Product Engineering in Circular economy

Towards Net Zero tomorrow

References

INTRODUCTION TO
NET ZERO PRODUCTS

Net Zero refers to the goal of reducing greenhouse gas emissions to zero by balancing the amount released into the atmosphere from industrial sources with the amount that is removed and stored in carbon sinks. As greenhouse gases are the primary cause of global warming, an unabated rise in their emissions can spell catastrophic climate change for the world at large.

Products and services that are designed to achieve this target goal of carbon neutrality are referred to as “Net Zero Products”.

These include, among others:

Renewable energy systems
Greenhouse gas removal technology
Green transportation
Green buildings and cities
Strategic carbon advisory services

NET ZERO BY 2050
– A HISTORICAL
PERSPECTIVE

In an act of game-changing legislature, the UK became the first major economy to advocate for net-zero. They advocated for changes to the long-term targets in the Climate Change Act of 2008, shifting it to the goal we all know today as net-zero by 2050. This was in accordance with the Paris Agreement, a binding global treaty on climate change mitigation, adaptation, and related financing

In recent years, governments worldwide have realized the sheer importance of net-zero goals. Based on research conducted by the Intergovernmental Panel on Climate Change (IPCC) in 2018, it was found that global warming must be limited to a maximum of 1.5 degrees Celsius if the world is to prevent catastrophic climate change. The key takeaways from the IPCC report are that the:

Global net level of human-caused emissions of CO2 must decline by about 45% from the 2010 levels by the year 2030, aiming to reach Net Zero by around 2050, and
Any remaining emissions would have to be squared-off by removing an equal amount of carbon dioxide from the air.

While the UK was the first economy to do so, as of January 2021i, five countries – Denmark, France, Hungary, Sweden, and New Zealand – have also passed Net Zero legislations. Additionally, in its European Green Deal for 2019ii, the European Union took a major initiative by enumerating a net-zero target for 2050, further cementing its stance on sustainable development

Meanwhile, other countries have either revised their Nationally Determined Contributions (NDC), proposed new legislation, or shown the desire to achieve net-zero by 2050. A particularly prominent example came in the form of President Xi Jinping announcing in 2020 that China would strive to become net carbon-neutral by the year 2060. As the world’s largest emitter of carbon emissions, if China were to achieve this goal, it would be an immeasurable contribution towards global carbon neutrality.

India is also considering ways to meet the 2050 target, and there are discussions among senior bureaucrats and responsible ministries on whether this can be achieved by 2047, the centenary of its independence. While such a measure would involve a major overhaul of its coal-fired economy, the country seems to be gearing up to meet the challenges involved in the transition.

The trend the world over, therefore, seems to be in favor of controlling and reducing carbon emissions, and Net Zero products have a significant role in this direction.

CARBON NEUTRALITY
AND NEW PRODUCT
DEVELOPMENT

When we talk about sustainability, it is often seen as a responsibility resting solely with world leaders, a scenario quite detached from the reality. While resolute policies pave the path, treading them responsibly comes through holistic intent of each one of us.

The carbon neutrality focus for Net Zero Products is achieved through an efficient carbon footprint assessment and carbon reduction strategies across the product lifecycle at an
organizational level [Figure 1].

Product A

Scope 1 and 2 emissions required by Corporate Standards

Scope 3 emissions required by the scope 3 standard

Product life cycle emissions required by the product standard

Figure 1: Carbon Emissions Across the Product Lifecycle at an Organizational Level

Business corporations are continuing to revisit their strategies and objectives to align them with their responsibility toward the nature. For instance, Merck recently set a goaliii to achieve carbon neutrality across its operations by as early as 2025 and reduce 30% of its value chain emissions by 2030. Various organizations, especially in the EU, are driving carbon offsetting initiatives by proactively investing in renewable energy sources and carbon lowering technologies. Governmental initiatives such as emissions trading system (ETS) is adding further impetus to industrial goals. With more and more organizations moving in the right direction, the dream of achieving a net zero state is now being backed by serious intent.

A key consideration while designing and developing new products, a key business activity, should be the establishment of practices that help synergize the economy and ecology by emphasizing the sourcing-usage-disposal journey. This is where efficient product lifecycle management can play a critical role in ensuring sustainability.

A typical product lifecycle goes through many stages, dictated by the consumer habits:

Development and Introduction: The product is developed and introduced in the market with the focus on popularizing it.
Growth: At this point, the product has been received by the customers and its sales accelerates, generating profits for the company.

Maturity: The product has now reached its pinnacle and has stayed there without showing signs of growing in popularity any further. The sales and profits have plateaued.
Decline: At this stage, the sales of the product see a continued decrease, meaning that the product is no longer as popular as its competition or as it once was.
End: After the product has run its course, it gradually proceeds to sunset, ending its lifecycle.

When the profits are rising, it may be easy to overlook sustainability goals. However, it is increasingly becoming evident that ignoring sustainability targets can expedite the emergence of the Maturity and Decline phases, therefore resulting in additional costs for frequent new product development requirements. This would have a serious impact on overall business profitability and its future capacity to scale and expand.

Organizations therefore must realize that imbibing a technology-supported sustainability culture in their organizational DNA would help streamline and future-proof their new product plans, help sustain growth, and drive profitabilityiv.

PRODUCT ENGINEERING IN CIRCULAR ECONOMY

Circular economy is a system, where we use resources sparingly and recycle every bit of used resource to produce further products.

Light weighting
Green sourcing
Sustainable product design
Sustainable packing, &
Compliance – green products

We would recommend the following framework to help businesses drive sustainable product design towards ensuring a green future:

TOWARDS A NET
ZERO TOMORROW

With the global movement for Net Zero growing ever stronger, a sustainable economic future – especially one in a post-COVID world – is one that has witnessed industries rise to the occasion. Several companies have already put their best foot forward and are leveraging available engineering expertise, global experience, and resources to address the challenges in ensuring a sustainable future. Significant investments are underway in low-carbon engineering applications, with a focus on pioneering new solutions and products that can help businesses achieve Net Zero at a rapid pace.

By acting today in creating net-zero solutions and innovations, achieving Net Zero by 2050 will be an eminently attainable target – one that will help define and secure the future for our children, and our
children’s children.

ACHIEVING NET ZERO:
HOW LTTS CAN HELP

Development and maintenance of environmentally-sound vendor ecosystems for composites recycling
Material selection services for identifying the most environmentally viable alternative
Experience in composite parts design
Transition to Product as a Service
Conversion from conventional to renewable energy
Energy Reporting and Optimization Consulting
Energy and GHG/Carbon Audit Services
Smart Manufacturing and Smart Facilities and Operations (WAGES and iBEMS)
Water and wastewater treatment, with a focus on optimizing water consumption and achieving zero liquid discharge

REFERENCES

i https://eciu.net/netzerotracker
ii https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
iii https://www.merck.com/news/merck-accelerates-climate-goals-announces-carbon-neutrality-in-operations-by-2025/
iv https://www.business.com/articles/sustainability-bottom-line/