Circular Value Chain

GUIDELINES

Group Assignment:

Context
Many industries still operate within a linear "take-make-dispose" framework. However, the
shift towards a circular economy is gaining momentum. Your team will utilise the Circular
Startup Index to evaluate the current level of circularity of a selected case study and
propose strategies to enhance its circular potential. This assignment will challenge you to
apply concepts and approaches from the course to assess and improve real-world
circularity.
Steps
1. Select a Case Study
Use the Circular Start-up Index to select a product, service, or company. All cases are
already contributing towards the circular transition : Coffe-eco : https://coffe-eco.gr/
2. Assess the Current State of Circularity - Camille
Map the Value Chain: include major stages of the product/service life cycle. Where
possible.
Evaluate Circularity:
Analyse how circular the value chain is currently (reuse, recycling, remanufacturing,
etc.). Where possible, include LCA data, references etc.
Identify inefficiencies, linear elements, and points of waste generation, unintended
consequences and other areas that could be improved.
3. Propose Circularity Improvements Paul
Use concepts and approaches from the course to develop strategies that increase
circularity (e.g., business model approaches, cradle-to-cradle thinking, etc).
Focus on the most impactful strategies for addressing inefficiencies and improve levels
of circularity.
4. Evaluate the Impact of Proposed Solutions Francesca
Environmental Impact: Quantify or describe potential reductions in CO₂ emissions,
waste, and resource use. Use evidence where possible.
Economic Feasibility: Assess cost savings, potential revenue streams, or business
opportunities. Use evidence where possible.
Social Benefits: Evaluate improvements such as job creation, stakeholder engagement,
and broader societal advantages. Use evidence where possible.
5. Develop an Implementation Roadmap Adrien Salle
Steps for Circularity: Provide a phased plan to implement proposed solutions.
 Challenges and Enablers: Discuss barriers (e.g., regulatory, technological, cultural) and
enabling factors (e.g., policy support, innovation, funding).

ANSWERS

PART1 : Assess the Current State of Circularity

Slide 1 : The value Chain

Coffee CO is a greek start-up that was launch in 2018. They knew that greece has a big
market and trade in coffee, however, only 5% of the fruit is used and the rest was buried.
They decided to create a company that would change this linear product to a circular one.
They started in Greece, by collecting the coffee waste to:
1. Make skincare product out of the active ingredient
2. Collect the rest of the fruit to create a bio-plastic fiber
The skincare products are then returned to the coffee shops and the plastic is used for the
tubes of the products and sold to other partners.

Make a schema:
Collection of Coffee Waste in coffee shops in Greece >Transportation to their manufacturing
industry in Patras > Processing and Extraction (proprietary extraction process to isolate
natural compounds. This process can transform 1.9 kg of coffee waste into 10 kg of upcycled
coffee active ingredients or 6.5 kg of bio-based plastic. ) > Production of the Skincare
materials and then in pieces > Distribution to the coffee shops they collected the coffee

!! NB: make a circular value chain !!

Slide 2 : The circularity of the value chain

If we conduct research on the Life cycle of Coffee Eco based on the life cycle inventory, let’s
then evaluate the Life cycle impact assessment.
 ● Carbon Footprint:
○ Reduction in CO2 emissions by collecting coffee waste from Greece and
processing it nearby, transportation emissions are reduced + alternative fuels
are used
○ The company uses coffee-based plastics instead of polypropylene which
reduces carbon footprint and dependency on non-renewable resources

● Water Footprint:
○ Not using a new plantation of coffee that consumes a large amount of water.
○ Most of the material are reused and plastic is made out of the coffee which
uses less water too
○ Question : However, we have no clue on the treatment they do to the coffee
once they receive it, to be reusable = how much is that consuming ?

● Waste Management:
○ Spent coffee grounds from shops and process it into high-value materials
such as bio-based plastics and skincare ingredients to return it to the coffee
shops

○ The process uses natural components to avoid waste as much as possible in

the coffee industry.
○ Question : However, we have no data on the waste the company does and on
how it recycles it
○ Question : We don’t know about the kilograms of coffee-based plastic that
can be avoided or the other components that are maybe CO2 consuming

Slide 3 : Areas of improvement

1. Logistics Optimization
○ Implementing a hub-and-spoke model for collection to reduce fuel costs and
emissions
○ How are fruits transported ? From boat from the islands ? With trucks ? Can
it be optimized with other companies to make sure the means of transports
are full !
2. Waste Utilization Expansion
○ Is all the coffee fruit exploited enough ?
○ Is there any other product from another branch to use as well ?
3. Renewable Energy Integration
○ Using solar or other renewable energy sources for processing to reduce
carbon footprint
○ What is the consumption of the factory ? Water, energy ?
 ○ What energy did they opt for ?
4. Linear element
○ Are the tubes recycled and collected after their usages ?
○ How much are they polluting ?
○ Would it be possible for clients to drop them at the store once they are
empty ? Or have a system of filling its tubes again in store ?

Part 2: Circularity Improvements

1. Logistics Optimization

-> Implementing a Hub-and-Spoke Model for Collection to Reduce Fuel Costs and Emissions

A hub-and-spoke model centralizes collection points (hubs) where coffee waste from
various sources is aggregated before being transported to processing facilities. This
approach can significantly reduce transportation distances and associated emissions.

Transportation of Coffee Waste:

● Current Methods: Coffee waste is typically collected from urban centers, cafes, and
industrial coffee producers. Transportation methods vary based on geography and
infrastructure.
● Optimization Opportunities: Collaborating with other companies to share
transportation resources can ensure that vehicles operate at full capacity, thereby
reducing the number of trips and overall emissions. For instance, partnering with
local businesses that have complementary logistics needs can lead to more efficient
use of transportation networks.

2. Waste Utilization Expansion

-> Exploring Comprehensive Use of the Coffee Fruit and Other Potential Waste Streams

Beyond spent coffee grounds (SCG), the coffee fruit (comprising the husk, pulp, and
mucilage) offers additional opportunities for valorization.

Utilization of Coffee Fruit:

● Current Utilization: Often, components like the coffee husk and pulp are
underutilized and may contribute to environmental pollution if not managed
properly.
● Potential Products: These by-products can be transformed into various value-added
products:
○ Animal Feed: Processed coffee pulp can serve as a nutrient-rich feed for
livestock.
○ Compost and Fertilizers: Coffee waste can be composted to produce organic
fertilizers, enhancing soil health.
○ Biofuels: Coffee grounds have been explored as a source for biofuels,
contributing to renewable energy solutions.
Exploration of Other Waste Streams:

● Agricultural Residues: Investigate the feasibility of utilizing waste from other

agricultural processes, such as fruit peels or nut shells, which can be upcycled into
valuable products.

3. Renewable Energy Integration

->Utilizing Solar or Other Renewable Energy Sources for Processing to Reduce Carbon
Footprint

Integrating renewable energy into processing operations can significantly diminish the
environmental impact.

Energy Consumption in Processing Facilities:

● Typical Consumption: Processing facilities consume energy for roasting, drying, and
machinery operation. Water usage is also significant, especially in processes like
washing and cooling.
● Renewable Energy Options:
○ Solar Energy: Installing solar panels can provide a sustainable energy source
for operations. For example, Nestlé's coffee factory in Veracruz operates on
green electricity, showcasing the feasibility of such initiatives.
○ Biogas: Utilizing biogas systems can convert organic waste into energy,
further closing the loop in waste management.

4. Addressing Linear Elements in Packaging

->Enhancing the Sustainability of Packaging Materials and Promoting Recycling Initiatives

Packaging plays a crucial role in product sustainability. Transitioning from linear to circular
packaging systems can reduce environmental impact.

Current Packaging Practices:

● Material Use: Assess whether packaging materials are recyclable or biodegradable.

● Post-Consumer Collection: Evaluate if there are systems in place for collecting used
packaging from consumers.

Improvement Strategies:

● Recyclable or Reusable Packaging: Design packaging that can be easily recycled or

refilled.
● Consumer Engagement: Implement programs encouraging customers to return used
packaging. For instance, offering incentives for returning empty containers to stores
or providing refill stations can promote sustainable consumer behavior.
Praneeth, for the slides you can do the following:
-for logistic optimization: a map-style infographic showing a hub-and-spoke system
-for waste utilization: a flowchart showing coffee waste transformed into multiple products
and an image of coffee waste with arrows leading to various uses
-for renewable energy integration: a factory illustration with solar panels and green energy
sources, and a bar chart comparing energy consumption before & after renewables
-for linear elements in packaging:a before-and-after comparison of traditional vs.
sustainable packaging

Part 4: Evaluate the Impact of Proposed Solutions

SLIDE 1→The Impact of the Hub-and-Spoke Model

1. Environmental Impact
The hub-and-spoke model has been shown to reduce CO₂ emissions significantly by
optimizing transportation routes and consolidating shipments indeed studies on similar
logistics models have shown 25-30% emission reductions.
For example, research focusing on multimodal logistics networks with carbon emission
reduction targets highlights that such models can achieve substantial CO₂ savings while
maintaining operational efficiency.
Forecast→Assuming Coffee CO collects 40,000 tons of spent coffee grounds annually in
Greece, this could translate to a reduction of approximately 200-240 tons of CO₂ emissions
per year from transportation alone.

2. Economic Feasibility
The hub-and-spoke model reduces transportation costs by optimizing vehicle
utilization. Evidence from logistics studies indicates cost savings of up to 20-25%
due to better resource allocation and reduced fuel consumption. For the company,
this could mean annual savings of tens of thousands of euros, depending on their
current logistics expenses.
3. Social Benefits
This approach creates jobs at collection hubs and strengthens collaboration with
local businesses. It also enhances community engagement in sustainable practices,
as centralizing operations often involves partnerships with local stakeholders2.
SLIDE 2→ The impact of waste utilization expansion
1. Environmental impact
Comprehensive utilization of coffee waste could divert thousands of tons from
landfills annually. Converting coffee pulp into animal feed or fertilizer could reduce
methane emissions from decomposing waste.
- Studies have shown that composting coffee husks improves soil organic
matter by up to 31%, enhancing carbon sequestration.

- Research on biofuel production from agricultural waste demonstrates that

coffee grounds can be an effective renewable energy source, further reducing
greenhouse gas emissions.

2. Economic feasibility
Diversifying into new products from coffee waste opens up additional revenue
streams. The global market for bioplastics is projected to grow at a compounded
average growth rate (CAGR) of 16.2% from 2022 to 2031, presenting a significant
opportunity for Coffee CO's bio-plastic fiber products.
Additionally, fertilizers and animal feed derived from coffee waste can generate new
revenue streams while reducing raw material costs.

3. Social Benefits
- Expanding waste utilization could create jobs in research, product
development, and manufacturing.
- It also contributes to the circular economy, potentially inspiring other
industries to adopt similar practices.
- It also promotes sustainable agricultural practices, benefiting farmers who
use organic fertilizers derived from coffee waste.

SLIDE 3→The impact of renewable energy integration

1. Environmental impact
Integrating solar energy into processing operations could significantly reduce Coffee
CO's carbon footprint.
For example, Nestlé's coffee factory in Veracruz, which operates on 100%
renewable electricity, has reduced its CO₂ emissions by over 10,000 tons
annually.
Moreover, research on renewable energy integration in industrial processes shows
that solar energy systems can cut electricity-related emissions by up to 90% over
their lifetime.

2. Economic feasibility
Although the initial investment in solar panels or biogas systems is high, long-term
cost savings are significant. For instance, solar energy can reduce electricity costs
by 70-90%, with a typical payback period of 5-10 years.

3. Social benefits
- Adopting renewable energy enhances Coffee CO's reputation as an
environmentally responsible company, potentially attracting environmentally
conscious consumers and partners.
- It also contributes to local energy independence and resilience.

SLIDE 4→ The impact of addressing linear elements in packaging

1. environmental impact
Transitioning to recyclable or reusable packaging could significantly reduce plastic
waste.
If Coffee CO implements a successful return program for their skincare product
packaging, they could potentially achieve a 70-80% return rate, similar to successful
deposit return schemes for beverage containers.
Studies on circular packaging systems show that they can lower overall
environmental impacts by reducing resource extraction and waste generation.

2. Economic feasibility
While designing recyclable or reusable packaging involves upfront costs, it leads to
long-term savings. Circular packaging systems have been shown to reduce costs by
15-25% compared to single-use packaging over time.

3. social benefits
Engaging consumers in recycling programs fosters environmental awareness and
encourages sustainable consumption habits. Incentives for returning used
packaging also enhance customer loyalty and brand reputation.