South African Business 2016 edition

FOCUS THERE’S NO END

FOCUS THERE’S NO END TO THE BENEFITS OF A CIRCULAR ECONOMY REDISA continually creates positive futures for businesses, people and the environment by driving a circular economy that will help redesign, reinvent and reuse the products we consume. Our first-of-its-kind plan and revolutionary systems are making meaningful contributions to our society – creating jobs, opportunities and brighter futures for all. The potential for our future? Endless. The path to economic growth is circular JOIN THE JOURNEY | www.redisa.org.za | /wasteintoworth | @wasteintoworth | +27 87 35-REUSE (73873) Hermann Erdmann, CEO REDISA (Recycling and Economic Development Initiative of South Africa) shares his thoughts on the importance of sustainable recycling. 2015/10/13 3:29 PM The world faces many major challenges including climate change, slow economic growth and a disproportionate reliance on mineral resources, but recent research shows that adopting circular economies could provide answers for many of these global problems. The Obama administration revealed in June that the failure to act on climate change could cause an estimated 57 000 deaths a year in the United States from poor air quality by 2100. According to the European Union the air quality in Witbank is among the world’s dirtiest – even when compared to the likes of Beijing, where people wear face masks to protect themselves from air pollution. It is no coincidence that the Witbank region is also home to 11 coal-fi red power stations. A 12th one is currently being built and when completed, this will be one of the world’s largest, burning 17-million tonnes of coal a year. We are creating an environmental debt that our children, and grandchildren will need to pay. In the same way you wouldn’t buy a car and expect your children, or grandchildren, to fi nance it, this debt isn’t fair. But the question remains, what can we do about it? The recently released international study developed by the Ellen MacArthur Foundation, the McKinsey Center for Business and Environment, and SUN (Stiftungsfonds für Umweltökonomie und Nachhaltigkeit), has shown “Europe’s economy remains very resource-dependent… Proponents of a circular economy argue that it offers Europe a major opportunity to increase resource productivity, decrease resource dependence and waste and increase employment and growth.” This situation is not dissimilar to the challenges facing the South African market, but what’s interesting is that the European market has something to learn from us. Positively, to reduce the pressure on our resources, SA has already implemented a circular economy within the tyre industry – which has become an internationally recognised case study as to how successful this approach can be. As a result of the implementation of the ‘Waste into SOUTH AFRICAN BUSINESS 2016 56

Worth’ concept for tyre waste, the European Union has appointed REDISA to serve on the advisory committee on Circular Economies to the EU parliament. Let’s move from resource-dependency For example, in cement kilns waste tyres can be substituted for up to 20% of current coal usage. This equals reduced reliance on coal -less demand for mining coal - fewer carbon emissions (as in the correct controlled environment, tyres burn cleaner than coal) and ultimately cost savings for the cement companies that are passed to the consumer. PPC De Hoek, Natal Portland Cement, AfriSam and La Farge are already doing this and realising the benefi ts. But what about increasing employment and growth? The report reveals that in Europe, the circular economy could create between 200 000- 500 000 jobs; reduce unemployment by 50 000-100 000 and offset 7-22% of the expected decline in skilled employment by 2022. BIO FOCUS In South Africa, the tyre industry was selected as a pilot project for circular economy development since the mapping of collection points are known – this is because tyres are exchanged at dealerships and not at homes. The Integrated Industry Waste Tyre Management Plan was developed to fulfi l a mandate of job creation and to bring order to South Africa’s recycling of tyres, a market that only processed 10 000 tonnes of tyres each year of the 240 000 tonnes sold. In two years, this project has resulted in more than 2 000 new jobs being developed, and over 190 SMME’s developed and supported – tangible proof that where some see waste, others see opportunity. The way forward True sustainability means balancing economic growth, infrastructure development and creating small business and job opportunities - while lowering our emissions and overall impact on the environment. The challenge is that generally, big business struggles to fi nd a balance between reducing carbon emissions, or protecting the environment, while driving a positive impact on the bottom line of the business. While interest in the circular economy approach is growing, it is happening at a slow pace. If it is to become more widespread, we must consider all industries to see how, through innovation and cooperation, we can double our efforts. Hermann Erdmann is an entrepreneur and businessman who has extensive experience in the manufacturing and retail sectors having served on a number of industry-related boards. Hermann’s interest in environmental sustainability, transformation and empowerment of the previously disadvantaged resulted in the establishment of REDISA, and the development of the fi rst approved Industry Waste Management Plan. 57 SOUTH AFRICAN BUSINESS 2016