The Sustainable Enterprises Network (RedES) drives changes towards sustainable production systems in companies and value chains in order to improve efficiency and competitiveness. Since 2013, RedES has been applied in Cundinamarca, Colombia through the RedES-CAR program. In this program, 550 companies have adopted the circular economy strategies of Cleaner Production and Industrial Symbiosis. These companies formulated 507 initiatives with total savings of $55,534 million COP. The projects avoid the generation of 47,857 tons of residues per year, and the emission of 81,907 tons of CO2 with annual savings of 2,018,765 m3 of water and 30,396,820 KWh per year of electrical energy.
Introduction
In recent years, Latin American countries have advanced in policies and strategies that promote the implementation of Circular Economy (CE). According to Ellen MacArthur, CE is a cycle of sustainable development that optimizes the use of resources and minimizes risks (Ellen McArthur Foundation, 2014). Particularly, Colombia has adopted policies that promote CE as the Sustainable Production and Consumption Policy (2011) and the National Circular Economy Strategy (2019).
The materialization of these policies in concrete initiatives in the private sector is challenging. Within this framework, the Universidad de los Andes developed the Sustainable Enterprise Network (RedES in Spanish) methodology. RedES drives changes towards sustainable production systems in companies and value chains to improve efficiency and competitiveness. The model is based on three pillars: learning by doing, change strategies and network collaboration. RedES builds capacities in companies that are translated into improvement initiatives with economic, environmental and productive benefits. The RedES model applies circular economy strategies such as Cleaner Production (CP) and Industrial Symbiosis (IS). CP promotes the optimization and the efficient use of resources through good practices, process redesign and technological innovation. While the IS shows opportunities for collaboration between companies from the same or different productive sector. These opportunities include exchange of by-products, shared use of infrastructure and services, and closing the material loop. Since 2013, the RedES methodology was applied in Cundinamarca, Colombia in the RedES- CAR Program as a result of the triple helix partnership among private companies, public environmental authorities with the Environmental Authority of Cundinamarca (CAR) and the academic sector with Universidad de los Andes.
Methodology
To achieve its objectives, the RedES methodology includes: (i) formation of chains of companies and (ii) training company participants in CE tools. The formation of chains of company changes with the CE strategy (CP or IS). In CP, the process begins with an anchor organization that promotes the articulation of suppliers and customers in its value chain. Generally, between 10 and 15 companies are selected based on technical criteria and in conjunction with the leader company. In SI, groups between 15 and 20 companies with opportunities to exchange by-products, share infrastructure and services and close the materials cycle are formed. The groups focused on the closing of the cycle are made up of actors along the value chain of the material. In 2019 RedESCAR focused on closing the plastic loop, the group included producers of raw materials, processors, customers and collectors. Capacity building in the RedES methodology is based on learning by doing. In CP, participants learn practical circular economy tools and apply its in their companies. The training is carried out in 10 sessions and two modules: (i) Business competitiveness and CP (3 sessions) and (ii) Application of CP in companies (7 sessions). This allows analyzing the company and formulating sustainability initiatives with economic and environmental benefits. In IS, companies apply IS concepts, analyzing inputs, outputs and circularity of their productive operations in 8 training sessions. The IS strategy also promotes communication with the aim at formulating collaborative projects with economic and environmental impacts.
Results
The CP strategy has been applied since RedES- CAR Program began in 2013. About 447 companies have participated in this strategy and 474 projects has been formulated. The types of projects can be divided into best practices (31%), new activities (27%) and technological innovation (42%). Best practices are adjustments in operational procedures and parameters. New activities result from adjustment of components and system changes. The remaining typology consists on modifying and updating existing technology. Table 1 [sic – means Table 2] summarizes the economic and environmental benefits achieved in the CP strategy.
The IS strategy has been applied in 73 companies that have formulated 60 business collaboration initiatives since 2016. The types of IS projects are closing of the materials loop (50%), exchange of by-products (40%) and sharing of infrastructure or services (10%). Closing of materials loop promotes the use of materials in other applications through practices such as recycling and reuse. While the exchange of by-products allows to value materials flows. The output material of one company is used as raw material for another. Finally, some companies agree to share infrastructure for water treatment, sludge or waste management. This is an example of exchanging products to services.
Conclusions
The RedES methodology is an effective model for the adoption of circular economy strategies, such as CP and IS. RedES drives changes towards sustainable production systems in companies and value chains in order to improve efficiency and competitiveness. In Colombia, the model was applied with the RedES-CAR program with quantified environmental and economic benefits in formulated initiatives. In the CP and IS strategies, 507 projects were formulated of which almost 60% of the initiatives were implemented. Moreover, RedES-CAR showed the multiplication of the methodology. The program started in 2013 with the participation of 42 companies and in 6 years, the CP and IS methodology escalated to more than 550 companies.
References
Arango, A., Quintero, J. C., Duque-Hernández, J., Triana, P. A., Duarte, D. M., “Programa RedES-CAR – Cadenas Fenavi, Lao Kao (restaurantes wok), Alpina y Fedepapa” in Universidad Externado de Colombia Casos de incentivos sociales y de mercadeo con impacto en el desarrollo sostenible, Colombia, Pacto Global Red Colombia, pp 153-169.
Ellen McArtur Foundation (2014), Towards the Circular economy, Economic and business rationale for an accelerated transition, NY.
Van Hoof, B, Duque-Hernández, J., Gómez, H., Saer, A. (2015). RedES-CAR pionera en la Transformación Productiva de Pymes. Colombia: Universidad de los Andes.
Van Hoof, B. (2014). “Organizational learning in cleaner production among Mexican supply networks” Journal of Cleaner Production, Vol. 64, pp. 115-124.
Van Hoof, B., Duque-Hernández, J., Gómez, H., Saer, A. (2018). Liderazgo Ambiental para la transformación productiva: lecciones de América Latina. Colombia: Alfaomega- Universidad de los Andes.
Van Hoof, B., J. Duque-Hernández, J. (2019), Supply chain management for circular economy in Latin America: RedES-CAR in Colombia, Universidad de los Andes, Facultad de Administración, Bogotá.
Van Hoof, B., Gómez, H. (2015) Pyme de avanzada: motor del desarrollo en América Latina. Colombia: Universidad de los Andes Van Hoof, B., Lyon, T. (2013). “Cleaner production in small firms taking part in Mexico’s Sustainable Supplier Program” Journal of Cleaner Production, Vol. 41, pp. 270-282.
Van Hoof, B., Thiell, M. (2013). “Collaboration capacity for sustainable supply chain management: small and medium sized enterprises in Mexico” Journal of Cleaner Production, Vol. 67, pp. 239-248.
Van Hoof, B., Thiell, M. (2015). “Anchor company contribution to cleaner production dissemination: experience from a Mexican sustainable supply program” Journal of Cleaner Production, Vol. 86, pp. 245-255.
Source: United Nations Environment Programme (2021). Compendium of case studies on solid waste management.
