Learning from Project Examples: Methods for Realizing the Circular Economy

On November 9 and 10, 2021, Dentsu Inc. Japan Network Sustainability Promotion Office and Dentsu Inc. TeamSDGs held an online seminar titled "New Collaborations and Business Possibilities for Realizing the Circular Economy."

This webinar introduced future collaboration and business possibilities based on proof-of-concept experiments and case studies jointly implemented by various companies and local governments to realize the circular economy. Web Dentsu News will present a digest of its content over three installments. The final installment covers the talk session content regarding three projects co-created by the Dentsu Group and companies.

Previous articles:
・How will consumption and society change with the "Circular Economy"?
・Four motivations for companies to engage with the circular economy

 

 

Developing 100% plant-based plastic. Starting the circular economy from the material level.

First up is a talk session featuring Mr. Hitoshi Nasukawa, President and CEO of Business Innovation Partners, and Mr. Shingo Torawata of Dentsu Tech. Mr. Gen Ishizawa of Dentsu Tech served as MC.

Business Innovation Partners is the world's first company to successfully develop and manufacture bioplastic materials using hemicellulose as a raw material. Hemicellulose is a polysaccharide found in wood at approximately 20% concentration. With global annual wood production at 1.8 billion tons, this represents a potential resource of about 500 million tons. However, it is difficult to utilize effectively, with an utilization rate below 1%, meaning most of it is discarded. On the other hand, it is highly biodegradable in marine environments. Utilizing the hemicellulose-derived bioplastic material developed by the company is expected to yield significant environmental benefits, as it contributes to reducing CO2 emissions.

Dentsu Tech handles manufacturing and production within the Dentsu Group. In recent years, responding to growing client demand for sustainability, it has been involved in numerous recycling and environmentally conscious products.

This time, the two companies have teamed up to take on the challenge of developing an original environmentally friendly plastic.

Regarding the rationale for the partnership, Mr. Nasukawa of Business Innovation Partners explained, "Resin material manufacturers tend to have a product-out mindset because their strength lies in technology. On the other hand, Dentsu Inc. excels at a customer-centric, market-in approach. We believed that by deeply exploring customer needs for our products, we could open up new avenues."

Mr. Torawata of Dentsu Tech also stated, "We recognize that during the process of material development flowing from upstream to downstream supply chains, issues like cost and versatility can arise, leading to non-adoption. The Dentsu Group excels at approaches originating from the downstream domain—marketing based on market and consumer needs, or identifying what products, technologies, and materials will be adopted based on challenges and insights from numerous clients."

The material born from this collaboration is "PLANEO™️." PLANEO™️ is a 100% plant-derived plastic with high manufacturing versatility. Compared to conventional 100% plant-based bioplastics, it offers superior fluidity, enabling faster molding speeds and improved design transferability. This not only allows for the reproduction of intricate designs but also achieves reduced manufacturing costs.

Mr. Torado explained, "We've confirmed that PLANEO™️ can be manufactured to a certain extent using injection molding." He elaborated that it can handle intricate shapes traditionally challenging for conventional bioplastics, such as tableware, cutlery, and toys including figurines.

Mr. Ishizawa remarked, "Dentsu Inc. often has opportunities to produce cutlery like spoons and forks as part of client promotional activities. Making such items as environmentally friendly as possible holds significant meaning, doesn't it?"

Finally, Mr. Nasukawa and Mr. Torado each commented on the role environmentally conscious materials play in advancing the circular economy.

"Not all countries achieve recycling rates as high as Japan's. Therefore, creating materials that decompose in soil or the ocean and return to nature when recycling isn't possible is extremely meaningful for building a circular economy society," said Mr. Nasukawa.

Mr. Torado stated, "PLANEO™️ is a 100% plant-based biodegradable plastic. This means that even after it becomes plastic, it can be returned to nature. Compared to petroleum-based plastics, it also contributes to reducing CO2 emissions. The material itself is inherently circular and holds great potential for realizing the circular economy."

For more information about PLANEO™️, please refer to the article below.
・How far has the development of plant-based plastics progressed?

 

A new form of regional circularity combining food waste and biodegradable materials

Next up was a talk session featuring Mr. Kento Miyaoku, Department Head of the Value Design Department at NTT Business Solutions, and Mr. Tetsuya Kobayashi, Manager of the Market Development Section in the Sustainable Polymers Sector at Mitsubishi Chemical. Moderated by Ms. Mineko Hotta of Dentsu Inc., they discussed initiatives for "A New Regional Cycle Combining Food Waste and Biodegradable Materials."

As part of its activities contributing to regional community development, NTT Business Solutions has provided regional food resource circulation solutions since 2019. The company rents fermentation equipment to local food businesses under a subscription model to break down food waste. The resulting primary fermentation product is fully composted at recycling centers in each location. This creates a "recycling loop" where the compost is provided to contracted local farmers, returning nutrients to crops. By offering this solution at a lower cost than traditional waste disposal fees, the company achieves cost savings, reduces environmental impact, and stimulates the local economy.

Mitsubishi Chemical has developed biodegradable resins since the 1990s. Production and sales of "BioPBS™️" began in 2017. This resin is used in compostable garbage bags, disposable tableware, packaging materials, and more. Compared to other biodegradable resins, it excels in moldability, heat resistance, and biodegradability in natural environments, making it a material that also reduces environmental impact.

To further advance these regional food cycle and biodegradable resin initiatives, Dentsu Inc. brings strengths in creating contact points within the sports and events sector, internal and external communication and branding, and UX design including apps.

Through collaboration, these three companies aim to create collective impact (partnerships with diverse companies and municipalities) by launching a new regional circular initiative combining food residues with biodegradable materials. They provide solutions across broad sectors: B2G (to ministries and municipalities), B2B (to the food service and food-related industries), and to sports and events.

For example, in a proof-of-concept experiment with J.League's Giravanz Kitakyushu, "BioPBS™️" paper cups were used at the stadium. Used cups were collected and composted. Part of this compost will then be used for vegetable cultivation at a local high school. Furthermore, the harvested vegetables are scheduled to be sold at the stadium starting in spring 2022.

Paper cups made from Mitsubishi Chemical's biodegradable plastic were provided at Giravanz Kitakyushu events. Used cups were collected and composted alongside food waste using NTT Business Solutions and Well Create's "Food Waste Fermentation Decomposition Device (FOURSTARS)". Part of this compost was then used for vegetable cultivation at a local high school, with the harvested vegetables sold at the stadium. Fifteen companies and organizations, including beverage manufacturers and local governments, are participating in this demonstration project for a regional food resource recycling system centered on the soccer stadium.

For more details on Giravanz Kitakyushu's demonstration experiment, please refer to the article below.
・Paper Cups Turned into Vegetables!? Collective Impact from Kitakyushu City

This solution offers an expansion option: the "Mobile Recycling Truck." NTT Business Solutions conducted an outreach program in Hamamatsu City, Shizuoka Prefecture, where they collected food waste left over from school lunches using the recycling truck. Children observed the initial fermentation process in the equipment, learning about the importance of the SDGs.

Mr. Miyaoku of NTT Business Solutions reflects, "The children showed tremendous interest. Teachers also commented, 'This gives a concrete image of the SDGs, so we'd like not only students but also parents to participate.'"

The recycling truck collects food waste while breaking it down and simultaneously sells vegetables grown using the compost. "When collecting waste from households, supermarkets, and restaurants, we also encourage them to buy vegetables. We aim to create a local food cycle by connecting farmers growing vegetables with compost within the same area to consumers and shops," explained Mr. Miyauchi. Mr. Hotta from Dentsu Inc. expressed hope, saying, "This could also be useful for limited-time events."

Another B2B initiative involves implementing food cycle systems in corporate cafeterias, including those of the NTT West Group, and restaurant chains. For example, at Gotemba Premium Outlets, food waste from the mall is composted and used in flower beds to enhance the mall's greenery. Mr. Kobayashi of Mitsubishi Chemical explained a key initiative: "Moving forward, we'll adopt biodegradable resin not only for food but also for food court paper plates and cutlery, enabling them to be composted alongside food waste."

Finally, Mr. Miyaoku and Mr. Kobayashi shared their outlook for the future.

"By connecting with Mitsubishi Chemical's biodegradable resin, we believe significant potential has emerged for recycling food waste from restaurants and food courts—places where paper plates and cutlery were previously mixed in, making recycling difficult. We intend to continue expanding this circle of partners who will tackle challenges together with us, striving towards realizing a circular economy," stated Mr. Miyaoku.

"Precisely because social challenges are becoming increasingly complex and difficult for any single company or business type to solve alone, I believe we need diverse individuals to bring their strengths together and tackle these issues within a larger circle," stated Mr. Kobayashi.

A Food Resource Circulation Model Through Co-creation Between Local Governments, Residents, and Businesses

Finally, we introduce a talk session on the "eco-wa-ring Kawasaki Project," a food resource circulation model created through co-creation between local government, residents, and businesses. Speakers included Mr. Kota Yasukawa from the Waste Reduction Promotion Division, Living Environment Department, Kawasaki City Environment Bureau; Ms. Yuko Taira, Representative Director of Local Food Cycling; and Ms. Atsuko Kuchiba from Dentsu Inc.

"eco-wa-ring Kawasaki" is Kawasaki's food cycle program. It challenges the creation of a circular loop in urban areas: turning household food waste into compost using containers, then growing and eating vegetables.

The project is broadly divided into "Self-Sustaining Food Cycle" and "Mutual Aid Food Cycle" initiatives. The former involves companies taking the lead in operating community gardens together with local residents. It has been implemented at the observation deck of Musashi-Kosugi Tokyu Square and at the large facility Yonetty Ozenji. The latter is led by local farms, aiming for a locally produced, locally consumed food cycle where vegetables are grown using compost brought in by residents and then purchased by the local community. It currently collaborates with nine farms within the city.

Furthermore, we built and tested a platform where individuals earn points through eco-friendly actions (like bringing compost or participating in events) via an app, enabling them to receive incentives from partner companies. This system visualizes and rewards individual actions, creating a mechanism to encourage further participation.

Kawasaki City oversees the project, with Local Food Cycling participating as an expert in food waste recycling, including community garden management and composting. Dentsu Inc. handles project operation and promotion, while Trustridge Inc., operator of ethical media like "ELEMINIST," manages public relations. This collaborative project involves diverse players.

During the talk session, each participant discussed the project's significance from their respective perspectives.

Mr. Yasukawa of Kawasaki City stated, "As an SDGs Future City, we are not only taking the lead in tackling various regional challenges, but we also believe that creating a circular community in Kawasaki and revitalizing local communities will lead to solving issues not only in food waste recycling but also in other sectors."

Mr. Taira of Local Food Cycling stated, "I started this initiative originally questioning whether my own daughter could safely continue eating vegetables in the future. This led me to develop a composting system that easily recycles food waste even in urban areas. I feel the significance of this project's challenge lies in designing a lifestyle within cities that returns organic matter to the soil and circulates it."

Mr. Kuchiba of Dentsu Inc. said, "For me, there was first the desire to leverage Dentsu Inc.'s strength—our ability to connect various players, create activities from scratch, and sustain them—right at the heart of social and environmental contribution. Furthermore, while many companies want to pursue sustainable initiatives, the reality is that they often require significant money and effort, making them unsustainable. Based on the idea that 'sustainable activities should be sustainable themselves,' we decided to create a system where local businesses and municipalities can participate without strain, and where individuals' eco-actions become 'credit,' sparking further action."

The project is still in its early stages, but it has already received positive feedback from participants and numerous inquiries from interested residents. Yasukawa stated, "Many younger people find motivation in using food waste compost for gardening or growing vegetables. We hope this interest will naturally lead them to become interested in recycling and waste separation."

Mr. Taira also expressed his hopes for ripple effects, saying, "I think it would be great if people living in urban areas, by connecting with the farm operators through this project, change how they shop and choose items at the supermarket."

Mr. Kuchiba concluded by highlighting key points for project realization: "We've already received inquiries from many companies and local governments, confirming that numerous individuals are seeking opportunities to contribute to society. Gathering the three participating companies and our PR partner Trustridge to advance matters, as we did today, isn't easy. Nevertheless, collaborating with a shared vision and, above all, designing enjoyable experiences for users will be the driving force to sustain this initiative."

※This initiative was selected for the Ministry of the Environment's "FY2021 Model Projects for Reducing Food Loss and Promoting Recycling by Local Governments and Businesses" and implemented as a single-year project in fiscal year 2021.
 

This webinar broadly introduced the circular economy—covering corporate objectives, shifts in consumption and society, and current initiatives—and facilitated diverse discussions. Momentum for realizing the circular economy is accelerating globally, with various actions emerging domestically as well. Dentsu Inc. Japan Network's Sustainability Promotion Office and Dentsu Inc. Team SDGs will continue sharing insights for achieving a sustainable society through webinars and this series.