Cambridge Institute for Sustainability Leadership (CISL)
REALCAR project circular economy case study: Collaboration for a closed-loop value chain
January 2016 – This closed-loop case study explores the lessons learnt from the REALCAR closed loop value chain project between Jaguar Land Rover, Novelis, Innovate UK and partners, in the creation of new materials and production systems to introduce closed-loop aluminium into Jaguar Land Rover cars.
Under increasing pressure to optimise the use of man-made materials, Jaguar Land Rover started using aluminium in its vehicles' bodies to reduce weight and tailpipe emissions and improve fuel consumption. However, with aluminium more energy-intensive to produce, the manufacturer needed a new method to reduce costs and environmental impact during production. Its material supplier Novelis also had a long-standing commitment to increasing its use of recycled materials year-on-year and required a like-minded customer with a similar appetite for improving sustainability performance.
Whilst the case study focuses on the REALCAR project, its findings are applicable to the creation and transformation of all value chains and other collaborative circular economy projects. Companies in other sectors that embrace ‘circular’ supply chains/value chains can benefit from the understanding and application of the insights presented here.
There must be high confidence about the across-the-board suitability of the material selected for a closed loop.
Establishing a value chain network
Traditional transactional supply chain thinking must be replaced by a value chain approach in which partners work in true collaboration to achieve goals for all parties. It is essential that a thorough communications and engagement plan for each stakeholder is in place.
Progressive leadership
Unwavering support and advocacy at a senior level provides confidence and momentum – and a forum to help remove roadblocks.
