Impact of supply chains on air, soil, and water compared with direct operations (consumer-sector example)
11.5x
19x
24x
Land use
Water use
Food and beverage
Supply chains represent the largest opportunities for investment
of greenhouse gases come from supply chains
80%
yet only 25% of companies engage with suppliers to address this
in 4 industries studied
Supply chains hold the key
2x
~14 garments
represents
for every person on earth
doubled
has
from 2000 to 2014
100 billion
exceeded
for the first time in 2014
The number of garments produced annually
Increase in clothing industry's environmental impact, 2015–25 (projected)
+7%
+20%
+77%
Land
use
Water
use
CO2 emissions
The environmental impact of “fast fashion”
Discarded PET bottles
Waste tires
Boost to profits from discarded PET bottles,
$/metric ton
Full
Advanced
Basic
Bottle-to-bottle recycling, from bottle-only collection
Polyester recovery, from mixed recyclables or plastics
Energy recovery from mixed waste with no additional sorting
360 to 590
155 to 315
–105 to –145
Waste tires
Discarded PET bottles
Boost to profits from waste tires,
$/metric ton
Full
Advanced
Basic
Crumbing (ie, reducing tire rubber to uniform granules)
Tire-derived fuel
Metal recovery through burning
165 to 295
75 to 130
10 to 15
Building a business from waste
optimizing
(improving product efficiency and removing waste from supply chains)
can benefit from
28 industries
Sharing
Exchanging
Optimizing
Looping
Virtualizing
Regeneration
sharing
(promoting the sharing of products or otherwise prolonging product lifespans through maintenance and design)
can benefit from
22 industries
Sharing
Exchanging
Optimizing
Looping
Virtualizing
Regeneration
virtualizing
(delivering goods and services virtually)
can benefit from
19 industries
Sharing
Exchanging
Optimizing
Looping
Virtualizing
Regeneration
exchanging
(replacing old materials with advanced renewable ones or applying new
technologies such as
3-D printing)
can benefit from
16 industries
Sharing
Exchanging
Optimizing
Looping
Virtualizing
Regeneration
looping
(keeping components and materials in “closed loops” through remanufacturing and recycling)
can benefit from
15 industries
Sharing
Exchanging
Optimizing
Looping
Virtualizing
Regeneration
regeneration
(shifting to renewable energy and materials)
can benefit from
11 industries
Sharing
Exchanging
Optimizing
Looping
Virtualizing
Regeneration
Of 28 industries participating in a recent study, all were shown to benefit by adopting some circular-economy activities
Circular-economy activities
Companies that focus on environmental and social performance may reap profit opportunities their competitors miss
June 2017, McKinsey Quarterly
Mapping the benefits of a
circular economy
