 Fy enw i ddaftoddiad. Ddaf yn dweud felly gweithio yma. Dyma hwn yn gweithio, i ddaf yn gweithio yn pawb i ystod hynny. Fe oedd angen Interview Fy Llyr Fy Llyr Fy Llyr Fy Llyr Fy Llyr Fy Llyr ac mae'r ysgrif beneficial ond yma, mae'n gweithio yn petr ifrithu'r cyffredinol yn y cyd-dwylo. Wedyn yw'n credu rôl, mae'm yn ganun o phobl yn unig ac mae'n ei angen. Ie ddweudio an organised meeting. We started, yesterday, with Bankimoon kicking off a major campaign here in this very meeting, setting the ground for what he hopes will be successful UN climate talks in Lima in 2016. We're really upping the ante today, we have a significant major plenary on climate change immediately after this session. Which will follow until 11 o'clock. Feesuring a number of high profile leaders including again Bankimoon, Bill Gates, Al Gore and others. Now more immediately it's my great pleasure to be able to announce two very and significant initiatives that are being launched at the annual meeting here. One is a report on the circular economy. We're led to believe that the circular economy could raise a trillion annually in addition to the global economy by 2025. But we're not about talking, we're not about research, we're also about actions. So I'm also pleased to be finding more about project mainstream. Without further ado, I'll just introduce my panel. I'll invite them to make a few opening remarks and then we'll have questions. So to my immediate left here, we have Ellen McArthur from the McArthur Foundation, Ian Cheshire from Kingfisher PLC, the chief executive officer, Ffajr-Cybismar, chief executive officer of DSM of the Netherlands. Dame Ellen, would you like to start by introducing project mainstream in the circular economy? I'll start by just explaining what the circular economy is and the easiest way to define that is to look at our current global economy nad waterONGER that we could define as a linear economy. Economy, which is fuealed by taking something out of the ground, making something out of it and ultimately that product predominantly gets thrown away, it's not designed to fit with any kind of bigger system And when we look at some of the example of the circular economy we look at how you shift the system for being linear where you take, make and dispose to how you're able to recover materials through changing running models but also the design of the product. And the circular economy in itself is a systems level change Diolch i'r Satru'r talks yma i bobl ffyrdd o'r llwydd dros rhesaw. Roedd yn ddim ddewch ar y syni fel ar y cyffredinol, yw'n ystafell ar gyfer i bobl yn llawu'rrell? Ym hyn o'r nefyddsod o'r economa, o'r Phyllips, mae'r newyddllig yma sy'n pupun o'r Lleithiwnol? Yn gymhreifft haf y mhyselwch ond, yna swydd cyfrindiau cyllid yn ei ddaduniau. Felly drif wedi'u peth o gwyddoedd. Dail yn 450 mumyn ar desgheith, mae gyda'n felly o fynd i gy乜 yr hyn arall. Ffelly mae'n gofyn nhw'n gofyn nhw, r infawr hefyd yn gofyn nhw, mae'n gofyn nhw, rwy'n gofyn nhw, rwy'n gofyn nhw, rwy'n gofyn nhw'n gofyn nhw, oherwydd mae have better technology, boedd fyddechrau ei gyrhau'n bob yn echwan o'r anim, rwy'n gofyn nhw o fficio rydyn yn gofyn nhw. Yn hyn yr eich cyfle o'r hwn sy'n gofyn nhw'n gofyn nhw, ac yn ddesinio eu bod nhw'r byd gennych dyma i'ch gwneud ei fod yn sicr yn gwneud i'w bod ei fod yn cyd- yield ac yn ddesinio'r byw'r sylwg sy'n beth o'r bod y byd yn y blaenau, dwi'n bobl ychydiguaeth yn y cyfrudd. Felly y gallwn ychydigai'n cy lle i'r proiect. Roedd yn bobl i gael i'r perffasu ei ddam yn adeilad rydyn ni, sy'n cael eu han leathern yn ei gwerthu i sianfodol. Roedd nhw Ian i amser cyfodol iawn o fwyf yn ei gwerthu i'r cyfodol iawn. But it's about change in the total economy. This is an economic opportunity which we've seen is worth trillions. We've been working on the numbers for the last three years with McKinsey. We've brought out two reports here at the World Economic Forum last year and the year before. Adding them together, it's an economic opportunity worth over a trillion USD. So we're looking at project mainstream as being a project which can unlock some of those stalemates within the economy. So we've got great examples of companies who are doing this now. mae'n gweithio mynd i dwylo cyfrifio ddwylo'r cynhyrchu cyfrifio'r cyfrifio i ddylwn shared. Ond, i safnod, o beth o'r llyfr y maen gwybod, y dwylai ytodol, mae'n dweud reall os gwlad o psyllhau ffeilio gan gyfer colegolau gweldol a'r gweithio'r cyfrifio. Yna, mae'n gweithioodol, mae'n gweithio'r medryg. Mae'n gweithio'r gwisgafo'r cyfrifio sy'n gobeithio graddau'r mirthol yn gweithio'r collin. ymwneud ym mwylo'ch cynllun o'r ddiolch yn ymwneud. Mae'r project yma yma yn ymbyn gweithio'r byd ymwneud ymlaen nhw'n gweithio'r bydd ymwneud, ymwneud, yr ymwneud, a ymwneud ar y gweithio'r concept. Rwy'n meddwl i'r cyflwyno sydd ymwneud a'r cyflwyno'n ymwneud. Mae'n meddwl i'r cyflwyno'r project ymwneud yn 500 miliwn. Yn 5 ymwneud, 100,000 newydd ymwneud, ac mae eich cyntaf meddwl 100 miliwn o'r material held. Mae o bobl yn eich llais o boblau o bobl a bobl yw meddwl ydy'r hynny. Dwi'n hoffi'r angen o'r rôl, ergyntgenwyr arferio, yn y Medius, mae'r cenderwydd yn gweithio graddau i'r解frifiadau. Mae'r начgwys pigoedd, roedden nhw wedi'u trefio ar gyfer 2500 mlynedd a 100 miliwn o'r wast' gryffau ar ôl ydweud datblygu'r cyfrifiadau. Edrynau'r ddysgu'r ddysgu'r ddysgu, mae wir yn dweud bod cyflog arwain ychydig. Yn y bryd o'r ddysgu, mae yw'r ddysgu'r ddysgu'r ddysgu'r ddysgu? Ar y cyflog ar y ddysgu yma? Yn ymlaen i'w bryd i'w ddechrau'r economi? Wel, wrth gwrs. Rhaid i'n ffawr yw'r cyflog ar gyfer yw'r cyflog ar gyfer cyflog? yn y syniad. Mae'n ddweud yma'r cyfnod o'r ddweud o'r ffwrdd o'r gweithio ar y dyfodol yma yn 10 o 15 yma. Yn y cyfnod o'r reitaeler yw'r dyfodol, mae'n ddiddorol yma'n ddiddorol, ond yn ymgyrch yn ymgyrch ymddangosol, mae'n ddiddorol, mae'n ddiddorol yma'n ddiddorol yma. Ond mae'n ddiddorol ei fod yn ddiddorol i'r ddiddorol a'r prinsio'r ddiddorol, a'r ddiddorol wedi'i ddiddorol i'r ddiddorol. Really the opportunity with project mainstream. But to give you the business case for it, and the reality we see, is both defensive and offensive. So defensively, we're seeing material prices endlessly go up. A very humble example, our orange bucket being cue used to cost a pound, and now cost one pound 50 and the bad news is I'm not making any more money on it. It's just the cost of plastics that continue to go up as energy prices have gone up, and we see that across a whole range of areas. Felly, mae'n mynd i wneud ond yw yw timbur, mae'n mynd i gael i'r ddweud yn gweithio'r cyfnod o'r holl. mae'n fyrdd i'r holl ddau 100% ar y cyfnodau cyfnod ar ôl 16,000 o ddau newydd. Mae'r hyn yn du yn gweithio'r cyfnod, mae'n sylw, ond mae'n 70% o'r go. Mae'n ddweud yn fawr i'r bobl yn i'r gweithio'r cyfnod ac mae'n ddweud yn oes i'r cyfnod, mae'n ddweud i'r cyfnodau ond o'r bydau. new business model some of things we've talked about so the power tool for example use six minutes a year on average can we redesign it in a way that it's designed to be recycled disassembled sold maybe five times in its life cycle ground and we make our money leasing it on a paper use basis perhaps through community tool chest a completely different model from a transactional model of retail and much more fundamentally sustainable in a circular way so we're looking to put a thousand products out so that we can get to that are genuinely circular economy products and final point I make to echo what Ellen said is this has to be a collaborative process we cannot get to these places on our own we've just recently launched a kitchen work top which is made out of the waste from our stores so our stores waste is producing a product that's really been made possible by a valia and a very innovative engineering company those sorts of partnerships going to be critical to this so we really look forward to being part of mainstream and helping you to succeed thank you Fico we've we've been hearing about this is almost a defensive measure we're seeing raw material cost soaring so we need to do something about it but also new business models new opportunities how does how does the circular economy fit for DSM very much so we all know about the problems in the world to maybe list them again of course the whole issue around climate change but also the whole issue about the use of resources the billion richest people in the world using 40 50% of all resources in the world we have scarce resources in the world and we need to address that no there are no scarce resources in the world the only scarce resource in the world is in fact helium every day a little bit of helium is leaving this stratosphere and every other molecule atom remains on this planet that's the good news this planet is a circular system the only thing is we made them scarce resources because the carbon atoms which were under the ground in for a way of fossil coal oil and gas we put on now largely the same carbon atoms into the air metals we put them in big dirty places where we cannot distract them anymore etc so the way we have designed our economy and like Ellen is saying we made the economy linear instead of circular but basically the world is a circular system so what we need to do is to rethink our model and I'm very grateful for the work Ellen did and putting circular economy really on the map and it is the only way I think to get out of of this let me give you two examples of our company one is to use those carbon atoms which were in the ground in the past and now in the air and use CO2 as a raw material do we have the technology are we developing the technology right now to use CO2 as a raw material instead of using fossil resources yes is it commercially attractive no is that due to the technology partly due to also governmental policies not to tax fossil resources and to have a very fluctuating CO2 pricing in Europe yes also policies of governance can play a role but let me give you another example which has astonished me over the years if you look to the same oil and gas industry maybe something positive about that industry that industry have optimized its supply chain in 150 years to any tiny little detail every tiny little fraction is recovered look to the agriculture industry not 150 years old but 10,000 years old more than 50% we show away as waste what we do right now is take the waste from the agriculture industry and upgrade that waste instead of burning it and creating CO2 upgrading that into fuels into materials etc we are investing at this moment hundreds of millions in new factories in the United States using waste which we do not consider as waste anymore but as raw materials in a circular way to bring that back into the economy and are many of those examples and then if you embrace on that the circular economy and the whole issue of climate change the whole issue of constraint of resources becomes an opportunity for growth for companies become an opportunity for this really green growth so I think it's nothing to be afraid of there's nothing to think well just the only way out no it is a great opportunity for many of us involved thanks okay thank you we have time for questions I have one of my own maybe it's the form of journalists in me I can't just kind of help myself we've been talking about the circular economy for quite some time and in fact in that in the release it mentions Pt is an early forerunner a pioneer of this model we've had cradle to cradle that was back in the 80s maybe even before then and we're going to have to wait a longer period before it becomes truly mainstream or can we accelerate this this this transition to a circular economy I think one of the things that we've seen is that from 2002 there's been a big shift in commodity prices we've seen basically a century of price declines are raised in 10 years and that's put huge pressure on the global economy it's put the pressure on you know Ian's company when you look at the price of plastics for the bucket and when you look at the global outlook we're looking at three billion new middle class consumers coming online in the next couple of decades you know we've seen a century of price declines are raised in 10 years and yet there's going to be three billion new middle class consumers in the next two decades so that puts yet more and more pressure on those resources as Fika said which are scarce we've made them scarce so we need to shift the system to allow those resources to flow back into the economy and often what we see when we do that is that the manufacturing energy requirement goes down so you could say actually this is about cycling and shifting the economy but you know if we're remaking everything we're going to use more energy but if you remanufacturer is one example and we have many in our first report you actually take the energy levels down you need less energy there's only 25% of the embedded energy in a remanufactured engine when you compare that with a new one yet it have the same warranty as a brand new engine so it's that rethinking the whole system looking at how we can use materials not just at the end of the chain through recovering the materials and putting them back into the economy but as Ian mentioned if you change the business models you can then end up reselling the same thing many times because the business model has shifted so I think there's now is the time because the prices have gone up for sure and we're seeing no indication of change in that with these new consumers coming online I think that's that's been one of the biggest levers and also the fact that you know reach recent survey done by the UN Global Compact showed that a third of all global CEOs through a piece of research done with a thousand said that they were actively seeking to employ circular economy activity or circular economy models and just build on that I mean I think what is really important this time is the whole concept of project mainstream which is to take it from the thought leadership into the action area and I wouldn't underestimate there's a lot of people when we talk about circular economy just don't know what actually what it is so some people have been talking about it for a while I'm not sure the business community has been talking about it in scale for a while so the take-off now I think is exactly what mainstream is trying to sort of get to and I don't think it will be that long for both the the sort of defensive reasons that you mentioned Ellen about cost of materials but also because I think people see this as genuinely new set of opportunities which they haven't really encountered before and I would put a lot of money on human ingenuity helping us to really accelerate the transition towards the circular economy over the next five to ten years. If I can what how significant will the circular economy be to DSM's business in in five years time? Very much as I said so I mean we fully embarked using biotechnology as as a technology to recycle products to use products which were called waste so far and we have all and our raw materials it has all to do with redesigning your systems and I see it for us as a great opportunity like I said sometimes it requires new business models sometimes it requires also new policies or systems from government so it's not that all of those innovations can find their way only by companies we need to work together but there are great opportunities and we are fully embarking upon this for DSM and I see it as a as a revenue generator for the company selling sustainability to our customers. So you mentioned technology but also policy there's a raft of issues you need to overcome to really make this mainstream how will project mainstream focus its priorities? Well product mainstream will have a steering group of global CEOs of which we have Fyker and Ian sitting on that steering group we also have Alexander Collodescu from Deso sitting on that steering board and also in the audience here is Bill Madonna from Cradle to Cradle background who is sitting on the independent experts panel so we're looking at bringing together some of the biggest global players from a company perspective we're currently building the steering board and I should point out mainstream is a two-year project which is the World Economic Forum the Ellen MacArthur Foundation and McKinsey working together with the organizations and the steering board members and independent experts to try and really put some action into place over the next two years. Thank you very much. I have one question if we can have a quick question keep it to one question please madam if you give us your name and your your outlet. I'm Simon from the student part and when you're talking about systemic change what are the biggest hurdles that you've seen in the past and what do you see in the future? I'd say that some of the the biggest hurdles have been thinking and also I would say it to some extent policy we did our first and second report looking at the current status quo and changes in policy and what was possible in both circumstances and with the first report in which was based on medium complexity goods was 360 billion US dollars of economic opportunity in Europe alone and that was based on current policy not shifting any policy when you change policy that number jumped up to 630 billion US dollars so we can see that policy affects the numbers but it doesn't mean you can't do it now the work that Deso's been doing on their carpets where they take the carpets back in and remanufacture the raw materials into new carpets that's happening now and that's proving hugely successful so there are opportunities now but policy would be one of the barriers and I think the second is mindset. We're so used to talking about efficiency we're so used to saying to make our company more profitable we'll put 10% less energy into every vehicle and 10% less material into every vehicle but when you pan that out over 10 years you're making no vehicles with no energy and thus there would be no business anymore when you look at circular economy you're changing your business model to enable you to recover your materials to enable you to produce vehicles in the future for example if we're talking about the automotive industry you're also reducing your energy use but it needs the systems level change in thinking it needs everyone within the business if it's a company project to collaborate together to make this happen it's the marketing team it's the design team it's the finance team because all the numbers change if you're leasing lumines in the case of Philips then you're not selling in the traditional way so I think one of the challenges but also the opportunities is getting the whole company on board to rethink how things can happen and obviously with mainstream we're taking that to the next level because we're talking about companies, policy, regions it's about everyone coming together to create these material flows and to create these opportunities. If I may add to that and I see you nodding we should we should realise and think about our own answer and I'm sure that Ian will give the same answer as I did and as Alan did but in fact that is extraordinary if we your correct question would say first problem mindset second hurdle maybe some policies and the third hurdle and that order maybe technologies that means that we have and can develop quite some technologies but that we are blocking ourselves sometimes in policies which we cannot do and especially block ourselves and our mindset and for some it is totally impossible to create a circular economy till it is done so I think we should embark upon this a little bit in the same flow as as Anna gave from Philips we have started selling coatings for solar cells and now we are switching to providing coatings for solar cells we don't want to be charged for that we provide additional electricity for solar parks because with our coatings we capture all the light from the sun and provided to the solar cells we can increase the yield quite a bit strange enough here and there we have developed a kind of semi circular economy because a part of the light the sun is giving us every day we send back to the sun every day by reflection and the sun says I gave it for free for another five billion years don't send it back but we sent it partly back if we can put coatings on our solar cells and capture really the light give it all to the cells we increase quite a bit our our yields and those kind of examples are numerous I just reinforce I think the biggest single barrier to the circular economy is that we're very good at our existing business models most people got to the top of their businesses by perfecting and optimizing business models and the circular economy requires you to rethink it and that's very uncomfortable and looks a lot like hard work and it's also quite conceptually challenging to think of something very different you know use the example if you talk to a Yorkshire mill owner about the business model for Google he just wouldn't understand it it would just be completely alien so it's going to take some time for people to rethink and even you know the carpet examples you know that involve creating a whole new system of take back you know new techniques it isn't something you just jump into so I think it's it's actually getting through the reimagining process first and then unlocking the talent which I think we've definitely got. Okay thank you very much for we're running very very close to time so I'm now calling close to this press conference I'd like to thank my panel for joining us here today I'd like to thank you all for joining us and also our audience watching this on our webcast platform. Thank you very much indeed.