07 - Sustainability collaboration in action

Environmental, Sustainability and Governance standards are significantly reshaping the business landscape, and it’s not only nature that’s benefitting. Sustainable action has the potential to reduce costs, increase customer satisfaction and reduce business risk. In this week’s episode of TOMRA Talks Circular, we have an inspiring conversation with Marcin Grzeszek (Global Manager for Industry Segments Fitness and Recycling at Habasit) and Alexander Verlo (Senior Mechanical Engineer, Design & System Architecture at TOMRA Collection) about collaboration along the value chain. 

Listen to the episode below, or use your favourite platform (Apple Podcast, Spotify, Google Podcasts)

Show Notes

• Collaboration between Habasit and TOMRA [2:06]
• Partnering to improve sustainability goals [3:34]
• The power of cross-industry innovation [7:11]
• Actions Habasit takes to improve ESGs [9:00]
• Designing for the greater good [12:06]
• Sustainability tips for young designers [16:55]

Transcript

Mithu: Welcome to TOMRA Talks Circular, where we explore how businesses, municipalities and governments are collaborating towards a circular economy. For decades, economic growth was almost synonymous with increased production, increased consumption, and the extraction of resources. We, of course, are all aware of the detrimental effects it's had on nature and human health. While the environmental, sustainability and governance standards, also known as ESG, are not necessarily a new concept, they have significantly reshaped the business landscape over the past few years.

According to McKinsey, more than 90% of S&P 500 companies are reporting on ESGs in some form, and there are many reasons why large global players and even small privately owned companies are shifting gears. Sustainability has the potential to reduce costs, increase customer satisfaction, and perhaps most importantly, reduce business risk. How exactly are companies approaching this, and what does it take to transform products and business operations to become more sustainable?

Joining us today is our special guest, Marcin Grzeszek, Global Manager for Industry Segments Fitness and Recycling at Habasit, along with Alexander Verlo, Senior Mechanical Engineer for Design and System Architecture at TOMRA Collection. Together, they have achieved something truly remarkable –and I mean that – and they want to share their story with us to inspire others. Marcin and Alexander, welcome to the program.

Marcin: Good afternoon, Mithu.

Alexander: Thank you.

Mithu: So, Marcin, perhaps we start with you. Before we dive into the details, you are one of our suppliers, so let's start with how you know TOMRA. Perhaps you can reveal to our listeners how you've been collaborating with us to improve our product sustainability.

Marcin: Yes, sure. Habasit is a leading global company in conveyor systems, and we've been supplying TOMRA Collection with high-quality belts for reverse vending machines for many years now. We are also supporting other business divisions in TOMRA, and I'm thinking about recycling and food divisions. Looking deeper into RVMs components and materials, one may think that improving a relatively small part like a belt is not such a big deal, but small parts can really make a difference. Habasit with the support of my colleague, Roy, have worked closely with Alexander and the team at TOMRA, and in a result, more sustainable belt was developed with over a lifetime increase from three months to one year.

Mithu: Three months to one year. That's quite a jump. Wow. Okay.

Marcin: Yeah, it was significant. And it's not only about saving replacement parts, but also lowering the number of service calls and reduce emissions in transport. Of course, less downtimes for the retailers and their customers. So, I think it's a win-win for everybody.

Mithu: And of course, the reduction in emissions CO2 emissions is because of less travel for the service. Is that correct? [Marcin: Yeah] Okay. Sounds reasonable. And as you've said, very significant. [Marcin: Yes] Alexander, it sounds like this collaborative partnering has really made, you know, as we said, a significant difference to the business. Could you explain to our listeners why you've chosen to collaborate with Habasit and how this will help TOMRA reach its sustainability goals?

Alexander: Yeah, I can give you a short summary of that because as stated, Habasit is a key supplier of belts to our products in all divisions … almost every division. And we use those belts to convey what we recognize and sort. And as the functionality of belts relates to both service calls and how long it will last, it also relates to energy consumption and how often you must clean the belt. So that's why we want to look into this, because they had so many other aspects of sustainability together with the material. Historically material is laminate of fiber and polymers, which often is hard to recycle.

Going above and beyond the necessary transition to 100% renewable energy, TOMRA is committed to using at least 90% sustainable materials and components in all new products. And this we also have stated, to reduce operational transport emissions by more than 80% within the next four, five, six years. So how we can make this transition is maybe what I work most with. If we want to enable our products to be circular at the end of life, we must take a big responsibility.

When it comes to machine parts, we can take them back for refurbishment, remanufacture, reuse or recycling. But what we also must do, or what we saw in the sustainability team here in TOMRA – was just that as we as a product owner must take more responsibility for our product – both upstream and downstream to reach these goals. And this is when we started identifying suppliers that we could collaborate with. We wanted greater impact or this wider impact of sustainability, not only on the materials or the energy consumption. That's why we initiated some discussions with Habasit. As Martin stated, we have a few mini projects going on and one of them is actually also to design a conveyor that is more sustainable, where we use our expertise on transport of bottles and cans and Habasit uses their expertise on how to build a conveyor, how the belt can function, how to form the belt and so on.

In the end, all this has a positive domino effect, so our customers also can reach their goals within sustainability using less energy, less water and cleaning. And we'll not have the need to go and visit the machine once every hour to fix something with the belt. I think that's why we did it and why what we were thinking of when starting that collaboration with Habasit specifically.

Mithu: Okay. Just a quick clarification question: Are we already or summer already take the machines back for refurbishment and recycling? Are we already doing this, or this is the goal we're working towards?

Alexander: To some extent and in some markets, we do that … take responsibility of the machines and deliver it to recycling. But this is one of the key things that we are working on to be better on in more of the markets and establishing how that could look like.

Mithu: So really walking the talk. [Alexander: Yeah] That's very good. Okay. Marcin, as I mentioned in the introduction, you are, let's see, Global Manager for Industry Segments, Fitness and Recycling. That's an interesting combination. It's not one I would have thought of at least before. How do these industries overlap? And what are the commonalities and are you pursuing sustainable solutions across the board – or is it only TOMRA and the work that you do with us?

Marcin: Yeah. The combination, I would say, has many common points. Both industries and in fitness and recycling have very positive impacts on our health and similar approach to more sustainable products. In treadmills, for example, we have also improved the bed lifetime from one to three years, which means that the belt can make now 30,000 to 50,000 km. Like with RVMs, we have limited service calls and of course CO2 emissions.

We work also with companies with a similar mindset to TOMRA, and we are always trying to improve the processes machines by sharing our know-how … because we have experience from wider range of different industries. And a good example our belts used in RVMs: They are made from Polyolefins, which have excellent non-stick properties. This results in a lower amount of sugar and liquids that can stick to the belt, so in RVMs we have increased the lifetime. But for example, in sweet box production, we are able to cut cleaning time by 60 hours. Of course, significantly lower the water consumption. This is how it overlaps across many different industries. And although we are a small, mid-sized company, we also implement ESGs here and it's valid since first of 1st of March this year.

Mithu: Very good. Let's stick with that just for a second. You just mentioned you have your ESG goals. What actions are you currently taking to improve sustainability?

Marcin: The ESG policy, the commitment is to be net zero by 2030, and we are measuring energy savings, and we have priority on this measurement. We also progressively switch to renewable energy –– today at least 60% of our affiliates are using renewable energy. And a quick example: Our headquarter is already hydro powered for many years now. We are also reusing industrial heat generated during production processes, and where we cannot avoid CO2 emission, we will support the climate protection projects.

We look also for improvements in materials, processes and products. In the processes, we have implemented waste and cut-off management in both our production and fabrication units. In production, we are increasing the usage of waste we generate … just to get them back to the side. And in fabrication, where we make the final products, we monitor the level of cut-offs and exchange it between our affiliates … also to use it more efficiently.

With materials, we will launch a new product soon. This is made from a bio-circular – and we are actively searching for other biomaterials. My favorite products where we can be really creative, and also I have some examples. In recycling with optical sorters, we have developed polyurethane belts that increase the lifetime and reduce energy consumption, when compared to rubber solution.

In food industry, we have developed a low-friction material that is used as a support for belts, so the amount of microplastic was reduced by 90%. With diagnostic devices, we can read and analyze the vibration on the line and prevent breakdowns by recognizing the problem in an early stage. And, last but not least, for airports distribution centers, we have developed energy saving products, and we can reach up to 60% energy savings with applications.

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Mithu: Okay, so it sounds to me like you're into not into recycling, you're into fitness equipment, and you're really all over the place. And, that you're taking this ESG responsibility from all aspects, whether it's your product or products, but also how you operate. So, you are indeed walking the talk at Habasit.

Marcin: Yes, we have firm our own sustainable team that is working on it. I'm dedicated to fitness and recycling segment, but of course sustainability is much, much wider. The perspective is huge and we have so many things to do to improve.

Mithu: Yeah, as it should be. Very, very good to hear, Alexander. There is something that I would like to go back with on you that you mentioned. You mentioned your working together for greater good. And here I'm guessing you're talking about the partnership, such as the one that you have with Habasit. What does that mean to you and how does it actually look and practice?

Alexander: Basically, in all my 18 years as a mechanical designer on polymer parts, I've been striving to push suppliers to deliver recycled content into the parts that I have been designing, either in polymers or in steel. But mostly, I've been designing polymer parts. And every time all these years everyone is pointing on each other and saying: oh, we have to focus on the total cost and blah blah blah. In the last two to five years, there has been a change.

Even though it has been a change, more and more suppliers or producers talk about sustainability. The catalyst in the way has been missing. And the catalysts, in my opinion, is that we are a product owner –TOMRA As a product owner. We need to take responsibility both of our handprint, which is what our products do to the environment by collecting cans and bottles. But also, our footprint: Our footprint is what our machines, our systems due to the environment both upstream and downstream, the value chain. For me, it's like if you are a part of a value chain, both in a linear and circular value chain, every part of the value chain has a linear flow of materials or value through their business. So, the material comes into the business, go linear through the business and out again. They sell it. For every part, it looks linear, but the enabler for a circular value chain is when all parts of the value chain start to work together towards this greater good, which is the circular value chain.

Between each part, something has to happen but it leads back to the start in a way. And one way we want to approach this in TOMRA, we want to address actions upstream and downstream in the value chain for our products. And when we go upstream, we start to follow the materials or the goods that we sell or buy, and then sell in our machines, to see how we can contribute to a more circular value chain. To bend those transactions of the value or the material between each part, and how we want to do that is of course, try to do collaboration like Habasit. And maybe other stakeholders, we need to just poke in the right direction or say there is something we can do here.

Downstream, we in a way do the same because we sell our machines that do very good on recycling bottles and cans. But we also want to take responsibility of the materials and the energy usage downstream at our customers. And also, at the end of life, we want to take that responsibility to put the materials back into the loop. In practice, we want all our materials that we use to follow a circular loop. And as from my point of view, basically sustainability is an innovation enabler. And if you invest in innovation, you usually get some benefits. In the end, if it's a regular innovation project. Investments on this innovation project within sustainability will deliver savings or yeah, like other benefits in the end, but we need to invest in it.

I think for TOMRA anchored all the way from the board of directors down to the designers or the employees that are doing the job. We need to see the value of innovation both in the business models and in the technology and how we do it. And I think that's the key to a more sustainable future. We need to work together both within TOMRA, and externally. We need to find those links between every part of the value chain to make them not straight linear but bend them so in the end it becomes circular.

Mithu: That sounds good. As we've talked about many times on this program, collaboration is key. From what you've just explained, Alexander, it's a very holistic approach – looking both up and downstream and connecting those end points so that we do have a circle at the end. [Alexander: Yeah.]

As we're kind of wrapping up the conversation, Alexander, wanted to ask you one last question. As you've mentioned, you've been doing this for more than a couple of years and for companies outside of TOMRA, so several across the industry. What sort of advice would you give to young engineers and designers starting out? How can they impact sustainability?

Alexander: Well, that's a big question to wrap up with, but I can take the short version and it that's it all starts with design. And that's the very short version. To elaborate a bit on that, because what I mean with it is that a product starts it life usually with a concept. And if you have sustainability as part of your mindset from the very beginning, all the small decisions you take along the way of designing the product will enable more sustainable products. And this might feel a bit overwhelming … as one can see it as a paradigm shift on how to solve design tasks. But here are three tips that I can give you to start the process. Number one..

Mithu: Listen to this. I am excited. Okay? Yes!

Alexander: It's quite simple, but it's also very hard. You need to design all the functionality you need to do what it should do with as little energy use or service need as possible. That's number one.

Secondly, you need to use less material. And why do you need to use less material like steel? Steel is a very sustainable material when it comes to recyclability, but less is more sustainable … as steel is also heavy and not that sustainable throughout the value chain of steel. And what we know is that in new produced steel, it's only 30% content recycled steel. That's why we need to reuse less to increase that content. Another tip is to use fewer materials with this high portion of recycled content as possible. And this will also enable an effective end-of-life management as it is fewer materials to handle. And it will give you a bit easier way to a circular value chain. And when it comes to designing, these are the three tips.

But I want to add one final thing on that, because there's one key element for me. As I have been working with product design for years, it is that you can design sustainable products. But sustainability has this other dimension as it even impacts the people assembling the parts, store personnel, cleaning the belts, and service technicians taking the machines apart at the end of life, etc.. All these human beings have their work with our machines, so if we think of their sustainable work day when we design it, it will be also sustainable for the people that work with our machines. Overall, I think we need to widen the lens on sustainability. And I think designers that work in a company where there are products to be sold, they need to take this responsibility from the very beginning of their process.

Mithu: Marcin, anything you'd like to add to Alexander’s three points … or three points plus, let's call it. [laughs] What's the outlook on collaboration, similar to the one that you are involved with?

Marcin: Great points. And yes, I fully agree with Alexander. It all starts with design and the designing can be easier and carry more value if we include different perspectives. Collaboration is necessary for expanding our views, developing new materials, new products just to overcome upcoming challenges. By working together on product development, I think this speeds up the innovation process – because in one moment you have a number of perspectives. We have a massive perspective on product development for a selected industry. And even if we know this industry, then adding TOMRA’s view on a very specific application bring much more details to the game and also your customer's expectation. So, I think through better collaboration we can create more sustainable products more easily, we can build more trust between the organization, and show a single action that counts. And I hope to inspire the others.

Mithu: I have no doubt. Alexander and Marcin, thank you very much for coming on the program. I truly appreciate it. I know you're both very busy and thank you for making this world more sustainable and inspiring us to collaborate, to get there as quickly as possible. We are definitely looking forward to for the success of your collaboration and endeavors. Thank you.

Alexander: Thank you for having me.

Marcin: Thank you for having me as well.

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