CIRCULÉIRE MEMBER CASE STUDY
COMPANY: REvolve
WEBSITE: REVOLVEFLEET.COM
SECTION: AUTOMOTIVE
PUBLISHED: 24 APRIL 2024
TAGS: FOOD WASTE, CIRCULAR BUSINESS MODEL
THE CHALLENGE
Every year, an estimated 8 to 9 million tonnes of waste is generated from the disposal of End-of-Life Vehicles (ELVs) (EPA, 2023). That’s equivalent to the weight of approximately 19,000 Boeing 747s. In addition, around 3.5 million vehicles disappear without a trace from EU roads each year, and are exported, or disposed of illegally (EC, 2023).
Since 2015, EU Member States are required to meet rates of ≥85% for reuse-and-recycling and ≥95% for reuse and recovery (Eurostat, 2023). An estimated 145,628 ELVs were treated in Ireland in 2021, equating to an estimated 154,365 tonnes of waste. That’s about the same weight as 345 Boeing 747s. In 2021, Ireland achieved a reuse and recycling rate of 87.81% compared with the EU target of 85% and a reuse and recovery rate of 95.74% compared with the EU target of 95% (EPA, 2023).
The production of vehicles is one of the most resource- intensive industries. The automotive industry in the EU is the number one consumer of aluminium (42%), magnesium (44%), platinum group metals (63%), natural rubber (67%) and rare earth elements (30% and growing exponentially) (EC, 2023).
THE CIRCULAR OPPORTUNITY
With so many critical raw materials tied up in the production of vehicles the EU has prioritised the implementation of circular economy principles to recover those materials and to reduce the environmental impact of their disposal and the need for replacing them with virgin materials.
THE CIRCULAR SOLUTION IN PRACTICE
REvolve, is an independent technology- driven supply chain solution aimed at streamlining the sourcing of green auto parts for automotive businesses. Green auto parts are undamaged Original Equipment Manufacturer (OEM) parts that have been taken from a vehicle during the disassembly and recycling process which can be reused for the repair of vehicles still in service.
REvolve brings together green auto parts suppliers (vehicle recyclers) and green auto parts consumers (insurers, repairers, fleets, etc.) from across Ireland and the United Kingdom in a structured, value-driven manner. To ensure that only the highest-quality green parts enter the repair cycle, all REvolve-supplied green parts are graded to the Vehicle Remarketing Association (VRA) standards. The REvolve OS technology platform, which interfaces seamlessly with clients’ workflows to deliver feasible and value- driven green parts solutions in seconds, is at the heart of the market-leading service. REvolve provides measurable net carbon emissions savings, sustainability impacts and commercial savings.
Opting for green auto parts prevents the need for new parts to be manufactured, therefore creating significant energy and resource savings. It also prevents high quality used parts from ending up in landfills. Reusing vehicle parts saves approximately 35.3 gigajoules of energy
and 1,887 kg of CO2 per vehicle (Sato, 2018).
An Garda Síochána, the Irish police force, saved the equivalent of 38,477 kg of CO2 in 2022 by acquiring 551 reclaimed vehicle parts of various makes and models.
They aquired the parts for its fleet from REvolve’s partner Ted4Parts, as opposed to purchasing newly made vehicle parts. This is an average savings of 94% net carbon dioxide equivalent for An Garda Síochána (Motoring Matters, 2023).
REPLICABILITY
The automotive industry accounts for more than 7% of the EU’s Gross Domestic Product (GDP) (EC, 2023). The EU’s ELV Directive sets clear targets for ELVs and their components. It also prohibits the use of hazardous substances when manufacturing new vehicles (especially lead, mercury, cadmium and hexavalent chromium) except in defined exemptions when there are no adequate alternatives (EC, 2023).
Furthermore, consumer expectations are shifting, emphasising the importance of sustainable practises. REvolve has successfully integrated a circular business model into a thriving automobile market in order to reduce CO2 emissions and virgin resource use, while also helping Ireland reach its targets under the ELV Directive.
Repair, recovery, and reuse are becoming more prevalent as nations aim to achieve their climate targets. Some examples worth mentioning include:
Norsk Ombruk a Norwegian household electronic appliance remanufacturing firm that was established in 2014.
Synetiq a car salvage, green auto parts supplier, vehicle repairing, and automobile software solutions provider based in the UK and founded in 1939.