Graduate School of Engineering, The University of Tokyo
Design for
Circular Economy
In recent years, the Circular Economy has been attracting attention as a new model for economic growth. The Circular Economy is a new economic system that pursues sustainable business and society while satisfying the rationality of individuals and companies. Due to issues such as climate change and resource depletion, the traditional one-way economy of mass production, consumption, and disposal (linear economy) is reaching its limits, and people around the world are searching for ways to reduce resource waste by considering “throw-away” in the business planning and product design stages. Kimita Laboratory is conducting research to design products, services, business models and policies that realize the Circular Economy and to implement them in society.
In recent years, we hear the term “circular economy” (CE) used more and more often. However, it's noteworthy that in Japan, discussions often still focus on recycling. In contrast, the essence of CE is a mechanism to circulate resources while maintaining their value without discarding them. Thus, it's necessary to reconsider how products should be from the business planning, product design, and design stages, instead of focusing solely on recycling disposed products.
In other words, how to balance “reduction of environmental impact” with “economic rationality for companies and individuals”-this is the key question for the realization of CE. Currently, global efforts are underway in research and practice to establish CE as a strategy for new economic growth, seeking answers to this crucial question.
What, then, are the tangible methods for implementing CE in society? A typical example would be the “subscription” and “sharing” services that have emerged in recent years.
Consumption styles are shifting from ownership to usage, especially among the younger generation. Instead of selling products outright, product functions are provided as services. Such a business model is also called “PaaS (Product as a Service)” or “Servitization”.
One of the services studied by the Kimita Laboratory is a subscription-based fashion rental service, whereby a single garment is used by multiple people, reducing excessive production and garment waste. This is truly an ideal service to introduce the concept of sustainability, especially in the apparel industry, which is known for its high environmental impact.
However, does sharing indeed have a lower environmental impact than owning clothes? It is true that sharing increases the number of wears per garment and decreases the environmental impact per wear. At the same time, however, it is also pointed out that the environmental impact may increase due to the need to transport the garments.
Which is really better for the environment, owning or sharing? To address this, Our laboratory is developing simulations to evaluate the environmental impact and economic efficiency of such systems. As these methods become more established, it may be possible to derive products and business models that can achieve a state of greater corporate profit and smaller environmental impact by adopting a subscription model instead of product sales.
Similar changes are occurring not only in B2C businesses, such as clothing and home appliances, but also in B2B businesses. A typical example is the tire manufacturer MICHELIN, headquartered in France. The company succeeded in developing fuel-efficient tires with a reduced environmental footprint, yet encountered a challenge in marketing these eco-friendly, albeit higher-priced, tires. Therefore, the company has adopted the CE perspective and offers a “Pay-Per-Mile” service in which customers are charged according to the distance traveled on the tires.
Such a service not only reduces environmental impact, but also has advantages for both the manufacturer and the customer company. First, client companies can lower their initial tire purchase and maintenance costs. Moreover, the manufacturer can anticipate increased sales by providing retreaded tires, thereby reducing the resources consumed (manufacturing costs) that were originally needed to produce new tires. By changing the business model, more client companies can use highly fuel-efficient tires at less cost. Not only that, but manufacturers can also expect increased sales and corporate growth, creating a win-win relationship.
In collaboration with major companies, our laboratory explores “ways to create mutually beneficial relationships among the various stakeholders in CE”. In the process, we are actively engaged in collaboration with companies and government bodies beyond the framework of a university laboratory.
As you can see, CE is a hot field that is now gaining momentum both academically and industrially. With a strong focus in Europe, research and practical experimentation are being conducted worldwide.
Above all, it is also attractive in that it is easy to balance producing academic results and using those research results for the benefit of society. In our laboratory, there are abundant opportunities to collaborate with companies. For example, using the aforementioned environmental design evaluation framework, we design subscription services that are good for both the environment and business. In this process, it is fascinating to witness the implementation of your research in society.
As an engineering laboratory, we place a strong emphasis on design and innovation. We design not only to analyze existing businesses and events that have already happened, but also to solve social issues that are right in front of us. In the future, you may even consider a career in which you start your own business based on the findings you have learned in graduate school.
If you are a student or business professional enthusiastic about conducting meaningful research with real-world applications, please feel free to contact us.
Koji Kimita is a Project Associate Professor in the Department of Technology Management for Innovation at the University of Tokyo. He is an expert in Circular Economy (CE), Product-Service Systems (PSS), and Servitization, focusing on the development of engineering methods for designing and implementing CE business models. He received his B.S., M.S., and Ph.D. from Tokyo Metropolitan University in 2006, 2008, and 2011, respectively. He was a guest researcher at the Technical University of Denmark.
Sustainable Service Design/Data-driven entrepreneurship for engineering researchers/Data-driven business planning/Science, Technology, and Innovation Policy
Koji KIMITA
〒113-0032 Yayoi 2-11-16, Bunkyo-ku, Tokyo
Faculty of Engineering Bldg.12 Room 207,
Department of Technology Management for Innovation,
Graduate School of Engineering,
The University of Tokyo