As Alexander Boto, Ihobe’s General Manager, explained, “it is the first time that this methodology has been applied in southern Europe”. The “Circular Economy Playbook” seeks to meet customer expectations and deliver results; anticipate the opportunities generated by the new environmental regulations arising from the European Green Deal; develop resource-efficient digital and technological solutions; reduce the use of material resources and mitigate possible business and financial risks.

The SITRA Innovation Fund, a strategic think tank of the Finnish Parliament, is running a pilot scheme in the Basque Country for the “Circular Economy Playbook”, a method to create circular and sustainable businesses

The positive results of this methodology after the “Circular Economy Playbook” had been tested and applied in companies in different sectors in Nordic countries were disseminated at the World Circular Economy Forum. Every two years, the SITRA Innovation Fund hosts the forum that gathers together thousands of business leaders, policy makers, experts, civil society and other stakeholders to explore the best circular economy solutions worldwide. After several years of sharing best practices, SITRA and Ihobe have formalised their relationship that involves the use of the methodology in order to create new circular businesses in the Basque Country.

The playbook’s winning strategies include designing for circularity, incorporating recycled material in products, value retention at the end of the products’ life, managing data for circularity, collaboration in the value chain or servitisation for durability, a process where companies cease to merely sell, but offer supplementary services for products adapted to their customers’ needs.

Winning strategy in the circular economy

Ihobe, with the support of SITRA, has so far implemented different pilot projects in several value chains to confirm and adapt to the Basque business reality and to provide incentives to generate new circular business opportunities. This initiative will help to drive momentum to create new more circular business models, the first challenge of the Circular Economy Strategy of the Basque Country 2030.

Ihobe has set up pilot projects using this methodology in the Basque machining, steel and chemical sectors

Using the “Circular Economy Playbook” as a benchmark, Ihobe has embarked on three pilot projects in the value chains of the machinery, steel and chemical sectors in conjunction with Kimika-Aveq, the Siderex cluster and the Iraurgi Berritzen Supramunicipal Agency in the framework of the Basque CIRCULAR SME Programme. These projects seek to confirm the usefulness of this method of the Basque business reality and, above all, to provide incentives to generate new circular business opportunities.

Basque companies are increasingly demanding more environmentally friendly businesses. Thanks to methodological strategies such as the Circular Economy Playbook, the Basque Country is demonstrating its global leadership in the development of advanced environmental knowledge tools to make it more competitive.

The partnership between Ihobe and SITRA, along with the recently initiated projects, will help to give momentum to create new more circular business models, the main challenge of the Circular Economy Strategy of the Basque Country 2030.