We are excited to share that LUP has officially been included in the People’s Choice Award for The Circle Awards AUS & NZ 2021!
The Circle Awards is an annual programme that brings together the diverse businesses, organisations, projects and people adopting circular practices to create a world where nothing goes to waste.
The main purpose of this Award is to recognise the commitment and build credibility as pioneers contributing to a world without waste, foster a culture of collaboration with like-minded businesess and build awareness in new audiences.
Choosing more conscious alternatives doesn’t have to mean compromising on quality, cost or experience. This award was made to support all businesses and people who believe that by empowering consumers to make more informed purchases, we can transform the economic system into a viable & valuable mainstream business model that benefits everyone.
Please support our work by voting for us (it´s super fast we promise :)!) -before May 28th- in the link below:
LUP: Hi Leanne and John, thanks so much for your time, it is a pleasure to have you here in this discussion. You have been working for a long time in sustainability, and recently published an article about the Right to Repair… Why is this so important?
Leanne: In many ways ‘repair’ is a first responder to the waste challenges that confront society today, and consumers are increasingly wanting to have some control over their goods and efforts to prolong their life, value and functionality … a key principle of the circular economy. If Australia is serious about waste avoidance and the practical implementation of circular economy principles, we need to move up the waste management hierarchy with genuine conviction and authenticity of action.
Of course, we need to recycle more, we need cleaner streams of recovered materials and we need resilient end-markets for the secondary materials, but we urgently need heavy-lifting on product durability, repairability and re-usability. In simple terms, the value and role of durability, repair and reuse in several product categories needs to be elevated, enabled and supported in order to create more circular patterns of production and consumption.
LUP: What are the main challenges/obstacles for the implementation of this model, and how can we overcome them?
John: There are currently many barriers that contribute to the inability of consumer to repair their goods, including the physical design of the products, the intellectual property rights of the manufacturers and the licences that govern the use of the goods and the lack of access to spare parts and repair or service information. There is also the fear that increased independent repair activity would undermine manufacturers’ control of their lucrative repair and service aftermarkets. Those manufacturers and companies opposing the Right to Repair, cite safety, security and privacy concerns as the reasons for their opposition to the Right to Repair movement.
While other countries have implemented tax incentives to encourage repair or require the labelling of consumer appliances to present a durability index of performance and repairability, Australia can do much more to create positive and desirable interventions to facilitate repairability of products. The appetite for widespread repair action and more durable products is growing but we also need to get serious about developing appropriate legal and policy levers that will encourage and enable repair as well as finding appropriate funding sources that support and reward activity at the top of the waste hierarchy, be it through design for durability, repair, reuse or different consumption models.
The momentum behind a right to repair is growing in Australia and the opportunity to turbocharge its potential and application is now. Most importantly, we need to focus on the opportunities to build a culture of repair that meets consumer expectations, protects industry’s IP and maximises the social and environmental benefits. This includes recognising and creating the right regulatory and policy settings that encourage increased repair activity. It is also important to inform policy development with consumers’ experiences of repair, whether that be the inability to access repair or service information or to choose third parties to conduct their repairs. We also need to see greater acknowledgement of how repair can avoid and reduce waste associated with electrical and electronic products at scale and nationwide. This necessarily requires collaboration, government investment, business commitment and consumer participation.
LUP: How do you see the current situation in Australia, and the near future?
Leanne: Australia is at the front-end of history when it comes ‘waste’ policy reforms and how we transform the numerous suite of actions that seek to meet the ambitious targets in the National Waste Policy Action Plan. Durability, repairability and re-usability are more than ‘nice to have’ type measures; they represent a potent set of strategies that are increasingly being demanded by consumers and the general public.
Fortuitously, the Review of the Product Stewardship Act recommendations clearly identified the need to “broaden the objects of the Act to include product design improvements related to durability, reparability, re-usability and recyclability.” The Government supports this recommendation, and it reflects smarter thinking about developing product stewardship schemes that address the full product life cycle.
While Australia does not have a “Right to Repair” legislation, the Australian Government has asked the Productivity Commission to inquire into whether Australian consumers need a ‘Right to Repair’ their consumer electronics and other manufactured durables. The Productivity Commission’s Issues Paper released on December 7 2020, highlighted the focus of their inquiry: whether Australian consumers have the ability to repair faulty goods and to access repair services at a competitive price? The Productivity Commission has received over 140 submissions in response to the Right to Repair issues paper from diverse groups, associations, companies and individuals, and a draft report is due in June 2021. These submissions can be viewed and downloaded here.
This Right to Repair inquiry provides a timely opportunity for individuals, brands, retailers, manufacturers and NGOs to share their views, experiences and constructive solutions as a contribution to maximising safe and cost effective repair action in Australia. The time is Right to Repair but it requires policy responses and programs that acknowledge the barriers and opportunities of repair to make it work as a waste avoidance and reduction strategy. And we mustn’t overlook the social and cultural dimension. Repair, be it DIY at repair cafes, or through independent repair businesses or manufacturers, is just as much about empowering consumers to take control of the products they purchase and own, as it is about waste reduction and sustainable materials consumption.
LUP: John, as Director and Co-founder of the E-waste Watch Institute, what actions are you seeing in the case for higher value capital equipment such as laboratory or manufacturing equipment -main focus of LUP´s business model-?
John: Prolonging the life, value and functionality of all manufactured durables should be a high priority if we are genuine about making circularity a reality. Higher value capital equipment, including scientific and medical devices, represent a class of products where durability, reparability and remarketing can be a template for other categories of equipment. But we need to tell the story with authenticity so that consumers and the market more generally can understand the benefits of product life extension and reuse. Whether it is household consumers of whitegoods and consumer electronics, or commercial and industrial buyers of electrical and electronic equipment, service providers can do much more to inform and engage potential customers and product users.
A business model that can educate and empower the market to embrace product reuse, remarketing, and preventative maintenance programs, is a business model that goes beyond recycling and is therefore geared towards waste avoidance and direct customer benefit rather than ameliorative and incremental solutions.
LUP: Thank-you so much for your time today Leanne and John, and for your wonderful insights into this important topic on Repair in Australia. We look forward to keeping in touch and continuing to follow the important work you are both doing in this area.
The assets of a business or company are the key drivers of driving value creation and the investment decisions need to be fully evaluated. Investment for a small business requires careful assessment as depending on the scale it can affect its workers, projects, and the company itself if it fails.
Hewson Jackman, CEO and financial analyst at Max Cash, shed some light on small businesses utilising assets on their 2nd, 3rd lives. Jackman says “the current economic situation compelled many small business owners to prefer using second-hand or used machinery. Businesses are not anxious to be frugal in other areas as long as efficiency and results are not compromised. It is known as “green activity” which is something that any company should practice”.
Assets in their 2nd or 3rd lives merely imply that it has formerly been owned – it does not define the condition or quality of the product. There is a wide array of reconditioned, recycled, and never used machinery for sale. Select the preferred condition that would best work for you and your business.
Prioritise Ventilation
Good ventilation is essential for any equipment. If your workspace lacks ventilation, it may lead to machinery overheating. Frequent overheating limits the product´s efficiency and service life. Advocates at LUP Global recommend controlling work area temperatures.
Clean Regularly
Maintaining your used equipment clean and free from clutter is another crucial factor in extending its lifespan. Air attracts dust like a magnet and some parts that preserve the coolness of the machine draw in dust, pollen, shavings, and dirt particles, which accumulate over time. Whenever possible, dust and wipe the equipment at least once a week.
Don´t Cover Electrical Parts
Cords and cable wires should not be placed under rugs or floor coverings because they can be scratched or be damaged. When left unchecked and overlooked, damages may diminish an asset´s efficiency and hence curtail its lifespan. Use appropriate safety covers when required. Thus as much as possible, tidy things up and take some time to install appropriate chord and wiring management.
Schedule Regular Maintenance Service
Consider how often you use your equipment. For instance, equipment that operates daily for a more extended period could malfunction without warning. It´s necessary to set regular maintenance to detect problems before they can interrupt workflow. Understand what warranty provisions are available from your scheduled maintenance programs.
Business Insurance – Machinery Breakdown coverage for pooled Assets
Although we do not provide any insurance protection, LUP Global has negotiated access for our clients in a unique insurance offering, which is provided by our ancillary service Insurance partners. This protection includes machinery breakdown coverage on a pool of assets, as well as your pre-existing assets and there may be an opportunity to upgrade through your existing insurance providers. If however you would like to have this reviewed through LUP’s ancillary service Insurance partners, please let us know. This fully comprehensive cover can include protection across almost all breakdown issues, partly including wear and tear, as well as any resultant loss of trade/income, whilst less comprehensive cover mainly protects against motor burnout / fusion, minimising any associated risks with procuring an under-utilised asset.
Finishing Off With The Ultimate Tip
Utilising assets in their 2nd, 3rd, or 4th lives will help your business save money. But, there´s more to it than just cutting cost. The more significant benefit it adds is creating a more sustainable and greener world for generations to come.
If you have unused -yet functioning machinery or you require pre-owned under-utilised equipment, connect with LUP Global. LUP Global is the leader in Circular Asset Management and Sustainable CAPEX Procurement. Check out our available assets here: https://www.lupglobal.com/asset-available-sale/ and learn more about our asset management best practices.
Go the extra mile to ensure that every piece of equipment you have will be good for both your Company’s PROFIT and Our PLANET.
Article: Written by Christopher Clark Edited by Michael Brown
Marina Castelli joins LUP Global as Circular Asset Consultant. In this role, she will be able to help businesses and laboratories to think about a more sustainable way to manage their resources.
Marina has more than 7 years of academic and work experience in various laboratories specialising in Materials Research. In September 2020, she was awarded a PhD in Applied Physics from Monash University. Her research focussed on the synthesis and characterisation on novel nanomaterials, that could potentially be used for new light-harvesting technologies.
While at Monash University, Marina co-authored three peer-reviewed articles, published in high impact factor journals.
Marina obtained a Bachelor of Science and a Master of Applied Physics from the Federal Institute of Technology in Lausanne, Switzerland (QS University ranking: 14th). While in Switzerland she briefly worked for Richemont Group, one of the world’s leading luxury group, where she was assessing the mechanical properties of different precious alloys.
Why join LUP?
While working in industrial and academic laboratories, I have seen a lot of waste with the use of resources or equipment. I am very excited to be able to bring a solution on this issue with the amazing LUP family!
3 adjectives to describe yourself:
Problem-solver, persistent, curious
What are your passions?
Helping others, science, healthy and sustainable living
BACKGROUND LUP Global was engaged by a US Multinational’s Australian subsidiary (referenced here as the ‘Company’) to support the plans on the dismantling of a production operation, and the experience was such a success that we created this Circular Asset Seller Case Study. Based on independent references provided to the Australian operation they approached LUP to see how support could be provided to manage the end of use disposition of these operating assets.
SITUATIONAL REVIEW In discussions with LUP CEO and Founder Noreen Kam – a plan was developed to look at the individual assets available with a goal of minimising the risk of assets being redundant and finding their way to landfill. Through collaboration an Asset list covering 27 individual capital items was developed with ‘floor’ pricing levels established that were used as benchmarks set for the minimum pricing levels that could be offered for potential on sale.
With this guidance the LUP team then set about researching the assets and developing a prospects list of possible buyers. In total the research established a listing in excess of 200 potential buyers.
OUTCOME As a result of the engagement over a 9 month period the LUP Team were able to on sell 70% of the capital items. LUP utilised its extensive network and research skills to move the assets on to Buyers that in many cases were also in industry sectors completely different to the Company’s operating areas.
LESSONS LEARNED From a LUP perspective this exercise has demonstrated that with the right focus and skills redundant assets that still have a working life can be relocated and repurposed to find life extensions and avoid going to landfill.
For the Company – they have benefited considerably from the LUP support to gain a strong financial outcome that was unlikely to be generated using their own internal resources. They simply did not have the time or bandwidth and possibly the skills to dedicate the required energy to market their assets and find potential buyers.
A true WIN WIN WIN – for the Company, for LUP and for the Planet!
We continue our journey towards more sustainable approaches to make a better business and a better world. Media has a lot to do to support this change in the way we do things, and that is why we are so proud of participating in this interview with The Shift.
Emerging technologies – accelerated by COVID-19 and shifting geo-political dynamics – are transforming the future of work and fast tracking the shift to the digital economy. These changes present challenges and opportunities – displacing some and activating others towards new spheres of wealth and influence. The Shift brings the latest news and analysis on the technology, industry and investment trends that are shaping the future of work and driving the digital economy.
In this inspiring interview, our CEO Noreen Kam talks about our journey with LUP and the circular asset management solution we`ve developed for LUP Global’s customers. She also commented why the next 18 months will be pivotal in showcasing the benefits of circular economy principles, as disrupted supply chains caused by COVID-19 have revealed limitations in the globalised model.
Check it out the interview by clicking on the button below !
Thanks The Shift for having us! Let´s keep showing the world that there is a better way to do things 🙂
