A circular economy case study

Collaboration for
a closed-loop
value chain
Transferable learning points
from the REALCAR project
 The University
of Cambridge
Institute for
Sustainability
Jaguar Land Rover Novelis Leadership (CISL)
The UK’s largest automotive The world’s premier producer of We bring together business,
manufacturing business, rolled aluminium and the global government and academia to find
built around two iconic British leader in aluminium recycling. solutions to critical sustainability
car brands: Land Rover, the Drawing on our expertise, challenges. By bringing together
world’s leading manufacturer commitment to innovation and multidisciplinary researchers with
of premium all-wheel drive world-leading technology, we influential business and policy
vehicles and Jaguar, one of the deliver sustainable solutions for the practitioners across the globe, we
world’s premier luxury sports most technologically demanding foster an exchange of ideas across
saloon and sports car marques. applications, including automobiles, traditional boundaries to generate
beverage cans, architecture and new, solutions-oriented thinking.
consumer electronics.

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Jamie Shaw, Technical Specialist, in Sustainable Value Chains,
Copies
Whole Vehicle Sustainability. regarding work undertaken with
This paper can be
and by their employers (Jaguar
Adrian Tautscher, Group Leader, downloaded from CISL’s
Land Rover and Novelis).
Sustainable Aluminium Strategies. website: www.cisl.cam.ac.uk
Copyright
Steve Betts, Director, Contact
Copyright © 2016 University
SJ Betts Consulting. To obtain more information
of Cambridge Institute for
on the report, please contact
Novelis: Sustainability Leadership (CISL).
James Cole:
Andy Doran, Senior Manager
Copyright © 2016 E: james.cole@cisl.cam.ac.uk
Sustainability & Recycling
Jaguar Land Rover. T: +44 (0)1223 768850
Development.
Milan Felberbaum, Automotive Copyright © 2016 Novelis. January 2016
Product Development Engineer.
 Collaboration for a closed-loop value chain 1

How this case study came about:

a story of collaboration
“Creating a space to collaborate, reflect, learn and share lessons from
the REALCAR (REcycled ALuminium CAR) closed-loop project.”

This paper explores the lessons learnt from the REALCAR closed- not just to aluminium or the automotive sector but to other
loop value chain project between Jaguar Land Rover, Novelis, materials and sectors. Furthermore, if the world is to embrace
Innovate UK and other industrial, academic and funding partners, ‘circular’ supply chains, which use resources more efficiently,
in the creation of new materials and production systems to other companies in other sectors can benefit from the
introduce closed-loop aluminium into Jaguar Land Rover cars. understanding and application of the insights presented here.

Its publication is the result of a further collaboration between The authors and I would like to acknowledge the important
Jaguar Land Rover and Novelis, facilitated by the Cambridge contribution of three colleagues who were instrumental in
Institute for Sustainability Leadership (CISL). This took place getting the REALCAR project up and running:
via CISL’s Postgraduate Certificate in Sustainable Value Chains
(PCSVC), a nine month, part-time Masters-level academic Dr. Mark White, Chief Engineer, Body, Jaguar Land Rover;
programme for individuals and groups seeking to embed Professor Julian Allwood, Professor of Engineering and the
sustainability into supply/value chains. The joint Jaguar Land Rover Environment, University of Cambridge; and
and Novelis team that produced this paper used the opportunity Adrian Tautscher, Group Leader, Sustainable Aluminium
provided by the PCSVC course to document the key lessons learnt Strategies, Jaguar Land Rover.
in the development of closed-loop aluminium for automotive
use and subsequently accelerate that project’s development. Ian Ellison,
Sustainability Manager, Jaguar Land Rover
Many of the challenges faced in the REALCAR project are and Senior Associate, University of Cambridge
applicable to the creation and transformation of all value chains, Institute for Sustainability Leadership

“The Cambridge Institute for Sustainability Leadership is pleased to publish

this case study to share the transferable learning points, published as
guidelines, for use beyond the automotive/aluminium value chain.”

The case study contributes to CISL’s Rewiring the Economy We hope this case study will contribute to the wider reduction
plan and embodies its collaborative spirit. The plan, developed of environmental impacts in the supply chain through
in consultation with CISL’s 7,000 alumni, presents ten tasks so-called ‘circular economy’ practices. We’re proud of the
for business, government and finance leaders to tackle part our postgraduate course in Sustainable Value Chains
collaboratively over the next ten years to lay the foundations played in creating the academic space for the authors to
for a sustainable economy. bring these insights to light and I hope that others will benefit.

Task 7 of the Rewiring the Economy plan invites business

leaders to ‘Set a bold ambition, and innovate to deliver greater
value’. This task requires companies to work differently with
partners and suppliers to understand the full lifecycle of their Polly Courtice,
products and services in order to implement sustainable Director, University of Cambridge
production and consumption models. Institute for Sustainability Leadership
2 Collaboration for a closed-loop value chain

Executive summary

To improve the environmental performance of its vehicles, Jaguar Land Rover

needed to innovate and incorporate aluminium into their design and manufacture.
Incorporating aluminium would However, Jaguar Land Rover supplier Novelis, Innovate UK, the
lower the vehicle body mass, wished to mitigate the energy UK’s innovation agency, and other
improve fuel efficiency and, as a and cost-intensive nature of partners. The result was a closed-
result, reduce the environmental using primary (virgin) aluminium loop value chain that minimised
footprint and running costs for in the production process. To do the use of primary material and
customers. this Jaguar Land Rover worked maximised the use of recycled
collaboratively with its material aluminium during manufacturing.

The following universally applicable learning points are explored in this paper:

1 2 3
Progressive
Material Suitability Establishing a Value
and Innovation Chain Network Leadership
Unwavering support and advocacy
There must be high confidence Traditional transactional supply
at a senior level provides confidence
about the across-the-board chain thinking must be replaced by
and momentum – and a forum to
suitability of the material selected a value chain approach in which
help remove roadblocks.
for a closed loop. partners work in true collaboration
to achieve goals for all parties –
In a circular economy, all parties
The purity and value of the scrap and beyond. Material, financial,
must move towards shared values
material must be protected from commercial and contractual issues
and broader project objectives,
contamination by lower quality, must be understood in detail to
beyond the individual interests
lower value material, otherwise deliver a winning business case.
of each party. Support from a
the commercial proposition may
It is essential that a thorough third-party organisation, such as
be compromised. Fresh thinking
communications and engagement a relevant industry body, can give
and new ideas, nurtured by
plan for each stakeholder is in projects focus and early momentum.
committed stakeholders, are
essential to find ways around the place to keep everyone informed
numerous hurdles that appear and motivated. Understanding the
during the development process. communications needs of each
stakeholder enables a consistent
and compelling narrative to flow,
strengthening relationships and
building trust.

REALCAR has proven to be a resounding success, delivering financial and

environmental benefits to both Jaguar Land Rover and Novelis, and contributing
to the efforts of both companies to meet their environmental sustainability goals.
Crucially, the experience gained and lessons learned from the creation
and implementation of a closed-loop value chain for automotive aluminium
are potentially applicable to other materials and other industries.
 Collaboration for a closed-loop value chain 3

Foreword

The most efficient processes are found in nature. Resources such as

energy, light and water are all utilised optimally – nothing is wasted.
So, why do man-made processes not follow the same rules?
Jaguar Land Rover needed to reduce the weight of its vehicles
while still delivering class-leading products. In 2002 it started using
aluminium in the vehicle’s body to reduce weight, improve fuel If we can achieve
consumption and tailpipe emissions and reduce costs to the user. this with automotive
However, aluminium is more energy-intensive to produce and hence
more expensive than steel, both environmentally and economically.
aluminium then it
So, Jaguar Land Rover needed a way to reduce both cost and must be possible
environmental impacts during production of the material. to apply the same
Meanwhile Novelis has a long standing commitment to increase its principles to other
use of recycled aluminium year-on-year. Since 2011, the company has industries and
increased its recycled inputs from 33% to nearly 50% and continues to commodities.
pursue this goal, reducing the amount of primary material required, and
reusing material (‘closing the loop’) where possible during production.
But it needed a like-minded customer with a similar appetite for
improving its sustainability performance.
This vision, shared by Jaguar Land Rover and Novelis, and a
willingness to tackle the technical challenges together, inspired the
REALCAR project that started in 2007. REALCAR required plenty of
figurative blood, sweat and tears, mixed with pioneering chemistry
and commercial activity.
The results are impressive. REALCAR represents a landmark;
an industry benchmark that contributes to both organisations’
efforts to improve sustainable business performance and offer
credible financial payback periods. In addition, it also contributes
to international efforts to reduce the potential for global warming
and meet wider sustainability goals.
If this can be achieved with automotive aluminium then it must be
possible to apply the same principles to other industries and commodities.

Mark White Pierre Labat

Chief Engineer, Body, Vice-President and General Manager,
Jaguar Land Rover Novelis Automotive Europe

REALCAR is one of From August 2014 to

13.8% >30k
the innovations that July 2015, over 30,000
has helped reduce tonnes of press shop
the global warming aluminium scrap were
potential of a Range recovered into Jaguar
Rover TDV6 by 13.8% Land Rover’s UK
over its lifetime. closed-loop recycling.
4 Collaboration for a closed-loop value chain

Closed loops and

the circular economy
In a traditional linear supply chain, value is often lost. Such a linear chain might be:
Material extraction > Product fabrication > Usage > Disposal
A closed-loop value chain takes a fundamentally non-linear from the post-industrial aspects of Jaguar Land Rover
approach. The basic concept for implementing a closed-loop and Novelis’ closed-loop aluminium project, REALCAR.
value chain is predicated on the notion of a circular economy,
combining both forward and reverse supply chains, and Following a gradually-expanded scrap segregation
where product waste is incorporated in the production of pilot programme, REALCAR was launched in 2007 as a
new versions of the products 1. research project, partly funded by the UK Government’s
Technology Strategy Board (TSB), now Innovate UK.
Not all waste is economically, or even environmentally, The TSB awarded funding and co-ordinated partners Stadco,
viable for a closed-loop process, but opportunities are Norton Aluminium, Innoval, Zyomax, Brunel University and
lost when companies and society fail to ‘close the loop’ – Novelis, along with the lead partner Jaguar Land Rover.
even when the product, part or material meet the scale If the project was successful Jaguar Land Rover recognised
and quality required. the potential for the approach to be rolled out across its
future product lines, dramatically increasing volumes –
‘Closed loop’ sits alongside established developments and the scale of the benefits.
such as lean manufacturing or resource efficiency.
However, material closed-loop implementations are a REALCAR took the post-industrial waste from aluminium
deeper response to sustainable value chain challenges 2, body panel stamping and recycled it back to the supplier
where collaborative action and shared benefits deliver (Novelis) to be incorporated into new body panels
wider, more sustainable societal outcomes. (see Figure 1 below). This involved technical innovations,
such as the creation of a new aluminium grade that would
The loop can be closed at the post-industrial stage be best suited to the closed-loop process, and business
(manufacturing) or the post-consumer stage (the end of culture innovations amongst key stakeholders, most
a product’s life). This paper focuses on the lessons learnt notably the principle partners.

Figure 1: Jaguar Land Rover / Novelis’ vision for a sustainable aluminium value chain

Primary AIuminium Post-Consumer Aluminium

Post-Industrial Loop End of Vehicle Life Loop

REALCAR is the first stage of the Jaguar Land Rover / Novelis vision for a sustainable value chain which
ultimately includes a post-consumer loop, a post-industrial loop, the end of vehicle life loop and material
stewardship across the entire value chain.
 Collaboration for a closed-loop value chain 5

Essential steps to create a closed-loop value chain

The following sections of this paper explore how Jaguar Land Rover and Novelis tackled the essential steps
for the creation of a closed-loop value chain and the learning points that resulted.

1
Material Suitability
2
Establishing a Value
3
Progressive
and Innovation Chain Network Leadership

• E
 nsure that materials are • C
 ollaborate for shared values • Identify strategic champions.
suitable for loop closure. and mutual opportunities.
Unwavering support and advocacy
You must have high confidence Traditional transactional supply from senior stakeholders provides
about the across-the-board chain thinking must be replaced by confidence and momentum – and
suitability of the material selected a value chain approach in which a forum to help remove roadblocks.
for a closed loop. partners work in true collaboration
to achieve goals for all parties – • Promote shared values.
• H
 ave a rigorous and consistent and beyond.
In a circular economy, all parties
waste segregation system.
must move towards shared values
• U
 nderstand the entire
The purity and value of the scrap and broader project objectives,
value chain.
material must be protected from beyond the individual interests of
contamination by lower quality, Material, financial, commercial each party.
lower value material, otherwise the and contractual issues must be
commercial proposition may be understood in detail to deliver a • Involve a third-party catalyst.
compromised. winning business case.
Support from a third-party
organisation, such as a relevant
• E
 ncourage innovation • Manage stakeholder complexity.
industry body, can give projects
at every stage.
It is essential that a thorough focus, early momentum and
Fresh thinking and new communications and engagement potentially funding.
ideas, nurtured by committed plan for each stakeholder is in
stakeholders, are essential to place to keep everyone informed
find ways around the numerous and motivated.
hurdles that appear during the
development process. • T
 ell the story in
stakeholder terms.
Understanding the communications
needs of each stakeholder enables
a consistent and compelling
narrative to flow, strengthening
relationships and building trust.

1
Ellen MacArthur Foundation. (2014, January 24).
Towards the Circular Economy Vol. 3: Accelerating the scale-up across global supply chains.
Retrieved from: http://www.ellenmacarthurfoundation.org/publications
2
 orld Business Council for Sustainable Development. (2011, December).
W
Collaboration, innovation, transformation ideas and inspiration to accelerate sustainable growth – A value chain approach.
Retrieved from: http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.aspx?ID=14257
6 Collaboration for a closed-loop value chain

How to create a
closed-loop value chain
1: Material Suitability and Innovation
1.1 The ability to close the loop
A key initial requirement of a closed- REALCAR defined a number of New material solutions can take REAL learning:
loop study is to determine the aluminium grades that were focused considerable time to develop due to
suitability of the material or range of on testing the effects of differing the level of complexity and challenge Ensure the material
materials to be processed through additions during the recycling process. requiring technical innovation. The for which you intend
a closed loop. The complexities Laboratory and full production trials REALCAR project extended beyond to close the loop is
of manufacturing processes, resulted in the development of a its original three-year funding period technically suitable
combined with a closed-loop new aluminium grade that met all of with technical development taking for the purpose,
system, can introduce a degree of Jaguar Land Rover’s criteria. Material around five years. before you enter
mixing different types and grades, development accounted for into significant
which the material needs to tolerate. a significant part of the REALCAR commitments.
project budget and was funded in part Be prepared to
by a £1.3m grant from Innovate UK. develop special
material grades to
reconcile quality and
recyclability needs.

1.2 The value of segregation

A sustainable value chain is one Land Rover/Novelis alloy would be stakeholder buy-in to ensure that REAL learning:
that avoids downcycling, where blended with other, potentially lower everyone is aligned to the same
Rigorous processes
products are reused, or recycled purity, materials. goals of segregation. Due to the
for the consistent
into a new product of lesser complexity and cost involved in
segregation of scrap
quality or lower added value 3. However, to implement a closed- scrap segregation for an existing
must be in place at
loop project like REALCAR, the product or facility, it is far easier
the outset of closed-
In REALCAR, waste aluminium segregation of ‘scrap’ is key to build in segregation from the
loop projects to
from Jaguar Land Rover vehicle to ensure purity and therefore start, rather than retrofitting.
maintain scrap purity,
production is sold back to the the greatest value recovery.
quality and value for
supplier (Novelis) rather than Nonetheless scrap segregation Without appropriate scrap
recycling.
entering the general aluminium requires significant effort, segregation, impurities will
recycling system, where the high appropriate production planning, negatively affect product
purity and high-quality Jaguar specific tooling, co-ordination and performance, quality and value.

3
 cDonough, W., & Braungart,
M
M. (2002) Cradle to Cradle:
Remaking the Way We Make Things.
New York, NY: North Point Press

1.3 Embracing innovation

A research project has a degree a revised aluminium grade. This within the project allowed new REAL learning:
of inherent unpredictability due involved complex studies evaluating sub-innovations to be explored,
Innovation and fresh
to the number of unknowns and small changes in chemistry that potentially as separate projects.
thinking are essential
novel solutions that require initial could have a significant impact on
at all stages of the
development time. the material’s performance. But The implementation of a closed-
project, from creating
this new grade of aluminium could loop system for post-industrial
new materials and
In REALCAR, multiple research only be implemented following aluminium waste is now established
identifying potential
workstreams were established to practical studies into its recyclability, between Jaguar Land Rover and
applications, to
develop technical knowledge and and identification of potential Novelis. However, changing material
developing new
wider organisational understanding. applications. The workstreams grade will still require new, unique
commercial
As the project progressed, further also extended into the commercial solutions to be developed and this
arrangements and
innovations were needed. For arrangements between Jaguar has the potential to drive further
purchasing models.
example, an essential technical Land Rover and Novelis, and, sub-innovations in the value chain.
innovation was the development ultimately, into a revised purchasing
of material chemistry to create model for the closed loop. Flexibility
 Collaboration for a closed-loop value chain 7

2: Establishing a Value Chain Network

2.1 Collaborating
Sustainable business solutions This more collaborative approach Creating shared values within such REAL learning:
often lie outside the scope of a helped the companies recognise projects can enhance supplier
The best
single organisation. To embrace win-win opportunities to achieve relationships, inspire innovation
collaborations – and
these opportunities, companies their longer-term sustainability and build trust. The evidence
the best results – can
have to look beyond their own value- goals and benefit from reduced from the REALCAR project is
come from moving
adding processes and collaborate to exposure to fluctuations in that sustainable value chain or
away from traditional
capture wider value chain benefits. commodity market prices, closed-loop projects will deliver the
transactional supply
in addition to experiencing most benefits and foster greater
chain relationships,
The multi-stakeholder REALCAR improvements in material handling collaboration if they focus on areas
towards a shared
project enabled Jaguar Land Rover and logistics. However, it should of greatest scale, environmental,
vision and mutual
and Novelis to view their activities as a also be recognised that not all social and financial benefits.
opportunities to
value chain, rather than as a traditional companies at all levels in a value
achieve sustainable,
transactional supply chain. By doing chain will benefit equally from Although by acting alone you might
long-term goals.
so, both companies were able to the transformation. This is due to go faster, by acting together you
think beyond the incremental and the inherent necessity to change will go further.
traditional improvements to their own the nature of the value flow within
social and environmental impacts. the chain.

2.2 Value chain mapping

A sustainable value analysis and One example of where this may The mapping of whole value chains, REAL learning:
mapping tool* can help with value lead is a tolling contract, where economically, environmentally
Mapping the key
chain planning and transformation. returned material is netted off and socially, encourages the
stakeholders and the
For example, it can identify where against the original purchase identification of win-win situations
subsequent material
and when investments are needed, value, which can be an effective and can often point to groups of
and financial flows
where and when returns will method for reducing cash flow stakeholders with aligned interests
allows identification
materialise and, if necessary, impacts. In tolling, the customer who may not have been brought
of closed loops that
how to connect stakeholders only ever pays for the material together by simple market methods
deliver the greatest
to realise the value created. they use and not the material and bipartite transactions.
value, giving the
moving around the value chain.
business case added
*An example of such a tool is: strength and weight.
www.industrialsustainability.org/tools/
sustainable-value-analysis

2.3 Managing stakeholder complexity

Transforming a value chain requires Stakeholders should be identified those for whom the project is REAL learning:
existing stakeholders to act in a and engaged as early as possible less disruptive.
Transforming a value chain
manner that is likely to be different to educate them about the changes
involves commitment
to their existing day-to-day jobs. to be made and their responsibilities This early warning also allows
from a wide range of
In addition, the number and within the closed loop. stakeholders to flag any potential
stakeholders. It is essential
breadth of stakeholders will be issues and ensures they can be
that a thorough stakeholder
larger in a closed-loop scenario It is advisable to stagger the overcome in a timely manner, which
communications and
compared to a linear chain, engagement of these stakeholders builds momentum, and ensures
engagement plan is in
necessitating effective stakeholder so that those key to implementation peers within the organisation can
place from the outset.
communications and engagement. are fully engaged earlier than become advocates for the change.

2.4 Telling the story in stakeholder terms

Those involved in value chain Without clear explanations of why a improved performance, for REAL learning:
transformation are more likely to system is beneficial, individuals and example economic benefits
understand the importance of departments can misinterpret why or altruistic activities, can Understanding the
their role in the process if there are the system is being established and disengage other stakeholders. motivations and
clear, concise communications may believe that it is not worthwhile.   communications
and a strong narrative explaining It can take time to verify the Therefore, when transforming a needs of each
the measurable benefits across economic benefits of a closed-loop value chain, it is essential that a stakeholder enables
economic, environmental and social system in comparison to the cost communications plan is developed the creation of
factors. In this way, perception of of a traditional linear system. This, alongside the technical delivery to a strong and
transforming the value chain moves in turn, delays communication and provide tailored communications compelling narrative
from an altruistic activity to one decision-making. from the outset. Doing so will ease for each audience,
that demonstrates value creation project delivery, as resources strengthening
for that stakeholder. Similarly, an over-emphasis on are not consumed by continually commitments and
communicating one element of justifying the ongoing changes. relationships.
8 Collaboration for a closed-loop value chain

How to create a
closed-loop value chain cont
3: Progressive Leadership
3.1 Strategic champions
Securing senior stakeholder Jaguar Land Rover, it was Dr. Mark including purchasing, manufacturing, REAL learning:
engagement is critical to the success White, Chief Engineer, Body, who finance and product development.
of any value chain transformation. championed the need to move to Securing early
It ensures that there are strategic an aluminium body construction Due to different strategic origins buy-in from senior
champions and escalation routes and the requirement to address the and organisational structures, stakeholders is vital
for project roadblocks. increased environmental burden of Jaguar Land Rover and Novelis if transformational
acquiring the material. This led Mark had differing levels of senior closed-loop projects
Increasing the amount of recycled and the Materials Engineering team management engagement in are to gain the
aluminium in its sheet aluminium to develop the recycling strategy as a REALCAR. However the common necessary momentum
is central to Novelis’ core business research proposal, which ultimately lesson learnt was that fully and internal support.
strategy. This clear strategic became the REALCAR project. engaged senior stakeholders
direction and leadership at Novelis were key to ensuring that value
helped both initiate and maintain From this shared vision within Jaguar chain transformation was part
broad stakeholder engagement Land Rover’s engineering teams, of the core, long-term business
within the business, including other areas of the business had to be strategy and championed in
in its manufacturing plants. For convinced and engaged one by one, senior decision-making forums.

3.2 Adopting a shared-value mindset

Within a traditional linear value chain from a transactional mindset to one Different areas of the participating REAL learning:
model the flow of value creation is based on shared value. organisations gained different
Ensuring an
generally from supplier to customer knowledge at differing rates. For
early and shared
and the relationship is managed REALCAR provided a unique example, technical knowledge
understanding of the
on a transactional basis. However, opportunity for Jaguar Land Rover on material grades was achieved
circular economy, its
in a closed-loop model the value and Novelis to understand the sooner than the mental shift from
difference from a
flow is more complex, such that intricacies of the circular economy being ‘purchasers of components’
transactional mindset,
customers can end up supplying and how significant value can to becoming ‘value chain managers’.
and how new roles
their own supplier. This modification be achieved by all participants,
and relationships
in the relationship requires a real beyond just the purchase cost.
emerge, will
shift amongst stakeholders, moving
accelerate decision-
making and speed up
the achievement of
project goals.

3.3 Third-party catalyst

The natural infrastructure If a third party can be engaged to Within the REALCAR example, REAL learning:
supporting established processes fund some of the initial research, Innovate UK (formerly Technology
Interest, involvement
tends to deliver a linear (open- foster collaboration and help Strategy Board) undertook that
and even investment
loop) model. Moving to a closed- demonstrate the value to all role. It is acknowledged that due
from a third-party
loop approach is disruptive and participants, or to provide hard to the unstable wider economic
catalyst organisation
necessitates infrastructural change deadlines for implementation, environment during the early days
can give projects
and thus investment. This can faster progress and more focused of REALCAR, the project would
focus, early
present risks that a business may discussions on the disruptive have been unlikely to continue
impetus, credibility
not be willing to entertain without closed-loop proposals can result. without Innovate UK’s support.
and stakeholder
direct support from external
communications value.
stakeholders.
 Collaboration for a closed-loop value chain 9

Transferable learnings from

REALCAR – our conclusions
The REALCAR project from Jaguar Land Rover REALCAR
and Novelis has delivered a range of experiences delivered wide-
and learning points. Many, if not all, have ranging benefits.
applications far beyond the world of automotive
aluminium at Jaguar Land Rover. Recycled aluminium requires
up to 95% less energy during
production than primary
These points can be summarised in three categories, firstly, material material 4, contributing to a
suitability and innovation, secondly, the need for a value chain network, significant reduction in the
and finally, the role of progressive leadership. overall lifecycle impact of
Jaguar Land Rover vehicles.

Material suitability must be established definitively, and as early as possible, Specifically, for a 2013
before making any significant investments or commitments. A rigorous and Range Rover TDV6 model,
consistent waste segregation system must be defined to ensure that the purity REALCAR is one of the
and value of the scrap material in question is protected from contamination. innovations that have helped
Certainty on material selection and segregation is essential if the commercial reduce the global warming
proposition that underpins everything else is to have strength and weight. potential by 13.8% over a
typical vehicle’s entire lifecycle 5.
In our experience, new ventures such as these rely on innovation. Fresh By making aluminium more
thinking and new ideas must be nurtured and encouraged to find new ways accessible, Jaguar Land Rover
of solving problems and adding new layers of value. is able to further exploit the
lightweight properties of the
material in its aim to achieve
New relationships are needed, moving away from traditional transactional a 30% reduction in key
supply chains towards true collaboration in which the needs and environmental impacts during
opportunities of all partners are transparent and understood by all. the vehicle’s entire lifecycle by
This mindset streamlines decision-making and speeds up the achievement 2020, from a 2007 baseline 6.
of key milestones.
Meanwhile Novelis is able to
Fresh approaches to understanding where the greatest value is to be gained, make progress by reducing
and the consequential financial, commercial and contractual arrangements, its absolute greenhouse gas
are essential for these new relationships and ways of working to prosper. The emissions (Scope 1, 2 and 3)
needs and sensitivities of each stakeholder – in a more crowded stakeholder by 13% from a baseline, which is
landscape than usual – must be understood in detail and fully catered for, not an average of their emissions in
least in clear, consistent communications that speak directly to each partner. the financial years 2007-2009 7.
4
 he International Aluminium Institute.
T
(2012). Aluminium Recycling – Environment.
Business transformation will always need great leadership, from Retrieved from http://recycling.world-
champions who see the big picture – and the rewards that can come aluminium.org/resources/environment.html
from taking carefully calculated risks. Their unswerving advocacy and 5
 aguar Land Rover. (2013). Sustainability
J
support is essential. Report 2012/13. Whitley: Jaguar Land Rover
6
 aguar Land Rover. (2015). Sustainability
J
Finally, having the right third-party supporters, organisations or industry Report 2014/15. Whitley: Jaguar Land Rover
bodies that share your ambition, can provide sponsorship and early 7
Novelis. (2015). Capturing Opportunities:
momentum. REALCAR has worked, the evidence is clear. We hope our Novelis Sustainability Report 2015. Atlanta:
experience informs and inspires others to follow our journey. Novelis

Recycled REALCAR

95% 13%
aluminium has helped
requires up to Novelis
95% less energy reduce its
in production greenhouse
than primary gas emissions
material. by 13%.
Cambridge insight, Head Office
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policy influence, Cambridge, CB2 1QA
business impact United Kingdom
T: +44 (0)1223 768850
The University of Cambridge E: info@cisl.cam.ac.uk
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Leadership (CISL) brings together EU Office
business, government and The Periclès Building
academia to find solutions to Rue de la Science 23
critical sustainability challenges. B-1040 Brussels, Belgium
T: +32 (0)2 894 93 20
Capitalising on the world-class, E: info.eu@cisl.cam.ac.uk
multidisciplinary strengths of the
University of Cambridge, CISL South Africa
deepens leaders’ insight and PO Box 313
understanding through its executive Cape Town 8000
programmes; builds deep, strategic South Africa
engagement with leadership T: +27 (0)21 469 4765
companies; and creates opportunities E: info.sa@cisl.cam.ac.uk
for collaborative enquiry and action
through its business platforms.

Over 25 years, we have developed

a leadership network with more
than 7,000 alumni from leading global
organisations and an expert team of
Fellows, Senior Associates and staff.

HRH The Prince of Wales is the

patron of CISL and has inspired and
supported many of our initiatives.

www.cisl.cam.ac.uk