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Collaboration for a Closed-Loop Value Chain: Transferable Learning Points from the REALCAR Project

To optimize the use of man-made materials, Jaguar Land Rover (JLR) started using aluminium in its vehicles' bodies to reduce weight and tailpipe emissions and improve fuel consumption. However, since aluminium was more energy-intensive to produce, JLR and its material supplier Novelis partnered to develop a new method to reduce costs and environmental impact during production.

This case study from the Cambridge University Institute for Sustainability Leadership focuses on the REALCAR project, but its findings are applicable to the creation and transformation of all value chains and other collaborative circular economy projects.

The report's key learning points include:

  • Material suitability and innovation: There must be high confidence about the across-the-board suitability of the material selected for a closed loop.
  • Establishing a value chain network: Traditional transactional supply chain thinking must be replaced by a value chain approach in which partners work in true collaboration to achieve goals for all parties. It is essential that a thorough communications and engagement plan for each stakeholder is in place.
  • Progressive leadership: Unwavering support and advocacy at a senior level provides confidence and momentum – and a forum to help remove roadblocks.
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