Royal Swinkels Family Brewers develops circularity calculation and is the first to apply it

04 -20-2020

The Swinkels Circularity Index provides insight into the total business operations circularity 

Lieshout –Swinkels Family Brewers strives for 100 percent circular business operations and has developed an integral method/calculation with three core processes as control mechanism; circular procurement, circular production and high-quality reuse. The model has been given the name "Swinkels Circularity Index", or SCI. The calculation method makes it possible to link the circularity of the entire company to concrete objectives, gain insight into the processes and make necessary adjustments. The Swinkels Circularity Index is part of the CSR information that KPMG, the accounting and consultancy firm, has reviewed. KPMG provided an assurance report for this. The model has been applied for the first time to the 2019 annual figures, which will be published soon. 

Fully circular business model
The urgency to apply a circularity calculation to the family brewer's business operations arose from the company's outspoken ambition to conduct its business in a fully circular manner. The calculation created by Swinkels Family Brewers was inspired by the information from the Ellen MacArthur Foundation and the World Business Council for Sustainable Development. Peer Swinkels, CEO of Swinkels Family Brewers: 'Even in times of crisis, achieving circular business operations remains our top priority, along with the health of our employees and business relations, of course. In addition, as a family business we wish to pass on an even more beautiful brewery to the next generations. No changes there, despite the crisis. We focus on circularity, because we expect it to have a very positive impact on society.' 

Foundation and confidence
Until now, there was no method for measuring circularity that fitted in well with the company, which is why employees of Swinkels Family Brewers joined forces to give circularity a format for the company, an approach that was later tested by experts for correctness and completeness. 'I admire the scientific approach and thoroughness of the team that has been working on this for at least a year. It makes me particularly proud of the development of the Swinkels Circularity Index. It gives us something to hold on to in our daily work as well as the confidence to find the right balance between our circularity agenda and business opportunities in the future. The degree of applicability of the calculation offers opportunities for other companies pursuing circularity and it would be good if we, together, could work towards a higher goal, namely a circular economy,' says Swinkels. 

Ralf Jansen, partner at KPMG: ‘Swinkels Family Brewers was able to take a great step that ultimately led to the Swinkels Circularity Index becoming part of the CSR information for which we provided an assurance report. It is encouraging to see that more and more companies are taking the theme seriously. We hope that other companies will feel inspired to integrate this method of reporting in their business operations as well.' 

Keeping its value
The essence of the concept of circularity is that raw materials are not lost and retain their value. To achieve this, the brewer focuses on circular procurement, circular production and high-quality reuse. This relates to raw materials and materials such as glass, metal, plastic, wood, barley, hops and water and the use of renewable energy. The responsibility for circular business operations lies not only with buyers or plant managers, but also with facility workers, marketers and drivers. The company is aiming its efforts on increasing the circularity score across the organisation.

Collaboration throughout the chain
According to the Swinkels Circularity Index, the brewer scored 40 percent in 2019. The target for 2020 is 50 percent. In order to achieve this, collaboration is sought with suppliers and other parties. Peer Swinkels: 'We have noticed that other companies are also interested in a similar approach. Over the past few months, for example, we have entered into discussions with partners and suppliers on a number of occasions, which have resulted in great and highly relevant initiatives. Circular entrepreneurship is something you do together and by working together you can add value. Our goal is to achieve a higher circularity score every year. It requires a lot of effort from the entire organisation, but it starts with awareness and concrete goals.'