An Interview With Russell McLeod
We must change our traditional view of our waste and think of it as a raw material that can reach a value in the market if it is correctly segregated and managed from its source. In the case of Cosentino, knowing the limitations of our waste, we have managed to correct or mitigate some of these barriers to facilitate its introduction into certain industrial processes such as asphalt or ceramics.
In our current economic model, we see a lot of waste and inefficiency. Products are designed, used, and then discarded, often creating environmental and economic burdens. The circular economy offers a solution by designing out waste and keeping materials in use for as long as possible. This shift can lead to innovative business models, sustainability, and economic resilience. How are companies making this transition, and what can others learn from their journey? I had the pleasure of interviewing Emilia Cruz Lorente.
With a degree in Economics, Emilia Cruz Lorente has more than 22 years of experience in the world of business innovation and in the management of public funding aimed at accelerating strategic R+D+I projects. She is currently Global Head of Sustainability and Corporate Affairs at Cosentino Group, the global leader in producing sustainable surfaces for the world of architecture and design.
Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you tell us your “Origin Story”? Can you tell us the story of how you grew up?
First of all, thank you so much for including Cosentino in this series. A circular economy is a fundamental aspect of our brand, and as an industry leader, it is important that we share our expertise and experiences and the role it plays as a driver of competitiveness and of synergies and alliances between sectors.
About my origins, I am lucky enough to have been born in a town in Almeria located in the province of Andalusia (Spain) called Macael. Much of the town is dedicated to the extraction and use of natural stone, and for thousands of years it has been known all over the world for its great monuments and works of art made with its exclusive stone, “Macael White Marble”. An example of this is the Alhambra in Granada, a business hub with marble quarries and with a know-how focused on innovation, internationalization and the creation of added value through surfaces for construction and design. The town has been able to become one of the primary engines of the Andalusian economy.
I grew up surrounded by the value of hard work being prioritized, as my father was a stonemason and owner of a marble processing factory. This instilled in me fundamentals such as, responsibility, humility, loyalty and the importance of leaving a positive mark on others.
This context sparked my interest in understanding the business world and the functioning of the market and economic sectors, especially how different economic variables impact evolution and development. For all these reasons, I decided to study economics.
Could you share with us your journey and the pivotal moments that led you to focus on the circular economy within your business?
I have a degree in Economics and a Master’s Degree in Economics, Business and Commerce. My professional career began in a company dedicated to carrying out market studies and economic viability of innovative projects in Andalusia, where I was able to strengthen my knowledge about the operation of the main variables that can determine the success of a new business or idea.
Later I became part of a multidisciplinary team in a Research and Technological Development Center aimed at innovation in the natural stone sector of Andalusia. I spent 14 years in this role, growing professionally and personally, surrounded by an entrepreneurial and investment culture. My team aimed at increasing competitiveness and generating added value both in business and in society. I specialized in the management of multisectoral innovation projects, public financing management, business model development, economic-financial feasibility studies and market analysis. In addition, I was approved by several Public Bodies at the national level as an advisor in Innovation and in lines of support for the promotion of governmental R+D+I.
After passing through this Technology Center, I made the leap to Cosentino Group, a renowned multinational company, where I have been managing the portfolio of strategic projects for more than 7 years to accelerate them through financing and the search for strategic alliances that allow shortening R+D+I times. I currently serve as the company’s Global Director of Sustainability and Corporate Affairs, and am also a member of the Board of Directors of several sectoral Business Associations.
In my first year of study I learned that one of the principles of Economics is to optimize the available resources to maximize results. Economic optimization is nothing more than the rational use of natural resources in order to achieve greater economic growth with less raw material expenditure in the production process, without causing greater damage to the environment.
This principle is now also the pillar of the Circular Economy. We are at a turning point where these basic principles of Economics will be revealed; we are at a juncture that will allow us to create new business models, new concepts and ideas based on the use of by-products to turn them into materials with greater value.
At Cosentino, we are working from this perspective, with a clear focus on adding value through our by-products.
What experiences in your background have shaped your understanding and commitment to sustainable business practices?
Silestone®, Cosentino’s leading material for use in kitchen countertops, emerged in the 80s as an idea to use the residue of natural stone from the natural stone cluster of the Comarca del Mármol in Almería (Andalusia, Spain), which is where our production plant is located as well as Cosentino’s headquarters.
The search for a valuable alternative to a mining resource that was considered a waste was the engine of this innovation and the axis of growth for the company. This concept evolved and has been in constant adaptation and innovation to become one of the mineral surfaces with the greatest presence in the markets — a world leader. The principles of the Circular Economy and Sustainability were applied when these terms did not yet exist.
For Cosentino, sustainability is understood in a transversal way- focused on the three axes that make up the ESG strategy: Environmental, Social and Governance Sustainability.
In the ENVIRONMENTAL pillar: we focus on ensuring that our operations are competitive in the present and future through decarbonization as the backbone and our products sustainability.
In the SOCIAL pillar: we maximize our contribution to development and society.
In the GOVERNANCE pillar: we ensure ethical, transparent and responsible management.
We must be aware that large companies have an added responsibility as driving forces in the economy. The Social component is part of our ESG strategy and therefore we are focused on leveraging our entire value chain made up of our suppliers, customers, employees, collaborators and agents that make up the business fabric where we are located.
Cosentino has the Sustainable Purchasing Certification, allowing us to ensure certain sustainability parameters in all the purchases we make. We actively participate in the economic, social, educational and cultural development of the communities in which we operate, because being a leading global company does not only mean being present in many places, it means caring about each of them.
Can you tell us about a significant challenge you’ve faced in your career that has influenced your approach to business and sustainability?
I am fortunate to be part of a leading international company oriented to take on the challenges of the future since its inception, facing them in an exemplary way that allows it to maintain a position of leadership within the business ecosystem. It is an unstoppable engine of innovation, growth and continuous learning, which means that there are numerous challenges you face on a daily basis that help you grow and expand your vision of business.
One of the latest challenges that the company has achieved from the point of view of sustainability has been to be able to revolutionize the quartz agglomerate sector through the development of an exclusive “Hybriq” technology. After several years of intensive R+D+I, Hybriq has allowed Silestone® to be transformed, providing it with such important attributes and differential values as limiting the content of crystalline silica in its composition and incorporating more than 20% made of recycled materials. Silestone® XM is a new mineral surface that combines all the levers of sustainability as a result of several years of research: 100% of the energy used is of certified renewable origin, 99% of water is recycled, contains a maximum of 10% crystalline silica and incorporates 30% recycled material. This year, the first collection to debut Silestone® XM was “Earthic”, produced in collaboration with iconic design duo FormaFantasma, featuring unconventional and reclaimed materials to create a sustainable surface concept that sets a new benchmark for the industry.
How has your company evolved to integrate circular economy principles, and what role have you played in this transformation?
As I mentioned before, Silestone® , the star product of our company, was born from a principle of circular economy back in the 1980s. The idea was to reuse the waste material produced in the marble industry to create a new product with better properties than natural stone. This concept evolved and has been in constant adaptation and innovation to become one of the mineral surfaces with the greatest presence in the markets today, a world leader.
The developmental process has been full of challenges, which have been overcome with a great work team behind it that has been able to balance the main levers of innovation: the technical part of product development, the industrial part of the production process, the economic component (seeking a balance between profitability and sustainability) and above all, consumer demand. Currently, the Cosentino team is made up of more than 6,000 people spread throughout the world.
As Director of Sustainability and Corporate Affairs, I am proud to be able to accompany a leading company such as Cosentino in the transformation strategy that our current world demands. Piloting the decarbonisation strategy, leading circular economy initiatives and water as a key resource, managing the KPIs of the ESG strategy that allow us to transform, are some examples of the functions I perform and that are complemented by the role of accelerating and promoting the company’s portfolio of cross-cutting strategic projects through public funding and strategic alliances with partners.
What does ‘closing the loop’ in the circular economy mean to you, and why is it important for businesses today?
In the Circular Economy, closing the loop is an essential concept that ensures that resources are used sustainably. The idea behind closing the loop is to maintain a continuous flow of materials and products by reducing waste and maximizing its value. To achieve this, companies must look beyond the traditional linear approach of taking, making, using, and disposing of goods. Instead, they must take a more circular approach that involves reusing, repairing, refurbishing, and recycling products.
Waste is one of the pillars of the circular economy, it is about reducing the generation of waste as much as possible.. We are currently at a juncture in which waste is no longer considered as such, but is a by-product or raw material that can add value to other sectors. The principle of economy based on optimizing available resources to maximize results will be highlighted.
Being able to look for the right raw materials for our product, which provide added value and differential aspects and being able to introduce them into the process are some of the great challenges in this regard that companies are facing.
Demand is beginning to value and require corporate policies that ensure that materials will not end up in a landfill. In addition, there is beginning to be a series of specific legislation to promote the Circular Economy with its consequent impacts on companies. Any product is subject to the increasing environmental demands of governments and consumers themselves. Businesses are beginning to understand this new scenario and must adapt to maintain competitiveness in the markets.
Does designing products to be circular increase the cost of the product? What are the challenges of balancing cost with creating a circular product that has demand?”
At Cosentino we have a firm conviction in the introduction of recycled materials in our products. These materials must meet all the technical and qualitative requirements of our traditional raw materials, which entails in-depth market research in addition to internal development in R+D to demonstrate their technical and economic feasibility.
On the other hand, taking advantage of the waste from the production process itself to recover the raw materials that are lost in the waste and that would otherwise end up in a landfill allows us to achieve a double objective: to optimize the processes with the positive economic impact on costs that this entails, and to apply this circularity, allowing the circle to be closed without leaving the factory.
The company’s strategy is to harmonize both scenarios to find the balance between internal circularity complemented by suppliers who introduce new, more sustainable raw materials for our products.
It is true that the cost of recycled raw materials can be higher than traditional ones. Therefore, we must find the added value of this new generation of sustainable materials to generate better characteristics in our products (color, resistance, etc.) that in turn facilitate new market opportunities.
Another challenge to highlight is to have an Ecodesign strategy that allows this economic balance to be achieved.
In this way, at Cosentino we face the challenge of introducing circularity in our product portfolio with the conviction that these sustainable materials should not necessarily have a negative impact on the economic viability of the business model, but rather should be an ally to continue improving the quality of our products by attracting a consumer who values the positive impact on the environment.
It should not be forgotten that all this transformation must be done while maintaining an economic balance. We have to be sustainable, but not at all costs — with technically and economically viable models. A balance must be sought between Sustainability and Profitability.
It is important to note that demand also plays an important role. Companies can make every effort at their fingertips to create those “green” products that will involve great economic efforts and that will inevitably have to be passed on to the market. However, it is necessary to be sure that demand will be able to value this leap in “green” value, being aware that this transition will require an effort in both directions: supply and demand.
Can you identify the 2–3 critical mistakes companies often make when transitioning to a circular economy model?
It is important to take into account two key variables common to any circular economy process: the waste or by-products to be reintroduced and the necessary strategic alliances.
From the perspective of waste or by-products, one of the most common mistakes is not knowing them fully from the point of view of the new paradigm that has become a new raw material that another company can use. This means a change in business mentality. These by-products will become the resources of another industry and need to comply with all the minimum requirements that apply to them in their production processes. Therefore, it is important to study them in depth to find their possible market niches and even determine if they can be adapted to meet the demands of a market that, at times, may offer initial resistance to acceptance.
It makes no sense to transfer waste from one sector to another if it does not provide a differential value. Being able to find that application in which the properties of our by-products allow us to reinforce those of other products, will be the key to being able to move forward together and provide society with that efficiency.
In this sense, another critical point is strategic alliances; being able to find the right partner where a win-win model is achieved and which, in many cases, requires the creation of new joint business models, entering into a business dynamic that takes you out of your comfort zone and will require expanding the focus and scope of the business.
Finally, and although it may seem obvious, I would highlight as a critical aspect the knowledge and compliance with the regulatory framework of application. A circular business model is not simply closing a contract for the purchase or supply of a raw material. Concepts such as waste, by-product or end of waste status are terminologies that companies sometimes confuse and their implications and conditioning factors are different at the operational level.
How does your company address the entire lifecycle of a product, from design to end-of-life, to ensure circularity?
At Cosentino we carry out the life cycle analysis of our two main products: Silestone® and Dekton® . This exercise is carried out throughout the life of both, so we obtain a more accurate and global vision to be able to focus efforts and possible investments on those areas and stages of the product in which we will generate a greater positive impact. Knowing and properly interpreting the environmental footprint of products throughout their life cycle gives us the keys to designing more sustainable products or improving their eco-design.
Our R+D department continuously develops new colors and products that include materials of recycled origin, simultaneously adapting to market demands. Every year, our portfolio has new colors created with recycled materials in their composition, some Dekton® colors have recycled content of more than 80%.
Our products have a high durability, currently, they have a 25-year warranty, which makes them products that remain in the circuit for quite some time. Work is underway to find circularity-based solutions for end-of-life in its different destinations and applications around the world. Our goal is to try to avoid landfill management and get a second life for these materials.
What innovative strategies has your company implemented to reduce waste and promote resource efficiency?
With the launch of Dekton® in 2013, the excess material began to be recovered by incorporating it as a raw material in some formulations, since it has all the properties and meets the characteristics of any approved raw material. It could be said that, in itself, and by design, Dekton’s production process has been in line with the principles of the Circular Economy since its inception.
Without a doubt, though, the biggest milestone in Cosentino’s Circular Economy Strategy has been the start-up of our own waste management and recovery plant in 2018: COMA.
COMA is a facility for the treatment and disposal of our waste for the development of recovery projects. It has also made it possible to reduce the company’s environmental impact through the control of its own waste that until now was dumped 80 km away. It was born as an innovative concept by R+D to reintroduce waste as new raw materials of recycled origin in our production processes, also promoting projects with companies from different sectors for their incorporation as new resources.
What role do partnerships and collaborations play in your efforts to close the loop and create a more sustainable business model?
In navigating the challenges mentioned above, we have learned that synergies between sectors are very important to be able to move faster. Collaborations with public and private entities are the central axis of the company’s corporate strategy around the Circular Economy. At Cosentino, we establish contact with companies from different sectors with the aim of finding agreements that generate circular business models to face different economic-environmental challenges.
The collaborators make their resources and facilities available to carry out laboratory tests, pilots and industrial tests that demonstrate the technical and economic viability of the research path. If we manage to validate and approve the solution, this collaborator will become a customer who will consume our waste or by-products as a raw material. Without these collaborations that result in commercial agreements, it would not be possible to make progress in terms of circularity and waste recovery.
In addition, collaborations with knowledge agents such as universities and research centers are essential to find and technically validate different solutions and technologies that allow us to access new market opportunities.
As an example of this collaborative strategy, we have recently led a national consortium through the Missions Program of the Ministry of Science and Innovation that promotes major challenges with a high impact on the markets, and specifically, linked to obtaining more sustainable materials based on the circular economy in the construction and aeronautics sectors. In addition, we are executing a European project made up of a consortium of companies and research entities from several countries aimed at finding solutions and applications for our waste.
We are at a juncture that will allow us to create new business models, new concepts and ideas based on the use of by-products to turn them into materials with greater value. One of the points of competitiveness that will undoubtedly be leveraged will be the creation of these strategic alliances between companies that can exchange raw materials.
What are your “5 Things You Need To Create a Successful Circular Economy Based Business”?
1. We must change our traditional view of our waste and think of it as a raw material that can reach a value in the market if it is correctly segregated and managed from its source. In the case of Cosentino, knowing the limitations of our waste, we have managed to correct or mitigate some of these barriers to facilitate its introduction into certain industrial processes such as asphalt or ceramics.
2.Collaborate with other public and private entities to find synergies, more sustainable products and circular business models. At Cosentino, we lead a national R+D+I consortium that develops sustainable technologies for controlled recycling processes and the recovery of waste and materials at the end of their life cycle.
3. Circularity has to be at the heart of design and throughout the product value chain, starting with conceptual design and ending with the end of the useful life. As an example, the new “Earthic” Series launched on the market this year is based on these principles of eco-design and sustainability.
4. Utilize the regulatory framework and the promotion policies that governments make available to us, since there are public financing instruments that allow us to cushion the risk involved in launching R+D+i projects and disruptive business models.
5. Think out of the box. Innovation and idea generation is one of the levers for applying circularity to new opportunities in business sectors or less recurrent solutions. At Cosentino, for example, we have used recycled PET plastic within our products traditionally composed of a mineral structure.
What is one actionable step companies can take today to move closer to a circular economy model?
Know your waste in depth and find its added value.
A company in the agri-food sector is surely looking to use its organic waste in widely known applications such as composting or bio-gasification of these materials. A company like Cosentino, belonging to the construction sector, will try to find solutions based on civil engineering such as the manufacture of cement or concrete.
However, if we study our waste or by-products through R+D lines and rely on professionals and specialized entities, we will be able to know in detail their properties, qualities and limitations with the aim of generating a kind of cover letter or technical sheet that highlights the attributes of our waste. In this way, it will be possible to access new sectors, technologies or applications in search of synergies that allow establishing a win-win circular business model where our waste provides added value.
Could you share a story of a business or leader who has inspired you in the realm of the circular economy?
Our company history is an exemplary source of inspiration in the field of the circular economy.
In the 80s, Cosentino began the timely task of innovation based on an idea: to take advantage of the waste from the cutting and treatment of marble to create a new mineral product, but of artificial origin. That idea led to the manufacture of a new material called Marmolstone. The concept of this product was to recycle the dust generated in the marble industry through an agglomerate with the aim of taking advantage of this waste. Unfortunately, this product led to the bankruptcy of the company. However, the company’s management did not cease in its efforts and as a result of this idea, a year later its star product was born: Silestone® .
More than 40 years ago, Francisco Martinez Cosentino Justo, President of the company, developed a business model based on the circular economy. Currently, the Cosentino Group has a turnover of €1,570 million and more than 6,000 workers around the world thanks to a visionary idea based on the need to take advantage of and reuse the waste produced in its town of origin.
How can our readers further follow your work or your company online?
The company is present on the main social networks and has a web portal where you can find more information: https://www.cosentino.com/usa/
The Sustainability Report that the company prepares every year and which includes in detail the main milestones in terms of our ESG strategy, is available for download on the website: https://www.cosentino.com/usa/sustainability/
This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!
About the Interviewer: Russell McLeod is an experienced business leader, social entrepreneur, and mentor. A champion of profit with purpose, the circular economy and of collaboration for positive progress.
Russell is the founder of Mightyhum a Toronto-based impact enterprise dedicated to supporting growing organizations. And, while it’s not a requirement, the Mightyhum team has a passion for collaborating with purpose-driven businesses. Mightyhum specializes in providing consulting services and turning hairy audacious concepts into achievable ventures & projects. The Mightyhum team work with C-suite executives and leaders, developing new product offerings, effective go-to-market strategies, building for profitability, and streamlining operations. Before Mightyhum, Russell was involved in the world of social enterprise as the Executive Director of ME to WE, one of Canada’s best known and most awarded social enterprises. While at ME to WE, the team demonstrated that being profitable and impactful was indeed possible. During his tenure, ME to WE delivered $20M in cash and in-kind to WE Charity, helping transform the lives of over 1 million people through access to clean water; the lives of 200,000 children with access to education; and 30,000 women-led businesses launched globally.
Russell’ personal mission is to inspire others that there is ‘a better way to do business,’ ‘that through business we can solve some of the world’s problems at the same time.’ You can follow Russell’s work at https://www.linkedin.com/in/russell-mcleod1/ or www.mightyhum.com.
Closing the Loop: Emilia Cruz Lorente Of Cosentino On Embracing the Circular Economy was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.