bUsinEss

Quick! circular waTcHmaking

Benjamin Teisseire

Nature does things well. It doesn’t squander anything, doesn’t produce waste, doesn’t pollute. Everything is born, lives, develops and dies in a cycle that doesn’t impact the overall balance. The business world, on the other hand, isn’t imagined in a cyclic fashion but in a linear one: we produce by consuming natural resources, we use, we throw away and we begin all over again. This has to change as the IPCC (Intergovernmental Panel on Climate Change) has been pointing out for almost thirty years. In actual fact, the mantra of any firm, given the urgency of environmental and social issues, should be: tomorrow’s business will be circular or it won’t survive. Watchmaking is late when compared to other sectors, but awareness is on the rise. Can we actually develop real circular watchmaking? Food for thought.

The importance of recycling

This is the first step towards circularity.

It can be applied to many aspects of the watchmaking business. For gold production, for example, recycling already stands at 25 to 30% of annual demand (WWF 2021 figures) and iT’s pErfEcTly possiblE To should increase. For steel, an avid cEnTrE sTagE and sEll luxury waTcHEs raw material consumer and emitter of greenhouse gas (GHG), novel recycling methods are coming to the madE from rEcyclEd fore. As such, Swiss firm Panatere maTErials. S.A. collects shavings of this ferrous metal alloy from watchmaking in the Jura Arc and produces a 100% recycled alternative via a short supply chain – virtuous factor of circularity. Last year, Panerai unveiled its first-ever watch in recycled steel, the Luminor Marina eSteel,

“Tomorrow’s businEss will bE circular or iT won’T survivE”

and is committed to using only this type of steel for its production by 2025. Our watch straps and bracelets may also be recycled, like Ulysse Nardin’s R-Strap in 2020, which used materials from fishing nets retrieved from the oceans. The firm goes further still this year with its Diver Net concept watch that uses this material for all its entire case. The ocean plastic “deposit” is so enormous that it could reduce the production of new plastic, a planetary scourge, considerably. Last but not least, recycling must become the standard for packaging, merchandising and events. An increasing number of brands are taking on this approach and show that it’s perfectly possible to centre stage and sell luxury watches made from recycled materials. Most of the stands at Watches and Wonders 2022 were built in recycled materials, proof that awareness is gaining ground. Even independent brands like Ressence propose recycled PET or cardboard packaging.

Innovation to the rescue

Innovation goes hand-in-hand with watchmaking. It is now dedicated to sustainability and to the circular economy. Finding new materials that respect the environment and that are intended to be totally recycled is an avenue currently being explored. ID Genève, for example, a young brand created through a crowdfunding campaign in 2020, has just imagined a “Treekind” strap completely fashioned from green waste and totally compostable at the end of its lifecycle. Recycled cardboard and mycelium

packaging is making inroads and should become the norm to reduce the use of exotic wood and plastic. Likewise, new production methods are emerging on the scene. Like the Panatere-invented solar furnace that reduces steel production-related Co2 emissions 165-fold. A furnace that only uses renewable energy and locallyrecovered recycled steel: the circular economy is beginning to make its mark! ID Genève’s Circular S is the first example of this. Without a doubt, others should follow suit.

partnership logic

For this urgently-needed change to be successful, we have to work together. Collaborate, openly, transparently… words rarely used in a watchmaking world shrouded with mystery, eager to keep its know-how secret. But, times are changing. In 2021, Panerai launched its open-source eLAB-ID platform. And went on to reveal the full list of its suppliers who helped it accomplish the project. A revolution to share best practices. At the same time, LVMH showed that collaboration can come from other industries. Its 2021-initiated Nona Source programme resells materials from its fashion and leather goods brands. Zenith, one of the Group’s firms, in turn uses textile scraps from this source to create new totally-upcycled straps for its Defy Midnight watch.

Extending lifespan

Watches aren’t throw-aways, that’s one of their main advantages. Giving timepieces that have been stored away a new lease of life extends their lifespan even more. The second-hand market boom invites enthusiasts to benefit from the double opportunity of purchasing

"THErE’s a noTion of urgEncy. wE nEEd To rETHink our wHolE businEss modEl"

JEan-marc ponTroué panErai cEo

models at an affordable price – apart from speculative frenzies – and increase interest for watchmaking in general. And, once again, short supply chains will reduce the industry’s impact.

The key: governance

Results can only be achieved with clear vision and great determination… which must come from the highest levels of brand management. A few brands have understood this perfectly and have rolled out tangible targets and tools to accomplish it. Cartier, Chopard, Breitling, IWC, Panerai and Bvlgari set the example. But the silence of some other leading firms is starting to become deafening! As Jean-Marc Pontroué, Panerai CEO, stated during a panel on the circular economy at the Watches and Wonders 2022 show: “There’s a notion of urgency. We need to rethink our whole business model”.

The circular economy is the model to bring on-board if we wish to ensure future generations a living and liveable world. It is totally opposed to our unlimited linear growth model. Yet, awareness is being enkindled, solutions are starting to bloom, desires and determination are being asserted by firms and by end consumers. Watchmaking has the means to become an example. The time is ripe, not for beating about the bush, but for taking action. The time is now!