Motivating Sustainable Material Use through Industry-Level Simulation Modeling of Platinum Stocks and Flows

Manufacturing firms that rely on finite resources have a stake in ensuring sustainable materials use. Higher material prices and uncertain material supply, consequences associated with scarcity, can be damaging to firms. Firms have a number of options to improve material sustainability including dematerialization, material substitution and recycling. However, these options require technological capability, capital investments and supply-chain infrastructure; firms may decide to make such investments only if material prices increase. Once decisions are made, the barriers and delays to implementing changes may harm firms. The impact of not reacting to changes in material supply on firms was examined for the case of different platinum-using industries. It was found that taking action is particularly important for firms when limited material availability leads to volatile market conditions. Industries can benefit especially if they ensure process flexibility and have options for changing their material use patterns.