Harmonizing Metrics to Measure Circularity A Call to Action 2024

Existing circularity metrics, indicators and frameworks1 Standardized metrics allow industries to manage resources better with clear, consistent benchmarks for evaluating CE practices. With the proliferation of different approaches to measure circularity, this section examines what type of metrics businesses are currently using to evaluate their circular operations and performance. A survey of more than 400 business in 10 industries (Figure 1) shows that businesses are focusing on measuring the environmental impact of their circular solutions, with 67% of respondents saying they prioritize GHG.eq (greenhouse gas-equivalent) emissions reduction. Resource efficiency and product life-cycle management metrics are equally utilized, reflecting an interest in measuring and optimizing resource utilization, extending the product life cycle and improving material recovery rates. Circularity-focused economic indicators are also valued and utilized by approximately half of the surveyed businesses. 1.1 An industry perspective on measuring circularity4 Indicators to measure circularity of operating and business models FIGURE 1 Which cir cular economy indicators ar e you using to measur e the cir cularity of your operating and business models?Question 1 126 (30%) 4 (1%)2 (0%)116 (28%)205 (49%)300 237 (56%)241 (57%)281 (67%)Numb er of respon dents Resource efficiency (e.g. energy, water, material use, waste reduction)Product life cycle (e.g. longevity, reuse rate, recyclability)Environmental impact (e.g. GHG emissions reduction, hazardous waste reduction)Economic indicators (e.g. cost savings, revenue from circular products/ services)Social indicators (e.g. number of circular economy jobs, training hours)Innovation and technology (e.g. R&D spending, number of circular economy patents)Other (please specify)I don’t know200 100 0 Note: Multiple selection question; qualified data Source: Market survey jointly conducted by the World Economic Forum, Bain & Company and the University of Cambridge Harmonizing Metrics to Measure Circularity: A Call to Action 7