Innovation, technology and social indicators are less utilized, particularly social impact indicators that are reportedly used by 28% of respondents. Further research is needed to understand the reasons behind this lack of measurement, which could range from prioritization choices to lack of available metrics or capacity to measure. Overall, the results highlight a shift towards environmental, product and resource-centric CE measures, with the emergence of economics- related indicators (e.g. cost savings and revenue from circular products or services), showing the increased perception of the economic value of circular practices. Accounting approaches and methodologies for circularity FIGURE 2 Note: Multiple selection question; qualified data Source: Market survey jointly conducted by the World Economic Forum, Bain & Company and the University of Cambridge What accounting appr oaches and methodologies ar e you applying to benchmark, monitor and evaluate your cir cularity also but not exclusively in terms of GHG.eq emissions r eductions?Question 2 24 (6%)0 (0%)128 (30%)161 (38%)250 200 150232 (55%) 187 (45%)186 (44%)Numb er of respon dents Process-based life- cycle assessment (LCA)Physical input- output analysisMonetary input- output analysisAttributional life- cycle analysis (LCA)Hybrid life-cycle analysis (LCA)I don’t know Others100 50 0 Figure 2 shows that organizations largely depend on established methodologies for measuring and improving CE practices and GHG emissions reduction. Nearly 55% of respondents reported that they use process-based life-cycle assessment (LCA) as it provides detailed environmental evaluations. Physical and monetary input-output analyses are reported to be used by 44% of respondents each, emphasizing the need to consider both resource flows and economic factors. Some 38% of respondents said they use attributional LCA, while 31% said they use hybrid LCA, indicating a mix of assessment techniques. The fact that only 6% of respondents said they are unsure of their methodologies and that no respondents reported using methodologies outside of those listed suggests a strong reliance on recognized, conventional assessment techniques. This reflects a preference for proven approaches in evaluating circularity and GHG.eq emission reductions. Harmonizing Metrics to Measure Circularity: A Call to Action 8

Harmonizing Metrics to Measure Circularity A Call to Action 2024