Circular Metrics - A framework for measuring a company’s performance in the circular economy | Knowledge Hub | Circle Economy Foundation
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Article / Report
Circular Metrics - A framework for measuring a company’s performance in the circular economy
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Measuring progress in the circular economy is challenging. What and how a company, organization or government chooses to its contributions towards a circular economy depends on its objectives, scope and intended audiences. Even within the private sector, the indicators, methodologies and target audiences for circular metrics vary greatly. As part of WBCSD’s circular economy program aims to achieve harmony in how individual companies measure their progress in the circular economy. This report evaluates the current landscape of circular metrics globally.

Problem

Measuring progress in the circular economy is difficult, and whether and how circular economy practitioners want to measure their impact is highly dependent on their goals, reach, and target audiences. As a result of the wide range of circular metrics that are used across industries and geographies, a landscape of overlapping and sometimes contradictory indicators of circularity progress has emerged.

Solution

The Circular Metrics workstream, which is part of WBCSD's Factor10 circular economy initiative, seeks to achieve consistency in how businesses calculate their circular economy success and advise organisations on how to develop these frameworks. To do this, they summarize, analyse and compare various existing circular economy frameworks in their report. 

Outcome

The report concludes with the following points deemed crucial for the development of a common framework to measure circular economy for companies:1. Drive circular business performance 2. Target specific audiences depending on company objectives 3. Cover a comprehensive sustainability scope 4. Ensure flexibility and inclusion 5. Adopt a phased approach to incorporating capitals 6. Build upon existing frameworks and standards 7. Drive culture change and provide guidance. Through this report, organisations can use the authors' recommendations to build their own framework, and practitioners and academics can benefit from the knowledge for future research. 

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