In recent years, the circular economy has increasingly appeared as the new model to pursue sustainable economic growth.
However, for companies and governments to be able to assess their circular performance, they need consistent measurement processes and metrics. There is no consensus approach for how companies can measure their effectiveness in moving towards more circular business models.
To address this gap, we have jointly with our members developed a universal framework to measure circularity. The Circular Transition Indicators (CTI) is a transparent and objective framework and tool that can be applied to businesses of all industries, sizes, value chain positions and geographies.
As momentum behind the circular economy has grown, so has the number of indicators and methodologies for assessing progress. Governments, companies and non-governmental actors are all developing various ways to measure progress towards a circular economy. The lack of consensus across metrics and methodologies makes comparison across companies or sectors impossible.
Effective use of a common framework to measure circular performance will allow companies to compete on performance, not on metric identification or methodology. Consistent use of circular metrics will facilitate the flow of internal and external financing to value-creating circular initiatives.
