Circulytics Method Introduction
How to get your company assessed and how the scores are generated
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As of 31st August 2023, Circulytics is closed to submissions.
The following resources remain available for organisations interested in the methodology or using the indicators to support circular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. data collection and streamlining or harmonising measurement efforts, subject to the Website Terms and Conditions.
Businesses are at the heart of the transition from a linear to a circular economy. Companies all around the world are recognising the economic opportunities the circular economy presents and the critical solutions it provides to help tackle global issues. By gaining access to the right data through circular economy indicators and metrics, companies are in the best possible position to make the right strategic decisions more quickly. Having access to the right data can help businesses find a competitive edge, reduce costs through waste elimination, and meet their sustainability and other goals.
The circular economy is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials, and regenerate nature. Early adopters of the circular economy have placed these principles at the core of their business by embedding them in their corporate strategy and committing to circular innovation.
A welcome development is that circular economy indicators are increasingly reflected in non-financial reporting. Circulytics, thanks to the collective effort of over 2,000 companies that have signed up to use the tool, has informed these reporting standards, such as the European Sustainability Reporting Standards drafts.
Transitioning to a circular way of doing business requires an understanding of a company’s baseline performance today, in areas such as material flows, physical assets, and services, as well as factors that enable a transition to a circular economy. While the Ellen MacArthur Foundation has stepped away from collecting data and conducting individual performance assessments through Circulytics, the methodology continues to offer a robust and comprehensive framework to identify indicators for tracking relevant circular economy data.
For this reason, the Circulytics resources will remain available and continue to be updated. As we deepen collaboration with other actors in the measurement ecosystem, we hope Circulytics will continue to inform others and help streamline and harmonise the reporting landscape.
The Circulytics methodology is a set of indicators that collectively capture the circular economy performance of a company’s entire operations. It is structured into two categories:
The critical aspects to enable company-wide transformation.
All themes in the Enablers category are relevant to all companies.
Theme 1. Strategy and planning
Have you placed the circular economy at the heart of your strategy?
Theme 2. Innovation
Are the conditions in place to support the development of innovative circular products and services? Are you innovating towards new circular economy products, systems, or services?
Theme 3. People and skills
Are you supporting your employees? Have you employed people to develop the skills required to transition to a circular business model?
Theme 4. Operations
Have you invested sufficiently in your digital systems and plant, property, and equipment assets to support the change?
Theme 5. External engagement
Are you promoting your circular economy initiatives and influencing those in your business sphere, such as clients or your supply chain?
Metrics that capture how circular a company is today.
A subset of the themes in the Outcomes category is relevant to any given company, as outlined in the Indicator list ($link Indicator list pdf).
Theme 6. Products and materials
Are the materials you procure and the products you design supporting a circular economy?
Theme 7. Services
Are the services you provide supporting a circular economy?
Theme 8. Plant, property, and equipment assets
Are you procuring and decommissioning your plant, property, and equipment assets in ways that support a circular economy?
Theme 9. Water
If you operate in a water-intensive industry, are you using water in a circular way?
Theme 10. Energy
Are you procuring renewable energyEnergy derived from resources that are not depleted on timescales relevant to the economy, i.e. not geological timescales. and (if you are an energy provider) producing renewable energy to support a circular economy?
Theme 11. Finance
If you are a financial institution, are you intentionally financing companies and projects that support a circular economy?
Used for tailoring the assessment scope and industry benchmarking
Circulytics has been developed by the Ellen MacArthur Foundation’s in-house Circular Economy Measurement Team. The Ellen MacArthur Foundation is an international charity registered in England and Wales with a mission to accelerate the transition to a circular economy.
Since its launch in 2020, Circulytics has played a critical role in driving business adoption of circular economy practices globally by empowering strategic decision making, providing a means to track progress, and generating opportunities to communicate success. To ensure usefulness and relevance, the Foundation has consulted over 30 companies and academic institutions who provided feedback throughout the development process.
The Ellen MacArthur Foundation works to accelerate the transition to a circular economy. We develop and promote the idea of a circular economy, and work with business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally.
Charity Registration No.: 1130306
OSCR Registration No.: SC043120
Company No.: 6897785
Ellen MacArthur Foundation ANBI RSIN nummer: 8257 45 925
The work of the Ellen MacArthur Foundation is supported by our Strategic Partners and Partners.