Over the past year, 25 global companies that are members of WBCSD came together to jointly develop Circular Transition Indicators for organizations to identify circular opportunities and linear risks, to determine circular priorities and targets.
This methodology provides companies to understand their circularity performance and allows them to:
• Identify circular opportunities and linear risks with the aim of improving longevity and resilience
• Help organizations to understand where they are in the transition to a circular economy
• Respond to customer and investor inquiries
• Start value chain conversations on identified circular priorities
The framework outlines seven process steps:
1- Scope : Determine the boundaries
2- Materiality (Select the indicators)
3- Collect (Identify sources and collect data)
4- Calculate (Perform the calculations)
5- Analyze (Interpret results and identify opportunities)
6- Plan (Develop action plan for circular opportunities)
7- Apply (Roll out the action plan)
This framework aims to provide broadly accepted guidance on measuring circularity. The framework could be used as a guidance for organizations in obtaining tangible understanding into how it can accelerate the transition to a circular economy and the opportunities in doing so. Any organization, regardless of size, sector or position in the value chain, can use this framework.
According to the latest developments, The World Business Council for Sustainable Development (WBCSD) and Circular IQ have partnered to develop an online tool for “Circular Transition Indicators (CTI)” framework, which aims to support businesses calculate, measure and monitor their transition to a circular economy with to scale up impact and improve strategic decision making.
The circular economy is considered as a promising approach to help reduce our global sustainability pressures and its principles have already been adopted as part of the business strategies. Even though the pressure to shift from linear to more circular ways of doing business increases, today the global economy is only 9% circular according to the 2018 Circularity Gap Report. It means that the progress to accelerate the transition is continuing and the opportunity to improve stands at 91%.
The development of the CTI tool will help companies identify opportunities to improve their circularity and effectively address the major and global challenges.
The online tool will officially be launched at the World Economic Forum in Davos, Switzerland in January 2020.