Continued investment in a linear economy results in long-term, system-wide impacts and risks. Moving to a circular economy is increasingly recognized as an opportunity to reduce risk and uncover new growth opportunities. However, while a variety of tools exist for measuring and quantifying sustainability topics and Environmental, Social, and Governance (ESG) factors, no tool currently exists that provides a comprehensive framework for circularity and specifically quantify how circular organisations are.
To address this, Circle Economy developed the Circle Assessment to establish a global standard to help investors and companies assess where organizations can create value by following the principles of a circular economy. Via an online survey, the Circle Assessment measures organisations against circular objectives and provides recommendations for how to capitalise on opportunities to adopt circular focused business practices.
3. Source:Adaptedfrom:TheNewScientist.WRI,
WHO,WorldBank,OECDFactbook2013
FISHERIES EXPLOITED
WATER USE
NORTHERN HEMISPHERE
AVERAGE SURFACE
TEMPERATURE
SPECIES EXTINCTION
OZONE DEPLETION
FOREIGN INVESTMENT
CO2
CONCENTRATION
GDP
MOTOR VEHICLES
PAPER USE
LOSS OF TROPICAL
RAINFOREST & WOODLAND
POPULATION
1750
1800
1850
1900
1950
2000
2050
THE LINEAR MODEL IS UNSUSTAINABLE
These linear risks have adverse long-term effects on the economy, society and environment
4. The circular economy is an
economic system that is waste-
free and resilient by design,
mimicking natural ecosystems in
the way we organise our society
and businesses.
By following circular strategies
and principles, companies can
ensure the highest level of
economic and societal value is
attained while minimising
planetary impacts.
THE CIRCULAR ECONOMY OFFERS A SOLUTION
5. GROWING MOVEMENT OF CIRCULAR BUSINESSES
Numerous companies - from sustainable start-ups to major commercial ventures - are
increasingly interested in introducing and further developing circular and sustainable
solutions into their business:
Major corporations such as Philips, DSM, Renault, Nike, etc.
Companies such as Patagonia, Rabobank, Bruynzeel Storage Systems, Desso, etc.
Growing startups such as Black Bear Carbon, Inashco, Fairphone, etc.
6. THERE IS A NEED TO QUANTIFYCIRCULARITY
A variety of tools exist for measuring and quantifying sustainability topics and
Environmental, Social, and Governance (ESG) factors - CO2 emissions, generation of
waste, occupational health and safety, business ethics, etc.
However, no tool currently exists that provides a comprehensive framework for circularity
and specifically quantify how circular organisations are
Circle Economy’s CIRCLE Assessment tool assesses the strategic factors that determine
how well organisations are meeting circular economy objectives, and it provides
recommendations to capitalise on circular opportunities, enable long-term growth, and
reduce linear risk
7. CIRCLE ASSESSMENT: OPERATING MODEL
Bankingand Financing
Engage with clients and partners to
improve circularity and create value
Institutional Investors
Assess portfolios on circularity to
reduce risk, enable long-term growth
City SustainabilityFunds
Assess potential investments on
circularity to generate returns
Company Self-Assessment
Identify strategic business opportunities
to create value and track performance
The CIRCLE Assessment evaluates companies on circular economy objectives and provides
internal and external stakeholders with an overview of their strategic improvement areas
8. CIRCLE ASSESSMENT: BENEFITS FOR COMPANIES
The CIRCLE Assessment is the first ever self-assessment tool that allows companies to
evaluate their level of circularity through an automated online survey with a tailored set
of questions depending on business type
With the tool, companies can understand the extent to which they are pursuing and
implementing various circular business strategies within six specific categories, and
identify areas in which the company can improve its overall circularity performance
The results from the tool can be used for internal strategic discussions to develop a
circular strategy as well as shared externally with key investors
9. CIRCLE ASSESSMENT: COMPANY RESULTS
The results from the CIRCLE Assessment
will eventually be displayed in an
interactive web interface with the ability
to download a more detailed PDF report
Through the interface, companies can
identify areas of improvement and new
business opportunities to create long-
term value; track their progress of circular
objectives internally and with investors;
and reduce exposure to long-term risks
10. COLLABORATORS OF THE CIRCLE ASSESSMENT
The CIRCLE Assessment tool is being developed in collaboration with:
The following companies have been involved in the development and testing of the tool:
14. SAMPLE COMPANY RESULTS
Responses Company Comments
INDUSTRY
COLLABORATION
50
• Participate in working
groups with competitors
and industry peers on the
circular economy
• Do not engage in cross-
industry collaboration
• Participate in industry association
working groups to increase awareness of
circularity among competitors and peers
SUPPLIER
COLLABORATION
76
• Formal agreements with
suppliers to integrate
circular economy
principles into operations
• Prefer suppliers that are
aware of the concept of
the circular economy
• 60% of suppliers are regularly engaged
with regards to the circular economy
with ambitions to make this 80% by 2020
• With raw material suppliers, we prefer
suppliers who implement circularity and
provide circular products where possible
for our operations
15. SAMPLE COMPANY RESULTS
Responses Company Comments
CUSTOMER
COLLABORATION
50
• Mention the circular
economy in
communications with our
customers and clients
• Less than 25% of
customers engagedon
circular economy
• Have some European customers who
have a high standard with their
sustainability requirements and request
circular products
GOVERNMENT AND
OTHER COLLABORATION
81
• Actively engage in public-
private partnerships and
circular projects with local,
national, or international
governments
• Exploring membership
with organizations aimed
at circular transition
• Work closely with European
municipalities to develop more circular
infrastructure projects
• In discussions with Circle Economy
regarding membership to their platform
16. SAMPLE COMPANY RESULTS
Responses Company Comments
DISRUPTIVE
TECHNOLOGY AND
INTELLIGENT SYSTEMS
40
• 25-50% of operations
implement innovative
technologies and processes
to become more circular
• 25-50% of operations use
analytics and intelligent
systems to make operations
circular
• Use sensors and analytics to monitor
operations in some facilities in Europe
INNOVATIVE DESIGN
AND OPERATING
MODELS
23
• Do not currently procure any
assets through pay-per-use,
sharing, or leasing models
• 25-50% of products use
circular design principles
• Do not currently deliver any
products through pay-per-
use, sharing, or leasing
models
• Some products sold in the European
market have bio-plastic as a key
material
17. SAMPLE COMPANY RESULTS
Responses Company Comments
REDUCING INPUTS 74
• 50-75% of operations
implement measures to
reduce resource inputs
• Water and energy reduction have been
implemented across many of our
production facilities in Europe with
ambitions to implement such systems
across all of our production centers
globally
REPLACING INPUTS 31
• Exploring pilots to
substitute non-renewable
materials with renewable
• 25-50% of operations
replace toxic/hazardous
substances for bio-based
substances
• 0-25% of grid energy
inputs have been
substituted for on-site
renewable energy inputs
• On-site solar panels have been piloted at
one factory in Spain with success. Plans
to implement on-site solar at production
facilities where economically feasible
• Piloted using bio-based plastic for some
European products and have integrated
it within some of our European offerings
18. SAMPLE COMPANY RESULTS
Responses Company Comments
• 75-100% of inputs are sourced
by reusing or recycling wastes
from own operations
• 75-100% of inputs come from
reused or recycledsources
externally
• Exploring pilots to recover and
redirectour wastes and
byproducts for other uses
• Waste from operations is used in combined
heat and power plants to generate heat and
electricity across the majority of our operations
• Exploring pilots with the food industry to reuse
organic wastes as feedstock for our CHP
systems
• Wastewater is treated and reused across the
majority of our operations
• Exploring pilots to reuse chemical byproducts
from operations
19. SAMPLE COMPANY RESULTS
Responses Company Comments
STRATEGIC LEADERSHIP 100
• Circular economy is part of
the sustainability, business,
innovation, marketing, and
production strategy
• Only have anecdotal evidence
of the implications of the
circular economy for business
• Have clear future targets to
be more circular
• Circular economy is a key part of
strategy with strong ambitions to
improve circularity in the future
• Exploring methodologies to
determine the implications of the
circular economy on the core
business and company profits
• Targetto be 80% circular by 2025
ORGANISATIONAL
LEADERSHIP
95
• Have roles for circular
economy across all levels
• Strong employee awareness
of circular economy
objectives
• Key incentives provided to
middle and upper
management to achieve
circular principles
• All of our employees are actively
engagedto help achieve our circular
economy targets by 2025
• Implemented policies to tie financial
incentives and bonuses for
management levels based on helping
the company achieve circular
economy goals
20. SAMPLE COMPANY RESULTS
Responses Company Comments
EXTENDING ASSETS 62
• 50-75% of operations fully utilize
or extend the lifetime of some
or all of our existing assets
• 50-75% of operations ensure
that assets reaching end-of-use
are reused, refurbished, or
remanufactured to provide a
second life
• Engage in end of life services for
some of our assets in Europe and
North America, including regular
repair and maintenance and
refurbishment and
remanufacturing of assets nearing
end-of-life
• Ambitions to increase this across
all operations globally
EXTENDING PRODUCTS
& SERVICES
96
• 50-75% of operations enable
extension of lifetime of our own
or another company’s products
while in-use
• Greater than 75% of operations
enable extension of lifetime of
own or another company’s
products at end-of-use
• Offer maintenance warranties and
servicing contracts with the
majority of our products while
customer is using them
• Offer take-back programs to
refurbish and remanufacture our
products for second-hand market
Along with this excessive and unsound use of natural resources are myriad environmental problems: soil degradation, water acidification, air pollution, waste generation and carbon emissions, to name a few. These are leading to a transgression of the nine key planetary boundaries identified and quantified by a team of 28 internationally renowned scientists. We’ve passed three already—rate of biodiversity loss, climate change, and human interference with the nitrogen cycle (Stockholm Resilience Inst.), threatening abrupt or irreversible environmental changes that can have far-reaching social and economic consequences. If nothing is done to address the situation, total demand for limited resource stocks (like biomass, fossil energy, and many metals) is expected to reach 130 billion tons by 2050. That’s up from 50 billion in 2014 and it will result in more than 400 percent overuse of Earth’s total capacity—a feat that’s physically impossible.
Along with this excessive and unsound use of natural resources are myriad environmental problems: soil degradation, water acidification, air pollution, waste generation and carbon emissions, to name a few. These are leading to a transgression of the nine key planetary boundaries identified and quantified by a team of 28 internationally renowned scientists. We’ve passed three already—rate of biodiversity loss, climate change, and human interference with the nitrogen cycle (Stockholm Resilience Inst.), threatening abrupt or irreversible environmental changes that can have far-reaching social and economic consequences. If nothing is done to address the situation, total demand for limited resource stocks (like biomass, fossil energy, and many metals) is expected to reach 130 billion tons by 2050. That’s up from 50 billion in 2014 and it will result in more than 400 percent overuse of Earth’s total capacity—a feat that’s physically impossible.
Along with this excessive and unsound use of natural resources are myriad environmental problems: soil degradation, water acidification, air pollution, waste generation and carbon emissions, to name a few. These are leading to a transgression of the nine key planetary boundaries identified and quantified by a team of 28 internationally renowned scientists. We’ve passed three already—rate of biodiversity loss, climate change, and human interference with the nitrogen cycle (Stockholm Resilience Inst.), threatening abrupt or irreversible environmental changes that can have far-reaching social and economic consequences. If nothing is done to address the situation, total demand for limited resource stocks (like biomass, fossil energy, and many metals) is expected to reach 130 billion tons by 2050. That’s up from 50 billion in 2014 and it will result in more than 400 percent overuse of Earth’s total capacity—a feat that’s physically impossible.
Along with this excessive and unsound use of natural resources are myriad environmental problems: soil degradation, water acidification, air pollution, waste generation and carbon emissions, to name a few. These are leading to a transgression of the nine key planetary boundaries identified and quantified by a team of 28 internationally renowned scientists. We’ve passed three already—rate of biodiversity loss, climate change, and human interference with the nitrogen cycle (Stockholm Resilience Inst.), threatening abrupt or irreversible environmental changes that can have far-reaching social and economic consequences. If nothing is done to address the situation, total demand for limited resource stocks (like biomass, fossil energy, and many metals) is expected to reach 130 billion tons by 2050. That’s up from 50 billion in 2014 and it will result in more than 400 percent overuse of Earth’s total capacity—a feat that’s physically impossible.
Along with this excessive and unsound use of natural resources are myriad environmental problems: soil degradation, water acidification, air pollution, waste generation and carbon emissions, to name a few. These are leading to a transgression of the nine key planetary boundaries identified and quantified by a team of 28 internationally renowned scientists. We’ve passed three already—rate of biodiversity loss, climate change, and human interference with the nitrogen cycle (Stockholm Resilience Inst.), threatening abrupt or irreversible environmental changes that can have far-reaching social and economic consequences. If nothing is done to address the situation, total demand for limited resource stocks (like biomass, fossil energy, and many metals) is expected to reach 130 billion tons by 2050. That’s up from 50 billion in 2014 and it will result in more than 400 percent overuse of Earth’s total capacity—a feat that’s physically impossible.
Along with this excessive and unsound use of natural resources are myriad environmental problems: soil degradation, water acidification, air pollution, waste generation and carbon emissions, to name a few. These are leading to a transgression of the nine key planetary boundaries identified and quantified by a team of 28 internationally renowned scientists. We’ve passed three already—rate of biodiversity loss, climate change, and human interference with the nitrogen cycle (Stockholm Resilience Inst.), threatening abrupt or irreversible environmental changes that can have far-reaching social and economic consequences. If nothing is done to address the situation, total demand for limited resource stocks (like biomass, fossil energy, and many metals) is expected to reach 130 billion tons by 2050. That’s up from 50 billion in 2014 and it will result in more than 400 percent overuse of Earth’s total capacity—a feat that’s physically impossible.