Measuring the Transition Towards a more Circular Economy: An Introduction to a Monitoring Framework for Organizations

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This empirical research proposes a monitoring framework to assess the performance of organizations in terms of their contribution to the circular economy (CE). CE-practices recently gained attention as an approach to create value by retaining resources within the economy through value retention options (ROs) such as reusing, repairing, repurposing, recycling, etc. Despite that the debate on circular metrics is a growing topic, no consensus to date has been reached on indicators for assessing the ROs. Organizations lack effective performance indicators to measure their CE-progress and enable effective implementation. In this research, a monitoring framework of indicators is developed, classified according to ten ROs of the 10R typology. With the use of a case study analysis by secondary data, indicators have been identified for the ROs to advance the CE-strategy implementation for organizations. As organizations play a key role in the transition towards a more CE, the focus during this research was on indicators at an organizational level. These indicators allow managers to evaluate CE-objectives to implement innovative improvements in the actions taken by organizations that want to contribute to a more CE. However, the results obtained show that organizations heavily rely on the preservation of materials rather than on focusing on extending the life of products. Little indicators are found for the ROs for life extension for products and components. Therefore, further empirical research is needed to determine indicators for these ROs to complete the proposed monitoring framework
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