Measuring circular business models

Circular economy is claimed to be a strategic opportunity for companies to be able to maximize resource efficiency, make large cost savings and create competitive advantages. However, there are currently no widely established measures or indicators to be able to compare the circularity of a business model or product. In this project, we develop, test and evaluate indicators for circular economy at the customer offering level. 

The project's approach is based on a close integration between statistical estimation methods, traditional "peer-review" via scientific journals, and close collaboration with companies and public organizations that can both contribute to and benefit from the research results. Our goal is to develop a robust, legitimate and standardizable indicator that can act as a lever in a transition to a circular economy in the manufacturing industry, both in Sweden and abroad. The indicator must also help companies to be able to identify internal opportunities and obstacles for circular change and assist external stakeholders, such as customers and investors, who want to be able to compare companies and products. Depending on the design of the measure, there are also opportunities to understand the need for changes, such as tax changes, that can support the shift towards a circular economy. What gets measured gets done!

The project runs for a total of three years and is divided into three work packages which: 1) develop and test a circularity indicator prototype; 2) examine economic and environmental opportunities associated with an increased degree of circularity in certain selected products and business models; and 3) examine the conditions for a wider spread of a circular economy via business model innovation and metrics.