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1) Method Introduction ENG
1) Method Introduction ENG
Method
introduction
Circulytics® | Method introduction 2
Executive summary:
How company measurement supports
the transition to a circular economy
Companies around the world are recognising that • Supporting strategy development and target
a circular economy can tackle global challenges setting for circular economy adoption. A
such as biodiversity loss, climate change, company’s Circulytics score is presented in a
pollution and supply chain fragility. In order to scorecard (Exhibit 1), which is confidentially
transform their operations, companies need the shared with each company and is designed to
right data, clear targets to reach, and tools to help increase understanding of strengths and
track progress over time. The Ellen MacArthur areas for further development.
Foundation’s Circulytics measures the aspects
that enable company-wide transformation, such • Enabling companies to engage with their
as strategic importance of the circular economy stakeholders, such as customers and
and ability to innovate for the circular economy, financiers, using a well-informed, holistic view
as well as circular economy outcomes, for of their circular economy performance
example in terms of material flows or the way in
• Providing industry benchmarks. The number
which companies have designed their services.
of industries that will receive benchmarking
The purpose of Circulytics is to support will increase with time as this requires a
companies’ transition to a circular economy sufficient number of companies completing
by, for example: the survey per industry to keep the results
anonymised.
• Measuring the entire company’s circular
economy performance, not limited to just its Circulytics was developed by the Ellen MacArthur
products and material flows. Foundation in collaboration with more than
30 companies and academic organisations.
• Providing an independent assessment, using The assessment is grounded in circular economy
indicators that measure current performance, theory, whilst being informed by company
whilst signposting the objectives that would realities. Circulytics 2.0 was first launched in
deliver full scores. 2020, as an update to Circulytics 1.0, including
an improved methodology.
Circulytics® | Method introduction 3
Circulytics Summary
Ena bler S co re A-
Outco m es S co re B-
Date of Submission 28/10/2020
Scoring Date 12/11/2020
100%
Enablers Outcomes
Thank you for participating in Circulytics. This scorecard gives an overview of your company's
progress on the journey towards circular economy, by way of two overarching categories
component of our 2025 targets
A 'Enablers' and 'Outcomes', as well as the eleven themes within these categories.
hope that the theme level scores help you to prioritise activities.
B-
56%
f
C
44% Due to team capacity constraints, we only provide bespoke analyst commentary to companies
Marianne Richeux
f
C- within the Ellen MacArthur Foundation (EMF) network, but we invite you to explore the following
33%
f
D resources to further your company's progress towards being a circular business. Links to these
22%
f
E
0%
Browse EMF's extensive library of circular economy case studies for inspiration.
28/10/2020
Discover an abundance of resources for the business context in the EMF Learning Hub. We are
constantly working on new content, like hands-on toolkits, podcasts, guidelines, or interactive
webinars, so it is always worth a visit.
Aspiring to commit further? Learn more about the EMF network of organisations that provides a
pre-competitive space to learn, share knowledge, and put ideas into practice. You can apply to
Score breakdown be part of the EMF network by completing the form linked below.
Sc or e
Enablers A-
Strategy and planning
Innovation A
B
conversations and communicate
with our customers.
People and skills B
Operations A-
External engagement B-
Outcomes
Products and Materials
B-
C
Resource Links
EMF Case Study Library https://www.ellenmacarthurfoundation.org/case-studies
Tom Giddings
Services
Energy
B
C-
Manager at DS Smith
Finance N/A
* Industry average available when there is data from >10 companies in your industry
Ilham Kadri
CEO of Solvay
EXHIBIT 1: SAMPLE SCORECARD
EXHIBIT 2
20
Operations
External engagement
ENABLERS
17
Products & Materials OUTCOMES
Services
Plant, property, and equipment Assets
(each company is Water
assessed using 4-14 Energy
indicators out of 17,
Finance
depending on industry
and type of business)
Tailoring the assessment
to your company:
Circulytics applies to a diverse range of companies. It may
be used by companies in a product manufacturing value
chain as well as service providers, energy providers, and
financial institutions. A pre-assessment stage captures the
characteristics of a company, which then determine which
Circulytics indicators will be used for the assessment.
EXHIBIT 3
In the Outcomes
category, the
indicators for energy ENERGY INPUT + ASSETS
consumption and
assets will be asked
to all companies.
Some indicators
Renewable
Recirculation Wind
in the Outcomes Material in
OUTCOMES
Theme 9. Water
Theme 4. Operations If you operate in a water-intensive industry,
Have you invested sufficiently in your digital are you using water in a circular way?
systems and plant, property, and equipment
assets to support the change?
Theme 10. Energy
Are you procuring renewable energy and (if you
Theme 5. External Engagement are an energy provider) producing renewable
Are you promoting your circular economy energy to support a circular economy?
initiatives and influencing those in your business
sphere, such as clients or your supply chain?
Theme 11. Finance
If you are a financial institution, are you
intentionally financing companies and projects
that support a circular economy?
Circulytics® | Method introduction 8
From indicator score to theme score With the exception that if a company scores higher in
the Outcomes category than in the Enablers category,
• Indicators in the Enablers category are qualitative
their Outcomes score will be used as the overall score.
questions. Each indicator has a choice of text
This is because we do not want to penalise companies
response options. Each response option is assigned
that have achieved tangible circular economy
a score between 0-100%, visible at the time of
outcomes without following the enabling conditions
responding (see Exhibit 5).
defined in the Enablers category.
• Indicators in the Outcomes category typically
require percentage input from 0-100%. The Alphabetical scores in Circulytics
maximum possible score for each response
All Circulytics scores are scored from A to E.
option is visible at the time of responding.
The conversion from the numerical score to the
Each indicator is given a weight that represents its alphabetical score is shown in Appendix 2. Since
empirical significance in the transition to a circular Circulytics combines scores from indicators and
economy. The weighted average of all indicator scores themes that are fundamentally different in nature
within one theme results in the theme score. (e.g. quantifiable material flows and qualitative
responses on strategy alignment), the aim of the
alphabetical scores is to indicatively convey a
From theme score to category score company’s progress in the transition to the circular
Each theme is given a weight that represents its economy, and avoid creating a false sense of accuracy.
empirical significance in the transition to a circular This is why numerical scores are used to only calculate
economy, and in the Outcomes category depends scores from indicators to overall score, but not used
on the type of company that is being assessed to communicate company performance.
(see Weights in Outcomes category). In the Enablers
category, all companies have the same theme weights.
The weighted average of all relevant themes within one
category gives the category score.
Circulytics® | Method introduction 9
WEI
GHT
ED A
VER
AGE
37 indicators
Each has a score
11 themes:
Each has a score
2 categories:
Each has a score
OVERALL
and a weight and weight and weight SCORE
(the number of
applied indicators
depends on a
company’s industry
and type of business)
Circulytics® | Method introduction 10
The pie chart diagrams represent the indicator scores that are assigned
to each response option.
Circulytics® | Method introduction 11
15% 15%
Outcomes
Circulytics® | Method introduction 12
EXHIBIT 7 EXHIBIT 8
Base weights used for a water-intensive industry Base weights used for a company with services
with material flows and services. but without material flows or water flows.
Not relevant
Theme 6. Material flows 65% Theme 6. Material flows 0%
Themes that reflect theme: 0%
the core business of
a company: 70% Themes that reflect
Theme 7. Services 5% Theme 7. Services 70% the core business of
a company: 70%
Supporting
Not relevant
Theme 9. Water 10% themes: 30% Theme 9. Water 0%
theme: 0%
Supporting
Theme 10. Energy 10% Theme 10. Energy 15%
themes: 30%
Sign-up
Companies can sign up for an account via the sign up
Circulytics results
form on our website. Circulytics requires one company
reporter as the main contact for Circulytics. Once the Example Company
Circulytics Summary
Ov era ll S co re B
Enablers Outcomes
Further Resources
Thank you for participating in Circulytics. This scorecard gives an overview of your company's
week.
100% progress on the journey towards circular economy, by way of two overarching categories
A 'Enablers' and 'Outcomes', as well as the eleven themes within these categories.
89%
A-
78%
B We encourage you to dive into areas where your company has opportunity for improvement, and
67%
f
hope that the theme level scores help you to prioritise activities.
B-
56%
f
C
44%
f Due to team capacity constraints, we only provide bespoke analyst commentary to companies
C- within the Ellen MacArthur Foundation (EMF) network, but we invite you to explore the following
33%
f
E
0%
Browse EMF's extensive library of circular economy case studies for inspiration.
28/10/2020
Aspiring to commit further? Learn more about the EMF network of organisations that provides a
Enablers A-
Strategy and planning B
Innovation A
People and skills B
Operations A-
External engagement B-
Appendices
CONTINUE
You will see these,
START
no matter what
Theme 1. Theme 2. Theme 3. Theme 4. Theme 5. Theme 8. Plant, Indicator 10a.
the company Operations
Strategy and Innovation People External property, and Energy
Appendix 1: Company
characteristics are planning & skills engagement equipment assets consumption
pre-assessment
END
YES
type with one of the industries
that are financial institutions Theme 11.
Finance
EXHIBIT 11
CONTINUE
Water in Water out
YES
The first stage of the online survey, where the type with an industry that is
...then we ask you to confirm this
in 0l. Water intensive industry.
potentially water intensive...
characteristics of a company are determined. They Recirculation
Theme 9. Water
influence which Circulytics indicators a company will
be assessed on.
Renewable
Wind
If you respond to 0k. Industry
Solar
END
YES
type with an industry that is ...then we ask you to confirm
potentially an energy producer... Biomass
this in 0m. Energy producer.
Theme 10.
Energy reduction
CONTINUE
YES
If your company ...you can indicate this in
provides services… 0n. Service provider Circular
services
Theme 7. Services
END
YES
If your company does not deal ...you can indicate this in
with any material flows... 0o. Material flows
CONTINUE
Recirculation Material in
YES
If your company deals ...you will see the indicators
with material flows... on processing waste
6b, 6c
CONTINUE
YES
If you own any of these ...you can indicate this in
material flows... 0p. Ownership
Material in Recirculation
6a, 6d, 6e, 6f*
END
you deal with materials designed ...this will determine whether
to be used, materials designed to Qs with * above are displayed
be consumed, or both...
Circulytics® | Method introduction 18
Appendix 2: Circulytics
alphabetical scores
Circulytics results are communicated as alphabetical scores. Each
alphabetical score spans a range of numerical scores, which are used
to calculate theme, category and overall scores from indicators.
EXHIBIT 12
88.89 100 A
77.78 88.89 A-
66.67 77.78 B
55.56 66.67 B-
44.44 55.56 C
33.33 44.44 C-
22.22 33.33 D
11.11 22.22 D-
0 11.11 E
Circulytics® | Method introduction 19
the circular economy Types of water flows into, within, and out of a company. Water demand is the volume
Water could be the perfect example of a circular that indicators 9a and 9b refer to. Indicators 9c and 9d refer to water outflow.
material, as it has circulated on the planet for
billions of years. Yet the ways in which we use the
INTERNAL The red circles represent
water resources of our surrounding ecosystems RECIRCULATION Circulytics indicators used for
scoring of Theme 9. Water.
are often not compatible with natural cycles.
The grey circles represent
Circulytics questions that ask
When applying the circular economy lens to PROCESS for the volume of water flows.
& OPERATIONS This information is used
company water usage, the emerging topics for weighting the scoring
Circulytics indicators
are familiar from current issues around water (red circles).
distribution and pollution. Examples of these
water topics can be grouped under the three
9a 9b 0x.1 OUTFLOW
circular economy principles: SOURCING 9c
e.g. withdrawal, e.g. discharge,
WATER
cascading, 9d cascading,
DEMAND
evaporation,
Eliminate waste and pollution – precipitation,
spillage
harvesting
water pollution prevention, nutrient 0x.2
valorisation, etc.
Water flows: Water inflow to the company, which subsequently becomes part of
Water demand and outflow relating to manufacturing and other a physical product during manufacturing processes, and leaves the
business processes as well as operations are in scope in Circulytics, company as part of a material outflow, should be accounted for under
as shown in Exhibit 14. water demand volume and material outflow mass. The water outflow
indicators explicitly do not apply to water incorporated in physical
EXHIBIT 14 products.
MATERIALS
INFLOW
PROCESSES
& OPERATIONS PROCESSES
Water flows may become part of, or become separate from, material
streams during manufacturing processes, as described
in Exhibit 14.
Circulytics® | Method introduction 22
Material flows:
The water is integrated in another material inflow or outflow, so the
material inflow/outflow indicators apply, see Exhibit 15. The mass of the
material flow includes the water content. Please count the water content
within a material stream towards the mass of products and materials.
EXHIBIT 15
PROCESSES
MATERIALS WATER MATERIALS
INFLOW DEMAND OUTFLOW
COMPANY
Out of scope:
Natural precipitation is excluded from the scope of Circulytics as long
as it is not actively captured, e.g. through a collection system on a
building roof.
Circulytics® | Method introduction 23