The linear economy is reaching the end of the line: business must adopt circularity to stay competitive

  • Updates to Circular Transition Indicators framework (CTI v3.0) help companies improve their circular performance with a consistent way to measure circularity for any sector.
  • CTI v3.0 includes new methodology for measuring reduced emissions from circular practices, two new indicators for lifetime extension and guidance for prioritizing business action.
  • Framework developers call on businesses to adopt CTI to address global sustainability challenges and unlock USD $4.5 trillion opportunity offered by the circular economy.
Published: 11 May 2022
Type: News

Geneva, 11 May – Today, the World Business Council for Sustainable Development (WBCSD) published version 3.0 of the Circular Transition Indicators (CTI) framework. With sustainability going mainstream, there is rising pressure on companies to demonstrate circular performance. The CTI framework helps companies respond to this growing demand by providing a simple, consistent way to measure circularity for any sector and giving insights into how to reduce waste and primary resource use.

The circular economy could provide USD $4.5 trillion in economic benefits by 2030. More and more businesses are seizing the opportunity, recognizing that the circular economy offers the mindset shift through which they can do well financially while building resilience and tackling the sustainability challenges of climate change, nature loss and growing inequality.

Diane Holdorf, Executive Vice President, WBCSD, commented, “It’s becoming increasingly clear that circular practices will be vital to reach company climate, nature and equity goals. Since launching CTI, we’ve witnessed steady growth in the adoption of the framework by business organizations globally. CTI contributes to harmonizing global standards and criteria for measuring circularity by providing a common language for companies to continuously improve their circular performance."

An updated methodology

Building on the previous version launched in 2021, CTI v3.0 is enhanced with a new methodology to measure the impact of recycled sourcing on greenhouse gas (GHG) emissions reductions. It also comprises two new indicators to consider lifetime extension strategies and guidance to support companies in making decisions and prioritizing actions.

The CTI framework is complemented by an online tool, developed in partnership with Circular IQ, allowing companies to run multiple assessments, track their performance over time and build a solid circularity baseline. The framework and the tool are widely adopted by companies and sustainability consultants, with over 2000 users worldwide.

Maayke-Aimée Damen, Director, Circular Economy, WBCSD, said, “As the circular economy gains momentum, all companies must invest in learning how to measure and track their circular progress. CTI offers the key to that challenge. By providing a transparent, comparable and quantitative framework for measuring circular performance, companies can easily track their progress and have the data ready for internal decision-making and external communication. We update CTI annually to align the framework with the emerging policies and developments in reporting standards, making sure companies are prepared for disclosure.”

Richard Threlfall, Global Head of KPMG IMPACT, KPMG International, said, “KPMG is proud of our continuous involvement in the development of the CTI Framework v3.0. As an implementation partner, we see the added value that this framework brings to our clients to help assess circular performance, identify risks and opportunities and steer towards resilient and future-proof business practices.”

Marjan Rintel Chair of the Board, NS, added, “The CTI framework developed by WBCSD provides a universal global definition and measurement method to make circular entrepreneurship understandable, measurable and manageable. The framework brings us the right focus and has encouraged us to move from a waste report to an inflow- and outflow report. At this moment, e.g., we use the framework to measure the level of circularity of our trains, and to steer decision-making during procurement to achieve our goal: 100% circular trains in 2030.”

CTI was first launched in January 2020, with 30 companies from 16 industries across 16 countries and representing USD $1.7 trillion in annual revenues. The framework is continuously expanded and updated in collaboration with member companies part of the WBCSD Products & Materials Pathway. WBCSD invites businesses of all sizes and industries worldwide to start measuring their circular baseline with CTI and accelerate the transition to a circular economy.

If you are interested in learning more about the Circular Transition Indicators, please contact Irene Martinetti.

WBCSD thanks all companies contributing to CTI’s development and implementation and the CTI Advisory Group!

ABB, AkzoNobel, Allnex, Aptar, ArcelorMittal, Arçelik, Bayer, Boston Consulting Group, CHEP, Circular IQ, CRH, Danone, Dow, DSM, Evonik, GSK, Greif, Honda, IFF, KPMG, Holcim, LANXESS, Mercedes-Benz, Microsoft, Novartis, NS, Philips, PTT, PwC, Rabobank, Royal Auping, SABIC, Siam Cement Group, Security Matters, Shell, Sika, Sims Limited, Solvay, Stora Enso, SUEZ, Veolia, Whirlpool

Circular Transition Indicators Advisory Group
CIRAIG, Circle Economy, Cradle to Cradle Innovation Institute, Ellen MacArthur Foundation, GRI, MVO Nederland, PACE, Sitra

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