Measuring financial results, customer retention, productivity and inventory is commonplace, but these measurements alone are no longer enough to know if a company will stand the test of time. Let's see why measurement is important in the circular economy !



Why measurement is important in the circular economy

To be successful, companies must consider their social and environmental impact, or else they will be blindsided by changes in legislation or abandoned by customers.



What could previously be considered simply a “negative externality” has financial implications and must be a central element of business strategies. This means changing the way businesses view their role in society and ultimately transforming the economy.



linear economic model

Our current economic model is based on extraction and waste. It is linear. We take materials from the planet, make products with them and finally throw them away. This take-make-waste economic model fundamentally cannot work in the long term.





It is based on the Ecuador Mobile Number List extraction and eventual disposal of finite materials and (to meet increasing demand for resources) the invasion of natural ecosystems, causing greenhouse gas emissions and a staggering loss of biodiversity.



An economic system based on the recirculation of resources

Instead, an economic system based on the recirculation of resources and the regeneration of natural systems offers a path that can work in the long term. This model, known as the circular economy , could help address the world's biggest challenges, such as climate change, biodiversity loss, waste and pollution.



The circular economy is based on three principles, each driven by design: eliminating waste and pollution, keeping products and materials in use, and regenerating natural systems.







The circular economy is gaining momentum and is being adopted by the public and private sectors around the world. For example, more than 50 world leaders, including the CEOs of some of the world's largest companies, policymakers, philanthropists, academics and other influencers, signed a joint statement in June calling for a transition to a circular economy in response to the economic impact of the coronavirus pandemic.



Towards a vision of circular economy

In the plastics sector, more than 1,000 organizations have come together and are working towards a common vision of a circular economy for plastics .



As organizations begin to take steps in their efforts to move away from a linear way of doing business and implement changes in the real world, clear and comparable metrics will be valuable in evaluating their success and planning future actions.



Why is measurement key in the circular economy?

Jarkko Havas, head of analysis and understanding at the Ellen MacArthur Foundation, explains:



Implementing changes can only be effective when we have a clear vision of a future state, an understanding of where we are now, and a vision of how quickly we move between the two states.



Measuring progress and tracking changes is an essential factor in the transition to the circular economy.