Assessment Approaches and Methods for a Circular Economy

Although the circular economy (CE) is increasingly reflected in policy and private sector activities, research has shown that ‘circular’ strategies are not necessarily more sustainable than alternatives. Organisations thinking about implementing such strategies can use various metrics and methods to assess both their resource efficiency and the subsequent sustainability impacts. The resulting landscape of competing assessment approaches for the CE has complicated the decision as to which approach to use and blurred the real value of conducting voluntary CE assessments. The chapter discusses organisations' needs from assessment, focusing on both the perceived benefits of – as well as prevalent barriers to – CE measurement and assessment. First, a short overview of applicable CE measurement and assessment approaches is provided. Next, their functionality is discussed at various levels (i) to stimulate internal efficiencies and learning both for private and public sector organisations; (ii) to strengthen inter-firm connections; and (iii) to facilitate disclosure and external communication. Preferably, assessment of CE strategies should take place through a holistic evaluation of the sustainability impacts of resource flows, e.g. with life cycle-based approaches. This can support companies integrating a CE within sustainability reporting practices, by complementing quantitative CE targets with qualitative descriptions of implemented CE strategies as well as collaborations for CE along a product life cycle. Finally, the chapter offers a reflection on the current status of CE assessment development and proposes new research directions.