Circulytics is the first assessment tool that enables individual businesses to accurately measure the circular economy preparedness and performance of their company as a whole
London, 14 January 2020 – Today marks the launch of the Ellen MacArthur Foundation’s circularity assessment tool – Circulytics. Promoted as “the most comprehensive circularity measurement tool available”, its development was made possible by the involvement of companies who took part in the trial, including the supply chain expert Brambles, a company recognised as a benchmark in the operation of circular models. To date there has been no way to comprehensively measure circularity. This new tool moves beyond measuring material flows alone; it gives clear insights into all circular operations, flags up areas for immediate improvement, and highlights opportunities for strategic innovation.
Circulytics applies data and metrics to measure the transition to circular economy, making it easier for businesses to understand and track it. Businesses now have a reference framework, empowering them to design out waste and develop strategies that ensure a positive environmental impact, whilst also improving their bottom line and brand value with stakeholders. Managing the data in such a way allows a company to gauge their current position – but also importantly their future progress – in a very tangible way.
The circular economy seeks to cut out waste and pollution and keep products and materials in use, whilst regenerating natural systems. With a ‘share and re-use’ model for its 330 million delivery assets, Brambles was defining the circular economy long before it became the buzz word it is today – and in a sector where linearity is still the dominant operating model. Andrew Morlet, CEO of the Ellen MacArthur Foundation highlighted, “Globally, more and more companies are recognising the circular economy opportunity to create new areas of value and address challenges such as climate change, pollution, and biodiversity loss. Circulytics has been created to help that transition happen at speed and scale and the insights of leading companies such as Brambles have been vital in ensuring we give businesses the data and analysis they need.” Brambles has been a member of the CE100 Network since 2015.
Michael Pooley, President of Brambles’ company CHEP Europe added, “We were delighted to be able to contribute to the development of Circulytics. This tool documents a company’s strengths, but also areas for further improvement. We believe this will be the first tool to stimulate the kind of strategy development that both companies and the planet need in the future. We will be using Circulytics to make our business model even more sustainable”.
Circulytics breaks down its measuring system into what it calls “enablers” and “outcomes”. The former consists of elements of the company itself, such as strategy, people, systems and processes, innovation and external engagement with clients and suppliers. The latter relates to inputs (materials and energy) and how the outputs in the form of products or services contribute to the circular economy.
This allows a company to assess both the circularity of production flows and the value chain of the company, as a whole. Companies receive a cumulative score across a range of themes and, importantly, tailored insights and commentary from the Ellen MacArthur Foundation.
With climate change and environmental issues high on the agenda, new legal frameworks and civil society pressure means that all eyes are on the corporate sector to find solutions. Solutions lie in a transition to the circular economy and businesses lie at the heart of this transition.