This study evaluates the effectiveness of the European Union's Corporate Sustainability Reporting Directive (CSRD) in quantitatively measuring the transition of companies to a circular economy. First, using the most recent literature review on circularity metrics, a complete overview of the currently available circularity metrics is developed. Subsequently, it is determined which circularity metrics can be generated with the available quantitative datapoints of CSRD. The metrics that can be generated were analyzed on their ability to cover all circular strategies, to represent different Product-as-a-Service systems and to acknowledge the key role of Critical Raw Materials in a circular economy. The study finds that, with data disclosed under CSRD, metrics can be generated to cover all circular strategies. However, gaps remain in representing pay-per-use and pay-perperformance systems and the use of Critical Raw Materials. Recommendations are to include ‘Product utilization’ and ‘Mass of Critical Raw Materials used’ in the data disclosed under CSRD and to have an independent institution report data to enable benchmarking of performances. Finally, this study concludes with an overview of the metrics which enable to measure circular transitions using data disclosed by CSRD
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Organizations are currently facing substantial challenges regarding becoming circular by 2050 – also referred to as Circular Economy (CE). Subsequently, increasing complexity on all organizational levels creates uncertainty about respective organizational and technological capabilities and adequate strategies to develop these capabilities. Organizations are struggling in picking up the CE ambitions and answering the what’s in it for me question. Scholars are developing models and frameworks to enable organizations to measure CE performance. Over 125 assessment methods are available for micro level assessment – measuring up to 365 different metrics. Moreover, extant literature is available presenting barriers and opportunities for CE transformation focusing on industry, sector, region, etc. And, although a more holistic perspective is required to become circular mature, this is currently lacking. In this paper we present a multi-methodology view on approaches and how they are used (or not). Our main goal is to extend the existing body of knowledge with an eye on applicability and research directions to untie the Gordian knot of measuring circularity.
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This article investigates the phenomenon of rebound effects in relation to a transition to a Circular Economy (CE) through qualitative inquiry. The aim is to gain insights in manifestations of rebound effects by studying the Dutch textile industry as it transitions to a circular system, and to develop appropriate mitigation strategies that can be applied to ensure an effective transition. The rebound effect, known originally from the energy efficiency literature, occurs when improvements in efficiency or other technological innovations fail to deliver on their environmental promise due to (behavioral) economic mechanisms. The presence of rebound in CE contexts can therefore lead to the structural overstatement of environmental benefits of certain innovations, which can influence reaching emission targets and the preference order of recycling. In this research, the CE rebound effect is investigated in the Dutch textile industry, which is identified as being vulnerable to rebound, yet with a positive potential to avoid it. The main findings include the very low awareness of this effect amongst key stakeholders, and the identification of specific and general instances of rebound effects in the investigated industry. In addition, the relation of these effects to Circular Business Models and CE strategies are investigated, and placed in a larger context in order to gain a more comprehensive understanding about the place and role of this effect in the transition. This concerns the necessity for a new approach to how design has been practiced traditionally, and the need to place transitional developments in a systems perspective. Propositions that serve as theory-building blocks are put forward and include suggestions for further research and recommendations about dealing with rebound effects and shaping an eco-effective transition. Thomas Siderius, Kim Poldner, Reconsidering the Circular Economy Rebound effect: Propositions from a case study of the Dutch Circular Textile Valley, Journal of Cleaner Production, Volume 293, 2021, 125996, ISSN 0959-6526, https://doi.org/10.1016/j.jclepro.2021.125996.
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