How to start and understand your circularity assessment with CTI Tool?

Circular economy according to CTI: How to read your results?

Central to CTI stands a self-assessment that determines a company’s circular performance. It focuses primarily on the circular and linear mass that flows through the company, in which design, procurement and recovery models are crucial levers to determine how well a company performs. In addition to the ability to close the loop, CTI provides insights into overall resource use optimization and the link between the company’s circular material flows and its business performance.

%Circularity
The weighted average of the % circular inflow and % circular outflow for a given product (group or portfolio), business unit or company.

Circular inflow
Inflow that is:
•Renewable inflow* (see definition below) and used at a rate in line with natural cycles of renewability
OR
•Non-virgin

Linear inflow
Virgin, non-renewable resources

Recovery potential
How does the company design its products to ensure the technical recovery of components and materials at a functional equivalence (e.g., by designing for disassembly, repairability, recyclability, etc.) or that they are biodegradable?

Actual Recovery
How much of the outflow does the company actually recover?
The outflow includes products, by-products and waste streams. Companies can improve actual recovery rates through closed loop business models or mandatory or voluntary open loop recovery scheme efforts.
The results will illustrate how effectively

Circular outflow
Outflow that is:

Designed and treated in a manner that ensures products and materials have a full recovery potential and extend their economic lifetime after their technical lifetime
AND

Demonstrably recovered.

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• Replace current linear inflow with non-virgin alternatives
• Replace current linear inflow with renewable alternatives
• Replace non-renewable bio-based resources with renewable alternatives (for example through certification for sustainably managed bio-based resources)
• Reduce resource use through light-weighting of products
• Reduce resource use through use optimization, digitalization, replacing physical products with services (called “servitization” in some sectors), durability, etc.
• Reduce resource use through optimize nutrient consumption (i.e., avoiding food waste and replacing nutrients/protein with less resource-intensive alternatives)

•Redesign to incorporate, among others, modular design, design for disassembly, high recyclability by using mono-materials (technical cycle) and/or biodegradability and non-toxicity (biological cycle)

•Increase actual recovery by selling a product as a service or instituting pay per use (technical cycle)
•Increase actual recovery through buy-back/take-back schemes (technical cycle)
•Increase the actual recovery through value chain collaboration and partnerships for collection and recovery programs
•Increase biodegradable outflow that is actually consumed
(i.e., by avoiding food waste or high valorization) (biological cycle)

Linear outflow
Outflow that is not classifiable as circular. This means that the outflow:
• Is not circular in design/consists of materials treated in a manner that they have no recovery potential
OR
• Neither demonstrably recovered nor flowing back into the economy.

Linear outflow
Outflow that is not classifiable as circular. This means that the outflow:
• Is not circular in design/consists of materials treated in a manner that they have no recovery potential
OR
• Neither demonstrably recovered nor flowing back into the economy.

Linear outflow
Outflow that is not classifiable as circular. This means that the outflow:
• Is not circular in design/consists of materials treated in a manner that they have no recovery potential
OR
• Neither demonstrably recovered nor flowing back into the economy.

*Renewable inflow- Sustainably managed resources, most often demonstrated by internationally recognized certification schemes like the Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), Roundtable on Sustainable Palm Oil (RSPO), etc.23 that, after extraction, return to their previous stock levels by natural growth or replenishment processes at a rate in line with use cycles. Therefore, they are replenished/regrown at a faster rate than harvested/extracted.

CTI was developed by business, for business

The CTI Tool was developed to help businesses in different industries worldwide to measure and improve their circular performance by supporting and guiding companies through the Circular Transition Indicators process.

The tool structures data and calculates outcomes, supporting businesses in taking concrete actions towards their circularity goals. It also supports users to reach out to internal stakeholders and value chain partners for data requests that avoid confidentiality issues.

Leveraging the power of digitization and smart software solutions, the CTI Tool enables companies to accelerate their transition towards a circular economy and fully understand their circularity baseline.

CTI Tool