Brazil Beneficios

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Circular Economy indicators for organizations considering Sustainability and

Business Models: plastic, textile and electro-electronic cases
Efigênia Rossi, Ana Carolina Bertassini, Camila dos Santos Ferreira, Weber
Antonio Neves do Amaral, Aldo Roberto Ometto
PII: S0959-6526(19)34007-7
DOI: https://doi.org/10.1016/j.jclepro.2019.119137
Reference: JCLP 119137
To appear in: Journal of Cleaner Production
Received Date: 28 March 2019

Accepted Date: 01 November 2019
Please cite this article as: Efigênia Rossi, Ana Carolina Bertassini, Camila dos Santos Ferreira,
Weber Antonio Neves do Amaral, Aldo Roberto Ometto, Circular Economy indicators for
organizations considering Sustainability and Business Models: plastic, textile and electro-electronic
cases, Journal of Cleaner Production (2019), https://doi.org/10.1016/j.jclepro.2019.119137
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Circular Economy indicators for organizations considering Sustainability

and Business Models: plastic, textile and electro-electronic cases
Efigênia Rossia(corresponding author: rossiefigenia@usp.br)

Ana Carolina Bertassinia
Camila dos Santos Ferreiraa
Weber Antonio Neves do Amaralb
Aldo Roberto Omettoa
a School of Engineering of São Carlos, University of São Paulo, 400 Trabalhador São-
Carlense Avenue, São Carlos, 13566-590, Brazil
bLuiz de Queiroz College of Agriculture, University of São Paulo, 11 Pádua Dias
Avenue, Piracicaba, SP 13418-900, Brazil
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Abstract
Circular Economy is the optimal point of sustainability, given that it offers a set of practices capable of
generating more sustainable operations, making sustainability feasible in organizations. To measure the
innovations brought by Circular Economy, there is a recently need to develop circularity indicators,
mainly for micro level (companies and products). Furthermore, the complexity of Circular Economy
implies in a set of multi-dimensional indicators instead of a single one. This paper aims to develop a set
of indicators linking Circular Economy principles, Circular Business Model and the pillars of
Sustainability. The set of indicators was developed based in the hypothetic-deductive approach,
following a number of iterations (cycles) and testing the theory in the empirical world. A mix of research
methods (e.g. expert consulting, user’s feedback, and case studies) was applied. The proposed indicators
should be able to achieve the principles of the Circular Economy, and, at the same time, help to meet the
specificities and needs of each circular business model. The main contribution of this paper is the
development of a group of indicators, focused in the three dimensions of Sustainability (environmental
(from material perspective), economic and social), applied in Circular Business Models to capture the
innovations brought by Circular Economy that conventional indicators do not measure. Moreover, they
will help any company to identify areas with high importance and potential for improvement, and thus
increase Circular Economy performance in an efficient, clearly and prompt manner. These indicators
were applied in three Brazilian companies which have three different Circular Business Models. The
results show that data from economic and social dimensions was not available or was diffused in the
companies. It represents a barrier because most of the positive impacts gained with Circular Economy
are presented in the social dimension, including job creation, mindset change, etc.
Keywords: Indicators; Metrics; Circular Business Model; Sustainability; Circular Economy.

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1. Introduction
Sustainability could be defined as the "balanced integration of economic performance, social
inclusiveness, and environmental resilience, to the benefit of current and future generations"
(Geissdoerfer et al., 2017, p.766). Some authors affirm that sustainability can help organizations to
implement Circular Economy (CE) (Kravchenko et al., 2019; Sehnem et al., 2019). According to Sehnem
et al. (2019), sustainability is a driver of CE and is mediated by innovation, Kravchenko et al. (2019)
complement that CE is a stepping-stone towards sustainability.
The concept of CE arises with the objective of keeping the products, component, and materials
usable and useful to return to the cycles. This economic model is based on restoration and regeneration
(Ellen Macarthur Foundation, 2017). It is an economy based on the principles of design out waste and
pollution, keeping products and materials in use and regenerate natural systems (Ellen MacArthur
Foundation, 2018). A great differential of CE is not minimize negative impacts, as shown by eco-
efficiency, but to optimize positive impacts, highlighting by eco-effectiveness (Niero et al., 2017).
Korhonen et al. (2018a) showed a definition for CE based on the pillars of sustainability
(environmental, economic and social). The environmental goal of CE is to reduce the use of raw material
and energy inputs, in addition to minimize waste generation and emissions. The economic goal of CE is
to reduce the costs, risks and taxation from environmental pillar as well as to innovate new product
designs and market opportunities for businesses. The social goal is the sharing economy, increased
employment, participative democratic decision-making and increase a collaborative culture. CE, as an
economic system, facilitates sustainable development (Korhonen et al., 2018b; Prieto-Sandoval et al.,
2018).
Some authors affirm that a Circular Business Model (CBM) is a type of sustainable business
model (Bocken et al., 2016). However, other see that not all CBM consider the dimensions of
sustainability (environmental, social, and economic) (Mentik, 2014). CBM may be defined as “the logic
of how an organization creates, delivers and captures value within closed circuits” (Mentik, 2014) and
also “create, capture, and deliver value to improve resource efficiency by innovation” (Frishammar and
Parida, 2019). Defining a business model is complex and requires that all the dimension of a business
model be taken into account. Moreover, even moderate transformation of a mature organization's
business model to include CE and sustainability can have positive environmental, economic and social
effects (Frishammar and Parida, 2019).
Osterwalder and Pigneur (2010), developed the business model mapping tool named Canvas,
which is divided into 9 components. The customer relationship component establishes the relationship
that the organization has with its market segment. The value proposition describes how the organization
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creates value for its customers. The costs involved in operating the business model are also analyzed.
The revenue source refers to the money that the organization generates. Key resources and key activities
are those needed to operationalize the business model. The channels describe how the organization
reaches its customers through communication, distribution and sales. The partners refer to the suppliers’
network (Osterwalder and Pigneur, 2010).
Kiron et al. (2017) conducted a study to assess how organizations are contributing to
sustainability. In the survey, 60,000 entrepreneurs were interviewed around the world. The results show
that 90% of executives see sustainability as important, but 60% have a sustainable strategy (Kiron et al.,
2017). In addition, 50% of organizations have changed their business models in response to sustainable
opportunities. In this context, the change to a CE requires organizations to innovate their business models
(Ellen Macarthur Foundation, 2017). Business Model Innovation (BMI) is essential to ensure companies
competitive advantage and capabilities regarding to circularity and sustainability (Pieroni et al., 2019).
BMI is “designed, novel, nontrivial changes to the key elements of a firm’s business model and/or the
architecture linking these elements” (Foss and Saebi, 2017, p.201). The innovation in CBM may facilitate
the transition to CE (National Confederation of Industry, 2018). The use of indicators to measure
circularity performance is essential to improve and assess CBM. However, the measurement and
assessment of circularity performance is not yet a common practice in companies (Sassanelli et al., 2019).
According to The British Standard Institution (BSI) BS 8001:2017 (BSI, 2017), there are six
types of Business Model which have the potential to fit within the circular economy system. They are
based on-demand, dematerialization, product life cycle extension/reuse, recovery of secondary raw
materials/by-products, product as service/product-service system (PSS), and sharing economy and
collaborative consumption. Table 1 presents a brief description of each one.
CE could be applied in three levels (Yuan et al., 2006): micro (e.g. companies and products),
meso (e.g. industrial symbiosis) and macro (e.g. countries). In this paper, we operate at the micro level
of CE. Moreover, British Standards Institution published the BSI standard 8001: 2007 "Framework for
implementing the principles of circular economy in organizations"(BSI, 2017), to assist in the principles,
strategies, implementation and monitoring of the CE in companies (Pauliuk, 2018). However, there is
still a need for specific standards and metrics (Saidani et al., 2019; Tecchio et al., 2017).
Circularity might be defined as a fraction of a product that comes from used products (from closed
or open-loop cycles) (Linder et al., 2017). But there are some other important aspects like environmental
burdens and social gains, which could be included in CE scope. Thus, CE could be experimented in an
ecosystem working, sharing values for all stakeholders involved (Zucchella and Previtali, 2019).
Moreover, several works emphasize the need to create CE metrics in micro level (Elia et al., 2017; Linder
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et al., 2017; Lonca et al., 2018), including the link with sustainability (Geng et al., 2012; Mesa et al.,
2018).
Previous papers show that Circular Economy aims to reach sustainability (Franklin-Johnson et
al., 2016; Mesa et al., 2018). But these indicators only addressed the material aspects (Virtanen et al.,
2019). The majority of studies also involving specific CE indicators focused in end of life strategies (Di
Maio and Rem, 2015; Figge et al., 2018; Jensen et al., 2019), and eco-efficiency (Laner et al., 2017; Yin
et al., 2014; Zhou et al., 2018) instead of economic (Di Maio et al., 2017; Scheepens et al., 2016),
environmental (Huysman et al., 2017) and social indicators (Geng et al., 2012). Some existing CE
indicators are described below, including the advantages and disadvantages, according to their
applicability, practicality, and CE principles, Table 2.
CE indicators are in the initial stage of development (Giurco et al., 2014). Traditional indicators
could not express CE in its totality, because they are not designed for the systemic, closed-loop, feedback
features that represent CE (Geng et al., 2013). Besides, the complexity of CE implies a need for a set of
multidimensional indicators instead of a single one (Griffiths and Cayzer, 2016). Thus, there is a need to
propose indicators to assess different Business Model economically, environmentally and socially
(Pieroni et al., 2019), in this way, this work tries to fill this gap. Therefore, the research question
investigated in this paper is: How organizations can measure Circular Economy performance
considering Sustainability and Business Model perspective? So, this work aims to develop a set of
multidimensional indicators, applied to Circular Economy, in the three dimensions of sustainability:
environmental (from material perspective), economic, and social.
The paper is structured in four sections, where Section 2 outlines the Research Method, Section
3 presents the Results and Discussion and Section 4, the Conclusions.
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2. Research method
According to Yin (2015) an exploratory study aims to explore a problem and collect information
about the subject to build the hypothesis. In addition, an explanatory study identify and explain the roots
of a problem; explaining the reality (Yin, 2015). Usually, exploratory studies offer a more detailed view
of the subject. Thus, our research is exploratory because we formulated the indicators requirements based
on literature and we tested our theory through empirical sections.
The set of indicators was developed based on a hypothetic-deductive approach (Gill and Johnson,
2002), following a number of iterations (cycles) and testing the theory through an empirical work (Kjaer
et al., 2018). A mix of research methods (e.g. expert consulting, user feedback and case studies) was
applied (see Fig. 1).
Pre-step:
In the pre-step, indicators requirements were formulated (see section 2.1) based on literature
review.
Cycle 1:
In this step, we conducted personal semi-structured interviews in companies that were potential
users of the indicators (see section 3.1). These interviews provided information about the companies and
their strategies through CE. With this information and the indicators requirements, the first version of
the indicators was developed through expert consulting. The first version of the indicators was sent to
the companies and a workshop was conducted to provide improvement opportunities.
Cycle 2:
Through refinement and consolidation, a second version of the indicators was developed and sent
to the companies. In this step a multiple case study was conducted with three Circular Business Models
selected (see Table 3). A case study is an empirical research on a contemporary phenomenon in its
context, evidencing the importance of doing a multiple case study to support replicable results and
reliability (Yin, 2005). The companies collected the data and return the results (see section 3.1). These
data were analyzed and after that, the final version of the indicators was confirmed (see section 3).
2.1 Indicators requirements

Sustainability is a goal to achieve in CE, so the indicators applied in many studies are usually
multidimensional (Cook et al., 2017; Domingues et al., 2015; Mapar et al., 2017). The set of indicators
proposed in this paper assumed three dimensions: environmental (from material perspective), economic,
and social, with qualitative and quantitative indicators.
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Based on the BSI 8001:2017, we identify that a requirement for a CE indicator is the ability of
this indicators to achieve the CE principles at the same time that help to meet the specificities and needs
of each CBM. Moreover, we identified through the organization's practices that the CE indicators must
address issues related to resources, production and consumption; economics factors and social issues. All
these requirements should be linked to the indicators applicability, thus we built the connections among
the requirements using an intensity level, based on the BS 8001:2017 levels of circularity maturity and
CE principles, to define the relations among the indicators, the CE principles and the CBM.
We used the CE principles proposed by the standard BSI 8001:2017 (BSI, 2017):
1. Systems thinking – a holistic approach to understand the interactions between individuals and
activities within the wider systems they are part of;
2. Innovation – continually innovate to create value by enabling the sustainable management of
resources through the design of processes, products/services and business models;
3. Stewardship – manage the direct and indirect impacts of their decisions and activities within
the wider systems they are part of;
4. Collaboration – collaborate internally and externally through formal and/or informal
arrangements to create mutual value;
5. Value optimization – keep all products, components and materials at their highest value and
utility at all times;
6. Transparency – organizations are open about decisions and activities that affect their ability
to transition towards a more circular and sustainable mode of operation and are willing to
communicate these in a clear, accurate, timely, honest and complete manner.
The symbols used in the tables represent the intensity levels based on BSI 8001:2017 maturity
model:
represents a strong relationship regarding to the optimizing level,
represents a median relationship regarding to the improving level, and
represents a weak relationship regarding to the unformed and basic level.

These levels of intensity mean that the indicators with strong connections are very efficient to
achieve the defined requirements presenting ways for doing business and creating additional circular
values. The indicators with median connections could help in the achievement of the requirements but in
the proposition of circular solution regarding to the product/service or process. The indicators with weak
connections could be applied in the initial stages of the CE journey once they are useful to explore the
opportunities. This are important to guide the organizations in the indicators implementation and the
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definition of strategies to improve the organization’s CE performance. Organizations which apply CBM
could gain benefits from this connection to direct CE efforts to the business model and principles to
achieve CE.
In Table 4, we present the connections related to the environmental (from material perspective)
dimension. Table 5 shows the connections related to the economic dimension and Table 6 to the social
dimension.
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3. Results and discussion

Literature showed that most indicators in CE focus on material flows (Moraga et al., 2019;
Virtanen et al., 2019) and end of life strategies (Gigli et al., 2019; Jensen et al., 2019). But there is a need
to create multidimensional indicators (Griffiths and Cayzer, 2016) to measure Circular Economy in its
totality (Geng et al., 2013), including the sustainability dimensions. The innovations brought by CBM
need to be measured by companies to set targets to improve practices and results. They could also propose
essential aspects to companies follow to accelerate the transition to CE. The requirements of the
indicators proposed in this paper link CE principles, CBM and sustainability.
Eighteen indicators were proposed and described in Table 7. The indicators were grouped
considering the pillars of sustainability (environmental (from material perspective) - I, economic - II and
social - III). In the environmental pillar we consider indicators for materials eg. reduction of raw
materials, recyclability and reduction of toxic substances, in economic pillar were analyzed costs,
revenues and taxes, and in social pillar were described employment, market and stakeholder’s aspects.
The indicators were described according to their applicability and forms of measurement. In addition, for
some indicators sub indicators were established in order to clarify their application.
Fig 2 shows the relations between the Canvas components and the indicators. At first, these novel
indicators were classified in all components of Canvas, instead of the conventional indicators, which
focused in key activities and resources as shown in Section 1. The indicators related to financial results
(II1, II2 and II3) were classified respectively in cost structure and revenue streams. The indicator III4
was classified in customer’s segments because is related to the market and the targets that the company
want to achieve. The indicators I9, III1 III2. III3 and III5 are classified in key partners because they
measure the characteristics of the stakeholders involved in the Circular Business Models, including the
employees, the supply partners and its structure. The indicators I5, I6 and I7 are both classified in key
activities and value propositions, because they show values the company want to deliver to keeping
products, components, and materials valuable and useful to return to the cycles and practical strategies
to close these loops. In the same way, indicators I1 and I3 are both classified in key resources and value
proposition because these strategies aim to decouple economic growth from resource consumption. The
I2 and I4 are classified in key resources because they are prior opportunities in Circular Economy, and
according to create restorative and regenerative cycles. Finally, I8 and III6 are indicators related to value
propositions because they show intrinsic values to incorporate in products and services to accelerate the
transition to Circular Economy.
The development of the indicators was refined from user’s feedback. It was consisted by
meetings, interviews and workshops within the companies. The measure of the indicators was also
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clarified and in some cases new indicators were created. At first, the users found difficulties in understand
and collect data for indicators. Thus, Table 7 was created to explain and detail the metrics for the
companies. After, the application of the indicators brought new opportunities to the companies plan their
CBM, values, strategies and also supply chain, stakeholders and product design. These indicators were
applied in three Brazilian companies and the respective results are shown in section 3.1.
3.1 Case studies
3.1.1 HP Inc. (HP Brazil)
The electro-electronic sector is composed of industrial automation industries; electrical and
electronic components; industrial equipment; generation, transmission and distribution of electricity;
computing; electronic installation material; and household utilities (Abinee, 2018). Two business model
were studied: PSS and Recovery of secondary raw materials/by-products. In this study, the focus is the
PSS based on HP Brazil Managed Printing Services (MPS). The Recovery of secondary raw
materials/by-products includes Sustainability indicators related to HP Brazil Circular Economy
Ecosystem, with occasional global data.
In 2016, the total revenue of the sector was US$ 31,098 million. In 2017, the company exported
US$5,844.2 million of electrical and electronic products and imported US$ 29.663,1 million. In January
2017, the total number of employees in the sector was 234,586 employees and in January 2018 the total
was 236,882 employees, an increase of 2,294 jobs in a year (Abinee, 2018).
According to the Brazilian Association of the Electronic and Electronics Industry (Abinee, 2018)
the perspective of Brazilian GDP growth is 2.5% in 2018 and the electronics sector is expected to grow
by around 7% considering sales and production. Furthermore, 76% of the companies expect an increase
in their activities, showing the importance of this sector for the Brazilian economy. The products that
should be at the forefront of this growth in the sector are those in the areas of information technology
and telecommunications. The expectation of growth of sales of electrical and electronic products abroad
in the year 2018 will be 3% compared to last year, that is, these sales are expected to add up to US $ 6
billion. Regarding to importation, the expectation is also 5% (about US $ 31.4 billion) in 2018 compared
to 2017. In relation to employment, it is estimated that there will be an increase of 241 employees, a
growth of 2% in 2018 compared to 2017 (Abinee, 2018). Considering this context, HP's business model
is described in Table 8.
HP has a global commitment to transform its business model for a more efficient, circular, and
low-carbon economy spans across and beyond its value chain. It presents several initiatives to drive CE
on products and solutions’ design and recovery. Such as developing solutions that keep products and
materials in use at their highest state of value for the longer time; reducing the resources required to
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manufacture and ensuring the materials in products are properly repurposed at end of life. HP presents
several business models globally and the PSS includes, HP Device-as-a-Service, HP Subscription
Services, HP Managed Print Services (MPS) and HP Instant Ink. Considering Recovery of secondary
raw materials/by-products business model, HP offers repair, reuse and recycling programs in more than
60 countries that support responsible collection and processing to recover and re-use as much as possible.
HP is considered an organization with circular practices, because they changed their business model to a
product as a service whose reflected in changes in the product design, which was measured by the
indicator “product longevity”, and in the use of recyclable material, which was measured by the indicator
“recyclability”. Thus, HP’s CBM is classified as product as a service and recovery of secondary raw
materials/by-products. Table 9 presents the results for the company referring to the application of CE
indicators.
3.1.2 Malwee Malhas LTDA (Malwee)

The textile and fashion sector in Brazil presented a revenue of US$29 billion, and generates
approximately 1,494,000 jobs in more than 29,500 companies. Therefore, the selected company presents
a great development in CE, having inserted in its model of management operations several types of
business models as circular inputs and resources recovery for the product, and life cycle extension of
manufacturing equipment as remanufacturing.
In informal market the reuse of product is also a strategic operation. Malwee is one of the leading
fashion companies in Brazil and one of the most modern in the world. This company is deeply concerned
about topics related to sustainability, owning a Strategy Sustainability. This strategic plan aims to look
at the future of sustainability related to business model, products and operations and engaging its
stakeholders to develop a sustainable value chain. According to this context, the organization's business
model is described in Table 8. Hence, Table 9 presents the results for the company referring to the
application of CE indicators.
Malwee has circular practices since they no longer consider cotton waste as useless and uses it as
raw material again, using in this way circular inputs in the production. Moreover, Malwee keeps their
manufacturing machines in use for as long as possible through remanufacturing. To identify these real
changes we used the indicators “reduction of raw materials” and “remanufacturing”. Thus, Malwee’s
CBM is classified as recovery and product life cycle extension. Hence, Table 9 presents the results for
the company referring to the application of CE indicators.
3.1.3 CIMFLEX Indústria de Comércio de Plástico Ltda. (CIMFLEX)

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The plastic sector in Brazil has a gross billing of US$ 20 billion, generates approximately 320,000
jobs in plastics materials transformation and recycling industries in more than 12,300 companies
(Abiplast, 2017). CIMFLEX was founded in 2004 and aims to offer products to the construction and
plastics processing industries, meeting the requirements of these customers through the use of raw
material with low environmental impacts. CIMFLEX’s CBM is classified as Recovery of secondary raw
materials/by-products. The company recycles agrochemicals and lubricating oils packaging (all
packaging from high-density polyethylene - HDPE) and transforms them into resins and products used
in civil construction, e.g.: ducts and corrugated conduits. CIMFLEX produces, per year, approximately
2,000 tons of ducts and corrugated conduits. Moreover, they use reverse logistic to close the loops of
agrochemicals and lubricating oils packaging. CIMFLEX operates in a business model to recover plastic
resources, we used the indicator “recyclability” to measure its effectiveness as a circular organization.
According to this context, the CIMFLEX's business model is described in Table 8. Thus, Table 9 presents
the results for the application of CE indicators.
Considering the three cases, the companies showed difficulties in publishing data from economic
and even in social dimensions which were not available or were diffused in the companies. It is a barrier
because most of the positive impacts gained with CE are presented in the social dimension, including job
creation, mindset change, and others. According to Schröder, et al. (2019) social issues are not yet
integrated into the concept of CE. There is uncertainty about how to measure the transition from a linear
to a CBM and how CE can help sustainability (Schröder et al., 2019). Thus, our paper helps to fill this
gap, as it points to develop indicators that measure CE performance considering sustainability in a
systemic view.
It is important to emphasize that the indicators could not be applied individually. The set of
indicators must be analyzed together because if there is an evolution in one single indicator it not
necessarily means an evolution in the company performance in Circular Economy. For example, if the
company produced with less raw materials but with low longevity, it is not a representative gain regarding
Circular Economy principles.
Regarding the research question “How organizations can measure Circular Economy
performance considering Sustainability and Business Model perspective?”, we confirmed that the
proposed indicators could be applied in companies with CBM to improve their performance according
to CE principles and Sustainability. The developed indicators can be used to analyze and assess the
current state of the CBM performance, evaluate the achievement of CE goals, and improve benefits for
all stakeholders in the value chain (especially with social indicators).
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Finally, the novel indicators presented have advanced in relation to those found in the literature
because they have a simple and intuitive format and could be applied in various sectors and business
models. Also, they not restrict the scope of CE, as conventional indicators do (Table 2), but they cover
all CE principles. Besides, they were developed with the companies so they are understandable and easy
to be used.
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4. Conclusions
According to the results, the paper contributes in the application of CE in Business Models. The
novel set of indicators expresses the complex dimensions of sustainability needed, including
environmental (from material perspective), economic, and social. The main contribution of this paper is
the development of a group of indicators applied in CBM to capture the innovations brought by CE whose
conventional indicators do not measure. These innovations include systems thinking, mindset change,
diversity, effectiveness, resilience and long term for all stakeholders.
CE aims to seek sustainability, in this work the proposed indicators are intrinsic related to
Sustainable Development Goals and help to achieve: Clean water and sanitation (Goal 6), Affordable
and clean energy (Goal 7), Decent work and economic growth (Goal 8), Industry, innovation, and
infrastructure (Goal 9), Responsible consumption and production (Goal 12) and Climate action (Goal
13).
This paper investigates how companies could measure their performance in CE and proposed a
multi-dimensional set of indicators to demonstrate benefits to measure at the micro level. These
indicators were developed based on a hypothetic-deductive approach and were applied in a multiple case
study. The main point is to create simple and clear indicators (Folan and Browne, 2005) to be applied in
diverse sectors and contribute with this area of research.
New findings in both theory and practice aspects were achieved, because the indicators in
literature were analyzed and with the user’s feedbacks were possible to improve and develop this novel
set of indicators. The link between empirical data and theory could enrich the research, since CE emerges
from the practice (Agrawal et al., 2019).
4.1 Implications for theory and practice on Sustainability

Theory is a way of establishing a conceptual order to the empirical complexity of the phenomenal
world (Suddaby, 2014), for the author the true knowledge arises from different assumptions about the
proper use of a theory. Moreover, abstract reasoning is a way of constructing knowledge. Additionally,
theory proposal clearly presents why its development, which brings again to the area of knowledge and
the relationship between theory and practice (Whetten, 1989). So, this paper contributes theoretically,
because it presents a list of CE indicators of and sustainability not yet identified in the literature.
Traditional indicators could not express CE in its totality, because they are not designed for the systemic,
closed-loop, feedback features that represent CE (Geng et al., 2013). As well, the novelty of this paper
remains to join sustainability, CBM and performance measurement for CE.
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At the practical side, the results will help any company to identify areas with high importance
and potential for improvement, and thus increase the CE performance in an efficient, clearly and prompt
manner. Besides, the indicators allow companies to create their own improvement targets according to
their defined CE strategy. Measuring CE and sustainability performance through the proposed indicators
can help organizations find improvements and consequently operational, business model and strategy
innovations.
4.2 Limitations and future work

The limitation of this work remains in the confidentiality of data involving the economic
indicators and the availability of social indicators. Furthermore, the indicators were applied in only three
case studies.
For future work, there is a need to apply these indicators in other sectors and companies for
measuring also positive impacts from Circular Economy, for example, involvement of stakeholders in
decision-making processes and the mindset, as core indicator. Also, it will be important to create an index
with involves all the indicators and a scale to set targets for Circular Economy principles.
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Acknowledgements
The authors are grateful for the financial support provided by the Brazilian research funding
agency Coordination for the Improvement of Higher Education Personnel (CAPES/Finance Code 001)
and National Council for Scientific and Technological Development (CNPq). We also thank for the
anonymous reviewers to incorporate important considerations in this paper. Furthermore, the authors
would like to thank National Confederation of Industry (CNI), the Brazilian Association of Plastic
Industry (ABIPLAST), the Brazilian Association of Electrical and Electronic Industry (ABINEE) and
the Brazilian Association of Textile and Clothing Industry (ABIT) and the companies HP Brazil,
Malwee, and CIMFLEX.
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Declaration of interests
☒ The authors declare that they have no known competing financial interests or personal relationships
that could have appeared to influence the work reported in this paper.
☐The authors declare the following financial interests/personal relationships which may be considered
as potential competing interests:
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Research phase Research methods Outputs
Pre-step
Needs Literature Indicators
identification review requirements
User interviews
Theory
Expert Indicators v.1
formulation 1
consulting
Cycle 1
Theory testing 1 Improvement of

User feedback opportunities
Refinement
Theory
and Indicators v.2
formulation 2
consolidation
Cycle 2
Theory testing2 Indicators v.

Case studies
final
Fig. 1. Development process indicators following the hyphotetic-deductive approach (adapted

from Kjaer et al., 2018)
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Key Partners Key Activities Value propositions Customers Customers

relationships Segments
Key Resources Channels
Cost structure Revenue streams
Fig. 2. Relation between indicators and CANVAS components.

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Highlights
 Development of a set of multidimensional indicators applied to Circular Business Models to
capture the innovations brought by Circular Economy that conventional indicators do not
measure.
 Set of indicators based on three dimensions of Sustainability, on principles of Circular Economy
and linked with Canvas Business Model Generation components.
 These indicators were applied in three Brazilian cases: plastic, textile and electro-electronic
companies. It was verified facility to collect data from material indicators instead of economic
and social indicators, which were not available or were diffused in the companies.
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Table 1: Description of each circular business model

Circular Business Model Description
"Producing a product or providing a service only when
On-demand consumer demand has been quantified and confirmed" BSI
(2017) p. 47.
"Replacing physical infrastructure and assets with digital/virtual
Dematerialization
services" BSI (2017) p. 47.
"New products are designed to be durable for a long lifetime
Product life cycle (durability). Design improvements might be needed to also
extension/reuse facilitate easier repair, particularly by third parties" BSI (2017)
p. 47.
"Value optimization by creating products from secondary raw
Recovery of secondary raw materials/by-products and recycling (e.g. polyethylene
materials/by-products depolymerization, steel, bio-based materials), whether open or
closed loop" BSI (2017) p. 48
Product as service/product- "Company delivers product performance or defined results
service system (PSS) rather than the product or service itself" BSI (2017) p.49.
"Lending or “collaborative consumption” amongst users, either
Sharing economy and individuals or organizations, but where some form of
collaborative consumption transactional arrangement (which could be financial) is
provided" BSI (2017) p. 50.
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Table 2: Indicators in literature

Indicator Advantages Disadvantages Reference
BIM-based
Evaluation of the Restriction of the
Whole-life
performance of CE only in the (Akanbi et al.,
Performance
civil construction scope of the reuse 2018)
Estimator
projects. and recycling.
(BWPE)
Need for prior
Application of
technical
some CE
knowledge about
principles in the
Building the circularity
context of civil (Verberne,
Circularity indicators used.
construction, 2016)
Indicators (BCI) Availability of the
taking into
Excel spreadsheet
account the types
dependent on the
of materials used.
author.
Restriction of the
CE only in the
scope of recycling,
Possibility of
Circular besides the
assessing (Di Maio and
Economy difficulty of
recycling linked Rem, 2015)
Index(CEI) applying the
with economy.
because of the
absence of a
template.
Developed
according to CE
Circular Availability of the (Cayzer et al.,
principles. Ease of
Economy spreadsheet 2017; Griffiths
use due to a
Indicator dependent on the and Cayzer,
spreadsheet
Prototype (CEIP) author. 2016)
developed for
calculation.
Developed to
measure CE Lack of platforms
Circular
practices in the (templates or
Economy (Nunez-Cacho et
civil construction software) that make
Measurement al., 2018)
sector through a the calculations
Scale (CEMS)
questionnaire on a viable.
Likert scale.
Need for prior
technical
Circular
Based in Life knowledge about
Economy (Huysman et al.,
Cycle Assessment LCA and lack of
Performance 2017)
(LCA) templates that make
Indicator (CEPI)
calculations
feasible.
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Based on life It does not indicate
Circular stages of products which
(Evans and
Economy Toolkit and services. Ease improvements
Bocken, 2013)
(CET) availability and could be needed to
applicability. aim circularity.
Based on CE
practices, such as:
It provides
extend, upgrade,
enhancements to
reuse, repair,
Circular the product only for (ResCom,
recondition,
Pathfinder (CP) the redesign or 2017a)
remanufacture,
design stages of the
recycle and
product.
biodegrade. Easy
access and use.
Developed
according to
Financial
practices of CE
investment required
focused on the
for unlimited use of
PSS and provides
the indicator. Free
an adequate
limited use.
graphic vision of
Moreover, it does
material and
Circularity not clearly provide (ResCom,
financial flows. In
Calculator (CC) the calculation 2017b)
addition to
procedures for
providing
obtaining the
quantitative
outputs (circularity,
output value for
captured value,
circularity,
recycled content
captured value,
and reuse index).
recycled content
and reuse index.
Restriction of the
Practical formulas Circulating
Circularity Index for calculating the Economy only in (Cullen, 2017)
indicator. the scope of the
recycling.
Developed
Circularity through CE Availability
(Saidani et al.,
Potential Building Blocks. depends on the
2017)
Indicator (CPI) Practical interface author.
for users.
Availability of the
Ease of Indicator focused
spreadsheet (Vanegas et al.,
Disassembly on important CE
dependent on the 2018)
Metric (eDiM) practices such as
author.
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disassembly of
products.
High complexity
Eco-efficient LCA based and
for application. (Scheepens et
Value Ratio economic
Need for prior al., 2016)
(EVR) information.
knowledge of LCA.
High complexity
Economic- for application.
LCA and LCC (Fregonara et
Environmental Need for prior
based. al., 2017)
Indicators (EEI) knowledge of LCA
and LCC.
It allows to couple
Economic- Restriction of the (van Loon and
environmental
environmental CE only in the van
and economic
remanufacturing scope of Wassenhove,
aspects to
(EER) remanufacturing. 2018)
remanufacturing.
Restriction of the
Practical indicator
End-of-Life Circulating
whose calculation (Graedel et al.,
Recycling Rates Economy only in
procedures are 2011)
(EoL-RRs) the scope of the
available.
recycling.
Based on
information on the
quantity and
quality of
Difficulty in
resources used
making the
Input-Output (renewable and
indicator available, (MarcoCapellini
Balance Sheet non-renewable,
since the authors , 2017)
(IOBS) recycled,
belong to a private
permanently
company.
recycled and
recyclable,
biodegradable and
compostable).
Difficulties in
obtaining some
Two indicators input data such as
developed to recycling
Longevity and measure product efficiency, as well
(Figge et al.,
Circularity use and durability as the lack of a
2018)
(L&C) under some CE practical interface
practices, such as (such as a
reconditioning spreadsheet)
available for
calculation.
Journal Pre-proof

Restricting CE in
only some practices
such as reuse and
Ease of access
recycling.
and use of the
Difficulty in (Ellen
Material indicator. Quick
obtaining input MacArthur
Circularity and practical
data, such as: Foundation and
Indicator (MCI) application, if all
destination of the Granta, 2015)
the input data is
product after use
obtained.
and efficiency of
the recycling
process.
Qualitative Certification by an
Material indicator that outsourced
Reutilization Part indicates the level company, (C2C, 2014)
(C2C) of reutilization restricting CE to
has the product. recycling practices.
Set of indicators
CE restriction only
for mining based
on waste
Mine site MFA on the economic (Lèbre et al.,
management. Lack
Indicator (MI) and 2017)
of tools to measure
environmental
indicators.
dimension.
Multidimensional CE restriction on
Multidimensional quantitative recycling only.
(Nelen et al.,
Indicator Set indicator applied Lack of tools to
2014)
(MIS) to electrical and measure the
electronic waste. indicator.
Restricting CE in
Relation between
Product-Level only some practices
recirculation of (Linder et al.,
circularity Metric such as reuse,
materials and 2017)
(PCM) remanufacturing
economic value.
and recycling.
Indicator that Restriction of CE
expresses in only in the context
Recycling percentage the of recycling. (van Schaik and
Indices (RIs) recycling of a Availability of the Reuter, 2016)
product by means tool dependent on
of its elements. the author.
Required prior
Indicator that
knowledge of
takes into account
Recycling Rates MFA. Restriction (Haupt et al.,
the open loop and
(RRs) of CE only in the 2017)
closed loop
context of
recycling, besides
recycling.
Journal Pre-proof

the rates of waste
collection.
It illustrates the
amount of time a
material remains
Difficulty in
in the product
Resource obtaining some (Franklin-
system. That is,
Duration input data, such as Johnson et al.,
quantification of
Indicator (RDI) the recycling 2016)
an important
efficiency.
practice for EC,
even the longevity
of the product.
Difficulties in
obtaining input
Indicator that
data, such as the
takes into account
Reuse Potential quality of the (Park and
the technology
Indicator (RPI) material used in the Chertow, 2014)
available to treat
specific application
the waste.
and reasons for
substitution.
Group of
indicators in three Lack of
dimensions computational tools
Set of Indicators
(economic, social to facilitate
to Assess (Golinska et al.,
and calculations.
Sustainability 2015)
environmental) Restriction od CE
(SIAS)
focused on the only in the context
practice of of remanufacturing.
remanufacturing.
Group of
indicators focused
on EC practices
Difficulties in
such as design
obtaining data,
and product
Sustainability especially in (Mesa et al.,
modularity,
Indicators (SI) relation to end-of- 2018)
including
life aspects of
functionality,
products.
reconfiguration,
reuse,
recyclability.
Lack of
Index based on
Sustainable computational tools
the dimensions of (Azevedo et al.,
Circular Index to facilitate
sustainability and 2017)
(SCI) calculations. Lack
circularity.
of examples for
Journal Pre-proof

practical
application.
Table 3: Characteristics of the three Circular Business Models
Circular Business
Sector Size
Model
Product as
service/product-
service system (PSS)
HP Brazil and Recovery of Electro-electronic Big
secondary raw
materials/by-
products
Recovery of
secondary raw
materials/by-
Malwee Textile and fashion Big
products and
Product life cycle
extension/reuse
Recovery of
secondary raw
CIMFLEX Plastic Small
materials/by-
products
8
Table 4: Relationship between CE principles and material indicators proposed
Systems Thinking
Innovation
Stewardship
Principles
Collaboration
Value Optimization
Transparency
Dimension Material
Indicators Reduction Reduction Stakeholder

Product
Control Variables of raw Renewability Reciclability of toxic Reuse Remanufacturing Refurbishment structure and
Longevity
materials substances diversity
Product as a
Service
Sharing Economy
Product life
Circular extension
Business
Models On-demand
Recovery by-
products
Dematerialization
9
Table 5: Relationship between CE principles and economic indicators proposed

Systems Thinking
Innovation
Stewardship
Principles
Collaboration
Value Optimization
Transparency
Dimension Economic
Indicators
Control Variables Financial results Taxation or regulatory milestones Circular investment
Product as a Service
Sharing Economy
Circular Product life extension

Business
Models On-demand
Recovery by-products
Dematerialization
10
Table 6: Relationship between CE principles and social indicators proposed
Systems Thinking
Innovation
Stewardship
Principles
Collaboration
Value Optimization
Transparency
Dimension Social
Employee
Indicators Income
participation in the Market Involvement of stakeholders Mindset / cultural
Control Variables Job creation generated by
circular business characterization in decision-making processes change
jobs
model
Product as a Service
Sharing Economy
Product life extension

Circular
Business
On-demand
Models
Recovery by-products
Dematerialization
11
Table 7: Set of circularity indicators proposed in this paper

Dimension Indicator Sub indicator Measure Description
This indicator measures the reducing
Quantity of raw materials reduced quantities of raw materials in the
a)Manufacturing
in the manufacturing process of manufacturing (e.g. water,
1)Reduction of raw carbon dioxide, etc)
materials
This indicator measures the reducing
Quantity of raw materials reduced
b)Product quantities of raw materials in the
in the product
product itself, making it lighter
Percentage of renewable energy

The aim is to measure the quantity of
a)Renewable sources in relation to the total
I)Material renewable energy consumed in the
energy energy used in manufacturing
manufacturing
processes
2)Renewability
Percentage of raw material from The aim is to measure the quantity of

b)Renewable raw
renewable sources in relation to all renewable raw materials used in the
materials
the materials used in a product product
12
a)Recycled Percentage of recycled materials in This indicator measure the use of

materials the composition of the product recycled materials in the product
3)Recyclability
b)Recyclability Percentage of the product that may This indicator measure the potential of
potential be recycled after use recyclability of the product after use
It aims to quantify the reduction of the

4)Reduction of toxic Quantity of reduction of toxic use of toxic substances considering
substances substances RoHS (Restriction of Certain
Hazardous Substances).
a)Manufacturing Quantity of material reused in the It aims to quantify the reused materials
process supply chain in the supply chain
5)Reuse
Quantity of reused material in the It aims to quantify the reused materials

b)Product
product in the product
Quantity of remanufactured It aims to quantify the

6)Remanufacturing
products remanufacturing products
13
Quantity of the total recovery or

This indicator is expressed by the
parts (components) of the product,
7)Refurbishment specification and quantity of the
without necessarily going through
products and refurbished parts
all stages of the remanufacturing.
This indicator may be obtained from

consumer information, and/or from the
Quantity of time added in the company itself from product return
8)Product longevity
lifespan of the product information, average lifetime,
replacement or purchase of new
product, or time to replenishment
This indicator may be obtained

9)Stakeholder a)Structure Qualitative qualitatively, for example on the
structure and structures and synergies or symbiosis
diversity of the business of a company with
others associated with its supply chain
It aims to map stakeholders in the
b)Stakeholder Qualitative
circular value chain
14
Monetary value from circular This indicator aims to show the cost
business model provided by cost reduction of the manufacturing
II)Economic 1)Financial results a) Cost reduction
reduction from raw materials, because of the acquisition of less raw
energy, etc materials and energy
15
This indicator could be measured

by: a) Competitive advantage:
percentage of market share of the
circular business model compared This indicator aims to show the billing
b) Revenue
with the competitors. b) Risks: map percentage generated by circular
generation
the risks associated with the business model
circular business models. c) New
revenues: new revenues from
circular business models.
Net profit of the Return On Assets

c)Profitability (ROA) and Return On Equity This indicator measure the net profit
(ROE)
16
This indicator aims to specify the

2)Taxation or
Qualitative taxation or regulatory milestones that
regulatory milestones
subsidize the circular business model
This indicator aims to quantify in

monetary values the financial
Quantify
resources invested to change the
3)Circular investment Innovation investments from the innovation
business model, from strategic and
process
management actions to capacity
building, operational and maintenance
This indicator aims to quantify the job

creation from circular business model,
Quantity of job creation from e.g. quantity of job creation from
1)Job creation
circular business model reverse supply chain activities
(maintenance, reverse logistics, reuse,
remanufacture, refurbishment, etc)
III)Social
Monetary value the income It aims to quantify in monetary values

2)Income generated
generated by job creation from the income from new jobs creation
by jobs
circular business model from circular business model
17
It aims to quantify the percentage of

3)Employee
Percentage of jobs in the company jobs of the organization and its
participation in the
related to circular economy hierarchical level related to the
circular model
circular economy
It aims to identify the client

characterization, e.g. social level,
geographical regions, age group,
a)Client Qualitative
among others, according to the uses of
the product. Also includes the
motivation and intention of the client.
This indicator aims to map perceived
and captured values for each type of
b)Value Qualitative
client, i.e. benefits generated for
clients.
4)Client mindset
Collection of data or information from
consumer surveys, Customer Service
Call Centers (CSCC), and other
channels, identifying correlations with
information on adoption of circular
c)Communication Qualitative
practices or sustainability, which are
communicated or available to
consumers who make purchasing
decisions at the information available
to them
18
It aims to characterize qualitatively the

stakeholders who participate in the
general business model and those who
5)Involvement of
effectively participate in the
stakeholders in
Qualitative organization's decision making.
decision-making
Stratify the stakeholders according to
processes
each element of the business model:
strategy and management, economic,
operational and innovation.
It aims to describe the process of

change resulting from the
6)Mindset/cultural implementation of the circular
Qualitative
change business model in the company.
Especially cultural and mindset
change.
19
Table 8: Description of Circular Business Models of HP Brazil, Malwee, and

CIMFLEX
Component HP Brazil Malwee CIMFLEX
HP Managed Printing Services
provide convenience and
performance benefits while The company has two value
The company visualized an
reducing capital costs by propositions: use of a pet knitwear
opportunity to act in the closed loop
managing maintenance of the (polyester yarn made from recycled
of agrochemicals and lubricating oils
Value proposition technology fleet, freeing up PET bottles), use of biodegradable
packaging, by recycling them and
valuable employee time and polyamide in the manufacture of gym
using as an input to manufacture
resources, increasing product clothes, and the remanufacture of the
Tubes, Ducts and Corrugated
longevity, reducing waste and machines that are used to the clothes
Conduits to use in civil construction.
ensuring product repair, reuse, confection
and recycling at the end of
service life.
HP Brazil MPS were firstly
adopted by large companies as a
Business to Business model.
Customer Segment Today the public sector, small Clients are retail stores that sell Clients are large companies
and medium business are also clothes (Business to Business) (Business to Business).
adopting the model, which can
be expanded to other customer
segments.
The company identifies
customer needs in terms of
printing (volume, performance,
Relationship with The company
etc.) and provides printing The company product expresses the
seeks to meet customer requirements
customers services and support in identity of the consumer.
through direct verification.
accordance to customer’s
demand, stablishing a service-
based relationship.
20
Component HP Brazil Malwee CIMFLEX

Communication is the key to reaching
Communication with customers different audiences. The Malwee
and potential customers are Group is committed to disseminating
Channels made through mailing, events, its initiatives and projects, as well as The channels of communication is
direct engagements, personal sharing information and content so personal, telephone and internet.
contact, social media, website, that people have the opportunity to
among others.. know and contribute to a more
conscious society.
The main resources are people since
the Malwee Group believes that
development occurs by people and to
the people. With respect to material
resources, the Malwee group is active
Key resources The essential resources are The essential resources are human,
in the search for raw material and
human, material and financial. material and financial.
processes that have a lower socio-
environmental impact. And the
financial a structure resources are
necessary to the development of the
projects related to the sustainable plan.
The Malwee Group recognizes that to
the construction of a more sustainable
value chain is necessary the exchange
Major partnerships Sales Channels and recycling of knowledge and experiences among The main partner is waste collection
partner. its participants. For this, has a cooperatives.
partnership with universities and
research centers, suppliers and
retailers.
Cost and revenue

The customer pays a flat fee per Conventional cost and revenue Conventional cost and revenue
structure printed page. structure structure.
21
Table 9: Indicators Result for HP Brazil, Malwee, and CIMFLEX.

Dimension Indicator Sub indicator HP Brazil Malwee CIMFLEX
 Reduction of above
75% of raw
materials.
 Reduction of water
The company didn’t buy over
use in the milling line
681 thousand boxes of
of the flow process
cardboard on 2017
for lubricants due to
The company saved about
the use of hot water
7,500 trees by reusing pallets
by cold water - lower
from 2015 to 2017. Reduction of
energy use and
The company decreased in 8% losses in the
reduced evaporation
the intensity of use of production
rate.
materials for personal systems processes, and
 Reduction of water
in 2017 (global data). consequently in
use in the COEX
1)Reduction of The company decreased in 6% the consumption
I)Material a)Manufacturing material milling line
raw materials the intensity of use of of virgin raw
- changing milling
materials for printers in 2017 materials, and
with wash for dry
compared to 2016 (global use of recycled
milling.
data). raw materials of
The water footprint decreases approximately  Reduction of 18% of
1% in 2017 compared to 2016 7%. energy consumption
for supply chain, operations in manufacturing
and products and solutions processes.
(global data). The customer  Reductions in the
pays a flat fee per printed incorporation of
page. additives in the
formulations of
several products:
1) Reduction of
33.33%
22

compatibilizer in
COEX material;
2) 60% reduction of
impact modifier
in the PVC
conduit;
3) Reduction of
100% in the
amount of
lubricant
incorporated to
the conduit PVC
DN 20 mm.
Reduction in weight
of several products
 Corrugated duct DN
63 mm - Reduction
of 9.52%;
90 mm - Reduction
Since 2010, the power
of 27.27%;
consumption of HP's personal Reduction of
b)Product system products has decreased 0,06 kg / Piece in
110 mm - Reduction
by 43% on average (global 3 years.
of 4.54%;
data).
160 mm - Reduction
of 27.77%;
 Reinforced
corrugated duct DN
40 mm - Reduction
of 29.42%;
23

Use of 100%
renewable energy
in production
processes (still
has natural gas
and diesel oil in
100% of the energy comes
case of
from renewable sources
In 2017, 50% of the energy emergency);
(Small Hydropower Plants,
a)Renewable used in global operations reduction
wind energy, solar energy
energy comes from renewable between 12 and
and thermoelectric plants
sources (global data). 15% of
2)Renewability from the burning of
electricity
sugarcane bagasse).
consumption in
the last 3 years.
Replacement of
GMP oil with
natural gas since
2000.
The reuse of the water is
b)Renewable raw done in the washing of the
Not available. Not available.
materials mills - being a closed circuit
inside the company.
Percentages of recycled
The HP printer Deskjet GT Waste generated inputs in the products:
5822 manufactured in Brazil is recycled and  Corrugated duct -
has up to 12% of recycled projects under 97.50%;
a)Recycled material on average in its development to  Corrugated conduit -
3)Recyclability
materials composition by weight, in close the cycle 97.50%;
2017. It has the potential of (100% of the  Corrugated drain -
using recycled material up to recycled textile 97.50%;
32%, also by weight. waste).  Sewage Tube -
100%;
24

Reduction of 5 to
15% of the
generated
production
residues,
depending on the
type of product
produced.
In Brazil, 95% of all the Process for
company's waste is recycled, drying the ETE All the products present
b)Recyclability
the other 5% destined for sludge, which recyclability potential of
potential
cogeneration of energy. reduces the 100%.
Nothing is sent to landfills. volume to 1/7 of
normal.
Parts may
contain 12 - 50%
of their
composition, of
recycled material
(PET or
defibrated)
There are no
national
regulations for
Percentage of dry waste
such a measure,
(class I) destined for landfills
4)Reduction of The company does not use however, the
in relation to the quantity
toxic substances toxic substances. 2020 Plan
received of lubricating
provides for a
packages is 13%.
restriction target
under
international law.
25

Water reuse
program in the
production
process since
2003, which has
a nominal reuse
Equipment and end-of-life
capacity of up to
printing supplies plastics are
200 million liters
a)Manufacturing recycled and transformed into Not applicable to the
of water per year
process new parts and pieces of company.
(representing
locally produced printers and
25% of the total
packaging.
water used), and
operate in the
5)Reuse
normal regime
with 75% of the
nominal capacity
of the system.
There is no
product reuse per
se, however,
The HP printer Deskjet GT
100% of the
5822 manufactured in Brazil Not applicable to the
b)Product waste generated
contains up to 12% of company.
is sent to
recycled material in 2017.
recycling
companies in the
region.
Not applicable to Not applicable to the
6)Remanufacturing Not available.
the company. company.
Products with 10/10
Not applicable to Not applicable to the
7)Refurbishment reparability scale (global data)
the company. company.
in iFixit.
26

As for the
consumption
link, the products
Printers’ life time increases, The average lifetime of the
have a useful life
on average, from 3 to 5 years products is 30 to 40 years -
8)Product of approximately
due to the good conditions of about 70% to 80% of the life
longevity 30 washing
operation and maintenance expectancy of the virgin
cycles and may
when on MPS model. materials.
be extended
according to the
product line.
Since 2008, the company
works along with its
a)Structure manufacturing partners to Not available. Not available.
build an end-to-end supply
chain.
Creation of a network of
companies associated with
the collection, sorting,
sorting and recycling of
packaging. Involvement with
9)Stakeholder
ABIPLAST and with the
structure and
Involvement to PICPlast - Plastic Chain
diversity
create businesses Incentive Plan, a partnership
b)Stakeholder Not available. associated with between ABIPLAST and
the use of textile Braskem to train employees
waste. in the transformation and
recycling industries of
plastic materials and to show
the benefits of the material
to society. For more
information visit:
www.picplast.com.br.
27

Activities in development
for the organization of the
sector - National Chamber of
Recyclers of Plastic
Materials - CNRPLAS -
horizontal policies, training
of cooperatives, quality seals
- SENAPLAS - National
Seal of Recycled Plastic -
certification for companies
and soon certification of
recycled plastic resins
The launch of
products is
focused on best
practices and
with low
environmental
impact in
development,
The recycled plastic resin is in such as jeans and Constant development of
II)Economic 1)Financial results a) Cost reduction average 15% to 30% cheaper knitwear. new applications for
than virgin plastic resin. Association for recycled products.
Global Best
Practices
(Sustainable
Apparel
Coalition) and
ABVTEX
certification
schemes.
28

Products that
excel for the
quality and
b) Revenue
Confidential. durability in Confidential.
generation
relation to the
average of its
competitors.
c)Profitability Confidential. Not available. Not available.
Tax and tax policies are a

Tax regime as a
problem for circular business
limiting factor
Monthly, the company is model involving the plastics
for the adoption
2)Taxation or taxed in ISS 2% + PIS / chain. Fiscal asymmetry
of practices and
regulatory Cofins 9.65% + eventually between States does not
circular
milestones INSS where they have people foster competitiveness.
processes. (e.g.
allocated by contract on MPS. Suggestion of the adoption
double taxation
of credit granted to the
on waste)
sector.
Innovations in
water use since
2002,
TECNOBIO,
with optimization
of the effluent
3)Circular
Innovation Confidential. treatment system. Confidential.
investment
Use of new
natural fibers and
natural inputs of
this 2011. New
treatment
systems using
29

ozone in the
production of
denim jeans.
Replacement of
harmful
chemicals. Use
of biodegradable
polyamide,
helping at the
end of the
product life
cycle.
1)Job
Confidential. Not available. Confidential.
creation
2)Income
Not available. Not available. Confidential.
generated by jobs
3)Employee
participation in the Not available. Not available. Confidential.
circular model
a)Client Confidential. Not available. Not available.

III)Social
b)Value Confidential. Not available. Not available.
4)Client mindset Since its

foundation, the
company has
c)Communication Confidential. adopted practices Confidential.
associated with
longer-lasting
business models.
30

The process of
internal
transformation
has already
occurred in
several areas of
the company.
Having
pioneered water
management,
reducing impacts
on dyeing and
printing
processes, and
the use of raw
materials with
sustainable bias.
The 2020 Plan,
drawn up in
2014, mapped
the entire value
chain and
defined 14 goals
for the Group in
5 main areas.
5)Involvement of
stakeholders in
Not available. Not available. Not available.
decision-making
processes
31
6)Mindset/cultural
Not available. Not available. Not available.
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Journal Pre-proof

Circular Economy indicators for organizations considering Sustainability and

To appear in: Journal of Cleaner Production

Received Date: 28 March 2019

© 2019 Published by Elsevier.

Circular Economy indicators for organizations considering Sustainability

Efigênia Rossia(corresponding author: rossiefigenia@usp.br)

Keywords: Indicators; Metrics; Circular Business Model; Sustainability; Circular Economy.

2.1 Indicators requirements

represents a strong relationship regarding to the optimizing level,

represents a median relationship regarding to the improving level, and

represents a weak relationship regarding to the unformed and basic level.

3. Results and discussion

3.1.2 Malwee Malhas LTDA (Malwee)

3.1.3 CIMFLEX Indústria de Comércio de Plástico Ltda. (CIMFLEX)

4.1 Implications for theory and practice on Sustainability

4.2 Limitations and future work

Research phase Research methods Outputs

Theory testing 1 Improvement of

Theory testing2 Indicators v.

Fig. 1. Development process indicators following the hyphotetic-deductive approach (adapted

Key Partners Key Activities Value propositions Customers Customers

Key Resources Channels

Cost structure Revenue streams

Fig. 2. Relation between indicators and CANVAS components.

Table 1: Description of each circular business model

Table 2: Indicators in literature

Indicator Advantages Disadvantages Reference

Indicator Advantages Disadvantages Reference

Indicator Advantages Disadvantages Reference

Indicator Advantages Disadvantages Reference

Indicator Advantages Disadvantages Reference

Table 4: Relationship between CE principles and material indicators proposed

Indicators Reduction Reduction Stakeholder

Table 5: Relationship between CE principles and economic indicators proposed

Circular Product life extension

Table 6: Relationship between CE principles and social indicators proposed

Product life extension

Table 7: Set of circularity indicators proposed in this paper

Percentage of renewable energy

Percentage of raw material from The aim is to measure the quantity of

Dimension Indicator Sub indicator Measure Description

a)Recycled Percentage of recycled materials in This indicator measure the use of

It aims to quantify the reduction of the

Quantity of reused material in the It aims to quantify the reused materials

Quantity of remanufactured It aims to quantify the

Dimension Indicator Sub indicator Measure Description

Quantity of the total recovery or

This indicator may be obtained from

This indicator may be obtained

Dimension Indicator Sub indicator Measure Description

Dimension Indicator Sub indicator Measure Description

This indicator could be measured

Net profit of the Return On Assets

Dimension Indicator Sub indicator Measure Description

This indicator aims to specify the

This indicator aims to quantify in