Circular Transformation Framework Developed

The World Business Council for Sustainable Development (WBCSD), jointly developed with more than 30 companies, has released the Circular Transition Indicators (CTI) framework version 2.0 and its accompanying online tool.

The use of shared indicators for measuring circularity performance is critical to accelerating the transition to a circular economy, and the CTI process helps companies prepare their scope and assessments, interpret results, understand risks and opportunities, prioritize actions, and set SMART targets to track progress. CTI provides companies with a common language for use in both internal decision-making and communication with external key stakeholders in the supply chain. One year after its initial launch, the CTI methodology has been widely adopted by over 600 companies and organizations, 35 of them multinational, from various industrial sectors, and provides a universal and consistent way to measure circularity. Based on the version launched last year, CTI v 2.0 features three new water circularity indicators with calculations to reduce fresh water demand and measure progress in providing availability for all users and the environment. A new indicator, CTI Revenue, acknowledges growing investor interest in circularity by linking circular and financial performance, providing a consistent way to reliably answer investor questions. Finally, the report includes comprehensive guidance and commentary on bioeconomy across all indicators and process steps. The CTI framework is complemented by an online tool jointly developed with Circular IQ, software that enables companies to measure and improve their circular performance by anchoring CTI to their organizations. By building a robust circularity foundation, it allows them to conduct multiple assessments and track their performance over time.  

First launched in January 2020 at the World Economic Forum Annual Meeting in Davos, CTI is a comprehensive framework that complements a company's current sustainability efforts and is applicable to all companies regardless of sectors, value chain positions or geographies. It represents 16 sectors across 16 countries and an annual turnover of USD 1.7 trillion, making it truly built for business. The launch of this updated version of CTI invites companies of all sizes and sectors worldwide to measure their circular baselines and demonstrate their commitment to the circular economy.

  Federico Merlo, Director General of Circular Economy at WBCSD, said: "Measuring circular performance is not just a sustainability assessment, it is an assessment of a business's resilience. The response from business to the implementation of the Circular Transition Indicators (CTI) over the past year has exceeded our expectations. As investors, customers and regulators increasingly demand information about circular performance, companies equipped to measure, monitor and improve their circularity can now understand how to demonstrate business continuity, efficiency and true leadership. We invite companies of all sizes and sectors to demonstrate their commitment to the circular economy by completing their assessments through CTI."   Richard Threlfall, Global Head of KPMG IMPACT, Partner and Global Infrastructure Head, KPMG, said: "KPMG is proud of our continued participation in the development of the CTI Framework v2.0. As an implementation partner, we see the added value this framework brings to our clients in assessing circular performance, identifying risks and opportunities, and directing resilient and forward-looking business practices." KPMG in the Netherlands is a development partner in the CTI framework.   Helen Mets, Vice President of Materials, ROYAL DSM, lead company of the Circular Metrics workflow at WBCSD, said: "With the Circular Transition Indicators, businesses now have a clear and shared language for circularity; a set of quantitative metrics for companies to consistently measure their circular performance and understand associated linear risks and circular opportunities. The framework itself, which is built for business, is simple and comprehensive in complementing a company's current sustainability efforts."