Page 26 - Environmental_Circular Economy

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REV indicator relies on a quite complex mathematical formula. Other indicators exists such as:

- Efficiency in the use of raw materials (for instance by calculating the rate of valorization of waste, the
reduction of energy or water consumption),

- Ecodesign (rate of recylcability of the materials, rate of repairability, durability of the products, etc)

- Product shelf life extention (rates of reuse and repairs, destination after use)

- Circular value chain (% of renewable energies and biomass in the energy mix and in products
components, colaboration with the retail sector, local purchases, etc)

- Industrial symbiosis (raw and secondary materials used for production, use of waste water, etc.)

- The promotion of responsible production and consumption (awareness raising campaigns, promotion of
circular business models, etc)

In a business perspective, the MCI indicator, developed by circularity Indicators project is probably the
most complete measurement proposal. This project aimed to address the lack of a way to measure how
effective a company is in making the transition from „linear” to „circular” models, and developed
indicators to measure the performance of a product or a company in the context of a circular economy, to
assess whether companies are progressing along their linear lines journey.

The developed indices consist of a main indicator, the Material Circularity Indicator, which measures
whether the material flows of a product or company are restorative, and complementary indicators, which
may take into account additional risks and risks.

The Material Circularity Indicator (MCI) gives a value between 0 and 1 where higher values indicate greater
circularity. The following elements are taken into account to calculate the ICM:

Entrance into the production process: How many elements of the entrance come from virgin and recycled
materials and reused components?

Usefulness during the use phase: How long and how has the product been used compared to a similar
industry average product? This takes into account the greater durability of the products, but also the repair
/ maintenance and shared consumption models.

Destination after use: How much material goes into landfill (or energy recovery), how much is collected for
recycling, what components are collected for reuse?

Recycling efficiency: How efficient are the recycling processes used to produce recycled inputs and to re-
cycle the material after use?