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Supplemental indicators are optional indicators that can be used in conjunction with the MCI and provide
additional insight into business product management:

• Complementary risk indicators can provide more information on potential risks related to business com-
mitments.

• Complementary impact indicators can provide additional information on how the change in the level of
circular materiality affects other problems of the business and its stakeholders.

Examples of complementary risk indicators are the variation in the price of materials, supply chain risks,
material shortages and toxicity. Complementary impact indicators may include energy consumption and
CO2 emissions.

Tool from the Ellen Mcarthur Foundation.

As you can see from this section, measuring circular ecoomy impact is complex. However, before start-
ing a circular initiative, a realistic estimation of the impact of this initiative should be developed, in order
to check its real positive impact on environment and sustainability. Also, you should alidate your idea by
consulting some of the guidelines that we provide to measure the real impact of any action, as environ-
mental value is not always granted. The support of technical and environmental experts can be usefull to
go deeper in the analyse.

4.2 The environmental impact of the circular economy: reduction of GHG emissions

The environmental most positive impact is generally measured in tems of a reduction of GHG emissions.
The Cambridge Econometrics & BIO Intelligence Service has estimated in a study from 2014 than improving
the EU’s resource productivity by 3% would lead to a reduction of 25% of GHG emissions by 2030, while
the European Environmental Bureau (EEB) estimates that 74,6.5 Mt to 115 Mt of GHG emissions could be
avoided by 2030 from reduced food waste and reuse practices in the textiles and furniture sectors.

Indeed, in a report from 2014 called “Advancing Resource Efficiency in Europe: Indicators and waste poli-
cy scenarios to deliver a resource efficient and sustainable Europe” (European Environmental Bureau, Dr.
Jane Beasley & Ray Georgeson, 2014) The European Environmental Bureau present various scenarios for
advancing resource efficiency in Europe in several industrial sectors and their possible positive impact in
terms of GHG emission, but also reduction of material use, land take and water impact. This study focus
on food waste reduction, textile and furniture reuse, chosen as three key examples where greater action is
needed and identificable.