Assessing Circular Economy at the company level: proposal of an ex-ante evaluation framework

Companies require assistance in assessing the sustainability of circular solutions prior to strategic decisions on their introduction. This article proposes an ex-ante, holistic circular economy (CE) assessment framework SCEIA (Strategic Circular Economy Impact Assessment) at company level, using a mixed-methods approach. First, the framework’s normative core and objectives are formulated. A critical literature review method is used to position this article’s view that CE, as a concept, is valuable only when contributing positively to all three dimensions of SD. Secondly, a descriptive literature review of previously applied methods in CE assessment is used to design the framework’s basic methodological structure, matching its previously defined normative core and objectives. The selected methods comprise a combination of the existing methods of Life Cycle Assessment (LCA), Life. Cycle Costing (LCC), Social Life Cycle Assessment (S-LCA) and Material Flow Analysis (MFA), leading to a. wide selection of to-be-applied indicators. These indicators can subsequently be tailored and simplified. accordingly to the organization’s goals at hand through a materiality assessment (MA). A Multi Criteria Decision Analysis (MCDA) TOPSIS approach is optional to assist in decision-making. Thirdly, the procedure of using the framework in a decision-making process at the strategic level is made explicit by connecting it to existing strategic decision-making frameworks and specifying its application routine. The CE assessment framework is designed to prevent trade-offs and burden shifting, and to deliver valuable insights in the impacts of company-level CE activities It will be validated in next research steps.