IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i3p951-d313837.html
   My bibliography  Save this article

A Procedure to Support Systematic Selection of Leading Indicators for Sustainability Performance Measurement of Circular Economy Initiatives

Author

Listed:
  • Mariia Kravchenko

    (Department of Mechanical Engineering, Technical University of Denmark (DTU), Nils Koppels Allé 404, 2800 Kgs Lyngby, Denmark)

  • Daniela C. A. Pigosso

    (Department of Mechanical Engineering, Technical University of Denmark (DTU), Nils Koppels Allé 404, 2800 Kgs Lyngby, Denmark)

  • Tim C. McAloone

    (Department of Mechanical Engineering, Technical University of Denmark (DTU), Nils Koppels Allé 404, 2800 Kgs Lyngby, Denmark)

Abstract

Circular economy (CE) is considered a vital model to tackle resource scarcity and reduce waste by promoting strategies that redefine production and consumption systems. Industrial actors integrate CE principles in their strategic and operational practices to overcome these challenges, simultaneously aiming at enhancing their sustainability performance. Despite numerous frameworks to guide organizations in innovating towards CE, very few have embedded explicit sustainability considerations to assist practitioners in understanding the potential sustainability performance of the CE initiatives early in the development process. To assist a structured process of measuring sustainability performance, the main goal of this paper is to propose a procedure for a systematic selection of suitable leading performance indicators to support an informed sustainability-oriented decision-making process. To fulfill this aim, a hypothetical-deductive approach has been followed to, firstly, develop the selection procedure, and secondly, evaluate and improve it using a case study approach. The findings reveal that the procedure enables a systematic selection of relevant indicators by taking into account the manifold combinations of CE strategies and business processes, characteristics of the company and its sustainability objective. Different from many other approaches, the novelty lies in relying on a dynamic, as opposed to ‘prescriptive’, indicator selection process to induce learning about sustainability considerations significant for a particular CE initiative and corporate context.

Suggested Citation

  • Mariia Kravchenko & Daniela C. A. Pigosso & Tim C. McAloone, 2020. "A Procedure to Support Systematic Selection of Leading Indicators for Sustainability Performance Measurement of Circular Economy Initiatives," Sustainability, MDPI, vol. 12(3), pages 1-27, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:951-:d:313837
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/3/951/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/3/951/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raphaëlle Stewart & Monia Niero, 2018. "Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast‐moving consumer goods sector," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1005-1022, November.
    2. Tom Waas & Jean Hugé & Thomas Block & Tarah Wright & Francisco Benitez-Capistros & Aviel Verbruggen, 2014. "Sustainability Assessment and Indicators: Tools in a Decision-Making Strategy for Sustainable Development," Sustainability, MDPI, vol. 6(9), pages 1-23, August.
    3. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    4. Tom Waas & Jean Huge & Thomas BLOCK & Tarah Wright & Francisco Javier Benitez Capistros & Aviel Verbruggen, 2014. "Sustainability assessment and indicators: Tools in a decision-making strategy for sustainable development," ULB Institutional Repository 2013/189410, ULB -- Universite Libre de Bruxelles.
    5. Mariale Moreno & Carolina De los Rios & Zoe Rowe & Fiona Charnley, 2016. "A Conceptual Framework for Circular Design," Sustainability, MDPI, vol. 8(9), pages 1-15, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marina I. Baumer-Cardoso & Weslynne S. Ashton & Lucila M. S. Campos, 2023. "Measuring the Adoption of Circular Economy in Manufacturing Companies: the Proposal of the Overall Circularity Effectiveness (OCE) Index," Circular Economy and Sustainability, Springer, vol. 3(1), pages 511-534, March.
    2. Umberto Lucia & Debora Fino & Giulia Grisolia, 2022. "A thermoeconomic indicator for the sustainable development with social considerations," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2022-2036, February.
    3. Michael Saidani & François Cluzel & Yann Leroy & Daniela Pigosso & Mariia Kravchenko & Harrison Kim, 2022. "Nexus Between Life Cycle Assessment, Circularity and Sustainability Indicators—Part II: Experimentations," Circular Economy and Sustainability, Springer, vol. 2(4), pages 1399-1424, December.
    4. Mariia Kravchenko & Daniela C. A. Pigosso & Tim C. McAloone, 2020. "A Trade-Off Navigation Framework as a Decision Support for Conflicting Sustainability Indicators within Circular Economy Implementation in the Manufacturing Industry," Sustainability, MDPI, vol. 13(1), pages 1-26, December.
    5. José Miguel Rodríguez-Antón & Luis Rubio-Andrada & María Soledad Celemín-Pedroche & Soraya María Ruíz-Peñalver, 2022. "From the circular economy to the sustainable development goals in the European Union: an empirical comparison," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(1), pages 67-95, March.
    6. Svein Gunnar Kjøde & Maja van der Velden & Mahsa Motevallian, 2021. "Sustainability Concepts in Nordic Business Research: A Critical Perspective," Sustainability, MDPI, vol. 13(9), pages 1-23, May.
    7. Michael Saidani & Harrison Kim, 2022. "Nexus Between Life Cycle Assessment, Circularity, and Sustainability Indicators—Part I: a Review," Circular Economy and Sustainability, Springer, vol. 2(3), pages 1143-1156, September.
    8. Erik Roos Lindgreen & Katelin Opferkuch & Anna M. Walker & Roberta Salomone & Tatiana Reyes & Andrea Raggi & Alberto Simboli & Walter J. V. Vermeulen & Sandra Caeiro, 2022. "Exploring assessment practices of companies actively engaged with circular economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1414-1438, May.
    9. Joanicjusz Nazarko & Ewa Chodakowska & Łukasz Nazarko, 2022. "Evaluating the Transition of the European Union Member States towards a Circular Economy," Energies, MDPI, vol. 15(11), pages 1-24, May.
    10. Parolin, Giácomo & McAloone, Tim C. & Pigosso, Daniela C.A., 2024. "How can technology assessment tools support sustainable innovation? A systematic literature review and synthesis," Technovation, Elsevier, vol. 129(C).
    11. Anna M. Walker & Katelin Opferkuch & Erik Roos Lindgreen & Andrea Raggi & Alberto Simboli & Walter J.V. Vermeulen & Sandra Caeiro & Roberta Salomone, 2022. "What Is the Relation between Circular Economy and Sustainability? Answers from Frontrunner Companies Engaged with Circular Economy Practices," Circular Economy and Sustainability, Springer, vol. 2(2), pages 731-758, June.
    12. Dennis Vegter & Jos van Hillegersberg & Matthias Olthaar, 2021. "Performance Measurement Systems for Circular Supply Chain Management: Current State of Development," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    13. Julie Kamp Albæk & Sasha Shahbazi & Tim C. McAloone & Daniela C. A. Pigosso, 2020. "Circularity Evaluation of Alternative Concepts During Early Product Design and Development," Sustainability, MDPI, vol. 12(22), pages 1-25, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mariia Kravchenko & Daniela C. A. Pigosso & Tim C. McAloone, 2020. "A Trade-Off Navigation Framework as a Decision Support for Conflicting Sustainability Indicators within Circular Economy Implementation in the Manufacturing Industry," Sustainability, MDPI, vol. 13(1), pages 1-26, December.
    2. Alfonso Aranda-Usón & Pilar Portillo-Tarragona & Luz María Marín-Vinuesa & Sabina Scarpellini, 2019. "Financial Resources for the Circular Economy: A Perspective from Businesses," Sustainability, MDPI, vol. 11(3), pages 1-23, February.
    3. Davide Bruno & Marinella Ferrara & Felice D’Alessandro & Alberto Mandelli, 2022. "The Role of Design in the CE Transition of the Furniture Industry—The Case of the Italian Company Cassina," Sustainability, MDPI, vol. 14(15), pages 1-20, July.
    4. Monia Niero & Charlotte L. Jensen & Chiara Farné Fratini & Jens Dorland & Michael S. Jørgensen & Susse Georg, 2021. "Is life cycle assessment enough to address unintended side effects from Circular Economy initiatives?," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1111-1120, October.
    5. Catherine Le Roux & Marius Pretorius, 2016. "Conceptualizing the Limiting Issues Inhibiting Sustainability Embeddedness," Sustainability, MDPI, vol. 8(4), pages 1-22, April.
    6. Justyna Patalas-Maliszewska & Hanna Łosyk, 2020. "An Approach to Assessing Sustainability in the Development of a Manufacturing Company," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    7. Sofia Dahlgren & Jonas Ammenberg, 2021. "Sustainability Assessment of Public Transport, Part II—Applying a Multi-Criteria Assessment Method to Compare Different Bus Technologies," Sustainability, MDPI, vol. 13(3), pages 1-30, January.
    8. Claudia Marcela Betancourt Morales & Jhon Wilder Zartha Sossa, 2020. "Circular economy in Latin America: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2479-2497, September.
    9. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    10. Weiwei Li & Pingtao Yi & Danning Zhang, 2018. "Sustainability Evaluation of Cities in Northeastern China Using Dynamic TOPSIS-Entropy Methods," Sustainability, MDPI, vol. 10(12), pages 1-15, December.
    11. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    12. Svatava Janoušková & Tomáš Hák & Bedřich Moldan, 2018. "Global SDGs Assessments: Helping or Confusing Indicators?," Sustainability, MDPI, vol. 10(5), pages 1-14, May.
    13. Sungjo Hong & Ihl Kweon & Bum-Hyun Lee & Heechul Kim, 2019. "Indicators and Assessment System for Sustainability of Municipalities: A Case Study of South Korea’s Assessment of Sustainability of Cities (ASC)," Sustainability, MDPI, vol. 11(23), pages 1-21, November.
    14. Johan Du Plessis & Wouter Bam, 2018. "Comparing the Sustainable Development Potential of Industries: A Role for Sustainability Disclosures?," Sustainability, MDPI, vol. 10(3), pages 1-30, March.
    15. Jean Hugé & Nibedita Mukherjee & Camille Fertel & Jean-Philippe Waaub & Thomas Block & Tom Waas & Nico Koedam & Farid Dahdouh-Guebas, 2015. "Conceptualizing the Effectiveness of Sustainability Assessment in Development Cooperation," Sustainability, MDPI, vol. 7(5), pages 1-17, May.
    16. Kajsa Borgnäs, 2017. "Indicators as ‘circular argumentation constructs’? An input–output analysis of the variable structure of five environmental sustainability country rankings," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(3), pages 769-790, June.
    17. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    18. Catherine Dezio & Davide Marino, 2018. "Towards an Impact Evaluation Framework to Measure Urban Resilience in Food Practices," Sustainability, MDPI, vol. 10(6), pages 1-13, June.
    19. Marcellinus Essah, 2022. "Gold mining in Ghana and the UN Sustainable Development Goals: Exploring community perspectives on social and environmental injustices," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 127-138, February.
    20. Emilio Abad-Segura & Ana Batlles-delaFuente & Mariana-Daniela González-Zamar & Luis Jesús Belmonte-Ureña, 2021. "Implications for Sustainability of the Joint Application of Bioeconomy and Circular Economy: A Worldwide Trend Study," Sustainability, MDPI, vol. 13(13), pages 1-24, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:951-:d:313837. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.