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

Author

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  • 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
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    References listed on IDEAS

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    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. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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).

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