Understanding Indicators for Circular Economy Application in Manufacturing

This paper aims to provide manufacturing companies with a comprehensive understanding of the various indicators used to evaluate circular economy (CE) practices. Through a systematic review of existing literature, it highlights the essential role of these metrics in promoting the adoption of CE principles within the manufacturing sector. The discussion is organized around a six-step framework for assessing and developing CE indicators, intended to enhance organizational circularity. Furthermore, the paper analyses the advantages and disadvantages associated with various CE indicators and proposes a structured methodology for their selection, tailored to the specific needs of different organizations. It introduces a conceptual framework for aligning CE indicators with distinct evaluation criteria, thereby assisting companies in making informed strategic decisions. While this paper provides simplified interpretations to facilitate practical application, it should not be viewed as a comprehensive solution to the complexities involved in implementing circular economy practices.