Circularity Ratio is Critical for a Circular Economy

Enterprises need a KPI that transforms supply chains to be more circular in resource consumption and management – the Circularity Ratio is the answer here’s why.

The circularity ratio is the latest KPI that can revolutionize the circular economy. Similar to the power usage effectiveness (PUE) metric, which catalyzed energy efficiency innovations in data centers, the circularity ratio can drive transformative changes in supply chains.  

Why is the circularity ratio a high priority? Notably, effective behavior changes require benchmarking to identify improvement areas and progress. For example, tremendous rhetoric complicates initiating sustainability programs and avoiding greenwashing.

A simple, practical, easy-to-implement KPI is needed that promotes moving from linear waste systems to circular supply chains.