Getting off to a successful start in the circular economy: the Circularity Readiness Check as a guide for companies
Sustainability will have a significant impact on tomorrow’s value creation. Companies are under increasing pressure to reduce resource consumption and ensure the reparability of products. The circular economy has established itself as a promising economic model that can help companies overcome these challenges. But how can the transition to a circular business model succeed? The Circularity Readiness Check (CRC) from the it’s OWL project ‘Holistic Circular Product Creation for Intelligent Technical Systems (Zirkupro)’ offers companies a practical solution to check existing products for their circularity and to receive clear recommendations for further development.
The transition to a circular economy requires far-reaching changes to the corporate structure. Products must be designed to be modular, recyclable and repairable, and innovative business models are needed that implement the principles of the circular economy. “The Circularity Readiness Check helps companies to make it easier to enter the circular economy. It shows how existing products can be made more sustainable and gives clear recommendations on which steps make sense next,” says Luca Twardzik from Fraunhofer IEM and coordinator of the ‘Zirkupro’ project.
What does circular economy mean?
The circular economy aims to keep resources in the cycle of use for as long as possible. In contrast to the traditional ‘throwaway economy’, the life cycle of products is designed in such a way that waste is minimized and materials are recycled. A key aspect that is often overlooked is the principle of ‘design for disassembly’: products are designed from the outset so that they can be easily disassembled at the end of their life cycle and their individual parts reused or recycled. This not only reduces waste, but also saves costs and resources.
The CRC evaluates existing products on the basis of 20 fundamental criteria that have a decisive influence on the successful implementation of the circular economy. These criteria were identified through a comprehensive literature review and cover the areas of product design, business model and value creation.
Companies benefit from practice-oriented evaluation
The Circularity Readiness Check is based on a comprehensive model that maps the various stages of a product’s circularity. These range from reducing resource consumption to recycling and beyond. Each of the 20 criteria is assessed according to the extent to which it influences the circularity of a product. “The CRC gives companies a clear analysis of their current situation and a concrete idea of how they can make their products and business models more circular,” says Twardzik. Instead of complex terms, the CRC uses a simple and understandable evaluation system that helps companies to evaluate their products both in their current state and in the desired state. Based on this analysis, a synergy effect is calculated for each criterion and presented in an easy-to-understand diagram that provides companies with a sound basis for their next steps.
The Circularity Readiness Check for entering the circular economy
The Circularity Readiness Check offers companies a practical and systematic method for mastering the transition to a circular economy. With a well-founded analysis of existing products and clear recommendations for action, the CRC supports companies in making their business models future-proof and sustainable. “With the CRC, companies lay the foundation for a successful transformation towards a resource-conserving and circular economy,” summarizes Twardzik.
