Host: Roy Vercoulen, Founder of Circular IQ
Guest: Florian Alward, Circular Economy Expert at Circular IQ
Welcome to the third episode of Circularity: Why Bother? In this episode, host Roy Vercoulen, founder of Circular IQ, sits down with Florian Alward, who works closely with businesses across industries to implement circular economy strategies. This episode, titled From Data to Decisions: First Steps in Circular Economy Measurement, focuses on how companies can transition from sustainability intentions to measurable circularity improvements.
Why Measuring Circularity is Essential
Many companies focus solely on carbon accounting, overlooking circular economy measurement. While carbon reduction is crucial, a singular focus on emissions can result in missed opportunities. Circular economy strategies directly impact sustainability goals, often yielding benefits like cost savings, improved stakeholder engagement, and enhanced business resilience.
When businesses start tracking circularity, they realize that material efficiency, product design, and supply chain decisions influence their environmental impact just as much as carbon emissions do. Moving beyond the “carbon tunnel vision” allows for a more holistic and effective approach to sustainability.
Getting Started: Start Small, but Start Smart
One of the biggest hurdles to circularity measurement is the fear of complexity. Businesses often feel overwhelmed by the vast amount of data required. Florian emphasizes that the key to overcoming this challenge is to simplify:
- Set a Clear Goal – Identify a north star that aligns with your sustainability or business objectives, whether it’s regulatory compliance, cost savings, or product innovation.
- Focus on a Manageable Data Set – Start with a small but meaningful selection of metrics, such as material composition or procurement data.
- Achieve a Quick Win – Delivering an initial result in two to three months builds momentum and organizational buy-in.
Where’s the Data? Addressing Data Gaps
A common concern among businesses is the lack of available data. Florian reassures that companies always have a starting point—procurement records, financial compliance data (e.g., NFRD), and supplier information provide a baseline. For missing data, companies can:
- Engage suppliers directly to obtain more detailed material insights.
- Use industry averages and proxy data as an initial step.
- Establish structured processes to collect and refine data over time.
Even when using proxy data, companies can gain valuable insights into product material composition, packaging impact, and key areas for improvement.
Moving from Data to Decisions
Once companies have initial circularity metrics, the next step is transforming data into action. Florian explains that businesses can leverage data to:
- Run Scenario Analyses – Evaluate different strategies (e.g., material substitutions, supplier changes) and their impact on circularity and carbon footprint.
- Prioritize the Biggest Wins – Identify high-impact changes that require minimal investment.
- Build a Business Case – Use data-driven insights to engage management and align sustainability efforts with financial goals.
The Role of Software in Scaling Circularity Measurement
While initial assessments can be done manually, scaling circularity measurement requires specialized tools. Circular IQ’s software helps businesses by:
- Structuring and organizing data efficiently.
- Generating clear reports and visualizations for internal stakeholders.
- Enabling ongoing tracking, comparisons, and scenario planning.
Florian emphasizes that without software, businesses risk inconsistent tracking, missed opportunities, and unsustainable workloads for sustainability teams.
From One Project to Lasting Impact
One of the biggest challenges in circularity measurement is ensuring long-term integration into decision-making processes. Florian highlights the importance of demonstrating business value:
- Showcase Financial and Operational Benefits – Prove that circular economy initiatives drive profitability, not just compliance.
- Embed Circularity into Core Business Functions – Integrate circularity KPIs into R&D, procurement, and operational strategies.
- Sustain Buy-in Across the Organization – Share success stories and demonstrate how data-driven decisions lead to better business outcomes.
Circular Economy Success Stories
Florian shares examples of impactful circular business models. One of his favorite examples is Spotify, which transformed the music industry by eliminating the need for physical CDs and MP3 players, aligning with the “refuse” principle of circularity. Another example is car-sharing services, which reduce vehicle ownership and optimize resource use. These innovations show that circular strategies are not just about recycling—they can redefine industries and drive new revenue models.
Final Thoughts and Resources
Florian recommends sustainability professionals explore resources like the Circular Transition Indicator (CTI) framework, which provides a structured approach to measuring circularity. He also emphasizes the importance of staying informed about evolving regulations such as CSRD and ESRS.
As we conclude this episode, we encourage businesses to take their first steps toward circularity measurement. Circular IQ is here to support companies in measuring, improving, and embedding circular strategies into their core business operations.
If you’d like to share your circular economy journey or be a guest on a future episode, reach out to the Circularity: Why Bother? team via the Circular IQ website.
Lastly, don’t forget to subscribe to the podcast, share your thoughts in the comments, and help drive the conversation toward a more sustainable, circular future.
Stay tuned for the next episode, where we’ll hear directly from a Circular IQ customer about their circularity journey and key learnings. Until then, start small, think big, and embrace the opportunities circularity brings!
