Despite the circular economy having the potential to reduce global greenhouse gas emissions by up to 40%, only 7.2% of the global economy is nowadays circular. While companies are increasingly aware of the need to transition towards a net-zero world, circularity faces an urgent goal: establishing metrics that enable to measure its progress and its impact on sustainability in a consistent and reliable way. In this regard, the work of the World Business Council for Sustainable Development (WBCSD) is noteworthy, as they have defined the Circular Transition Indicators (CTI) and have just released version 4.0.

This new edition of the CTIs provides a universal and consistent framework to assess a company’s circularity, identify new improvement milestones, and monitor progress. The CTIs allow for the quantification and communication of the climate and natural benefits of circular initiatives, strengthen reporting capabilities, and guide businesses in increasing their circularity by identifying practical actions to optimize resource utilization, reduce waste, and maximize circular potential.

The WBCSD is a global community led by CEOs of over 200 leading sustainable companies worldwide, including notable names such as Apple, Acciona, Roche, Fujitsu, and Iberdrola. They work collectively to accelerate system transformations that will achieve a net-zero, nature-positive, and more equitable future.