Circular Economy indicators for supply chains: A systematic literature review

Abstract

Recently, the Circular Economy paradigm has emerged as an alternative to linear and unsustainable production and consumption systems. However, no established indicator exists to assist the transition of supply chains to a higher degree of circularity; also, most of the literature on Circular Economy indicators has focused on the firm rather than on the supply chain as the level of analysis. Through a Systematic Literature Review, this paper examines decision support tools, and related indicators, employed for assessing the performance of Circular Supply Chains in the academic literature. In parallel, a content analysis and a template technique are employed to evaluate how Multi National Enterprises measure the effect of the adoption of Circular Economy practices in their reports. Results are synthesised in two composite indicators, which aggregate the most commonly employed metrics. Findings show that both academic literature and industrial practice show a scarce consideration of social and circularity measurements, rather focusing on classical environmental impacts and economic ones. In the academic literature, the economic dimension is prevalent; practitioners seem to evaluate and communicate more often the environmental impacts of already adopted Circular Economy practices. This article also recognises the different and sometimes hidden worldview assumptions in current Circular Economy indicators, highlighting that different paths toward Circular Supply Chains are possible depending on value and methodological choices. Future contributions should explicetly state these assumptions and their idea of a Circular Economy.