Turning the wheel: Measuring circularity in Swedish automotive products

Abstract

The transition towards a circular economy necessitates the development of tools for evaluating circularity. This paper proposes an approach with three important indicators—industrial waste, energy use, and IT material waste—to solve the challenge of evaluating circularity in the Swedish automobile industry. Each indicator includes a number of scores and sub-scores allowing for a thorough evaluation of circularity at product level. Qualitative and quantitative data are gathered to calculate scores for individual aspects of the indicators, which are then combined into an overall product score using a weighted average, and associated with an accuracy measurement reflecting the quality of the input data. The sensitivity of circularity indicator values to data availability underscores the importance of accuracy metrics, while placing a priority on simplicity, usefulness, and adaptability. This framework incorporates knowledge from scientific literature, business reports, and sustainability specialists. The result is an overall product circularity score. Such a scorecard can be crucial in accelerating the transition to circularity and sustainability since it highlights areas that need improvement. The framework's development incorporates feedback from sustainability experts, while interviews with industry professionals and data testing ensure its practicality for companies. The framework is designed to be adaptable and scalable to suit industry requirements. Companies are encouraged to adopt it as an internal tool and take ownership to drive circularity initiatives effectively.