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Policy
02 The CTI process.
02
Towards the transition
to circular economy
Companies and other enterprises around the world are increasingly moving to a circular model. As loops close, performance improves and priorities evolve, the CTI must be adaptive and responsive. For this reason, the CTI is published as version 1.0 with the expectation that refreshed versions will be released each year.
Companies of all sizes and from all industries across the globe can follow the CTI framework and work with the CTI Tool to measure their circular performance and demonstrate their commitment to the circular economy.
WBCSD invites all companies to set their circular performance baseline. It’s time to evolve circular thinking from isolated pilots and incremental improvements to competitive strategy and business transformation.
It’s time to begin a strategic circular transition that future-proofs businesses.
CTI Case study | Royal DSM
Organisation Name: Royal DSM Industry: Chemicals
No. of employees: 23 000 employees Annual turnover: €10 billion Location: Heerlen, the Netherlands. Website: www.dsm.com
“The world is only 9% circular and the trend is not reversing. Accelerating the transition towards a circular economy is a value-chain effort: it allows our company to track progress and steer towards improvement. By applying the Circular Transition Indicators, we can identify both gaps and opportunities in our value chain.” Roy Vissers, Global Circular Economy Project Lead at DSM.
How will CTI help DSM in
its transition to the circular economy?
DSM is dedicated to securing the future availability of natural resources and unlocking more value from the limited resources available. On circularity, we focus on improving our own impact, enabling customers and partners to deliver more circular solutions, and advocating for the transition to a circular economy. CTI is a first step in helping our company to set a baseline and monitor progress on the transition towards a circular economy.
Key challenges
Transitioning to a circular economy model requires companies to understand and control all materials and processes used in production. At DSM we use the framework to track material flows per business Group.
One of the challenges we faced is in the collection of data on these flows. While we are familiar with collecting production data and financial figures, we have little experience collecting “circularity” data across the company.
Solutions
This framework helped us to engage the organisation and have a conversation about circularity with different businesses and functional departments within DSM. Analysing our CTI “scores” required new ways of thinking across the organisation.
Result
By analysing material flows per business group, we can provide our businesses with insights into their status as they adopt circular business practices and ultimately seize circular business opportunities. We believe that the circularity gaps and opportunities need to be reviewed in the context of the type of industry, region and product-application and position in the value-chain. Understanding the different challenges within contexts will help businesses to come up with the most relevant circular interventions or business models to apply for their challenges.
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