Circular Maturity Assessment
Indeed Innovation’s Circular Maturity Indicator (CMI) assesses an organization’s adoption of circular economy principles, focusing on efficient material use, extended product lifecycles, and resource circulation.
Overview
The Circular Maturity Assessment evaluates an organization’s current practices in furniture lifecycle management with a focus on circularity. It measures how well circular economy principles such as efficient material use, product design, and waste management are being implemented into the organization’s operations.
To help this evaluation, INDEED developed the Circular Maturity Indicator (CMI), a structured tool that assesses an organization’s maturity in circular practices. Through a comprehensive set of survey questions, organizations can identify both strengths and areas needing improvement. The CMI uses a graded scoring system to measure progress across key circularity principles, offering a detailed understanding of the organization’s advancement towards circularity.
This assessment is part of the Circular Economy Office (CEO) project, funded by the EU under the Interreg North Sea program. The project aims to accelerate the office furniture sector’s transition to a circular, innovative, and resource-efficient economy through cooperation between 13 partners across 6 countries.
The Maturity Levels
The CMI categorizes responses into 5 distinct maturity levels, ranging from “The Beginner” (Needs Improvement) to “The Trailblazer” (Leading Circular Transformation), allowing organizations to understand where they stand on the path to full circularity.
Please note that the maturity levels and descriptions used in this assessment are specifically tailored for stakeholders within the office furniture industry, reflecting the unique challenges and opportunities organizations in this sector face as they transition to circular business models.
STATUS
This level describes organizations at the early stages of their circularity journey. They have limited knowledge of circular economy principles and are primarily operating within a traditional linear business model. These organizations often lack awareness of their environmental impact and have minimal focus on resource efficiency, waste reduction, or product lifecycle extension.
KEY CHARACTERISTICS
Limited awareness of circular economy, linear business models, minimal waste reduction efforts, lack of focus on product lifecycle.
Lacking leadership mandate to start a circular initiative.
EXAMPLE
A small furniture manufacturer still using conventional materials and production methods, with no systems in place for product end-of-life management.
IMPROVEMENT POINTS
Organizations at this level should prioritize building a foundation for circularity by educating their staff and raising awareness about circular economy concepts. Securing top-level commitment is crucial for setting initial targets and driving progress. Conducting internal assessments to identify areas of significant environmental impact and opportunities for circular practices is essential. Seeking external support from sustainability consultants or joining industry initiatives focused on circularity can accelerate their journey.
3 TANGIBLE STEPS TO FOLLOW
STATUS
Organizations at this level are starting to explore circular economy concepts and experiment with basic practices. While they began taking initial steps towards circularity, their efforts are still fragmented and not yet systematically integrated into their core business strategies. They might be enthusiastic but struggling to find their way to increase positive environmental impact.
KEY CHARACTERISTICS
Increasing awareness of circularity, ad-hoc implementation of circular principles, setting basic sustainability targets, and exploring low-cost repair or refurbishment options.
EXAMPLE
A furniture company introducing a small line of products made with recycled materials or offering basic repair services for a limited product range.
IMPROVEMENT POINTS
Level 2 organizations should focus on developing a more structured approach to circularity. This includes establishing formal policies and procedures for sustainable procurement, waste management, and product design. Collaborating with suppliers on take-back programs or sourcing recycled materials can be beneficial. Incorporating circular design principles into new product development processes, particularly at the early stages, is crucial.
3 TANGIBLE STEPS TO FOLLOW
STATUS
Organizations at this level demonstrate a strong understanding of circular economy principles and have integrated circular practices into some of their operations. They have dedicated resources for sustainability initiatives and recognize the importance of collaboration with suppliers and stakeholders. They proactively seek partnerships to defined shared sustainability objectives and advance their circularity.
KEY CHARACTERISTICS
Implementation of various circular practices, dedicated resources for sustainability, and incorporation of circular design principles into product development strategy.
EXAMPLE
A furniture business using a significant percentage of recycled or renewable materials, offering leasing options, and working closely with suppliers on take-back programs.
IMPROVEMENT POINTS
Organizations at this level can further advance their circularity by maximizing the use of recycled and renewable materials, minimizing waste generation throughout the product lifecycle, and optimizing product designs for longevity and reusability. Strengthening partnerships with suppliers to foster circular practices across the supply chain is essential.
3 TANGIBLE STEPS TO FOLLOW
STATUS
Level 4 organizations are highly proficient, strategic, and committed to achieving ambitious circularity goals. They have robust systems in place and well-defined metrics for tracking progress. Aligning closely with best practices, they actively engage in a wide range of circular practices, from procurement and product development to end-of-life waste management.
KEY CHARACTERISTICS
Circularity integrated into core business strategy and across operations, robust systems for circular procurement, design for durability and disassembly, product take-back, and remanufacturing.
EXAMPLE
A furniture company designing products for disassembly and remanufacturing, using a high percentage of recycled and renewable materials, and implementing closed-loop systems to minimize waste.
IMPROVEMENT POINTS
To advance further, Level 4 organizations can close the loop within their operations. This includes exploring more advanced circular business models, such as product-as-a-service or leasing options. Industry collaborations to explore innovative technologies can also create a significant impact. For example, they can investigate the feasibility of implementing Digital Product Passports (DPPs) to track product lifecycles and enhance transparency.
3 TANGIBLE STEPS TO FOLLOW
STATUS
These organizations are at the forefront of the circular economy revolution, constantly pushing boundaries and setting new standards for others to follow. Their operations are fully aligned with circularity principles, and they continuously innovate to develop groundbreaking circular solutions. They prioritize transparency and stakeholder engagement, promoting circularity throughout their value chains.
KEY CHARACTERISTICS
Fully aligned with circular economy principles, breakthrough innovations, strong focus on transparency and stakeholder engagement, and active influence on policy and industry transformation.
EXAMPLE
A furniture company pioneering new circular materials and production technologies, leading industry-wide initiatives to promote circularity, and advocating for supportive policy frameworks.
IMPROVEMENT POINTS
Level 5 organizations should share their knowledge and best practices to inspire and support other businesses in adopting circularity. They can advocate for policy changes that create a more favorable environment for circular business models. Continued investment in research and development of cutting-edge circular technologies is crucial for maintaining their leadership position.
3 TANGIBLE STEPS TO FOLLOW
Now what?
What specific areas would you like to tackle first to improve your circular maturity?
Let’s discuss!
Eunji Park
Circular Innovation Expert
Heiko Tullney
Circular Innovation Expert
Working with Indeed-Innovation is refreshingly respectful and direct. Their professionalism is impactful and thought-provoking. We’ve engaged them for innovative brainpower in collaborative sprints, experiencing a balanced approach to business and offering innovation, deeply rooted in circular thinking.
Jakob Nørregaard
Head of Radical Innovation
Working closely with Indeed Innovation was a game-changer in our journey to sustainability leadership. They crafted a clear roadmap, and guided the top management and me through practical short-term steps. Their expertise in developing measurable sustainability KPIs ensured our ongoing progress.
Michaela Foss
Sustainability Manager
Indeed Innovation’s approach goes beyond the typical knowledge transfer – it’s about genuine human connection and expert guidance in implementation. What truly sets them apart is their profound expertise in the circular economy, seamlessly integrating innovation into every facet of our collaboration.
Michael Leisinger
Global Head of Products
Understand the Scoring
The Circular Maturity Indicator (CMI) employs a point-based scoring system to assess and categorize organizations’ circularity levels.
Key features of the CMI include:
- Categorization: Distinct sections tailored to furniture providers and users to assess circularity from different operational angles.
- Graded Scoring System: Most questions use a scale (e.g., 0-5) for nuanced evaluation, moving beyond simple yes/no answers.
- Comprehensive Circularity Coverage: Questions cover principles like design for durability, use of recycled materials, circular business models, product traceability, supplier responsibility, take-back programs, and waste management.
Learn more
To determine an organization’s circularity score based on the provided survey, we use the following calculation system:
1. Sum the scores: Add up the scores for all applicable criteria in the survey.
2. Divide by applicable criteria: Divide the total sum by the number of criteria that apply to the organization’s operations. This provides the average score.
3. Convert to percentage: Multiply the average score by 100 to express it as a percentage. This step is mainly for ease of comparison or presentation.
[ Example ]
Let’s say an organization answers 10 applicable criteria in the survey and receives the following scores: 3, 4, 2, 5, 1, 3, 3, 4, 2, 5.
– Sum of Scores: 3 + 4 + 2 + 5 + 1 + 3 + 3 + 4 + 2 + 5 = 32
– Applicable Criteria: 10
– Average Score: 32 / 10 = 3.2 (on a 5-point scale)
To convert this to the total score in the updated system: Percentage of Total Points: (32 / 50) x 100 = 64%
Since the total possible score across all criteria is now 95 points, this organization’s score of 64% places them at Level 4 (Advanced Circularity), which corresponds to a score range of 58–76 points.
Sources
To offer a comprehensive framework for assessing an organization’s adoption of circularity, the the Circular Maturity Indicator (CMI) draws the key concepts and principles from the following sources and the organization’s literature and publications.
References
[1] Ellen Marcarthur Foundation
[2] https://mbdc.com/cradle-to-cradle/
[3] Ec Europa
[4] https://ellenmacarthurfoundation.org/material-circularity-indicator
[5] https://www.iso.org/standard/66652.html
[6] https://www.accenture.com/us-en/insights/sustainability/circular-business-models
[7] https://www.oecd.org/environment/business-models-for-the-circular-economy-g2g9dd62-en.htm
[9] https://www.gs1.org/standards/traceability
[10] https://www.iso.org/standard/63026.html
[11] https://www.unglobalcompact.org/what-is-gc/our-work/supply-chain
[12] https://repair.eu/
[13] https://www.iso.org/standard/71580.html
[14] https://ellenmacarthurfoundation.org/reverse-logistics-in-integrated-circular-supply-chains
[16] https://ec.europa.eu/environment/topics/waste-and-recycling/waste-framework-directive_en
[17] https://zwia.org/zero-waste-definition/
[18] https://www.usgbc.org/leed/rating-systems/interior-design-and-construction
European Union (EU) Circular Economy Action Plan
The emphasis on product lifecycles, waste reduction, and sustainable sourcing aligns with the EU’s policy goals.
Cradle to Cradle (C2C) Design Framework
C2C emphasizes using materials and processes that are safe for human and environmental health and designing for reuse and recycling.
Forest Stewardship Council (FSC) Certification
The mention of FSC certification, related to responsible forestry practices, highlights the connection between sustainable sourcing and circularity.
DIN SPEC 68008
“Furniture: System of characteristics for the circularity of furniture” provides a framework for assessing and enhancing the circularity of furniture products. The document emphasizes aspects such as material selection, design for disassembly, durability, and the potential for reuse and recycling. By establishing these characteristics, the specification aims to guide manufacturers and consumers toward more sustainable practices in furniture production and consumption, ultimately contributing to a circular economy.
Ellen MacArthur Foundation
As a leading proponent of the circular economy, the Ellen MacArthur Foundation’s publications and resources provide in-depth information on circularity principles.
ISO 14001 Environmental Management Systems
The inclusion of ISO 14001 as a potential certification held by organizations suggests this standard is relevant to circularity. ISO 14001 provides a framework for organizations to manage their environmental responsibilities.
Digital Product Passports (DPPs)
DPPs provide digital information about a product’s lifecycle, enabling better tracking, transparency, and end-of-life management – therefore have an emerging trend and a growing importance in the context of circularity.