We developed a free circularity index calculator for products and organizations for the ACODEA Foundation. This indicator, widely recognized internationally, was developed by the Ellen MacArthur Foundation with the aim of providing a clear and comparable metric that facilitates the transition from a traditional linear economy to a fully circular model.
Access link to the circularity calculator: Circularity Indicator Calculator. Acodea.
The circular economy seeks to maximize the reuse of resources—both material and energy—and minimize the extraction of virgin raw materials. To this end, it promotes strategies such as repair, reuse, remanufacturing, high-quality recycling, and extending product lifespan. However, for companies to realistically advance toward this model, they need tools that allow them to measure their circular performance in a rigorous and accessible way.
What is the circularity index?
The circularity index (Circularity Indicator) is a metric that quantifies the extent to which a product or organization incorporates circularity principles into its design, production, use, and end-of-life. Its value ranges from 0 to 1, where:
- 0 represents a completely linear system (use and discard).
- 1 represents a fully circular system, based on recovered, reused, or recycled materials, with minimal consumption of virgin resources.
This index allows for product comparison, the identification of improvement opportunities, and the guidance of strategic decisions toward more sustainable models.
How is the circularity index calculated?
The methodology proposed by the Ellen MacArthur Foundation combines several key factors related to the product life cycle. Although variations exist depending on the level of detail, the calculation typically considers:
1. Material composition
- Percentage of recycled, renewable, or reused materials.
- Percentage of virgin or first-generation materials.
2. Durability and lifespan
- Actual product lifespan versus theoretical lifespan.
- Possibility of repair, upgrade, or maintenance.
3. Reuse and use cycles
- Number of intended use cycles (direct reuse, remanufacturing, refurbishment).
- Product return or recovery strategies.
4. End-of-life
- Percentage of the product that can be effectively recycled.
- Recycling quality (open-loop vs. closed-loop recycling).
5. Energy impact
- Energy required to produce the product.
- Energy recovered or saved through circular strategies.
Based on these parameters, the methodology combines the values using formulas that weight material circularity and life cycle efficiency. The result is a single indicator that is easy to interpret and comparable across products or processes.
Why develop a digital calculator?
Although the methodology is robust, its manual application can be complex for many organizations. Therefore, at the ACODEA Foundation, we are promoting the development of an intuitive IT tool that allows for:
- Entering data in a guided and understandable way.
- Automatically obtaining the circularity index.
- Visualizing results through charts and recommendations.
- Comparing different products or scenarios.
- Identifying critical points and improvement opportunities.
The goal is to democratize access to circularity metrics and make it easier for companies, cooperatives, and organizations to make informed decisions in their transition toward more sustainable models.
