Circular Economy Compass (KLW-Komp)

Characterized by the linear economy, there is an exponential increase in resource consumption worldwide, which exceeds planetary boundaries and has far-reaching consequences from an economic, ecological and social perspective (Blomsma et al., 2019; Earth Overshoot Day, 2023). The circular economy represents an alternative to the traditional economy, which is intended to contribute to reducing primary resource consumption and thus to complying with planetary boundaries (Potting et al., 2017; The Ellen MacArthur & Foundation, 2015).

Even though the potential and concepts of the circular economy have been intensively discussed in the scientific literature, the operational implementation of the CE presents a major challenge. This effect is further intensified by the high level of abstraction of the circular economy, which often goes hand in hand with a misinterpretation of the concept (Uhrenholt et al., 2022). To date, it is mainly large companies that have implemented circular economy initiatives, while small and medium-sized enterprises (SMEs) are skeptical about the concept (ARA, 2020). However, SMEs makes up around 99% of all companies in Austria (Statistik Austria, 2021). They lack accurate information and the ability to transform circular economy fields of action into concrete business processes. In contrast to large companies, SMEs have to deal with a number of other barriers, including administrative and regulatory hurdles, as well as time and personnel restrictions in the search for circular solutions (Ormazabal et al., 2018; Rizos et al., 2016; Thorley et al., 2022).

To counteract these barriers, a responsive online self-assessment tool for the circular economy in SMEs was developed as part of the "Kompass Kreislaufwirtschaft" project. The tool enables Austrian small and medium-sized production companies to assess their circular economy readiness. With the help of an online questionnaire, a circularity score (KPI) is automatically calculated based on a theory-based evaluation scheme.

The results of the tool are presented both in text form and graphically in real time as a scorecard. In this way, the "Kompass Kreislaufwirtschaft" helps companies to capture the complexity of the circular economy and translate it into familiar operational logic. In addition to the assessment, the "Kompass Kreislaufwirtschaft" offers practical examples as well as individual recommendations for action and explanations, thereby creating knowledge and awareness of the development opportunities of the circular economy and its importance for climate protection. The tool also serves to systematically identify potential for measures along the entire product life cycle and facilitates the prioritization of these measures.

The theoretical basis for the methodological approach in the development of the "Kompass Kreislaufwirtschaft" was provided by the design science approach according to Pfeffers et al. (2007), whereby experts from business, science and civil society were actively involved. When designing the content, specific challenges were addressed that previous solutions could only insufficiently overcome. These include addressing SMEs in a target group-oriented manner, positioning the circular economy as a strategic management topic, striking a balance between sector-specific and more general issues, reconciling complexity with low-threshold applicability, and communicating business models in a practical manner. In addition, the tool promotes motivation for innovative collaborations and focuses on the relevance of operational measures for climate protection.

In this way, the "Kompass Kreislaufwirtschaft" helps to increase the competitiveness and resource efficiency of Austrian SMEs. At the same time, it makes a significant contribution to the implementation of the Austrian circular economy strategy and strengthens climate protection measures through resource-efficient approaches in the economy.

Project lead

Andreas Van-Hametner
Ressourcen Forum Austria

Project partners

• Technische Universität Wien, Institut für Managementwissenschaften
• Circular Economy Forum Austria

Andreas Van-Hametner
Ressourcen Forum Austria
Schwarzstraße 19, 5020 Salzburg
Tel.: +43 681 81741957
E-Mail: a.van-hametner@ressourcenforum.at
Web: www.ressourcenforum.at