Circular Economy Compass (KLW-Komp)

Status

ongoing (2023 - 2024)

Starting point / motivation

The current economy is determined by a linear model. In every step of the process chain, value is generated, which the end product quickly loses when it reaches the consumer. Conventional Business models are designed to generate revenue through the sale of products. This creates little incentive to develop products that have a long life and activate residual values. This economic model has led to a sharp increase in resource consumption. Even if the potential and concepts are already intensively discussed in the scientific literature, the operational implementation of the  circular economy is still poorly understood. Circular economy is too abstract for many and is often only associated with recycling. So far, mainly large companies have circular economy investment plans, while smaller ones are skeptical. SMEs lack tailored information and the ability to translate circular economy action areas into their specific business processes. Therefore, targeted measures are needed to support SMEs. The use of evaluation and maturity models is recommended. These models make it possible to explain the circular economy in a low-threshold manner based on your own business and thus create awareness. They also offer the opportunity to determine the location of your own company and derive targeted measures from this. There is currently no such self-assessment tool in Austria.

Contents and goals

The Circular Economy Compass project will develop a responsive online self-assessment tool for the circular economy in SMEs. Based on a theory-based evaluation scheme, it will be possible to determine a company's degree of preparedness for a circular economy at a reasonable cost. To this end, the tool has a computational logic that automatically generates a circularity score (KPI, Key Performance Indicator) based on the answers. The results will be presented in both text and graphic form as a scorecard which can be accessed in real-time. The compass helps companies to understand the complexity of the CE topic and "translates" it into familiar logics. In addition, the system helps to systematically identify opportunities for circular economy measures along the entire product lifecycle, thereby supporting the prioritisation process. With the help of practical examples, individual recommendations for action and explanations, the circular economy compass creates knowledge and awareness of the development opportunities of the circular economy in companies and its importance for climate protection. The circular economy compass will be both a systematic search for potential and a creative approach to the search for solutions.

Methodological approach

The Compass will be developed using a design science approach. It will involve experts from business, academia and civil society. In the development of the content, the consortium will address the following challenges that currently still affect state-of-the-art solutions: the (lack of) address of the target group of SMEs, the treatment of the circular economy as a strategic management issue, the balance between specific sector focus and general generic issues, the reconciliation of complexity and low threshold, the practical communication of circular economy business models, the generation of motivation for innovative cooperation and the necessary presentation of the importance of operational circular economy measures for climate protection.

Expected results

The aim of the Circular Economy Compass is to make Austria's small and medium-sized enterprises more resource-efficient and at the same time more competitive! The Circular Economy Compass is thus also an important contribution to the objectives of the Austrian CE strategy. An important contribution to climate protection is also expected, due to the generally recognised significant impact of circular economy measures on resource conservation.

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