Circularity Index aims to help businesses optimize their circularity practices

Republic Services has created the Circularity Index, a no-cost online tool to help businesses understand and optimize their circularity practices to positively impact the environment and their bottom lines.

According to the U.S. Environmental Protection Agency, more than 300 million tons of waste is generated each year in the U.S., and over 60 percent of it is either landfilled or incinerated. Companies can mitigate increasing environmental and consumer concerns by shifting from a linear "take-make-dispose" model to a circular approach, optimizing resource use and diversion opportunities to minimize waste generation and advance sustainability.

"Companies have set ambitious sustainability goals, but many need additional knowledge or tools to effectively achieve them," says Amanda Hodges, chief commercial officer at Republic Services. "We developed the Circularity Index to help companies assess their circularity initiatives and provide a roadmap to help them achieve their goals."   

Most companies plan to increase circularity, but may be unsure of how

Republic Services, in partnership with The Harris Poll, asked 1,200 sustainability leaders at companies across 10 U.S. industries to rate their organization on 21 aspects of circularity. The research showed that 87 percent of companies plan to invest more in circular initiatives over the next two years, but most lack the needed expertise, tools, and prioritization. Republic Services developed the Circularity Index to benchmark companies by industry on their circularity journey and help them accelerate their efforts.  

The Circularity Index places companies on a five-point maturity curve, from novice to expert, to help them understand the maturity of their circular initiatives relative to peers across three categories:

• Commitment: to what extent are leadership, resources, goals, and budget aligned with circularity-related initiatives
• Execution: how well an organization plans, implements and measures progress to achieve its circularity goals
• Recovery: the degree to which circularity programs are achieving waste minimization and diversion, and increasing material reuse and recycling

The research shows that many companies are still in the early phases of their circularity approach and initiatives: 45 percent of all companies fall into the lower novice and emerging categories. On the high end, only 12 percent of companies have achieved expert status. Industries that are more advanced in their circularity efforts include consumer packaged goods, manufacturing, and energy/utilities/environmental services. The government has the most opportunity to drive circular initiatives.

Other findings include: 

• 65 percent agree that everyone wants to advance sustainability, but few know how.
• 75 percent lack the necessary tools.
• 83 percent want senior leadership to grant more room to prioritize initiatives.

"Most companies acknowledge the need to take action to improve circularity, but many do not know where to start or how to advance their initiatives in a way that provides both environmental and economic benefit," added Hodges. "We are committed to helping companies further their circularity journey."