What is the Circularity Compass?

It is a practical tool that helps businesses understand and optimize their resource flows in order to promote a circular economy. It was developed as part of the European project “EIT Climate-KIC,” based on scientific research. Its goal is to assist businesses in shifting from the traditionally linear economic model, also known as “Take-Make-Dispose,” to a circular model focused on “Regenerate and Restore.”

The Purpose of the Tool

• Visualize resource flows, from raw materials to components to final products.

• Identify waste and inefficiencies and improve resource efficiency.

• Develop sustainable business strategies that are both environmentally and economically viable.

It is useful in the following areas:

• Product Development: The tool helps integrate circular design principles to create durable, repairable, and recyclable products.

• Supply Chain Management: It supports the optimization of material flows and the reduction of waste across the entire supply chain.

• Sustainability Strategy: The Compass helps in aligning sustainability initiatives with business goals and legal requirements.

• Business Model Transformation: It enables companies to shift from linear to circular models, increasing resilience and long-term viability.

Main Elements of the Tool

The Circularity Compass provides a visual framework that represents how resources move and transform within a business or system. It focuses on three key states of material transformation, helping companies analyze resource flows at different levels of production and use:

• Particle State: Raw materials like petroleum or metals are extracted, purified and processed

• Parts State: These raw materials are transformed into various parts, like car components or electronics

• Products State: Final products are manufactured, used and ideally recycled

♻️ The Compass visually maps out how resources flow through these stages and highlights potential loops for reducing waste while improving resource efficiency.