Measuring circularity with Tondo

Measuring circularity is increasingly becoming a relevant issue for companies, both because it allows them to understand possible areas on which to act to improve circularity and be more sustainable, and because it is based on data that will still need to be collected and analyzed by companies according to the latest developments on sustainability reporting. In fact, in December 2022, the Corporate Sustainability Reporting Directive (CSRD) was approved, which introduces new rules for sustainability reporting, including greater detail for the part pertaining to the circular economy.


This directive is one of the cornerstones of the European Green Deal and the Agenda for Sustainable Finance and is part of a broader EU policy to ensure that companies respect human rights and reduce their impact on the planet. In fact, the directive extends to a much wider range of companies the obligation to disclose information on sustainability issues, in terms of environmental impact, social rights, human rights and governance factors, as the directive applies to both large companies and SMEs. This directive also introduces a much more detailed section regarding the circular economy, which will require information with respect to the use of resources; the implementation processes adopted; the performance of companies in terms of the circular economy, going to measure in input and output flows that have followed circular economy principles; and finally the financial impact of the transition to the circular economy. More details on all the required information can be found directly in EFRAG’s report.


For this reason, defining a methodology for collecting and analyzing this information is now more important than ever, which is also why Tondo decided to develop two tools for measuring circularity at the company and product level. The tools are proposed with an interface that is intuitive to use and guided in the information to be provided, still being tools that are based on solid and already extensively tested methodologies. The tools, which are currently being beta-tested with a few companies that have shown interest, will be available for use by all interested companies from early May 2023.


The tool for measuring circularity at the company level consists of 71 indicators, and maps six key areas of the company, namely: material resources and components; energy and water resources; waste and emissions; logistics; product and/or service; human resources, assets, policy and sustainability. The indicators and calculation methodology are derived from the UNI/TS 11820 technical specification, and the tool, based on this very standard, provides the overall level of circularity at the company level and for each of the six critical areas noted above. A not insignificant advantage is, in view of the compulsory sustainability report for companies from 2024, to start structuring for the collection of all the necessary data and for the calculation of the level of circularity that will be soon also certifiable by third-party bodies. The indicators present are divided into “core” (8 indicators), “specific” (52 indicators) and “rewarding” (11 indicators), and in order to be able to calculate the index it is not necessary for the company to compile all the indicators, but it is sufficient that all the “core” indicators and at least half of the “specific” indicators for each of the six key areas of the company are calculated.


On the other hand, the tool dedicated to calculating circularity at the product level is based on an internationally recognized methodology, the Ellen MacArthur Foundation’s Material Circularity Indicator. By inputting the necessary data, a product’s level of circularity is calculated, starting with the utilized material flows, inputs and outputs related to the product, the product-specific energy, the water consumed, and the packaging used.


Although the tools are designed to be simple and immediate to use and understand, collecting and entering the data may not always be so easy, which is why Tondo, if needed, can support companies to fill out the two tools appropriately, guiding them in using the tools and collecting the necessary data.


Did you like this article? Discover more about the measurement of circularity on Tondo’s website. And if you want to know more, write us an email at the address info@tondo.tech!

Francesco Castellano

Francesco Castellano is a seasoned business leader and strategist with over 20 years of experience spanning research, finance, consulting, and entrepreneurship. He has held impactful roles, including serving as a consultant at Bain & Company, launching Uber operations in Turin, and working as Managing Director of a Swiss start-up. In recent years, Francesco Castellano founded Tondo, a hub of... Read more

Francesco Castellano is a seasoned business leader and strategist with over 20 years of experience spanning research, finance, consulting, and entrepreneurship. He has held impactful roles, including serving as a consultant at Bain & Company, launching Uber operations in Turin, and working as Managing Director of a Swiss start-up.

In recent years, Francesco Castellano founded Tondo, a hub of organizations dedicated to promoting Circular Economy approaches and supporting companies in transitioning to sustainable and circular practices. He is also the ideator and coordinator of the Re-think Circular Economy Forum, a high-profile event held across Italy to showcase innovative Circular Economy solutions.

Francesco Castellano collaborates with European institutions, serving as an expert for the European Commission’s Circular Cities and Regions Initiative and mentoring startups in the European Institute of Innovation and Technology’s (EIT) New European Bauhaus Booster Program. Through these roles, he actively supports the development and scaling of circular economy ventures across Europe.

He is also a sought-after speaker and lecturer, sharing his expertise on Circular Economy, Innovation, and Entrepreneurship at universities and international events. Francesco holds executive education certificates from prestigious institutions such as MIT, Harvard, and the University of Virginia, further solidifying his credentials in strategy, sustainability, and innovation.

Fluent in Italian, English, and Spanish, Francesco Castellano combines his diverse skill set with a passion for Circular Economy, Cleantech Innovations, and Entrepreneurship. His strong background in Corporate Strategy, Sustainability, Innovation Development, and Finance enables him to drive impactful change in every initiative he undertakes.

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