Impact measurement is critical to sustainable & ethical businesses, but it is challenging to capture and measure data, resulting in poor reporting.
What is Impact Measurement?
Impact measurement is the process of identifying and considering the positive and negative effects one’s business actions have on people and the planet, mitigating the negative impacts and maximising the positive in alignment with one’s goals.
To help entrepreneurs better measure their impact, Impact Hub has developed the Embedding Circularity toolkit, a set of impact criteria measurement tools to help in this journey.
We recently hosted a workshop with Mala Henriques, an Impact Hub associate, who delivered a circularity metrics workshop, to 26 businesses on our Circular Start-up programme, helping them to apply the Embedding Circularity toolkit.
Supported by JPMorgan Chase, the Circular Start-up is an 18-month business support programme aimed at helping 50 entrepreneurs from diverse and underrepresented communities to start businesses built around the principles of the circular economy.
During the workshop, Mala highlighted how circularity metrics measure a business’ impact based on material use, energy use, and product design alongside the supply chain and social impact.
We’ve created a summary of how to apply circularity metrics for businesses looking to apply circular economy principles to their businesses.
Embedding circularity criteria
- Enablers and digitalization: How embedded is the circular economy within the business?
- Circular business models: Does the organisation generate revenue through offering services rather than products, rethinking value for the producer and consumer?
- Material use: The volume of non-virgin materials and waste recycled by the company
- Circular product design: Are circular design criteria considered by the company?
- Energy and mobility: Does the company uses renewable electricity and energy for its logistics and operations?
- Social impact: Are diversity and inclusiveness embedded in the employment practices of the company?
Applying the criteria
Impact measurement focuses on the priorities of the business. Choose the criteria that best highlight the organisation’s impact, rather than setting unrealistic goals to meet all six of the criteria.
To begin measurement
- Review your current circularity/impact status according to the embedding circularity criteria
- Decide on the most important criteria for your business
- Plan your roadmap to measure your impact using milestones and metrics
- Regularly review your impact