Evaluating and monitoring circularity

In line with its mandate, SID Banka endeavours to incorporate circularity principles into its strategy with the aim of boosting firms’ competitiveness, foster sustainable growth and generate new jobs. This article presents SID Banka's experience in the development and implementation of a scoring model designed to evaluate and monitor firms' potential and capability to adopt circular economy principles. The purpose of the model is thus to identify and quantify firm's business model’s aspects of circularity and to evaluate its circular potentials, capabilities and risks. Furthermore, the model enables the Bank to upgrade its pricing policy in targeted segments of its activity by linking it to the elements of firm’s circularity and therefore to provide additional incentives for circular transformation at the firm’s level. It also makes possible a systematic monitoring of the implementation of a circular transformation in a firm over time.