The circular economy is a business driven model of production and consumption, which involves reusing and recycling existing materials and products as long as possible. In practice when a product reaches the end of its life, its materials are kept within the economy wherever possible. These can be productively used again and again, thereby creating further value. Alternatively, the circular economy is a cross-industry economic model that reorganises the process of product design, production and consumption into a new system, thereby opening up new secondary markets for companies. The range of related services covers a wide range of services provided by KPMG's business advisory team.

The CTI (Circular Transition Indicators) Tool application for measuring circularity is an easy-to-use tool to measure the circular performance of companies regardless of industry and technology.

The tool focuses primarily on circular and linear masses flowing through the business to determine the circularity of input and output material flows.

It also provides useful information on resource use and insights into the relationship between the company’s circular material flows and its business performance. The CTI Tool helps companies understand the associated risks and opportunities, prioritise the actions needed, and set SMART targets suitable for monitoring progress.

Hence the CTI Tool is effective in complementing an organisation’s sustainability efforts. It is also suitable for reporting the waste impacts of activities, products and services according to the GRI 306 standard.

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