Transforming circular data presents significant challenges for companies looking to shift towards a circular economy. One key challenge is selecting the right metrics to measure circular economy performance. While regulations and guides exist, such as the ESRS E5 regulations and the CEIC Guide, these may not be tailored to the specific needs of individual companies across different sectors. Ultimately, companies must choose metrics that align with their unique value chains and priorities, leveraging available resources and market standards.
Another obstacle is the identification, collection, and transformation of data. While the basic data may be straightforward, collecting and segmenting data across product lines, business units, and geographies can be complex. This process often requires manual segmentation and analysis, involving detailed data collection from suppliers and other sources. The lack of standardized data and the time-consuming nature of this process can hinder companies’ abilities to accurately measure their circular performance.
Once data is collected, the challenge lies in transforming it into actionable information. Connecting resource use data with other internal and external datasets, such as sales data and emissions intensity factors, is crucial for understanding the impact of material choices on carbon emissions, procurement costs, and overall profitability. Without a comprehensive approach to data transformation, companies may struggle to make informed decisions about their circularity efforts and investments.
In conclusion, the journey towards a circular economy requires companies to overcome challenges in selecting the right metrics, collecting and segmenting data, and transforming data into actionable insights. By leveraging available resources, best practices, and digital technologies, companies can navigate these obstacles and make informed decisions that drive long-term value and sustainability in their circular economy initiatives.
Article Source
https://sustainabilitymag.com/articles/accenture-aws-helping-firms-with-data-driven-circularity
