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As the circular economy (CE) grows, it is necessary for companies to prepare for their transition from linear to circular, targeted to generate a positive business impact. Therefore, the aim of this study is threefold. First, to map what high impact research on circularity indicators and CE actions is reporting. Second, to point out challenges and opportunities in the application of circularity indicators. Third, to discuss implications for businesses wanting to generate positive impacts. To that end, a systematic literature review was carried out on the ScienceDirect, Scopus and Web of Science databases. Existing research on circularity indicators is based on either circularity measurement indices (0–100%) or circularity assessment tools, which are developed for one or more levels of application within micro, meso, and macro. The main challenges for establishing circularity indicators are linked to the lack of standardization on how to measure circularity and on providing clear guidance on how the indicator can and should be used. The main opportunities lie on bringing to life the concept of circularity through practical applications and reveling opportunities for internalizing flows. Internalizing flows can lead to a positive business impact and measuring circularity can be a tool for business management on top of bringing about circular-economy-related benefits. • Existing research.→ circularity indices or circularity assessment tools • Main opportunities and challenges for circularity indicators are presented. • Measuring circularity is becoming a management strategy. • Greater circularity can help businesses create positive impacts. [ABSTRACT FROM AUTHOR]

To be successfully implemented, circular economy requires the design of innovative business models that can enable multiple value creation mechanisms. One way to achieve this is by means of product/service-systems. Nevertheless, there is still limited consideration in the literature regarding the effect of applying different circular strategies – or resource productivity or resource efficiency strategies - in the development of alternative business models for different product/service-system types. By means of retrospective case studies, this article discusses how different types of product/service-systems and their business models are related to or enable different circular strategies. Insights and future research opportunities are outlined. [ABSTRACT FROM AUTHOR]

A successful transition to Circular Economy requires systemic changes in the way companies understand and do business, with sustainability as a strong foundation. Sustainable business model innovation has become fundamental for companies’ competitiveness. The design of innovative business models is challenging, especially considering that in some cases the new circular systems may not be more sustainable than the previous ones (e.g.: due to rebound effects). Many different approaches have been proposed for designing either circular or sustainable business models, however there is no consensus of an integrated vision of both concepts. A comprehensive review was performed to identify sustainability characteristics of business models. These were analyzed and translated into sustainable qualifying criteria to be applied when designing circular business models. The aim of the qualifying criteria is serving as a checklist that can inspire the development of circular business models based on best practices for social, environmental and economic systems. [ABSTRACT FROM AUTHOR]

Sustainable growth demands focus not only on the product and production processes, but also in promoting shifts in consumption patterns and lifestyles towards a circular economy. The adoption of Product-Service Systems (PSS) strategies appears as a promising solution. However, practical application of PSS sustainable approaches is still limited. This may be associated to the fact that a PSS does not guarantee environmental improvements if it is not specifically designed with this purpose. PSS design process models can play a relevant role in supporting companies in designing sustainable PSS when they incorporate activities, methods and tools to approach the sustainability dimensions. Not only the process models, but also the intentions of practitioners and their awareness towards sustainability during the design of a PSS influence the dissemination of sustainable PSS. The objective of this work is to investigate whether the existent PSS design process models support the design of sustainable PSS and whether practitioners employ sustainability-related activities when designing PSS. Nine process models were analyzed and the perspective of practitioners about considering sustainability issues when designing PSS were captured. The collected data shows that only few of the analyzed process models actually propose activities, methods or tools to support a sustainable PSS design. This suggests an existing gap between literature and the practitioners’ expectations of PSS design process models. Moreover, those activities, methods and tools are mainly focused on eco-efficiency and the social dimension is generally not covered. [ABSTRACT FROM AUTHOR]

In the last decades, companies have shifted from traditional business models based on selling products to product-service systems (PSS). Despite this tendency, there is a paucity of complete methodologies and tools to guide companies on how the transition should occur. To address this issue, the goal of this research is to present a complete framework to support manufacturing companies in the servitization journey. This novel proposal involves the application of design thinking to define the value proposition integrated with a PSS oriented business model creation, that goes beyond generic methods normally applied; and the specification of business process architecture to support PSS implementation. This research followed a prescriptive approach by means of action research technique. Key findings of the framework application are presented. [ABSTRACT FROM AUTHOR]

• Systematisation and test of 20 Circular Economy business model archetypes. • Disruptive business models ideas stimulated through action research with manufacturers. • Clearer guidelines for selection and combination of archetypes are needed. • Existing archetypes hold a reductionist approach to the downstream value logic. • Sectorial contextualisation, standardisation and harmonisation are required. A number of archetypes exist to describe potential business models for circular economy, but the majority of them lack validation in practice. Although diversity is natural for an emerging field such as circular economy, building consensus of terminology and archetypes is important to achieve a shared discourse, which is fundamental for the implementation of business models. By reviewing academic and practical literature, this article systematises twenty archetypes of business models for circular economy, according to a framework focused on downstream and upstream architecture, and the type of value delivered, created or captured. Additionally, it proposes a way to evaluate the application of the archetypes in practice, through a deck of cards to support companies in identifying opportunities, generating ideas, and prioritising business models for circular economy. The application of the archetype cards in six manufacturing companies resulted in four key findings: (i) existing archetypes hold a reductionist approach with limited attention to the downstream value logic; (ii) the archetypes' application in practice requires sectorial contextualisation, harmonisation of the abstraction level and standardisation of archetypes' structure; (iii) there was a lack of detailed guidelines for archetype selection and combination; and (iv) the action research approach enables the exploration of radical innovation for circular economy business models. [ABSTRACT FROM AUTHOR]