The latest Circularity Gap Report highlights a decline in global circularity, as secondary material use has dropped by 21 percent in five years. Meanwhile, the world consumed 28 percent of all materials since 1900. The Material Circularity Indicator (MCI), developed by the Ellen MacArthur Foundation, offers a promising solution to close this gap.
In the face of accelerating resource depletion and growing environmental pressures, the MCI offers businesses a clear framework to reduce waste, foster innovation, and drive corporate sustainability. Keep reading to uncover how leveraging the MCI can empower companies to play a major role in closing the circularity gap.
What is the Material Circularity Indicator (MCI)?
The Material Circularity Indicator (MCI) is a metric developed by the Ellen MacArthur Foundation to measure the circularity of products and materials within a company or supply chain. It also provides insights into how well a product or system aligns with the principles of a circular economy. The MCI focuses on optimising resource use, minimising waste, and ensuring products or materials can be reused, repaired, or recycled.
How does the MCI work?
The Material Circularity Indicator (MCI) measures the circularity of a product or material. It evaluates the proportion of recycled or renewable inputs used. Moreover, the MCI considers the efficiency of the product’s use. It assesses the potential for reuse or recycling at the end of the product’s life. Below is an in-depth look at how the MCI operates.
Data collection
To begin, calculating the MCI requires gathering detailed information about a product’s material composition, production processes, and end-of-life pathways. This step focuses on three key data points:
- Material inputs: The percentage of materials used in the product that are virgin, recycled, or renewable.
- Utility: The product’s durability, lifespan, and how intensively it is used.
- End-of-Life: The management of the product after use, such as whether it is recycled, reused, incinerated, or sent to landfill.
Accurate data collection is critical for generating an MCI score that reflects the true circularity of the product.
Inputs into the MCI formula
The MCI calculation takes into account several important parameters:
- Recycled content: This measures the proportion of materials in the product that come from recycled or renewable sources.
- Recovery potential: This is the percentage of the product’s materials that can be recovered or recycled at the end of its lifecycle.
- Linear flow: This parameter assesses the amount of material used in the product that ultimately becomes waste, either during production or at the end of the product’s life.
Together, these inputs provide a foundation for the MCI formula and help comprehensively assess the circularity of a product.
The MCI formula
The MCI formula produces a score on a scale from 0 to 1, where:
- 1 (Fully circular): Indicates a product made entirely from recycled or renewable materials and is fully recyclable or reusable at the end of its life.
- 0 (Fully linear): Represents a product made entirely from virgin materials and designed for disposal, such as landfill or incineration, at the end of its lifecycle.
Additionally, the formula adjusts for factors such as the intensity of material use, including the product’s durability and longevity. It also considers the share of materials returned to the economy after use.
Weighting factors
Two important weighting factors further refine the MCI score:
- Utility factor: This adjusts for the efficiency and durability of the product. A longer lifespan or higher utility reduces the material impact of the product, improving its circularity score.
- End-of-Life scenarios: This accounts for the likely pathways of the product’s materials after use, such as whether they are recycled, reused, or disposed of, which significantly affects the overall score.
These factors ensure the MCI score reflects the real-world impact of the product across its lifecycle.
Outputs and Interpretation
The MCI score serves multiple purposes, helping organisations and designers optimise products and processes for circularity. The outputs are used to:
- Identify areas for improvement: Highlight opportunities to enhance the product design or material use for better circularity.
- Benchmark performance: Compare a product’s circularity against industry standards or similar products.
- Develop strategies: Provide actionable insights to transition products and processes toward more circular models, reducing environmental impact while improving resource efficiency.
Conclusion
The future of circularity hinges on the ability of businesses to embrace innovation, rethink traditional processes, and commit to sustainable practices. With global circularity in decline and consumption rates accelerating, organisations have a responsibility to drive change. Tools like the Material Circularity Indicator (MCI) can help businesses close the global circularity gap.
However, achieving a circular economy goes beyond metrics. Instead, it requires a well-informed workforce capable of identifying opportunities, implementing solutions, and measuring impact effectively. Equip your teams with the skills and tools needed to make a difference through our practical sustainability education. Our expert-led online courses address knowledge gaps and provide actionable insights, empowering your business to take the lead in building a circular and sustainable future.
