Measuring Circularity in Life Cycle Management: A Literature Review

Abstract

Circularity has emerged as a pivotal concept in the realm of sustainable resource management and business operations. Resource exhaustion and environmental degradation propelled by globalization and the culture of consumerism have intensified the focus on the concept of the circular economy around the world. Nevertheless, the evaluation and quantification of circularity achievements remain uncommon in corporate practices. This article employs a systematic literature review to delve into circularity measurements in the managerial life cycle. Key approaches emerging from the academic literature are examined, including life cycle costing, life cycle assessment, life cycle cost–benefit, life cycle benefit analysis, and life cycle sustainability assessment. The review seeks to offer a comprehensive overview of the methodologies employed to assess circularity in corporate processes, highlighting current challenges and opportunities for effective implementation. We adopt a conceptual model of sustainable and circular life cycle management based on specific performance indicators that allow the environmental, social, and economic impact of processes to be assessed throughout the life cycle of products or services. The implementation of Sustainable and Circular Life Cycle Management from a managerial perspective could support firms to eradicate and quantify waste, preserve the inherent value of products and materials, encourage the adoption of renewable energies, and eliminate harmful chemicals.