ENStarting point
Useful indicators distinguish generation, collection, treatment, recycling and reincorporation. Each needs a formula, boundary, period and data source. Inventories and outstanding issues must appear in the balance, and environmental statements must be limited to what records and the assessment method can demonstrate.
Define the question before the formula
An operations team may want to know whether waste is being collected on time; engineering may seek recovery yield; management may assess cost and risk. These questions require different measures. Choosing a single percentage to represent the entire programme removes distinctions needed for decisions.
Create a sheet for each indicator: purpose, formula, unit, facilities included, period, owner, data source and revision rule. Also define how to handle estimates and missing records. ISO 59020:2024 addresses measurement and assessment of circularity with a defined system boundary. This approach reinforces the need to make the boundary explicit before comparing results from different operations. [1]
Separate the stages of the flow
Collection demonstrates a transfer, while recycling describes a transformation. Receiving a load at a facility does not mean its entire mass has already been recycled. The operation may generate secondary fractions, hold inventory or depend on another destination. Proving reincorporation into a product requires an additional link to consumption of the material in the application.
Examples of indicators and their limitations
Indicator
- Inventory reconciliation
- Possible calculation basis
Items with confirmed matches ÷ items dispatched
- Interpretation limit
Does not demonstrate sanitisation or final destination
- Recovery of a fraction
- Possible calculation basis
Mass of recovered fraction ÷ mass of that fraction in the input
- Interpretation limit
Requires knowledge of input composition
- Purity of separated product
- Possible calculation basis
Mass of target material ÷ mass of selected output
- Interpretation limit
Does not by itself indicate recovery
- Reincorporation into the loop
- Possible calculation basis
Recovered-origin mass consumed ÷ defined project basis
- Interpretation limit
Needs to separate inventory and external inputs
- Documentary close-out
- Possible calculation basis
Operations with accepted evidence ÷ eligible operations in the period
- Interpretation limit
Depends on an explicit definition of close-out
These formulas are management examples. Selection should reflect the objective and does not replace indicators required by specific obligations or frameworks.
Reconcile opening stock, inputs and outputs
For a defined boundary and period, organise the balance: opening stock plus inputs should equal outputs, closing stock and any physical variations or identified differences. Changes in moisture, material additions and weighing uncertainty may require specific treatment. Do not create a generic “loss” category merely to force inconsistent records to balance.
A simplified example, in tonnes and with no transformation within the boundary: opening stock of 20, inputs of 80, outputs of 75 and closing stock of 25. The balance closes at 100 on both sides. However, the 75 tonnes dispatched may include previous stock. Dividing part of those outputs by the 80 tonnes received during the period does not prove the destination of all batches that entered in that same period.
Preserve the denominator and pathway classification
Assume, in the example, that the 75 tonnes dispatched have verified destinations: 50 for recycling, ten for preparation for reuse, ten for incineration with energy recovery and five for landfill. The portion sent for recycling represents 50 ÷ 75, about 66.7% of verified outputs. The subsequent process yield requires another balance. This figure describes outputs; it should not be presented as the recycling rate for all generation or all inputs in the period.
GRI 306: Waste 2020 distinguishes waste generation, waste diverted from disposal and waste directed to disposal. In the GRI 306-5 reporting classification, incineration with energy recovery is among disposal operations. This terminology belongs to the framework and should not automatically be transferred to the Brazilian legal definition of final disposal. When reporting, state the framework adopted and keep pathways itemised. [2]
Build an evidence trail for each operation
Link the indicator to its supporting records: batch identification, weighing, movement, receipt, process performed and the relevant close-out document. The MTR/SINIR manual distinguishes the movement record from CDF issuance by the destination operator within the system's flow. Proof of transport should not replace the evidence required to state that a particular treatment or disposal occurred. [3]
The trail should allow the aggregate number to be traced back to its constituent batches. Record who validated the information and how differences between declared and received masses were resolved. If a document was corrected, retain the history and adjust the affected period under the defined rule. Third-party data need acceptance criteria, particularly when supporting an external statement.
Show outstanding issues and data quality
A dashboard excluding cases with missing information may artificially improve performance. Keep a pending-destination category and present documentary coverage alongside rates. Distinguish measured mass, estimated mass and declared mass without further verification. Readers need to know whether they are looking at a closed result or a position still subject to updates.
For lead times, state the starting and ending events: request, collection, receipt and documentary acceptance are not the same. An average calculated only from completed cases may conceal older operations still open. Also track the age of outstanding issues and, where useful, the median and distribution of times. This prevents a small number of quick close-outs from hiding a growing set of stalled cases.
Do not turn circularity into avoided emissions without a study
Recycled content, material recovery and emissions reductions are different quantities. An environmental comparison needs to specify an equivalent product or service, boundary, period, data and assumptions. ISO 14040 establishes the life cycle assessment framework, including goal and scope, inventory, impact assessment and interpretation. The recycled percentage alone does not determine the impact result. [4]
If an estimate uses secondary factors, identify their source, representativeness and limitations. Do not treat a generic factor per tonne as a direct measurement of the operation. Also assess the risk of attributing the same benefit in full to several participants in the chain. Comparative claims or claims intended for publication require analysis and review compatible with the method and intended use.
Connect indicators to the commercial decision
For the financial dimension, state what is included: material revenue, transport, preparation, treatment, management and other relevant expenses. An operating balance is not automatically equivalent to net profit or return on investment. To compare periods, check for changes in volume, composition, distance or price; an improvement in the total may result solely from an exceptional batch.
A periodic meeting should examine deviations, causes and actions, with owners and deadlines. Review indicators that support no decision or encourage shortcuts, such as closing documents without checking the operation. The structuring of circularity management becomes more consistent when every number has a definition, evidence and a practical consequence for the process.
Sources and references
References accessed on 30 September 2026. The numbering in the text indicates the concepts supported by each source.
References to ISO standards use their publicly available scopes; full requirements should be consulted in the respective standards.
- ISO 59020:2024 — Circular economy: measuring and assessing circularity performance. Publicly available scope of the standard.
- Global Reporting Initiative. GRI 306: Waste 2020 — Information on waste generation and destinations.
- SINIR. Waste Transport Manifest — User Manual, version 1.10, made available in 2026.
- ISO 14040:2006 — Environmental management: life cycle assessment, principles and framework. Publicly available scope of the standard.
Circuvia corporate content to support project discussions. Methods, acceptance criteria and applicable requirements are defined within the scope of each operation.
