Measuring Circularity in Manufacturing: A Multi-Level Set of Indicators for Comprehensive Quantitative Assessment

The transition to a circular economy is fundamental for promoting sustainable industrial practices, particularly in manufacturing. This paper introduces a structured methodology for assessing circularity in manufacturing companies through a multi-level indicator framework. Initially, a broad set of circularity indicators was analysed and refined through a systematic filtering process, applying criteria aligned with the RACER methodology. This selection led to the identification of three key macro indicators: Material Circularity Indicator (MCI), which evaluates the balance between linear and restorative material flows; Circularity Index (CI), which quantifies the effectiveness of material retention across the product lifecycle in terms of both quantity and quality conservation; and Value Capture, which measures the economic benefits retained through circular strategies such as remanufacturing, recycling, and refurbishment. The proposed framework provides a structured approach to evaluating circular loops within a product lifecycle, offering quantitative insights that support decision-making for manufacturers.