Circular Valuation Method

The Circular Valuation method is a clear and simple method for companies and public bodies to assess whether circular projects are financially attractive.

Introduction

To boost investments in bioeconomy projects and vitalize the European Urban Bioeconomy, the HOOP project developed the Circular Valuation Method. This is a new measuring template with circular indicators. With this method circular business cases and investment proposals can be evaluated.

The Circular Valuation method is a clear a simple method for companies and public bodies to assess whether circular projects are financially attractive.

The indicators are adapted to the characteristics of circularity and biowaste resulting in a multidimensional assessment method covering domains including financial, circularity, environmental, social, and a comparison to the previous situation.

The results can be downloaded to show the circular potential of your project.

The HOOP Circular Valuation Method – The concept

The domains

To broadly and fairly assess the circular efforts made, the HOOP Circular Valuation Method includes several domains making it possible to promote the reuse of materials as higher value than recycling or value the good practices in design and assembly techniques.

The Circular Valuation Method is comprised out of five domains, which are chosen to cover a wide scope. The domains are:

• Financial (for example: NPV, cost of production, CAC, TCO)
• Circularity (for example: input, materials used, output)
• Environment (for example: resources, GHG emissions)
• Social (for example: community and society, employee relationship and labour standards, human rights, competitiveness).
• Progress (for example: resources, GHG emissions, employment, waste hierarchy)

Each domain consists of a set of indicators. The number and importance of indicators in each dimension varies, as well as the way they are assessed (quantitative or qualitative). Based on the results obtained from the indicators, the outcome overview will be generated.

The financial domain will be composed out of a written report. The remaining four domains will be awarded a score based on the input and the calculation from the indicators.

A score between 0-100% will be given, where the higher the score the better the result. The fact that the indicators are divided into the different domains, the outcome will show whether a project will have a stronger impact on the adoption of circular business models, on the surrounding environment (or from a global point of view), or the people involved in the activities.