Material Circularity Indicator (MCI)

The Material Circularity Indicator (MCI) is an indicator that measures the circularity of a product. Developed by the Ellen MacArthur Foundation, the MCI encompasses the entire life cycle of a good: from the extraction of raw materials, through processing and assembly, to the use and end-of-life phase. Regardless of where a specific company sits within this supply chain, the MCI calculation provides useful information for assessing, from a perspective beyond its own gates, how circular its product is and what bottlenecks or opportunities there are in its supply chain.

materials circularity indicator
The process steps  
Identification of the product under study and definition of the company boundaries; 

The first step is to ask ourselves what we want to measure and what are the phases of the life cycle that the client company oversees. 

Data collection 

The estimation of the indicator is carried out on the basis of data provided directly by the company where available, integrating them with data from literature, official statistics or sector reports.   

Indicator calculation  

Measuring something is the first step to improving it. Condensing the entire history of a product into a single number undoubtedly allows you to support your choices and communication; but the real value of the study lies in the different points that emerge during the calculation and that can provide useful hints for improvement or give a different perspective to the company. 

Benefits for companies  

The MCI is a strategic and communication advantage: it is not only an indicator of environmental circularity, but also allows new and distinctive product characteristics to be identified.  

Increased sustainability 

Using recycled raw materials and reintroducing your own waste into production allows you to create durable, reusable products and significantly reduce your environmental impact.  

Economic benefits  

Companies that undertake circular economy projects can access the €6 billion credit line made available by Intesa San Paolo  

Improved reputation  

Undertaking circular economy projects increases one’s reputation, attracting the growing number of green investors attentive to corporate sustainability assessments.  

Circularity case histories  

Find out how we have helped Italian companies apply the circular economy in their business model.  

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