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Company-level circularity indicator for small and medium enterprises: An empirical study in the textile industry

Author

Listed:
  • Ping-Chen Kuo
  • Chen-Fu Chien
  • Ming-Chuan Chiu

Abstract

Circular economy aims to reduce waste, enhance resource efficiency, and support sustainable development. However, small and medium-sized enterprises (SMEs) often struggle to adopt existing indicators due to limited resources and complex data demands. This study proposes CLEVER (Company-Level production Elements Value and Effectiveness Ratio), a novel indicator assessing the circular value and performance of energy, resources, and materials. CLEVER is simple, low-cost, and easy to apply in SME operations. An empirical study from the textile industry indicates that CLEVER improves total weighted solid waste and wastewater decreased by up to 47.3%, and overall waste reduction reached 40%. CLEVER can serve as a benchmark and implementation tool for SMEs and has strong potential as part of annual ESG report.

Suggested Citation

  • Ping-Chen Kuo & Chen-Fu Chien & Ming-Chuan Chiu, 2025. "Company-level circularity indicator for small and medium enterprises: An empirical study in the textile industry," The Engineering Economist, Taylor & Francis Journals, vol. 70(4), pages 236-257, October.
    • Handle: RePEc:taf:uteexx:v:70:y:2025:i:4:p:236-257
    DOI: 10.1080/0013791X.2025.2594977
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