Short answer

Incorporate qualitative social impact assessment alongside quantitative environmental metrics in the design and evaluation process for circular economy initiatives.

Field
Sustainability
Source
Business Strategy and the Environment (2023)
Method
Multiple case-study explorative approach
Sample
6 circular start-ups
Evidence
Moderate effect

Circular start-ups are more likely to adopt quantitative environmental impact assessments and certifications than to integrate qualitative methods for measuring social benefits. This sustainability research insight is drawn from a 2023 study published in Business Strategy and the Environment. Using Multiple case-study explorative approach with 6 circular start-ups, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Incorporate qualitative social impact assessment alongside quantitative environmental metrics in the design and evaluation process for circular economy initiatives.

Study
SustainabilityRecentModerate effect

Circular Start-ups Prioritize Environmental Metrics Over Social Impact Measurement

Circular start-ups are more likely to adopt quantitative environmental impact assessments and certifications than to integrate qualitative methods for measuring social benefits.

Business Strategy and the Environment · 2023

01

Key Findings

  • 01Three out of six circular start-ups actively measure and certify their environmental and social impacts.
  • 02Life Cycle Assessment (LCA) is the most common environmental assessment method employed.
  • 03Two start-ups hold Benefit Corporation certifications.
  • 04Circular start-ups predominantly use quantitative methods for impact measurement.
  • 05Additional efforts are needed to implement qualitative methods for assessing social benefits (e.g., environmental awareness, employee engagement, work-life balance, consumer health).
02

Application

Design takeaway

Incorporate qualitative social impact assessment alongside quantitative environmental metrics in the design and evaluation process for circular economy initiatives.

How to apply

When designing products or services for the circular economy, actively seek methods to measure and communicate social benefits, such as improved working conditions, community engagement, or enhanced consumer well-being, using both data and narrative.

Project actions

  • 01When researching a circular design project, look for how the product or service impacts people, not just the planet.
  • 02Consider using surveys or interviews to gather qualitative data on social benefits.
03

Method & Evidence

AimTo investigate the adoption of environmental impact assessment methods, environmental and social certifications, and the integration of social dimensions within circular start-ups.
MethodMultiple case-study explorative approach
ProcedureResearchers analyzed six circular start-ups, examining their use of environmental impact assessment methods, their pursuit of environmental and social certifications, and their approach to integrating social benefits for stakeholders.
Sample6 circular start-ups
ContextCircular economy start-ups

Variables

IVType of assessment method used (environmental vs. social, quantitative vs. qualitative), presence of certifications.
DVDegree of integration of social dimension in the circular economy model, reported social benefits.
CVType of circular start-up, industry sector.
04

Strengths & Limitations

Strengths

  • +Provides a clear distinction between environmental and social impact assessment in circular businesses.
  • +Highlights the practical challenges faced by start-ups in measuring social benefits.

Limitations

It can be challenging to find readily available data on the social impact of many businesses.

Reliability & validity

The multiple case-study approach provides depth but limits generalizability. The reliance on self-reported data or available documentation could affect validity.

Think critically

How can designers proactively integrate qualitative social impact assessment into their design process from the outset, rather than treating it as an afterthought?

05

Design Principles

"Holistic impact assessment: Evaluate and design for both environmental and social performance, using a mix of quantitative and qualitative methods."

This highlights a critical gap in the circular economy transition, where social equity and well-being are often overlooked in favor of measurable environmental gains. Designers and businesses need to develop robust frameworks for assessing and communicating social impact to ensure a truly holistic and equitable circular economy.

06

What This Means for Your Design

Circular businesses are good at tracking environmental stuff like waste, but not so good at tracking how they help people and communities.

How to use in your project

  • 1.Use this research to justify the inclusion of social impact assessment in your design process, especially if your project aims for circularity.
07

Add to My Project

08

Quick Cite

Paragraph starter

This research indicates that while circular start-ups are increasingly adopting environmental impact assessments like Life Cycle Assessment, there is a notable gap in the systematic measurement and reporting of social benefits. Future design projects aiming for circularity should therefore prioritize the development and integration of qualitative methods to assess social dimensions, ensuring a more equitable and holistic approach to sustainability.

09

Source

Business Strategy and the Environment

Exploring environmental and social performances of circular start‐ups: An orientation and certification assessment

journal · 2023

View source

Questions About This Research

What does the research say about circular start-ups prioritize environmental metrics over social impact measurement?
Incorporate qualitative social impact assessment alongside quantitative environmental metrics in the design and evaluation process for circular economy initiatives. Evidence: Business Strategy and the Environment (2023).
Why does "Circular Start-ups Prioritize Environmental Metrics Over Social Impact Measurement" matter for design?
This highlights a critical gap in the circular economy transition, where social equity and well-being are often overlooked in favor of measurable environmental gains. Designers and businesses need to develop robust frameworks for assessing and communicating social impact to ensure a truly holistic and equitable circular economy.
How can designers apply this research?
Incorporate qualitative social impact assessment alongside quantitative environmental metrics in the design and evaluation process for circular economy initiatives.
What were the main findings?
Three out of six circular start-ups actively measure and certify their environmental and social impacts.. Life Cycle Assessment (LCA) is the most common environmental assessment method employed.. Two start-ups hold Benefit Corporation certifications.. Circular start-ups predominantly use quantitative methods for impact measurement.
What research method was used?
Multiple case-study explorative approach with 6 circular start-ups.
How strong is the evidence?
Evidence strength is rated Moderate effect, based on a 2023 journal from Business Strategy and the Environment.
What should I do differently in my next project?
When designing products or services for the circular economy, actively seek methods to measure and communicate social benefits, such as improved working conditions, community engagement, or enhanced consumer well-being, using both data and narrative.
What are the limitations?
The study focused on a small sample of start-ups, and the findings may not be generalizable to all circular economy businesses. The depth of qualitative social impact assessment varied significantly.