EU Metrics for the Circular Economy in Light of Modern Business Practices

Abstract

Abstract: The study examines the current structure and methodological framework of circular economy metrics adopted in the European Union, emphasizing their relevance for modern business practices under the European Green Deal. In the context of growing resource constraints and regulatory pressure for sustainability, the research aims to critically assess the ability of the EU's circular economy indicators to reflect the complexity of economic, environmental, and behavioral transformation processes. The analysis is based on the updated Eurostat framework, which includes five thematic blocks and eleven key indicators. Special attention is paid to metrics on material consumption, waste generation, green public procurement, circular material use, and innovation activities. Using qualitative content analysis and cross-sectoral comparison, the study highlights gaps in digital integration, sectoral adaptation, and behavioural dimensions of circularity monitoring. The findings reveal substantial asymmetries in waste recycling rates, dependence on primary materials, and the share of secondary raw materials in supply chains. It is shown that while large enterprises more actively implement circular practices, SMEs face regulatory, technological, and financial barriers. Moreover, the lack of behavioural and digital indicators constrains the system’s responsiveness to emerging business models such as «Product-as-a-Service» and sharing platforms. The paper concludes with suggestions for expanding the EU indicator framework to include metrics for digital traceability, consumption behaviour, and localized circular solutions. These improvements could enhance the practical value of circular monitoring tools for corporate sustainability strategies and cross-border policy harmonization. The study also raises the question of how circular metrics can better reflect the dynamics of global value chains and sustainability reporting standards. Integrating digital tools and behavioral data analytics is proposed as a crucial next step in advancing evidence-based policy and business decision-making.