Live Now - USA Circularity Index 2024: American Companies at the Crossroads of Transformation
After the success of our EU Circularity Index earlier this year, we’re proud to present our analysis of how America’s largest companies are embracing their circular future. What are the findings, you ask? Both promising and concerning.
Understanding the “Circularity Index”
The “Circularity Index” is a comprehensive framework that evaluates how companies are transitioning from traditional linear business models (take-make-waste) to circular approaches that eliminate waste and maximize resource value. Building on our successful analysis of Germany’s DAX 40 companies earlier this year, we’ve now turned our attention to America’s corporate giants.
Our methodology examines:
- Published sustainability targets and their alignment with Paris Climate Goals
- Implementation of circular strategies (from optimization to ecosystem building)
- Progress on Scope 1, 2, and 3 emissions
- Concrete actions toward circular transformation
The index creates transparency about corporate America’s journey toward circularity, allowing stakeholders to:
- Benchmark progress against industry leaders
- Identify gaps and opportunities
- Understand best practices
- Track transformation success
Through analysis of sustainability reports, the MSCI ESG Database, and the Net Zero Tracker, we provide a detailed picture of how U.S. corporations are responding to the circular economy challenge.
The American Circular Economy Landscape
Our comprehensive analysis of Fortune 100 companies reveals a stark reality: only 35% of companies are actively working to transform their organizations from linear to circular models. As the world’s largest economy, the U.S. has both an unprecedented opportunity and responsibility to lead the global transition to sustainable business practices.
Four Distinct Approaches to Transformation
Our research identifies four clear typologies among American corporations:
Circular Transformers (18.3%)
Leading companies like AT&T are revolutionizing their business models while achieving ambitious climate goals. They’re taking responsibility for their products beyond the point of sale, implementing comprehensive take-back programs, and achieving remarkable results – like recycling 12.9 million electronic devices in 2023 alone.
Circular Followers (16.7%)
Companies like Hewlett-Packard show strong commitment but are still developing their climate strategies. HP’s goal of 75% circularity by 2030 demonstrates the ambitious targets these organizations are setting.
Linear Optimizers (36.7%)
Organizations like Alphabet excel at optimization but haven’t fully embraced circularity. While achieving impressive climate metrics (1.4°C implied temperature rise), they’re still primarily focused on efficiency rather than transformation.
Linear Traditionalists (28.3%)
These companies, including Kroger, maintain traditional business models while making minimal circular initiatives. Their 3.6°C implied temperature rise shows the urgent need for transformation.
Why It Matters: The Corporate Circularity Imperative
The transition to circularity isn’t just an environmental imperative—it’s a $4.5 trillion economic opportunity (according to research done by Accenture). As regulatory pressures mount and customer expectations evolve, businesses that fail to transition from linear to circular models risk not only reputational damage but also fiscal and operational consequences.
The Path Forward
Our research reveals three critical areas for improvement:
- Only 5% of companies have set specific target dates for circular economy goals
- Just 41% comprehensively address supply chain emissions
- 50% are beginning to implement circular design principles
The message is clear: while some American companies are leading the way, there’s still significant work to be done to capture the full potential of the circular economy.
Who We Are
At INDEED Innovation, we blend strategic design expertise with circular innovation to create lasting impact. Our global team partners with forward-thinking organizations to revolutionize how products and services are created, used, and reintegrated into the value chain.
Ready to learn more about how America’s largest companies are transforming their operations for a sustainable future? Download our USA Circularity Index now.
Larissa Scherrer
Marketing Strategy
Brand Positioning
Social Media Strategy
