*2.3. Micro Level of CE Analysis*

At the micro level, forward-looking enterprises and organisations anticipate the emerging shift towards the CE and try to transform their operations with the aim at boosting innovation, penetrating new markets, and securing customer loyalty. Interface of entrepreneurship and the CE is an extensively explored topic [85]. Incentivising adoption of CE activities by companies (with a special focus on small and medium enterprises [86]) is also a priority of the European Union [87]. Public sector entities are also evaluated against the circularity criteria, especially with regards to public procurement procedures, internal process and operations, and public service delivery [88]. Eco-innovations [89] and new business models are proposed and validated in various sectors [90–93]. Discussion on incorporating digital technologies (Industry 4.0, Big Data, Internet of Things, Artificial Intelligence, Blockchain) into CE frameworks is currently a dynamic field [94]. Interaction between governmental policies and different business models conducive to the CE is also analysed [95].

Four macro-categories of business models aligned with the CE paradigm are distinguished: net-zero emission innovation, servitisation, sharing, product life extension, product residual value recovery [96,97]. In the CE assessment of single organisational entities, such aspects as greenhouse gas emissions, air pollution, nitrogen release, phosphorus release, water pollution, release of harmful substances, biodiversity loss, real estate maintenance, transport, space/land usage, and the procurement of electricity, energy, food, and other materials, are considered [37]. Intangible aspects of business alignment to CE principles labelled as values, mission, culture, or mindset are also studied [98].

Several frameworks of CE assessment applied at the macro level may also be used at the micro level, in single businesses and non-profit organisations: Life Cycle Assessment (LCA), social life cycle assessment (S-LCA), BS 8001:2017 Standard [99] material flow analysis (MFA), Life Cycle Sustainability Assessment (LCSA), Ecological Footprint (EC), Product Circularity Data Sheet [100]. Accounting and accountability reporting models are also indicated as important mechanisms through which enterprises and stakeholders can measure the progress, costs, and gains from the transition towards a CE [101,102]. The focus here is clearly on fulfilling certain requirements rather than benchmarking (understood as a specific management practice oriented at achieving excellence described in [103]) and comparison with other entities [104]. Depending on the chosen CE assessment approach, different groups of intended end-users may be identified: specific organisations, entities from a particular sector, managers, designers, customers, policy makers [105].
