How We Score Businesses on Their Environmental Impact
Our economy needs to transition to incorporate practices that account for the limits of our planet. For too long, we have followed a linear approach to business by exploiting resources to maximize profits; meanwhile, the true costs, or negative externalities, not only haven’t been paid but have hidden the actual destruction on Earth.
To measure business models more objectively to aid in the transition, Carom has created a scoring methodology that assigns points to determine where a company’s business model falls from traditional to fully regenerative. This will provide a snapshot of where a company currently stands and the opportunity to innovate towards becoming a regenerative circular business and help us build a living economy.
The Process
To measure a business's environmental impact, we assess various key areas that contribute to their overall planet-friendliness. These include product design, recyclability, use of renewables, waste handling, resource recovery, and the adoption of circular practices. Additionally, we evaluate their commitment to global sustainability goals and the mindset driving their environmental efforts. This comprehensive approach helps determine how seriously a company is working towards reducing its environmental footprint.
Here’s the exact breakdown of the areas we assess:
Product Design: Focuses on material sourcing, production, transportation, storage, and delivery.
Recyclability: Includes the recyclability of materials, production processes, transportation, and customer use/disposal.
Use of Renewables: Measures the use of renewable vs. fossil fuels across sourcing, production, transportation, and disposal.
Waste Generation/Handling: Covers waste management strategies like elimination, minimization, recovery, and recycling.
Resource Recovery: Evaluates efforts to reduce waste and recover materials for reuse.
Circularity: Assesses the business’s approach to creating a closed-loop system, working towards full regenerative sustainability.
SDG Goals: Focus on goals like net zero, carbon neutrality, carbon negativity, and regenerative practices.
Mindset: Reflects the company’s progress towards embracing sustainability shifts.
Scoring
Conventional or Traditional Companies – 0-21 Points
Businesses in this category typically do the bare minimum required by law, showing little to no initiative to improve their environmental footprint. They follow outdated practices and prioritize profit over sustainability. Companies in this category score between 0 and 20 points, reflecting how far they are from making a positive impact.
Here’s how we break down the scoring:
Product Design (0 points)
Linear, Single-Use Mentality: These companies follow a "take, make, waste" approach to product design. Their products are designed for short life cycles, with no thought of repair, reuse, or longevity. Once a product is used, it's discarded, contributing to waste rather than reducing it.
Recyclability (0 points)
Minimal to No Recycling: The focus here is on products that are difficult or impossible to recycle. There’s little effort to design products with recyclability in mind, and what little is recycled tends to be limited to low-impact or non-essential materials. These businesses tend to favor a disposable mindset, exacerbating environmental pollution.
Use of Renewables (0 points)
Very Limited or No Use of Renewables: These companies rely heavily on traditional, non-renewable energy sources for production and operations, with little to no investment in renewable energy options. Their carbon footprint remains high, with minimal effort to reduce greenhouse gas emissions through clean energy alternatives.
Waste Generation/Handling (0 points)
No Special Plans in Place: Waste management is a reactive, rather than proactive, aspect of their operations. There’s no clear strategy or commitment to minimizing waste or reducing harmful outputs. Any waste generated is typically sent to landfills or incinerators with no effort to lessen its environmental impact.
Resource Recovery (0 points)
No Plan for Resource Recovery: These companies show no consideration for the potential of resource recovery. They make no effort to reclaim valuable materials from their waste streams or products at the end of their life cycle. Once a product reaches its end, it is essentially forgotten, leading to greater resource depletion.
Circularity (0 points)
None Evident: There is no sign of circular economy principles, such as repairing, reusing, or recycling materials within the business’s operations. Instead, they maintain a linear system that contributes to environmental degradation by not rethinking how products and materials can flow through multiple life cycles.
Profit Maximization/Cost Minimization Strategy
Large Geographic Footprint: These businesses are focused solely on maximizing profits while minimizing costs, often at the expense of environmental considerations. They may have a wide geographical footprint, relying on long supply chains that contribute to higher carbon emissions and greater environmental harm. There is no sense of local or global responsibility when it comes to environmental impact.
2. Nominal (A Little Less Bad) – 21-40 Points
This category represents businesses that are taking some steps toward sustainability but are still far from a fully eco-friendly approach. While they are improving, their efforts are limited and primarily focused on compliance or surface-level initiatives.
Scoring details:
Product Design (5 points)
Focus on increased durability with limited efforts for recyclability.Recyclability (5 points)
Some products can be recycled, often relying on marketing claims rather than actual capabilities.Use of Renewables (5 points)
A small percentage of renewable energy is used in production, and potentially in operations.Waste Generation/Handling (5 points)
Minimal efforts to reduce waste with basic handling practices.Resource Recovery (5 points)
Initial plans to recover resources, but not yet fully implemented.Circularity (0 points)
Awareness of Circular Economy principles, but no concrete actions yet.SDGs and Social Initiatives
Early stages of establishing environmental and social sustainability goals.
3. Sustainable (Humans Doing No Additional Harm) – 41-60 Points
Businesses in this category are making meaningful strides toward sustainability. They are actively reducing their negative impact, implementing better practices, and beginning to integrate circular economy principles into their operations.
Scoring details:
Product Design (10 points)
Focus on disassembly and reuse of materials to extend product life cycles.Recyclability (10 points)
High recyclability of products and better design for recycling.Use of Renewables (10 points)
Renewables are used in both production and operations, with a focus on cleaner energy sources.Waste Generation/Handling (10 points)
Waste generation is reduced, and multiple waste streams are properly managed.Resource Recovery (10 points)
Resources are captured for reuse or reassembly, reducing waste.Circularity (10 points)
Circular economy principles are integrated into the business model, with a focus on limiting environmental impact within defined geographic areas.
4. Restorative (Fix/Support Nature) – 61-80 Points
Companies in this category are models of sustainability, fully embracing regenerative and circular practices. They work in harmony with natural systems, using biomimicry and renewable resources, and contributing positively to the environment.
Scoring details:
Product Design (20 points)
Products are designed with biomimicry, integrating into ecological cycles and natural systems.Recyclability (20 points)
Beyond recyclability, these businesses focus on regenerative resource use, enhancing environmental health.Use of Renewables (20 points)
Renewables are integrated across production, operations, and transportation, ensuring minimal environmental impact.Waste Generation/Handling (20 points)
Closed-loop systems and zero waste manufacturing are the standard, ensuring that nothing goes to waste.Resource Recovery (20 points)
Full capture of resources or regenerative end-of-life processes to reintegrate materials back into the ecosystem.Circularity (20 points)
Regenerative circular principles return resources to the Earth, operating in sync with natural cycles.
5. Regenerative (One With Nature) – 81-100+ Points
Scoring details:
These businesses have gone beyond minimizing harm, actively working to restore ecosystems and integrate circular principles. They address major environmental issues and aim to create positive impacts through their practices.
Product Design (15 points)
Certification for regenerative, organic materials, and designs aimed at circularity. Focus on addressing ecological issues like climate change and habitat loss.Recyclability (15 points)
Products are as recyclable as possible, with a focus on reuse and compostability.Use of Renewables (15 points)
Extensive use of renewables across production, operations, and transportation.Waste Generation/Handling (15 points)
Actively minimizing waste with a structured plan for recycling and recovery.Resource Recovery (15 points)
A recovery plan is in place, focusing on reusing materials and reducing waste.Circularity (15 points)
Circular principles are integrated across business models, strategies, and processes, with a focus on regional/local transitions.Bonus (Systemic Regenerative Economy Member) (+10 points)
Businesses innovating at a systemic level, collaborating globally to advance regenerative economy principles and ensuring long-term sustainability and adaptability.
Learn more about Carom
Our Mission is to transform business models to build a regenerative future.
That’s why we focus on:
Planet-friendly practices that protect what we have and look beyond the short-term
Circular systems to maximize resource use and minimize waste
Restorative principles to rebuild and regenerate natural systems and habitats
Together, with a spirit of collaboration and innovation, we can build a better future for people and the planet.
Make a contribution
Discover our Living Market
Our online marketplace proudly showcases other vetted sustainable businesses that contribute to a Living Economy. Every company featured in our market has been evaluated, ensuring their business model is a more planet-friendly option for everyday products. When you choose to support our featured businesses, you're not just making a purchase; you're investing in an economy that is better for people and the planet.