Draft circular economy strategy: consultation

Appendix 3: Indicator selection process and criteria Monitoring and Indicator Framework Development Process

As a starting point, a broad range of Circular Economy (CE) indicators with potential for application within a Scottish CE indicator framework were identified. This ‘long list’ was collated based on reviewing CE indicators from existing Scottish Government frameworks including:

• The Environment Strategy for Scotland: vision and outcomes^[71]
• The Climate Change Plan 2018-2032 – update^[72]
• National Performance Framework^[73]
• Scotland’s Natural Capital Index^[74]
• Wellbeing economy monitor^[75]

Indicators were also collated from frameworks used internationally by the Organisation for Economic Co-operation and Development (OECD),^[76] Eurostat CE Monitoring Framework,^[77] the United Nations Economic Commission for Europe (UNECE),^[78] Platform for Accelerating the Circular Economy (PACE)^[79] and individual countries. In total, over 170 potential indicators were identified and collated in an initial long list as the basis for selecting the most relevant indicators for application in a Scottish context. Each indicator was linked to one or more relevant circular economy outcomes.

Following the long listing stage, a set of indicator selection criteria (appendix 3) was developed and applied to the long list. Each indicator was given a rating of "Low," "Moderate," or "High" for each criterion. The criteria were:

1. data availability;

2. relevance to CE outcomes;

3. distinctiveness;

4. validity;

5. timescales/sensitivity; and

6. understanding.

The development of the indicator framework was led by a delivery team which included staff from Scottish Government policy (Circular Economy), Rural and Environment Science and Analytical Services (RESAS) division, and Zero Waste Scotland. A Working Group was also established, with representatives from various Scottish Government policy teams, analytical teams, Zero Waste Scotland, NatureScot, and Scottish Environment Protection Agency (SEPA). The Delivery Team reported to, and obtained feedback from, the Working Group at key stages, to facilitate communication between key stakeholders across the Scottish Government and relevant public bodies. The Delivery Team also reported to the Scottish Circular Economy and Resources Programme Board. Further internal engagement has also been undertaken with a broader set of policy teams, public bodies and key stakeholders (e.g. SEPA), on the proposed indicators. A UK-wide Analytical Group has also been established to ensure coherence and facilitate knowledge sharing and joint working on circular economy where appropriate. In addition, a workshop was held with relevant academics and non-governmental organisations in July 2025 to obtain initial feedback on the draft framework.