World Business Council releases report on circular economy standards

More businesses must adopt circular economy models to reduce the amount of virgin materials extracted from nature, improve waste management, and decrease greenhouse gas emissions that cause climate change. But, to make that transition, the same enterprises also need standardized metrics and frameworks to set targets, track benchmarks, measure their progress, and comply with regulations.

Now the Geneva, Switzerland-based World Business Council for Sustainable Development in collaboration with The One Planet network has launched a new initiative, the Global Circularity Protocol for Business. It aims is to examine how to align existing legal frameworks and international standards to foster cross-sector partnerships, better investing, and more effective policy development to boost recycling and the reuse of old products.

As part of that effort, the Council published a report on July 31 entitled “Landscape Analysis of Circularity-Related Corporate Performance & Accountability and Policy & Regulation”. The report highlights the hurdles and opportunities that businesses face when seeking to build or join circular economies.

The report found that five themes are essential in circular economies. First, measures must be sustainable and just. Second, they must focus on the full life cycle of products rather than end-of-life cycles to find value. Third, circular economies need organizational enablers, sometimes called “champions” in businesses, to succeed. Fourth, financial systems must harmonize value and risk related to circular models. Fifth, reporting must also be harmonized. The report further concluded that policymakers hold the keys to achieving a business’s circularity objectives while executives, advocates, and others can help support policymakers. ce/jd