This article provides an overview of the findings from the “Circularity Data Exchange: Landscape Analysis and Way Forward” whitepaper, co-authored by the World Business Council for Sustainable Development (WBCSD), KPMG, and Circularise.
The circular economy offers a transformative approach to addressing some of the world’s most pressing challenges. Redesigning how resources are produced and managed supports sustainable development, unlocks new economic opportunities, and drives innovation.
Despite its promise, only 7.2% of the global economy currently operates on circular principles – and this percentage has declined in recent years. This leaves a vast area of untapped potential for improving circularity across industries. In this article, we dive into the challenges, opportunities, and insights from the whitepaper “Circularity Data Exchange: Landscape Analysis and Way Forward,” and outline the critical role of robust data frameworks in enabling transparency, traceability, and collaboration within value chains.
What is the current global landscape of circularity?
The circular economy holds immense promise to address climate change, biodiversity loss, and pollution. However, 92.8% of global operations are still entrenched in linear models of production and consumption, highlighting substantial opportunities to transition toward more sustainable practices.
Despite the low adoption rates, there is reason to be optimistic. Across the globe, nearly 3,000 circular economy commitments have been made — including 135 policies spanning 17 different sectors — showcasing a concerted effort to develop frameworks that support circularity. These commitments reflect a growing recognition of the urgent need to transition away from the traditional linear model. Industries ranging from manufacturing and construction to fashion and technology are exploring ways to reduce waste, extend product lifecycles, and minimise environmental impacts.
What data is required for circularity?
Understanding current regulations and frameworks is key to helping businesses navigate their compliance obligations and realise their circular potential. The whitepaper analysed frameworks by leading circularity initiatives such as the EU’s Ecodesign for Sustainable Products Regulation (ESPR), the ISO Product Circularity Data Sheet, and the Battery Passport. It found that most data requested by regulations and voluntary frameworks fall into three main categories:
- Reuse and recycling information: Data on how products and materials can be reused, remanufactured, or recycled is essential for closing the loop in circular supply chains.
- Materials and chemical substances: Information on materials, including the identification of hazardous substances and their recyclability, is critical for ensuring safe and efficient recycling processes.
- Environmental information: Data on a product’s environmental impact, including carbon emissions and energy use, helps minimise ecological footprints.
While the data required by current regulations lays a solid foundation for developing circular strategies and business models, addressing emerging data needs will be crucial in preparing for evolving circular economy demands. Other data areas that could become increasingly important as circular models evolve are:
- Product authentication and certifications: Data that verifies the quality and condition of products entering second-life stages (e.g., resale or remanufacturing) is key to maintaining value and ensuring product integrity.
- Material origins and renewability: Detailed information about the origins of materials, especially bio-based ones, is essential to understanding their environmental benefits. For instance, bio-based materials like corn starch-based polymers require proper end-of-life management for their benefits to be realised.
- Integration with other regulations: Coordinating circularity data with existing product-specific regulations, such as packaging waste management, will streamline recovery and recycling processes, ensuring alignment with evolving rules.
