The circular economy has long been regarded by experts as an effective means of combating the progression of climate change - while at the same time ensuring independence and maintaining social prosperity. An overview.
The circular economy is based on a natural material cycle that ideally produces no waste - similar to archaic agriculture, where, in principle, everything that was not used for food, animal feed, or other products ended up back on the field. The opposite of this is the linear economy established since industrialization, which accepts a high degree of loss of resources used in the form of waste and energy: Over seven billion tons of waste are generated worldwide every year, over two billion tons of which is municipal waste.
The concept of an industrial circular economy is based on the slogan "cradle-to-cradle" and is already several decades old. However, it is only since the drastic consequences of climate change and the resulting supply bottlenecks have been recognized that the sustainable economic model has slowly started to gain momentum. Therefore, the necessary farewell to the cherished "disposable society "is getting closer. After all, a circular economy means significantly lower greenhouse gas emissions in the long term and an associated slowdown in global warming.
The principles of an ecologically sound and socially responsible circular economy are, in principle, the opposite of what is still largely standard today. The starting point is the sustainable design of products, which sets out clear guidelines for the developer:
Aspects such as aesthetics, functionality, and user-friendliness are also important in motivating consumers to use a product for longer.
Further criteria apply to the extraction of raw materials and the life cycle phases of production, distribution, use, and disposal of products:
Weighing up the risks and opportunities of a circular economy reveals a clear imbalance in favor of opportunities. This is because, on closer inspection, the risks may be acceptable, temporary, or even unfounded.
Acceptable: The move away from the linear economy inevitably threatens the existence of business models that rely on the rapid throughput of inferior goods with planned obsolescence, such as disposable products, short-lived electrical goods, or non-recyclable cheap textiles.
Temporary: Companies willing to convert to cradle-to-cradle may face high costs over time.
Unfounded: Some employee representatives have raised the risk of an increase in health hazards for recycling industry employees, but this concern can be regarded as largely unfounded. This is because the objection does not take into account the requirements of a sustainable circular economy: the use of raw materials that are as harmless as possible and recycling that is environmentally conscious.
The opportunities of a consistent circular economy, on the other hand, are manifold and not limited to potential environmental benefits but also relate to economic and social aspects. In addition to limiting global warming, preserving biodiversity, and significantly reducing air, soil, and water pollution, there is a boost to innovation and high economic potential with clear consumer benefits.
This includes improving the labor situation in the countries of origin of coveted raw materials. Potential resource savings lead to the conservation of habitats, particularly the reduction of toxic waste, but also to the creation of new jobs locally through innovations in product design.
According to the ISO survey, more and more companies are opting for a certified environmental management system in accordance with ISO 14001 - in 2022, around 530,000 valid EMS certificates were issued worldwide. The high number and positive trend could serve as a lever for the circular economy, as the standard addresses the topic as part of a central requirement.
Clause 6.1.2 deals with significant environmental aspects, which, according to the standard definition, are "[those] elements of an organization's activities or products or services that interact or can interact with the environment". The key requirement is to identify and assess significant environmental aspects and - crucially with regard to the circular economy - to "consider the life cycle".
Indeed, the requirement does not imply an obligation to prepare detailed life cycle assessments, which is also emphasized in the annex to the standard under A.6.1.2: "... thinking carefully about the life cycle stages that can be controlled or influenced by the organization is sufficient." However, this raises awareness of the issue, leading to more sustainable product design in the long term. As a consequence of a user survey from 2021, however, no further-reaching requirements are planned for the current "minor revision" of the environmental standard.
In February 2024, ISO and IAF presented a joint statement stating that the consideration of risks arising from climate change will be included in all major ISO management system standards. Clause 4.1 now requires standard users to determine whether climate change is a relevant topic (4.1), and clause 4.2 now includes the indication that relevant interested parties may have needs with regard to the effects of climate change. The additions are a first step in directly incorporating climate change into the requirements of the ISO management system standards.
Around 2,100 individual standards are already relevant to the circular economy, which are now being reconsidered. Five cross-sectoral topics have also been defined that are to be promoted through standardization:
ISO 59010—Circular economy—Guidance on the transition of business models and value networks. The guide provides guidance on how to transition value creation models and networks from a linear to a circular economic model. The standard focuses on management strategies for implementing circular economy practices at the company level and between companies.
ISO 59020 - Circular Economy – Measuring and assessing circularity performance. The standard provides a structured method for measuring and evaluating the performance of the circular economy. It shows companies how effectively they minimize resource consumption and optimize the circularity of materials. ISO 59020 is based on the United Nations 2030 Agenda and its Sustainable Development Goals (SDGs).
ISO/FDIS 59040 - Circular economy - Product circularity data sheet. The guidance provides a universally applicable approach to improving the accuracy and completeness of circular economy information using a circularity fact sheet for procuring or supplying products, regardless of an organization's type, sector, or size.
To achieve the goals formulated in the Green Deal of the EU and the German National Climate Protection Act 2021, DIN (German Institute for Standardization), DKE (German Commission for Electrical, Electronic & Information Technologies), and VDI (Association of German Engineers) have drafted a "Circular Economy Standardization Roadmap" together with specialists from industry, science, the public sector and civil society. The aim is to create a basis for standardization along the entire value chain to enable the circular economy in practice. Seven priorities were defined, which are based on the EU's Circular Economy Action Plan:
The German Federal Government's National Strategy for a Circular Economy (NKWS) is intended to bring together objectives and measures for a circular economy and for the conservation of resources from all existing strategies in such a way that the reduction in primary raw material requirements set out in the coalition agreement can be achieved. At the same time, the NKWS should make a decisive contribution to reducing environmental pollution, protecting biodiversity, and protecting the climate.
In March 2020, the European Commission published its Circular Economy Action Plan (CEAP). It is a key component of the European Green Deal, the European agenda for sustainable growth.
According to the EU Commission, the EU's transition to a circular economy should reduce the pressure on natural resources and create sustainable growth and jobs. The CEAP is seen as a prerequisite for achieving the EU's climate neutrality targets and halting the loss of biodiversity.
The model of a circular economy offers a promising perspective for overcoming ecological, economic and social challenges. The opportunities clearly outweigh the risks. Through consistent implementation and support through standards and legislation, the circular economy can make a decisive contribution to sustainable development.
Lukas Betthäuser is a DQS standards expert for climate protection management and project manager in the areas of carbon footprint and life cycle analysis, among others.
Sources (in German):
This article was first published in German on https://www.qz-online.de/a/fachartikel/die-circular-economy-als-stellschraube-g-6377558
