Harmonization of circularity standards to enable circular transformation of industries FIGURE 4 Note: Multiple selection question; qualified data Source: Market survey jointly conducted by the World Economic Forum, Bain & Company and the University of Cambridge To what extent, in your opinion, can the harmonization of cir cularity standar ds enable the cir cular transformation of industries?Question 4 2 (0%)165210 (39%)(50%)250 200 150 2 (0%)4 (1%)37 (9%)Numb er of respon dents 1 – Not at all 2 3 4 5 – Very much/ highly desiredI don’t know100 50 0 As Figure 4 illustrates, 89% of respondents said they believe that harmonizing standards is crucial for advancing a CE transition, as unified standards enhance clarity, comparability and coordination across sectors and regions. In the absence of such harmonization, companies are developing their own outflow metrics to track and increase product recovery (such as take-back and recycling). For example, the multinational information technology company HP has developed internal metrics focusing on product design, recovery potential and amount of take-back to monitor open-loop and closed-loop operations, addressing the limitations of other outflow indicators often restricted by extended producer responsibility (EPR) regulations beyond corporate control. While these tailored metrics enable companies to drive their circularity efforts, they also contribute to fragmentation in measurement practices. This divergence underscores the ongoing challenge of reconciling the need for customized approaches with the pursuit of harmonized, cross-industry standards. So, if industries are welcoming circular metrics and are looking for harmonization, how can the international community help? Table 1 summarizes a selection of recognized frameworks and metrics for tracking CE progress. It does not include internal frameworks from companies, national targets or frameworks provided by consultancies, but focuses on frameworks that are being developed in multistakeholder processes, aiming towards harmonization.1.2 Perspectives from circular economy standard bodies and relevant organizations Harmonizing Metrics to Measure Circularity: A Call to Action 10

Harmonizing Metrics to Measure Circularity A Call to Action 2024