Three Newly Published ISO Standards: A Pivotal Step Toward Adoption of Circular Business Practices

In a pivotal step towards mainstreaming of circularity in business, the International Organization for Standardization (ISO) has published three new standards that provide organizations with powerful new tools and guidance to implement, measure, and enhance circular practices.

The transition towards a circular economy represents a transformative shift from the traditional linear economic model, in the pursuit of sustainable development. ISO's circularity-related standards mark a significant milestone in facilitating this shift, akin to their promulgation of Life Cycle Assessment (LCA) standards in the 1990s, which significantly advanced the acceptance and implementation of LCA.

Similarly, the new ISO circularity standards will play a crucial role in promoting the systems thinking and business model reconsideration essential for achieving circularity. They provide an important common framework that will help organizations of all sizes develop approaches that are both well-suited to their unique situations and well-aligned with efforts elsewhere in their industries and supply chains.

Understanding the New ISO Standards

Figure 1 - How the three new ISO Circularity Standards are interconnected. Source: ISO

What exactly is contained in the new circular economy standards? Figure 1 provides an overview; here’s a closer look at each one.

1. ISO 59004:2024 - Circular Economy — Vocabulary, Principles, and Guidance for Implementation 

Overview: This standard is foundational, offering definitions, principles, and actionable guidance for implementing circular economy practices across various organizations. It aligns with the United Nations Agenda 2030 for Sustainable Development, which aims to foster a shift from linear to circular resource use.

Importance: By advocating for a circular economy, ISO 59004 addresses critical environmental challenges such as resource depletion and climate change, encouraging organizations to adopt sustainable resource management and contribute to global sustainability goals.

2. ISO 59010:2024 - Circular Economy — Guidance on the Transition of Business Models and Value Networks

Overview: ISO 59010 provides detailed guidance on transitioning business models from linear to circular frameworks. It focuses on strategic assessments of value creation models and networks, promoting sustainable business practices at both organizational and inter-organizational levels.

Importance: This standard is vital for organizations seeking to enhance resource efficiency and resilience against environmental risks, thereby supporting long-term sustainable development and economic opportunities through innovation and systemic change.

3. ISO 59020:2024 - Circular Economy — Measuring and Assessing Circularity Performance 

Overview: ISO 59020 offers a standardized methodology for measuring and assessing circularity performance. It emphasizes consistent and verifiable results through mandatory and optional indicators, helping organizations evaluate their circularity efforts effectively.

Importance: This standard aids organizations in quantifying their progress towards sustainability, enhancing transparency, accountability, and stakeholder trust, and supporting broader sustainable development goals.

The Complexities of Circularity, and the Need for Accurate Measurement

The circular economy is a multifaceted concept with a multitude of different definitions, underscoring the complexity and variability in its interpretation and implementation. This diversity reflects the understanding that circular economy initiatives are not one-size-fits-all solutions. They must be tailored to individual cases, considering the unique economic, environmental, and societal contexts of each situation. As such, indicators and strategies that are effective in one scenario may not be applicable in another, necessitating a flexible and context-specific approach.

At the same time, efforts by individual organizations must also work within the context of other circularity-oriented initiatives. For example, the European Commission's Circular Footprint Formula, highlighted in a previous EarthShift Global blog post, provides a novel framework for assessing the environmental impact of products and services within a circular economy. The new ISO standards complement such initiatives by offering structured approaches and measurable indicators to guide organizations in their circular economy journey.

An essential principle in managing circular economy initiatives is the axiom "you can only manage what you measure."  Circularity does not guarantee sustainability. Many circular economy visions require precise measurement to move beyond assumptions and address actual hotspots within the system. Identifying these hotspots allows for targeted interventions that effectively mitigate negative impacts.  

Moreover, it is crucial to consider phenomena such as the Jevons Paradox and rebound effects, where increases in efficiency can lead to higher overall consumption. These effects must be factored into circular economy standards to ensure that improvements in one area do not inadvertently cause adverse outcomes in another.

The Broader Impact

Adopting these standards is not just a compliance exercise but a strategic move towards resilience and sustainability. Organizations that align their practices with ISO's circularity standards are better positioned to meet regulatory and consumer demands, mitigate environmental risks, and capitalize on new economic opportunities. This transition, although challenging, promises substantial benefits, including enhanced sustainability, stakeholder engagement, and overall societal well-being.

Overall, the new ISO standards represent one of the most substantial developments to date in advancing circular economy practices. By providing comprehensive guidance and measurable frameworks, they empower organizations to transition towards more sustainable business models, fostering a resilient and sustainable future.

The journey towards circularity is a complex collective effort, requiring the engagement of all stakeholders, but the potential for broad improvement and innovation makes it one of the most hopeful trends in the world today.