Since 2019, at EIG (Eco Intelligent Growth), we have participated in several committees for the definition of circular economy standards through UNE (Spanish Association for Standardization), together with experts and organizations.  

The ISO standards on the circular economy are practical guides designed to set out guidelines and provide organizations with tools to help them implement and measure the circular economy.  

ISO 59040 was recently published, focusing on the Product Circularity Data Sheet (PCDS), a method for evaluating and communicating the circularity of a product according to the ISO 59000 family of standards. The PCDS is also a method for reporting on the circularity performance of a product using verifiable data.  

The ISO committee is currently seeking feedback from the public on the three standards already published in 2024:  

• 59004 – Terminology, Principles, and Guidance for implementation  

• 59010 – Guidance on business models and value networks 

• 59020 – Measuring and assessing circularity 

At EIG, we summarized each one with its corresponding diagram to facilitate its understanding.  

 

ISO 59004 Circular Economy –  Terminology, Principles and Guidance for Implementation 

ISO 59004 is a guide designed to help any organisation implement a circular economy model through sustainable resource management, the consolidation of relationships with stakeholders and the contribution to the mitigation of climate change. It focuses on the transition from a linear to a circular model.  

The standard defines what the circular economy is (vision and principles), and how it can be achieved, suggesting a series of actions to promote it.  

How is it structured?  

Firstly, the principles of the circular economy are presented, focusing on systemic thinking and the sustainable management of natural resources with the aim of generating environmental and socio-economic benefits.  

Subsequently, the actions to be taken in line with the principles of circularity are detailed. These actions focus on the creation, retention and recovery of value, the conservation of ecosystems and the collaboration of key actors to facilitate the transition towards circularity.  

Finally, the standard offers a general guide for implementing the circular economy, explaining the steps for applying these principles and actions within the organisation.  

This ISO is connected to ISO 59010, which focuses on the transition to circularity for a business-oriented model, and ISO 59020, which is structured to measure and evaluate circularity performance.  

At EIG we find an alignment between the principles defined by the ISO 59004 standard and the Cradle to Cradle Certified® certification. However, C2C® certification offers a more comprehensive vision, where waste is the starting point and the objective is to guarantee efficient and optimized resource management. 

Link to view ISO 59004 summary infographic in large version

 

ISO 59010 Circular economy – Guidance on Business Models and Value Networks 

ISO 59010 provides guidance on implementing the circular economy in business models from an organisational and inter-organisational perspective.The five key steps for the transition from a linear to a circular model, as defined by ISO 59010, are described below: 

1. Definition of objectives and boundaries:  

An analysis of the current context and business model allows organizations to understand their starting point and identify opportunities for improvement and synergies.  

To assess current circularity performance and analyze areas for improvement, five key indicators should be analyzed: input resource flow, output resource flow, energy, water, and economics.  

2. Circular economy strategy:  

Analyze risks and opportunities to develop a strategy aligned with the principles of the Circular Economy. This strategy must guarantee the regeneration of ecosystems and long-term sustainable development, accompanied by an economic analysis that takes into account the environmental costs of the solutions and an evaluation of materiality.  

3. Plan of action: move from a linear to a circular business model 

Objectives, deadlines and actions must be established to implement the circular model. Continuous review of progress is required to ensure that modifications and costs are adjusted to needs and relationships with partners and customers.  

4. Transition of the value network:  

This is a new and interesting aspect, useful for making the circular vision of the business model as widespread as possible. Unlike a value chain, a circular value network includes multi-sector relationships, allowing for knowledge sharing and, consequently, the generation of new opportunities.  

5. Review and continuous monitoring:  

Periodic evaluation of circularity performance is essential to ensure continuous improvement of environmental, social and economic impact over a given period. The value network should also be evaluated periodically to assess possible changes in governance.  

This standard is aligned with the methodology that EIG has developed since 2020 to accompany companies on their path towards a more sustainable model. While ISO 59010 provides a solid foundation, the methodology of EIG is more specific and adapted to European sustainability requirements, allowing companies to develop customized action plans.  

Link to view ISO 59010 summary infographic in large version

 

ISO 59020 Circular Economy – Measuring and assessing circularity  

ISO 59020 provides a framework for measuring and evaluating circular performance. It is a metric applicable to companies of all types and sizes.  

Before measuring, it is necessary to define the limits of space and time, as well as to  map the economic, environmental and social interactions of the organization.  

ISO 59020 provides a system of 23 indicators divided into 5 categories: input flows, output flows, water, energy, economy. These indicators make it possible to measure the circularity performance of a specific system in a given period and are accompanied by a methodology to also measure the environmental and social impacts of the strategy adopted by the organization.   

Many of these indicators are also present in the C2C certification, although this requires a minimum degree of circularity to be achieved. Cradle to Cradle Certified®, on the other hand, measures the consumption of water, energy and resources, with the aim of guaranteeing circular products and sustainable processes.  

 

In addition to the indicators, ISO 59020 establishes requirements for data evaluation and documentation. The result must be reported on and documented in a transparent, comprehensible and verifiable manner so that the results are easily communicable to the interested parties.  

The measurement and evaluation operation must be repeated over time in order to guarantee a meaningful result and thus guide the choice of circularity objectives for continuous improvement.  

The evaluation of data, its transparent communication and the orientation towards constant improvement are also elements of the Cradle to Cradle Certified® methodology, a certification that has always aimed to push towards a circular business model.  

EIG goes further, offering, in addition to C2C® certification, specific strategies for advanced sustainable development, focusing on the impact on ecosystems, the protection of biodiversity and the health of materials, elements that this ISO standard addresses in a more general way.   Link to view the ISO 59020 summary  infographic in large version

 

Who can opt for ISO in Circular Economy?  

Any company or organization of any type and size can implement these new ISO standards as a frame of reference and, although they are not certifiable, they offer valuable guidance for the implementation and measurement of circular economy practices.  

We can help you  

At EIG, as circular economy, sustainability, and innovation consultants with 20 years of experience, we can help you implement these standards in your organization and ensure that your practices are aligned with current European regulations. In addition, all our services and actions are already adapted to future regulatory requirements.  

If you want to position your organization at the forefront of sustainability, contact us and we will accompany you in your transition to the circular economy.