What the Global Circularity Protocol means for Manufacturing

The global economy faces what the World Business Council for Sustainable Development (WBCSD) has labelled a decisive decade.

Despite progress in decarbonisation efforts, the continued rise in material use and waste presents a threat to climate targets, biodiversity and resource security.

The extraction and processing of materials contribute to more than half of global greenhouse gas (GHG) emissions and at least 90% of impacts on biodiversity and water stress.

In response, the Global Circularity Protocol for Business (GCP) has been introduced. It provides a science-based framework to help organisations move from the conventional “take-make-waste” linear model to embedding circularity within their strategies and operations.

A global framework to measure and manage circularity

The GCP is a voluntary standardised framework for businesses of all sizes to measure, manage and report on their circular performance.

It can be applied at the level of a product material business unit or the corporation.

The protocol guides companies through five key stages: framing objectives, preparing data, measuring performance, managing strategy and communicating results. It uses standardised scopes for material flows and a methodology that connects circular strategies with outcomes for climate, nature and financial value.

Peter Bakker, President and CEO of WBCSD, explains that the framework “enables organisations to embed circularity at the heart of strategy while generating credible information for investors, stakeholders and policymakers". 

He also notes the persistent gap between goals and actions, stating: “At the halfway point to 2030, the gap between ambition and delivery remains wide... net zero cannot be achieved without circularity.”

Circularity as a strategic business advantage

The protocol presents circularity as a factor for competitiveness and resilience, rather than mere compliance task.

By concentrating on material flows, it could help businesses reduce their exposure to resource volatility and supply chain disruptions while also identifying opportunities for circular innovation.

According to a 2024 GCP Impact Analysis, widespread adoption could double the rate at which companies achieve advanced circularity maturity.

This could also lead to cumulative global material reductions of 100–120 billion tonnes by 2050 and avoid an estimated 67–76 gigatonnes of CO₂e between 2026 and 2050. These projections highlight how circularity could cut costs, unlock revenue and support long-term value creation.

Yumi Otsuka, Global Head of Sustainability at Toyota Motor Corporation, writes that Toyota has a long-standing commitment to resource efficiency.

She says the GCP is a "useful framework to visualise circular initiatives in business" and that Toyota will "intensify our joint efforts to accelerate implementation of and transition to a circular economy".

Progressive adoption and framework interoperability

The GCP acknowledges that businesses start from different points, offering a progressive path with three levels: initiation, expansion and consolidation. This modular design allows companies to adopt circular practices at a suitable pace while producing comparable data.

“At Philips, circularity is a powerful lever to reduce material use and our overall impact on climate and nature,” says Harald Tepper, Global Lead of Circularity at Philips.

He adds that “healthcare is a material-intensive industry embedding circular practices... can help hospitals with reducing their environmental footprint."

Harald believes the GCP offers a "clear and unified approach to set ambitious and adequate goals for circularity". 

A key element of the protocol is its interoperability with other sustainability and reporting frameworks such as Global Reporting Initiative, ISO standards, the GHG Protocol and European Sustainability Reporting Standards.

This alignment enables organisations to use a single data foundation for circularity across multiple ESG processes.

Governance is managed by a multistakeholder structure coordinated by the WBCSD and the UN Environment Programme’s One Planet Network.

The initial version is a starting point with future updates planned to include science-based target setting and a module on pollution and toxicity.