Global Circularity Protocol: A New Supply Chain Benchmark

The global economy is entering what the World Business Council for Sustainable Development (WBCSD) calls a decisive decade for business. Despite progress on decarbonisation, material use and waste continue to rise, threatening climate goals, biodiversity and resource security.

The extraction and processing of materials already accounts for more than half of global GHG emissions and more than 90% of biodiversity and water stress impacts.

The Global Circularity Protocol for Business (GCP) sets out a science-based framework to help organisations move beyond the linear "take-make-waste" model and embed circularity at the core of their supply chain strategies.

Standardised supply chain measurement

The GCP is a voluntary framework that gives organisations a standardised way to measure, manage and communicate circular performance across their supply chains. It is designed for businesses of all sizes and sectors and can be applied at product, material, business unit or corporate level.

The framework is built around five stages: frame, prepare, measure, manage and communicate. These stages guide companies to define their objectives, map value chains, set boundaries, select indicators and disclose performance.

The protocol introduces standardised scopes for material flows (A-D) and a material flow-based methodology that links circular strategies to outcomes for climate, nature, social equity and financial value.

“The Global Circularity Protocol for Business provides a globally aligned, science-based framework to manage circular performance,” says Peter Bakker, President and CEO of WBCSD, in the report.

“It enables organisations to embed circularity at the heart of strategy while generating credible information for investors, stakeholders and policymakers," he adds.

“At the halfway point to 2030, the gap between ambition and delivery remains wide: while decarbonisation is accelerating, material use and waste continue to rise, undermining both climate and nature goals. Net zero cannot be achieved without circularity.”

Resilience opportunities

By focusing on material flows throughout supply chains, the protocol helps businesses reduce exposure to resource volatility, regulatory change and supply chain disruption while identifying opportunities for circular innovation.

"At Philips, circularity is a powerful lever to reduce material use and our overall impact on climate and nature, while driving customer value and business success," says Harald Tepper, Global Lead of Circularity and Director of Sustainability at Philips.

"Healthcare is a material-intensive industry. Embedding circular practices can help hospitals reduce their environmental footprint while improving healthcare resilience and patient outcomes."

The 2024 GCP Impact Analysis suggests widespread adoption could double the pace at which companies reach advanced circularity maturity, deliver 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 projected gains highlight circularity's potential to cut costs, unlock new revenue streams and support long-term value creation.

Collaborative supply chain implementation

The GCP offers a progressive user journey with three levels: initiation, expansion and consolidation. At initiation level, organisations focus on material flows under direct control and begin with at least one core metric.

Expansion adds a fuller set of metrics and brings stakeholder consultation into the assessment of impacts, risks and opportunities. Consolidation extends to material flows under indirect control, integrates impact metrics such as GHG emissions and biodiversity and links circularity more deeply with risk management and governance.

"For years, Toyota has been committed to resource efficiency, including easy-to-dismantle design, waste management in the production process and proper treatment of ELVs," writes Yumi Otsuka, Global Head of Sustainability at Toyota Motor Corporation.

"The GCP allows Toyota to strategise circular business models through stakeholder dialogue. We will intensify our joint efforts to accelerate implementation of and transition to a circular economy."

A defining feature of the protocol is its interoperability with existing sustainability frameworks, enabling organisations to use one data foundation for circularity across multiple ESG processes.

Governance is anchored in a multistakeholder structure coordinated by the WBCSD and the United Nations Environment Programme's One Planet Network, turning circularity from a concept into a measurable, mainstream supply chain reality.