The Global Circularity Protocol: Setting a new standard for measuring circular performance

The Global Circularity Protocol for Businesses (GCP) introduces a global, interoperable framework for measuring, managing, and communicating companies’ circular performance and impacts.

A defining feature of the GCP is its operational boundaries for material flow analysis and circularity performance accounting, which enable comparability in assessing and reporting circularity across industries and geographies. Similar to Scopes 1, 2, and 3 in the greenhouse gas (GHG) Protocol, the GCP defines Scopes A, B, C, and D:

• Scope A: Flows to and from the environmental system
• Scope B: Flows entering and exiting the company
• Scope C: Flows across the end-to-end value chain
• Scope D: Flows within other parts of the economic system

As the protocol launches, we explore how these scopes address today’s key challenges in circularity measurement and how businesses can leverage them for credible benchmarking and reporting.

Today’s circularity metrics are inconsistent, incomparable, and incomplete

One of the biggest challenges in circularity reporting today is the lack of standardised and comprehensive system boundaries. This leads to inconsistent methodologies and confusion about what ‘circularity’ actually means. For example, the Circularity Gap Report 2025 (CGR®) estimates global circularity at 6.9%, reflecting a macroeconomic perspective roughly aligned with Scope C. However, this figure is sometimes misinterpreted as an organisation’s recycled content rate, a metric more relevant to Scope B. Such misinterpretations highlight the need for clearer definitions and consistent boundaries to ensure credible and comparable circularity reporting.

Compounding the issue, many companies lack visibility beyond their immediate operations, making it difficult to trace material flows across complex, global supply chains. Limited collaboration and data exchange further hinder the ability to measure circularity holistically and accurately.

Compare and benchmark through the GCP scopes

By introducing Scopes A–D, the GCP marks an important step toward global comparability. These scopes enable companies to benchmark their performance against peers and industry standards, inform decision-making within their organisations, and support investors in assessing circular performance and setting thresholds or targets. This common language helps align circular metrics across value chains, making data more actionable and insights more meaningful.

Look beyond the company to drive systemic change

Measuring beyond a company’s own operations—through Scope C and Scope D—encourages systemic thinking. It helps businesses understand their wider environmental, economic, and social impacts, and fosters collaboration across value chains.

For instance, under Scope C, organisations can evaluate how their inputs affect upstream activities. One kilogram of copper entering a company (Scope B) corresponds to 156 kilograms of copper ore extracted and processed upstream(Scope C). Under Scope D, companies can assess their impact beyond their own value chain. A preventative paint coating that extends the lifespan of ships reduces the need for new ship construction and the associated resource extraction.

Report sustainability performance with evidence

By mapping material flows across the entire value chain and beyond, organisations can conduct evidence-based double materiality assessments to identify environmental and social hotspots. GCP reporting also supports regulatory compliance, particularly in Europe. It helps companies:

• Collect the necessary data for the Corporate Sustainability Reporting Directive (CSRD)
• Comply with the Corporate Sustainability Due Diligence Directive (CSDDD), which requires value chain hotspot analysis and prioritisation of actions to address environmental impacts

Next steps: Start small, learn, and scale

The GCP is designed to be practical and scalable, accommodating businesses at all levels of circular maturity

• For beginners: Start small, focus on a key set of material flows, learn and collect data gradually, and improve over time.
• For experienced reporters: Broaden your data collection to Scope C and D flows and update your materiality assessment accordingly.

By clearly declaring what’s included and excluded, companies can build capacity gradually while maintaining transparency and credibility.