“The global implementation of the protocol could prevent 76 gigatonnes of CO₂ over the next 25 years, save 120 billion tonnes of materials, and generate long-lasting positive impacts on nature and equity.”
Source: GCP v1.0 – Impact Analysis
What is the Global Circularity Protocol for Business?
The GCP is a voluntary framework developed by the World Business Council for Sustainable Development (WBCSD) and the One Planet Network, coordinated by the United Nations Environment Programme (UNEP). Its purpose is to provide a standardized methodology that enables organizations of all sizes and sectors to integrate circularity into their strategies and operations. The protocol focuses on measuring and managing material flows and their impacts across the entire value chain, aligning with principles of systems thinking and integrated sustainability.
Why is it important?
- Reduce exposure to resource scarcity risks.
- Identify opportunities for circular innovation.
- Improve transparency for investors and regulators.
- Generate comparable and decision-useful data.
How it works: the five stages of the GCP
The implementation of the GCP is structured into five sequential and modular stages, allowing organizations to progress from a basic diagnosis to the strategic integration of circularity. These stages are designed to be comprehensive yet flexible, and are organized around specific tasks that range from defining the use case to establishing governance and communicating results. Below is a detailed description of each phase:
1. Frame
The objectives of the circularity assessment are established, including the use case (internal management, risk mitigation, external communication), the level of analysis (material, product, business unit, organization), and the relevant stakeholders. Additionally, the organization’s maturity level (initiation, expansion, consolidation) is defined.
2. Prepare
This stage involves mapping and prioritizing the material system. It includes five key steps:
Defining organizational boundaries (subsidiaries, geographies, operational units)
Mapping the value chain and identifying circularity hotspots
Conducting a double materiality assessment (risks and opportunities)
Setting operational boundaries for material flows
Prioritizing materials based on impact, volume, criticality, and circular potential
3. Measure
Quantitative indicators are selected to measure circularity (e.g. % of circular inflow, material use intensity), and data is collected accordingly. Data quality and calculation traceability are taken into account. This stage is aligned with the CTI (Circular Transition Indicators) methodology and enables connections to be made with outcomes related to climate, nature, and social equity.
CTI version 4.0 serves as the basis for the GCP’s indicators. Among them is the Impact of the Loop module, which covers effects on biodiversity, air quality (e.g. PM2.5 reduction), land use, and other nature-related impacts. This connection allows companies to link circular strategies with broader ecological protection goals.
4. Manage
Based on the analysis of results, actions are prioritized, a continuous improvement roadmap is developed, and internal governance structures are established to integrate circularity into the organization’s strategy. This includes defining key performance indicators (KPIs), assigning responsible roles, conducting regular reviews, and maintaining internal documentation.
5. Comunicate
Select indicators
The protocol uses a specific set of indicators selected from the CTI v4.0 framework, organized into three main categories: circular performance assessment, value assessment, and impact assessment. Not all CTI indicators are used by default; the GCP defines a mandatory minimum set, while others are considered complementary depending on the use case and the organization’s maturity level.
Circular performance assessment
- Close the loop
- Circular inflow: percentage of secondary, regenerative, or reused materials entering the system.
- Recovery potential: extent to which products are designed to be recyclable, repairable, durable, etc.
- Actual recovery: percentage of materials effectively recovered at the end of their useful life through recycling, remanufacturing, or reuse.
- Narrow and slow the loop
- Absolute and relative dematerialization: total and specific reduction in material use.
- Actual lifetime: comparison between the actual and expected lifespan of products.
Circular value and impact assessment
- Value the loop
- Circular productivity and revenue generation with fewer virgin materials.
- Impact of the loop
- GHG emissions reduction.
- Reduced pressure on land use and biodiversity.
- Social impact and equity.
Progressive levels of use
The GCP acknowledges that organizations begin their circular journey from different starting points. For this reason, it proposes a tiered approach that adapts the protocol’s application to the level of maturity, data availability, and degree of control over material flows. This progressive logic enables companies to start with basic assessments and gradually move toward a systemic approach that includes indirect impacts and extended value chains. These usage levels reflect not only technical ambition but also guide the prioritization of efforts and the traceability of results over time.
- Level 1 (Initiation): focus on flows under direct control. Suitable for pilots or initial assessments.
- Level 2 (Expansion): includes indirect flows and stakeholder engagement.
- Level 3 (Consolidation): comprehensive evaluation including environmental and social impacts.
Alignment with ESG frameworks
One of the GCP’s strongest features is its ability to interoperate with leading international sustainability frameworks—both for reporting and management. This alignment ensures that the data generated does not remain siloed, but can be directly integrated into existing disclosure systems, enhancing consistency and avoiding duplication.
Moreover, the protocol is built on concepts that are compatible with impact accounting, financial risk assessment related to sustainability, and expanding corporate disclosure requirements.
The main frameworks with which the GCP establishes direct alignment include:
- GRI: reinforces content on resource use, material efficiency, and circular economy, especially under Standard 301 (Materials).
- GHG Protocol: complements emissions accounting by adding traceability to material-related emissions (Scope 3, Categories 1, 2, and 12).
- ESRS (CSRD): addresses specific requirements of the new EU Corporate Sustainability Reporting Directive, particularly in standards E1 (environment) and E5 (resource use and circular economy).
- IFRS S1/S2: enables circularity information to be included in financial sustainability analysis and its implications for risks and opportunities.
- ISO 59020 and 59004: supports practical application aligned with new international standards on circular measurement and strategy.
- <IR> Integrated Reporting: links circular flows with long-term value creation, especially for natural and manufactured capital.
Thanks to this structural compatibility, the GCP not only drives operational improvement but also acts as a technical bridge between the circular economy and next-generation ESG requirements.
Benefits for organizations
The GCP offers tangible advantages beyond compliance. Its structured and data-driven approach allows companies to:
- ESG transparency and comparability.
- Risk reduction from material scarcity.
- Opportunities for innovation and efficiency.
- Greater access to capital and increased investor credibility.
- Proactive regulatory compliance.
- Alignment with biodiversity and ecological restoration goals.
New developments and next steps
Future evolution of the GCP: roadmap, upcoming versions, and scalability
The GCP v1.0, officially launched at COP30, marks the beginning of a constantly evolving framework. Its development is structured in phases that go beyond methodological elements, encompassing the integration of circularity into management systems, corporate finance, governance, and public policies.
Current phase (2024–2025)
During this stage, the focus is on laying the groundwork for effective implementation through:
- Landscape & Impact analysis.
- Implementation Readiness Clinics to support practical business adoption.
- Integration of key dimensions such as social impact, corporate governance, dematerialization, and disclosure frameworks.
Evolution phase (2026–2028)
The future roadmap is structured around several workstreams:
- Public policy framework
- Development of regulatory safeguards.
- Monitoring and implementation systems.
- Accelerators for policy application of the GCP.
- Circular target setting
- Guidelines for setting goals aligned with climate science, social equity, and financial performance.
- Explicit linkage with sustainable finance frameworks.
- Data exchange
- Development of a shared data model.
- Expansion of the PACT system for inter-company traceability and comparability.
- Financial integration
- Assessment of circular risks and opportunities.
- Valuation methods specific to circular strategies.
- Inclusion in financial statements and accounting metrics.
- Avoided resource use
- Net resource savings indicators.
- Indicators for material scarcity and environmental and social impact metrics.
This architecture positions the GCP not only as a measurement protocol, but as a circular governance ecosystem with implications for strategy, finance, and regulatory compliance.
It is also important to note that the Circular Transition Indicators (CTI), which serve as the methodological foundation of the GCP, have reached their final version (v4.0) and will no longer be developed independently. From now on, the GCP itself will continue their evolution, integrating and expanding these indicators within a broader framework that connects circularity with climate action, biodiversity, and social equity.
Source: GCP Launch Presentation – WBCSD
Sector-specific application and adaptability
One of the key strengths of the GCP lies in its adaptability to different organizational realities, industrial sectors, and geographic contexts. Far from being a rigid framework, it is designed to scale with complexity and available resources, without losing methodological rigor.
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Progressive adaptation for small and medium-sized enterprises (SMEs): the protocol includes usage levels that allow SMEs to begin with an evaluation focused on directly controlled flows, using a limited number of key indicators. This reduces operational and technical burden while maintaining strategic relevance, opening the door to gradual advancement.
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Localized approaches for Global South economies: the GCP acknowledges that data availability, infrastructure, and technical capacity vary widely across regions. It provides guidance for adapting its application in contexts with limited information access or where informal flows (e.g., community reuse or recycling) play a significant role. This enables the recognition of contributions to circularity that other frameworks may overlook.
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Integration with sector-specific frameworks: sectors such as electronics, construction, food, or textiles have particular characteristics in terms of life cycles, critical materials, or specific regulations. The GCP is designed to complement existing sectoral tools (e.g., Level(s), Product Environmental Footprint, CRREM, etc.), facilitating practical integration and alignment with each industry’s specific challenges and opportunities.
This flexibility makes the GCP a cross-cutting but non-generic tool: methodologically rigorous at its core, yet adaptable in its implementation.
Creador de Insights dijo:
Integrating circularity is a prerequisite for resilience and competitiveness. The GCP provides a robust methodology to turn commitments into useful data, informed decisions, and verifiable results.
At Baisma, we work with you to apply this framework step by step, tailored to your organization’s context and maturity level — from initial diagnosis to a fully integrated circularity strategy.
Interested? Get in touch with us.
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