5 Things to Know About the Circular Economy

Recycling is an important part of the circular economy, but the two concepts are not interchangeable.

A circular system keeps resources in use by turning waste into secondary raw materials, using that material to manufacture new products, and eventually returning those products to the system as waste. Manufacturers must consider the entire product lifecycle – material selection, production efficiency, recyclability, waste collection, sorting, and reuse.

The transition is being accelerated by EU legislation, including requirements relating to packaging recyclability, recycled content, environmental performance, and extended producer responsibility.

Regulation is not the only driver, though. “The sector is being pushed by regulation, and also by the choices of customers,” says Giordano. “There is more and more interest among customers in buying products that are recyclable and contain recycled material.”

Manufacturers should, therefore, monitor regulatory developments well in advance, rather than waiting until requirements become mandatory. “Preparing early also means monitoring product recyclability, assessing environmental impact through tools such as Life Cycle Assessment, and integrating sustainability into product development,” he explains.

Manufacturers also need reliable evidence showing where recycled material came from, whether it comes from pre-consumer or post-consumer waste, and how it moved through the value chain.

Traceability is particularly important when recycled materials are imported from outside Europe. Without suitable verification, there may be no reliable guarantee of their origin or recycled content. 

Proper management requires collaboration across the value chain, including recyclers, suppliers, manufacturers, customers, certification bodies, and institutions.

The number of schemes addressing recycled content and circularity has grown significantly, so manufacturers need to assess them carefully. 

“There are many schemes, but only a few of them are valid,” Giordano explains. A credible scheme should be based on recognized technical standards, independently audited, supported by appropriate accreditation, and recognized in the markets where products will be sold.

“One thing is accreditation. Another thing is recognition in the market,” he says. Unlike a manufacturer’s self-declaration, accredited certification can involve on-site checks of traceability, production inputs and outputs, documentation, and mass-balance calculations. This provides stronger support for environmental claims and reduces the risk of greenwashing. 

For plastic recyclers and manufacturers using recycled materials, Kiwa’s RecyClass certification services can help demonstrate traceability, conformity, and compliance throughout the recycling process.

The circular economy is becoming a more complex technical and regulatory field. Manufacturers, therefore, need to choose solutions that suit their products, sector, and markets.

“My advice for companies is to start by understanding the regulatory framework applicable to their sector and work with experienced professionals to identify the most appropriate circular economy strategy,” Giordano says. “There are many possible solutions, but not all of them deliver real value.” 

For manufacturers, the objective should not be to obtain certification simply for the sake of having a label. The chosen approach should strengthen compliance, improve processes, support credible claims, and create value in the marketplace.

“The real competitive advantage comes from making informed decisions based on technical expertise and reliable independent sources,” he concludes. “In a competitive and complex market, knowledge and competence are what really make the difference.”