The latest PLM Green post “A PLM Perspective on New ISO Standards for the Circular Economy” is from CIMPA PLM Services who shares a timely summary, with references, of emerging international standards that are guiding the transition to a more sustainable low-carbon circular economy.
The circular economy, which promotes sharing, reusing, refurbishing, remanufacturing, and recycling, lies at the core of global sustainable development initiatives. With the release of three pivotal ISO standards — ISO 59004, ISO 59020, and ISO 59010 — the way we approach the circular economy is undergoing a significant transformation.
Defining the Circular Economy: ISO 59004
ISO 59004 sets the foundation by defining key terms and concepts related to the circular economy. It provides a clear and comprehensive vision of what the circular economy entails, outlining fundamental principles to guide organizations toward more sustainable practices. By fostering a shared commitment to sustainability, this standard also emphasizes strengthening relationships with stakeholders, such as organizations and businesses, policy makers and regulators, standardization bodies (organizations involved in developing and promoting standards), environmental NGOs and advocacy groups, financial institutions and investors.
ISO 59020 introduces a framework for evaluating circularity across various economic systems. It equips businesses and governments with the tools to quantify their circular economy performance, making it an essential instrument for tracking progress and informing strategic decisions. This framework allows organizations to monitor their impact and align their activities with circular economy goals.
Enhancing Sustainable Value Creation: ISO 59010
Complementing the previous standards, ISO 59010 provides detailed recommendations for assessing sustainable value creation models. It encourages companies to rethink their value chains, adopt circular strategies, and reduce waste. This standard focuses on optimizing business processes to create long-term value, ensuring that sustainability becomes an integral part of their operations.
Net Zero and Circular Economy: A New ISO Standard
A new ISO standard, currently in development, will focus on achieving net-zero emissions. Scheduled for release at COP30 in November 2025, this standard aims to provide clear guidelines, stringent requirements, and independently verified climate action plans. It will offer global organizations a structured approach to achieving net-zero goals while maintaining transparency and accountability.
The European Union’s Regulatory Initiative: ESRS E5
In parallel with ISO’s efforts, the European Union has introduced the European Sustainability Reporting Standards ESRS E5 package as part of its sustainability reporting standards under the Corporate Sustainability Reporting Directive (CSRD). The main objective of ESRS E5 is to guide companies in reporting how they manage and use resources sustainably. This package strengthens the transition to a circular economy by enhancing transparency and pushing companies to adopt innovative and responsible practices. The goal is to ensure that businesses are more accountable for their environmental impact while encouraging a shift toward more sustainable practices.
The Role of PLM in Supporting Circular Practices
Product Lifecycle Management (PLM) is becoming a vital tool in integrating circular economy principles. By enabling organizations to track products throughout their lifecycle, PLM helps reduce waste at the design stage, reuse materials, trace resources, and evaluate environmental impacts at every phase. Adopting these standards allows companies to increase efficiency, reduce their environmental footprint, and meet growing consumer demand for sustainable products.
Case Studies: PLM Driving the Circular Economy
Several industries already demonstrate the successful integration of PLM into their circular economy strategies. Retail companies, for instance, are leveraging PLM to design sustainable products, promote repairability, and enhance reuse, thereby reducing waste and driving circularity. Decathlon, a leading sports retailer, supports recycling programs like worn-out running shoes through its PLM system, which tracks material composition and evaluates recycling potential to promote sustainability.
The aeronautical and automotive industries provide further examples of how PLM is being used to address circular economy challenges. In aviation, initiatives like the Royal Netherlands Aerospace Centre’s “Future Sky Circular Aviation” and the “SUSTAINair” project focus on circular design solutions that extend product durability, simplify repairs, and facilitate component reuse and recycling.
Similarly, in the automotive sector, companies such as Stellantis have embraced circularity as part of their business model. Using PLM, they implement a 4R strategy: Remanufacture, Repair, Reuse, and Recycle. Additionally, they integrate with platforms like SiliconExpert and Octopart to source sustainable parts, further reinforcing their commitment to circularity.
Conclusion
The introduction of these new ISO standards represents a turning point in our collective approach to the circular economy. By encouraging more responsible practices and fostering a culture of sustainability, these standards are shaping a more resilient and sustainable future for all industries. Organizations that adopt these standards will not only enhance their operational efficiency but also lead the way in meeting the growing global demand for sustainability.
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