Global Circularity Protocol: the standard for circularity 

In recent years, circularity has become firmly embedded in the language of businesses, institutions, and investors. However, turning this concept into operational practice and a true driver of innovation remains a significant challenge. As a result, many companies set ambitious circular economy goals but struggle to understand what it actually means to measure circularity, a fundamental aspect on which Tondo actively works, including through its own circularity measurement tools, how to implement it within the value chain, how to assess its benefits, and how to communicate it credibly.


The Global Circularity Protocol for Business (GCP) was created precisely to bridge this gap. It is a global framework that helps companies measure, manage, and communicate their circular performance through standardized indicators, clear processes, and a shared language. Moreover, it is a new tool developed with the contribution of more than 80 organizations and over 150 experts, with the ambition of finally bringing coherence to a landscape that has long been fragmented.


At a time when regulations such as the CSRD, the Digital Product Passport, and new waste directives are reshaping the European competitive environment, the Global Circularity Protocol represents a crucial step forward for all companies seeking to integrate circularity into their business models, not only as part of sustainability strategies. 

Why a Global Circularity Protocol is needed

For example, despite the growing adoption of the circular economy, a major issue persists: everyone measures circularity in their own way. Some companies focus on the percentage of recycled material, others on product design, and still others on waste reduction or qualitative assessments. This makes it impossible to compare results across sectors, competitors, or throughout the same supply chain.

For this reason, the lack of shared standards generates three main consequences: 


1. Poor comparability of data: investors, partners, and regulators struggle to interpret results expressed through very different methodologies.


2. Difficulty scaling circular initiatives: without a consistent metric, circularity often remains confined to pilot projects rather than becoming part of governance.


3. Risk of unintentional greenwashing: companies communicate results that are difficult to verify, undermining stakeholder trust.


The Global Circularity Protocol was designed precisely to address these issues. It does not propose a simple toolkit of indicators but a structured five-step pathway: Frame, Prepare, Measure, Manage, Communicate. It is a method intended to help companies integrate circularity into decision-making and operational processes, with scientific rigor and practical applicability.

The five pillars of the Global Circularity Protocol 

1. Frame – Define objectives and scope of analysis


The first phase invites companies to clarify why they want to measure circularity and for which audience. It is often an underestimated but crucial step: an effective assessment can be conducted at the level of materials, products, business units, or the entire organization, depending on strategic goals.


This phase requires defining:

– use cases (e.g., reporting, internal steering, risk mitigation)
– key stakeholders
– maturity level
– analytical boundaries


Good framing prevents wasted time and resources and allows companies to focus on what truly generates value.


2. Prepare – Map the value chain and identify key issues


The second phase builds a solid foundation for measurement. Companies must:

– define organizational and operational boundaries
– map material flows along the entire value chain
– identify hotspots, risks, and opportunities
– determine which materials and processes should be prioritized


This is one of the most concrete and insightful parts of the Protocol. For many companies, it is the first time they observe material flows not only at the point of entry or exit but across all phases of transformation, use, maintenance, and end-of-life.


3. Measure – Measure circularity with comparable indicators


The heart of the Global Circularity Protocol lies in measurement. Unlike many existing methodologies, the GCP integrates three dimensions:


1. Circular performance assessment, including indicators such as:

– percentage of circular inflow
– percentage of circular outflow
– recovery potential
– material circularity
– dematerialization (absolute and relative)


2. Value assessment, measuring the value generated by circularity: 

– material circularity revenue
– material productivity
– product lifetime extension


3. Impact assessment, evaluating how circularity reduces environmental and social impacts:

– GHG emissions
– pressure on natural resources
– social and territorial benefits


This approach moves beyond the narrow view of circularity as merely “waste reduction” and instead positions it as a true driver of competitiveness, resilience, and resource efficiency.


4. Manage – Translate results into operational strategies


Measurement generates value only when it leads to better decisions. For this reason, the Protocol dedicates a specific phase to managing results. Companies are guided to:

– analyze patterns and inefficiencies
– prioritize interventions based on impact, feasibility, and return
– develop a roadmap with clear targets
– define roles, competencies, and governance structures


Examples provided by the guidelines include:

-– increasing the use of secondary materials
– improving design for disassembly
– collaborating with suppliers on circular standards
– introducing service-based models or product take-back programs


This is the moment where circularity truly becomes a business topic, not just an environmental one.


5. Communicate – Communicate transparently and credibly


The final phase addresses a fundamental element: communication toward investors, regulators, customers, and partners. Disclosure must be:

– decision-useful
– comparable
– understandable
– aligned with emerging regulations


The GCP provides practical guidance on levels of disclosure, audiences, formats, and messaging. It is especially helpful given the fast-growing demand for verifiable data from markets and institutions.

What changes for companies 

The Global Circularity Protocol represents a real turning point because it:


– harmonizes a fragmented landscape of circularity metrics
– links measurement, management, and communication
– makes circularity operational within business decision-making
– improves comparability across global supply chains
– prepares companies for new European regulations
– creates a common language for innovation, investment, and partnerships


The result is an approach that helps organizations understand where to invest, how to reduce risks and inefficiencies, and how to generate economic and environmental value over time. In other words, circularity becomes a strategic engine for transformation.

Tondo’s perspective

For Tondo, which has long worked to make the circular economy concrete and scalable, the Global Circularity Protocol represents a key step toward a more competitive and resilient future for European companies.


The Protocol confirms what we observe daily in our projects: circularity works when it is measured, when it is integrated into decision-making processes, when governance is clear, and when it becomes a lever for innovation rather than a mere compliance exercise.


To support companies on this journey, Tondo has developed initiatives such as the AI Circular Venture Sprint and the Circularity + AI pilot tool, designed to accelerate the development of circular products and improve performance measurement.


The GCP helps transform this vision into practice. It offers concrete tools for companies of all sizes, facilitates collaboration along supply chains, and creates the conditions for transparent, verifiable, and scalable circularity.


In the coming years, the challenge will be to bring this approach to every sector, adapt it to SMEs, integrate it with digital technologies, and use it to develop new value models based on efficient resource use.


This transformation is already underway. The Global Circularity Protocol may well become the catalyst that accelerates progress toward an economy capable not only of reducing impacts but also of regenerating value.

Francesco Castellano

Francesco Castellano is a seasoned business leader and strategist with over 20 years of experience spanning research, finance, consulting, and entrepreneurship. He has held impactful roles, including serving as a consultant at Bain & Company, launching Uber operations in Turin, and working as Managing Director of a Swiss start-up. In recent years, Francesco Castellano founded Tondo, a hub of... Read more

Francesco Castellano is a seasoned business leader and strategist with over 20 years of experience spanning research, finance, consulting, and entrepreneurship. He has held impactful roles, including serving as a consultant at Bain & Company, launching Uber operations in Turin, and working as Managing Director of a Swiss start-up.

In recent years, Francesco Castellano founded Tondo, a hub of organizations dedicated to promoting Circular Economy approaches and supporting companies in transitioning to sustainable and circular practices. He is also the ideator and coordinator of the Re-think Circular Economy Forum, a high-profile event held across Italy to showcase innovative Circular Economy solutions.

Francesco Castellano collaborates with European institutions, serving as an expert for the European Commission’s Circular Cities and Regions Initiative and mentoring startups in the European Institute of Innovation and Technology’s (EIT) New European Bauhaus Booster Program. Through these roles, he actively supports the development and scaling of circular economy ventures across Europe.

He is also a sought-after speaker and lecturer, sharing his expertise on Circular Economy, Innovation, and Entrepreneurship at universities and international events. Francesco holds executive education certificates from prestigious institutions such as MIT, Harvard, and the University of Virginia, further solidifying his credentials in strategy, sustainability, and innovation.

Fluent in Italian, English, and Spanish, Francesco Castellano combines his diverse skill set with a passion for Circular Economy, Cleantech Innovations, and Entrepreneurship. His strong background in Corporate Strategy, Sustainability, Innovation Development, and Finance enables him to drive impactful change in every initiative he undertakes.

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