Circular Economy and the Disclosure Landscape: an OECD Investigation

Circular Economy has been on the rise, and debates about its adoption, key elements, benchmarks, and range of application are prevailing than ever before. In November 2021, the Organisation for Economic Co-operation and Development (OECD) published a paper focusing on Circular Economy Labels and Information Schemes (CELIS). 

The document provides an overview of labels, certifications, and standards that address circular economy aspects, assesses the drivers and barriers preventing the leverage of such communication elements, and identifies circular economy components that can be best applied to the disclosure landscape. 

In respect to these objectives, the paper points that: 

• Information asymmetry or scarcity negatively impact resource efficiency and circularity, leading to inefficient decision-making along the supply and value chains; 

• Although there was an increase in environmental labeling and information schemes, studies have prioritized consumer-oriented labels while setting information disclosure business-to-business aside. Confidential business information and intellectual property rights are pointed as barriers for the information system uptake; 
• Governments are key to enhancing and improving circular economy communication elements, for example, facilitating methodological advancements to support criteria integration (product lifespan, durability, reparability, etc.), developing an information system through regulatory information disclosure requirements, and supporting the harmonization of information systems and metrics; 

Ultimately, CELIS can play an important role in enhancing and improving circular economy activities. The paper is available in the OECD library.  

Last Update: 2021-11-30