Standards Development

Scope

This document specifies minimum requirements and gives guidance to help organizations design their value networks, contributing to the transition towards a circular economy. This document is intended to supplement the clause 7 of ISO 59010.

This document is applicable to any organization regardless of size, sector or region. This document does not include sector-specific requirements/recommendations.

Purpose

As mentioned in ISO 59010 (Circular economy — Guidance on the transition of business models and value networks), it is important for organizations to transition a value chain or linear value network to a circular value network to achieve a circular economy.

Clause 7 of ISO 59010 provides guidance for organizations seeking to transition from linear to circular value networks. For example, it describes basic procedures such as establishing shared objectives and strategy, implementing appropriate value network governance, and using or building shared infrastructure. However, Clause 7 of ISO 59010 only provides concepts and basic procedures, making it difficult for users to implement a circular value network, even though they may understand the importance and need to transition to a circular value network. In the process of developing ISO 59010, a considerable amount of comments were submitted for additional work on specific guidelines for organizing a value network. For example, some experts commented that explicit actions for a value network and some guidance on how to build meaningful links between organizations should be added. It is necessary to provide specific guidelines to complement Clause 7 of ISO 59010 and the guidelines may include minimum requirements and recommendations for organizing a circular value network and guidance on how to meet them. WG2 recommended the establishment of a PWI on "Strategies on How to Transition from Linear Models to Circular Value Chains and Networks, Supplemental to 59010" and the project team has discussed this proposal.

The purpose of this document is to provide organizations with minimum requirements and recommendations for organizing their circular value networks from the following perspectives described in clause 7 of ISO 59010. This document also provides guidance on how to apply the ISO 59020 circularity indicators to a value network. This document is not intended to address the design of a solution (product or service), but how to organize the value network relevant to it (for details, see appendix).

1. Shared objectives and strategies in a value network

- Boundary (sphere of influence between participants) and shared objectives

- Shared strategies (including shared values and key actions)

2. Appropriate governance in a value network

- Governance body establishment

- Governance criteria

- Roles and responsibilities of participants of a value network

- Confidential information management

3. Shared infrastructures in a value network

- Information-exchanging platform (e.g., origin, quality, damaged levels, processing, repairing, refurbishing, remanufacturing, etc.)

- Logistics network (e.g., distribution, collection, etc.)

- Design for circularity

4. Performance evaluation

- Circularity performance of the value network Applying ISO 59020 circularity indicators Other KPIs to measure and assess the circularity performance between participants  Balancing the benefit share of the value network

- Governance performances of the value network (governance is also covered in clause 5, so we need to make sure what this subclause provides)