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The circular economy is a win for Italy: The Circular Economy Network's most recent report shows that recycling accounts for over a fifth of what we create. And we rank top among the five main economies in the European Union in terms of circularity performance, with 45 points, followed by Germany (38 points), France (30), Poland, and Spain (26). However, we could do better. How? By strengthening firms' ability to monitor performance, they may make their plans more effective and their circular economy models more competitive. It's a realistic goal. Beginning in 2025, we will have a new reference framework for evaluating circularity and communicating company sustainability: the effect of the new European Green Deal directives. On the one hand, there are guidelines on corporate sustainability reporting and corporate due diligence; on the other, there are directives on good consumer communication and combating greenwashing. It is a significant step forward: quantifying circularity will become part of many companies’ DNA, a vital component of a corporate plan in which environmental, economic, and social benefits are combined in the logic of overall sustainability. In order to expedite this process, it is imperative that companies evaluate their circularity performance at every stage of the production process and throughout the entire value chain. This incorporates small and medium-sized enterprises. Even small and medium-sized enterprises (SMEs) that are not subject to reporting will receive inquiries regarding sustainability information from the larger organizations it supplies. And they are largely prepared for the challenge, as indicated by the CEN 2024 Report: 65% of small and medium-sized businesses that answered the poll said they practice circular economy, which is twice as many as in 2021. Circularity measurement is becoming increasingly important; it enables the assessment of business performance and the development of innovative strategies, and its accurate reporting is a critical instrument for communicating with stakeholders.
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