Insights from ESG Evaluation for Circularity Assessment

Abstract Sustainability and circularity co-exist and both encompass environmental, social, and economic aspects. In the past few years, we have witnessed ESG reporting gaining traction and with it, a fast rise in the market for sustainable finance and development. Developed countries are coming up with regulations governing the ESG reporting standards and performance, which has been a voluntary action so far. Several ESG reporting standards have been developed across the globe, typically containing many metrics related to circularity in both environmental and social aspects. In this chapter, several such global standards are discussed and one national implementation by the Athens stock exchange is detailed. Later in this chapter, current and upcoming regulations regarding ESG reporting in developed countries are provided. The European Union is the most advanced body of regulation on this topic and is covered in more detail. Trends in the sustainable finance and bonds markets are also presented at the end of this chapter, a market that will finance projects and developments towards circularity and sustainability. The chapter concludes with a call to incorporate a clear circularity assessment within ESG reports. Standard definitions of practices considered circular and how to best measure them need to be further developed.