Circular economy strategies have gained popularity in corporate sustainability efforts due to consumer demand, revenue opportunities, and sustainability standards. However, legal developments in various markets indicate the need to reassess circular economy strategies [b76e5061].
One area of legal development to consider is government incentives. Governments in many jurisdictions are creating legal frameworks to promote circular economy initiatives. For example, the European Union (EU) has implemented a Circular Economy Action Plan, and the United States has passed legislation to support circularity and recycling. Additionally, several US states have laws requiring increased use of post-consumer content and end-of-life product responsibility. Companies that sell renewable energy products may be eligible for economic incentives to develop a domestic circular supply chain [b76e5061].
Another area of legal development is regulations and reporting requirements. New regulations focus on product design and end-of-life management. Some states mandate the use of post-consumer content in packaging and have implemented extended producer responsibility (EPR) legislation. EPR programs also target renewable energy technologies. In terms of reporting and disclosure requirements, mandatory reporting has begun in the EU, and there may be potential updates to environmental marketing claims guidance in the US. Collaboration between sustainability teams and legal counsel is crucial for setting and monitoring circular economy goals [b76e5061].
The JEF Political Commission 2 (PC2) recently focused on the theme of Internal European Affairs and reviewed the resolution titled 'Accelerate the Transition to the Circular Economy' [2282f69d]. The discussions highlighted the significance of carbon neutrality and the role of the circular economy in reducing greenhouse gas emissions. PC2 advocated for a EU-wide tax reform that incentivizes reuse, recycling, regeneration, and the utilization of secondary raw materials. The proposal to establish a system providing ecological footprint information for products was endorsed. The resolution passed unanimously in the Federal Committee of JEF Europe in Tartu, Estonia [2282f69d].
The European Union is on the brink of passing a new law requiring companies to check their supply chains for unethical environmental and labor practices. The legislation, known as the corporate sustainability due diligence directive (CSDDD), aims to prevent companies from profiting off of human suffering and create a fairer economy. The law was approved in a stripped-down version at a recent meeting of diplomats in Brussels, with changes made to address concerns over red tape. The rules still need to be voted on by Members of the European Parliament (MEPs) before June elections. The legislation has been praised by the European Commission and various social and environmental activists, but there are concerns that even the diluted plans could indirectly impact smaller businesses and lead some to withdraw from developing countries. Despite these concerns, the momentum seems to be in favor of the new regulations moving forward. The passage of the CSDDD is seen as a victory for holding companies accountable for their impacts on people and the environment [e7cb1bad] [b76e5061].
The US is facing risks related to climate change, supply chain security, and economic competitiveness. Decarbonization is crucial for reducing emissions and achieving net-zero targets. While efforts have focused on renewable energy and energy efficiency, transforming the way products are made and used can accelerate decarbonization. The Ellen MacArthur Foundation highlights the economic and climate opportunity of a circular economy, particularly in resource-and-carbon-intensive industries such as grid-scale and electric vehicle batteries, built environment and infrastructure, and electronic equipment. Collaboration between US policymakers and businesses is essential to fully harness the potential of circular economy solutions [38a833ed].
Accenture and Amazon Web Services (AWS) are collaborating to help businesses achieve data-driven circularity. The global economy could benefit up to US$4.5tn by departing from the current 'take-make-waste' economic system. The challenges to transforming circular data include selecting the right metrics, identifying and collecting the data, and transforming the data into actionable insights. Accenture and AWS bring their combined data, technology, and sustainability expertise to transform circular economy data management. They are using their co-developed Velocity platform to develop the data architecture and create a circular 'data lake'. The collaboration aims to enable the automation of circular data ingestion, transformation, and analysis. Businesses are urged to define their circular economy blueprint, assess their current functional and technical maturity, and map the journey towards automation. Deployment is seen as a multi-generational journey, with a focus on a Minimum Viable Product (MVP) solution that supports core business priorities [c5e634e4].
In conclusion, as companies embrace circular economy strategies, it is important to consider the legal landscape. Government incentives, regulations, and reporting requirements play a significant role in shaping the implementation and success of circular economy initiatives. By staying informed and collaborating with legal counsel, companies can navigate these legal considerations and ensure the effectiveness of their circular economy strategies [b76e5061].