A Fair and Inclusive Circular Economy

Understanding the social implications of circular economy strategies is crucial for a just and inclusive transition. However, achieving such a transition in the context of circular economy remains a complex and multifaceted challenge. The previous ETC-CE report, 'A Just Transition to a Circular Economy: Exploring Current and Potential Social Implications for the Value Chains of Batteries, Plastics, and Textiles', outlined a conceptual approach to a just circular economy. The currently published report, 'A Just Transition to a Circular Economy: Operational Framework and Indicators', translates these earlier considerations into an operational framework with concrete indicators.

In doing so, the authors Burcu Gözet and Giacomo Sebis from the Circular Economy Department at the Wuppertal Institute, together with researchers from the World Resources Forum Association (WRF) and the Vlaamse Instelling voor Technologisch Onderzoek (VITO), demonstrate that the social impacts of circular strategies have so far been overlooked. Their work underlines that the transition to a circular economy must be designed in a socially just manner, however, suitable measurement tools and data are currently lacking. With this report, the authors now suggest an operational framework, while also acknowledging that considerable development work remains.

According to their analysis, indicators related to workers and consumers are relatively well represented, whereas aspects concerning local communities, stakeholders along the value chains and society as a whole are significantly underrepresented. Furthermore, significant methodological and data gaps persist towards potential indicators – particularly regarding informal work, the rights of Indigenous peoples, cultural heritage and social participation in decision-making processes. Recognition and systemic dimensions are also generally poorly represented. The report concludes that a sector-specific approach is necessary, in which indicators are adapted to circular economy strategies of the respective sectors. It also highlights the necessity for better data and methods, as well as stronger institutional commitment and more participatory governance.

The report was produced as part of the "European Topic Centre on Circular Economy and Resource Use" project and is available free of charge via the link below.