Launch of the Global Circularity Protocol (GCP) by the World Business Council for Sustainable Development (WBCSD)

The circular economy is essential for solving environmental issues such as achieving net-zero and nature positive goals and reducing pollution. It is also a crucial initiative for addressing resource risks and ensuring economic security. Global interest is growing, including discussions at the G7 and G20. Against this backdrop, some countries and regions have recently introduced rules within their jurisdictions, such as disclosure requirements for resource circulation and regulations on specific products. Japanese companies are being compelled to respond. However, unlike net-zero and nature positive, evaluation methodologies for the circular economy, including indicators, and frameworks for corporate non-financial disclosure have not yet been established internationally. 

The Japanese government spearheaded the development and adoption of the Circular Economy and Resource Efficiency Principles (CEREP) at the 2023 Sapporo G7 Climate, Energy, and Environment Ministers' Meeting, which were subsequently endorsed at the G7 Hiroshima Summit that same year. One of the principles explicitly calls for monitoring value chain-level indicators based on circularity metrics and corporate-level disclosure. 

The WBCSD has prior experience in developing frameworks for corporate non-financial disclosure in the environmental field. In 2022, it announced the development of the GCP, a framework that includes an assessment methodology for corporate performance and accountability on circularity, as well as corporate-level disclosure on circularity. Against this backdrop, the Ministry of the Environment signed a document in 2024 to cooperate with the WBCSD on GCP development. It has since contributed to the development through participation in GCP creation, mobilizing Japanese companies, and co-hosting international events. 

To provide input to GCP development, the Ministry of the Environment has advanced the development of corporate-level disclosure schemes for resource circulation and value chain circularity indicators within the “Project for International Standardization of Corporate Disclosure Schemes and Value Chain Circularity Indicators.” This project was selected under the Cabinet Office's “Bridge Program for Research and Development and Society 5.0” (BRIDGE). Moving forward, Japan will continue to lead the formation of international rules in the resource circulation field through this project, aiming to improve GCP and facilitate the transition to a circular economy while maintaining and strengthening the international competitiveness of Japanese companies.