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Eligibilitycriteria2305.Foreword04 Introduction06Conclusion3201.06. Annexes34Glossary48Key levers to acceleratethe transition to a circulareconomy0802. The Circular TransitionIndicators (CTI)1203. CTI Enabling Solutions:Overall approach1504. Thank you to the companies and organizations that contribute to this work: In partnership with: Foreword 01. Introduction As global and local solution providers, businesseshave a key role to play in developing circularsolutions that ensure reductions in resourceuse, longer lifetimes and recovery opportunitiesfor both materials and products. The circulareconomy’s value could reach USD $4.5 trillion.5Torealize this potential, it is essential to encourageand equip companies to become circular solutionproviders and to attract the investments neededto accelerate their transition to circular portfoliosand business models. Scope of the guidance This document focuses on qualifying andquantifying market solutions that can improve thecircularity of a third party in the value chain. Manycompanies already market product, services andactivities as “circular solutions”. This guidanceprovides an accountability framework for theseclaims based on the recognized and widely usedCTI methodology. The objective is to recognize those solutions thathave a demonstrable and direct impact on a third-party CTI score. Examples include a new solutionenabling a third party to substitute a virgin, non-renewable material with a secondary or renewableone (reflected in a % increase in the third party’scircular inflow). Another is when a companyincreases the third party’s capacity to recoverhigher volumes of products or materials (reflectedin a % increase in the third party’s circular outflow). This is why WBCSD, in collaboration with itsmembers, has set out to provide guidance tohelp circular solution providers. The aim is toconsistently and credibly assess how theirsolutions contribute to accelerating the transitionof circularity of customers and partners based onWBCSD’s globally recognizedCircular TransitionIndicators (CTI). The guidance aims to unlock new opportunitiesfor businesses to realize value by investing incircular solutions that can accelerate the globaltransition to circularity and drive transformativeactions based on science, data and cross-sectorcollaboration. This sector-agnostic approach broadens thenarrative and stimulates understanding of howsolutions improve overall circularity across valuechains. WBCSD developed it through an iterativestakeholder process with member companiesfrom a diverse set of sectors and geographiesand supported by an advisory group of leadingcircular economy organizations. The guidancewill be improved based on user feedback andfurther consultations with stakeholders and keyplayers. After a period of consultations, WBCSDwill implement a mechanism to ensure consistentapplication with all principles and criteria requiredby this guidance. CTI Enabling Solutions demonstrably improve thecircularity performance of a product, service oractivity of a third party in the value chain (e.g.,customer, supplier or end-user), as measured byCTI. This guidance is a first step in recognizing theability of companies to contribute to a circulareconomy by driving research and developmentactivities, innovation, investments and rewardmechanisms where they are most needed andtransform business models and portfolios. Key levers to acceleratethe transition to a circulareconomy 02. Key levers to acceleratethe transition to a circular economy Investors are increasingly recognizing that circularsolutions are good business opportunities and atthe same time deliver positive results for climateand nature. However, circular solutions face asignificant gap in investment aimed at scaling. Areport by Chatham House estimates that circulareconomy spending by the corporate sector countsfor around USD $850 billion, compared to USD $35trillion spent on existing “linear” economic models.Circular economy activities still represent a smallmarket segment in most sectors.12 →Scaling circular innovation→Promoting life-cycle thinking→Fostering value chain collaboration→Building accountability Transitioning to a circular economy is essentialfor reducing waste, preserving resources, andcreating a more sustainable economic model.However, achieving this transition requiresenabling key levers across industries, businesses,and policymakers. From innovative businessmodels and policy incentives to technologicaladvancements and value chain engagement,several strategic actions can enable circularityand drive systemic change. This chapter exploresthe most impactful levers, namely scalingcircular innovation, promoting life-cycle thinking,fostering value chain collaboration and buildingaccountability, that can accelerate circulartransformation and pave the way to sustainableand circular business models, making them thenorm rather than the exception. The report explains that this is due to a generallac