Prepare
2. Prepare your GCP circular performance and impact assessment
This stage guides organizations in preparing their circular performance and impact assessment by defining your system boundaries - including organizational and operational boundaries - mapping your value chain and identifying circularity hotspots, determining material impacts, risks and opportunities, and identifying and prioritizing material flows.
Figure 3: Applicability and outcomes of Stage 2. Prepare
2.1 Define organizational boundaries
Specify which subsidiaries, business units or geographical locations you are including in your organization’s assessment.
2.2 Define your value chain and identify circularity hotspots
Map the activities and processes associated with material flows and products, from extraction to end-of-life management. Through this section, use the guiding principles to identify which parts of your organization’s value chain(s) to include in the assessment.
2.3 Define your organization’s material impacts, risks and opportunities (IRO) related to resource use and circularity
Conduct a double materiality assessment on the environmental interactions and value chain interactions associated with your organization’s value chains to identify the material IROs.
2.4 Set operational boundaries for material flows
Identify which material IROs are within your organization’s direct control or indirect control. Reporting on operational scopes ensures consistent and transparent reporting, allowing for the accurate tracking of progress while disclosing to external stakeholders in a comparable way.
2.5 Identify and prioritize your materials
Identify the materials and products that have material impacts in your organization’s defined organizational boundaries.
Figure 4: Illustrative overview of the Operational Scope framework