Circularity Glossary
This glossary compiles the most commonly used Circular Economy terms in the automotive industry, aiming to establish a shared language among industry professionals. Its purpose is to lay the groundwork and provide a foundational understanding of the complex and evolving concept of the circular economy for automotive suppliers. During its creation, a comprehensive review of available sources, including legal documents, reputable standards, and recognised associations, was conducted.
Approximately 150 terms were analysed, and more than 50 were selected for the final version. Terms were chosen based on their relevance to the automotive industry and the reliability of the sources, with legally defined terms given the highest priority, followed by standards and reputable associations. Each term was thoroughly discussed, and additional comments were added to clarify their meanings in the automotive context when necessary. It is important to note that some relevant terms (e.g., closed-loop and open-loop) are still under development, or lack commonly aligned legal standards. Therefore, ongoing discussions with policymakers and other stakeholders are essential to further enhance the quality of existing terms, synchronise definitions, avoid duplications, and address the need for new terms. Consequently, this glossary is a living document that will be updated accordingly.
In addition to the CLEPA members’ review, this glossary was shared with the Drive Sustainability Partnership for an alignment and feedback. The initiative was widely appreciated and considered a necessary step forward.
B
Biobased resource
Definition: resource derived from biomass.
Notes on definition:
- Note 1 to entry: Biobased resources exclude any material embedded in geological formations or transformed to fossilized material.
- Note 2 to entry: Biobased resources include, for example, trees, crops, grasses, tree litter, algae, microorganisms, animals and wastes of biological origin, e.g., manure.
- Note 3 to entry: Biobased resource focuses on the source of the material and not the ability of the resource to cycle through the technical or biological cycles.
Source: ISO 59004:2024
Type of source: Standards
CLEPA comments:
- Comment 1: further categorizations of biobased materials based on the origin of materials are available as follows:
” first-generation” were the crops and plants are used to produce bio-based chemicals and materials.
” Second generation” biomass / feedstock refers to lignocellulosic crops, such as forest wood or fibre crops, or the non-edible part of food and feed crop.
“Third generation” biomass / feedstock is biomass derived from algae .
Source: Dammer, L., Carus, M., Porc, O. 2023: The Use of Food and Feed Crops for Bio-based Materials and the Related Effects on Food Security. Renewable Carbon Initiative (ed.), Hürth 2023
B
Biodegradation
Definition: the breakdown of an organic compound by microorganisms in the
presence of oxygen (aerobic)into carbon dioxide, water, and
mineral salts of any other elements present (mineralization) plus
new biomass or in absence of oxygen (anaerobic) into carbon
dioxide, methane, mineral salts, and new biomass
Source: DIN EN 14995:2007-03 (E)
Type of source: Standards
B
Biomass
Definition: material of biological origin, excluding material embedded in
geological formations or transformed to fossilized material
Notes on definition:
- Note 1 to entry: This includes organic material (both living and dead) from above and below ground, e.g., trees, crops, grasses, tree litter, algae, animals, and waste of biological origin, e.g., manure.
Source: ISO 59004:2024
Type of source: Standards
B
By-product
Definition: a substance or object resulting from a production process the primary aim of which is not the production of that substance or object is considered not to be waste, but to be a by-product if [all]
the following conditions are met:
-further use of the substance or object is certain,
-the substance or object can be used directly without any further processing other than normal industrial practice, the substance or object is produced as an integral part of a production process; and further use is lawful, i.e.,
-the substance or object fulfils all relevant product, environmental and health protection requirements for the specific use and will not lead to overall adverse environmental or human health impacts.
Source: 2008/98/EC, Waste Framework Directive (version18/02/2024)
Type of source: Legal
CLEPA comments:
- Comment 1: reutilization of By-Product materials such as rework, regrind or production scrap materials generated within the process and capable of being reused within the same process that generated it shall not be considered as Pre-Consumer materials. Following sketch depicts simplified material streams in a production process.
- Comment 2: term “by-product” is not included in the ELV revision.
C
Cascading
Definition: repeated use of a resource usually starting at a level of high value with decreasing quantity and quality at each subsequent stage or cycle, depending on the processes used.
Source: ISO 59004:2024
Type of source: Standards
CLEPA Comments:
- Comment 1: cascading can include up-and/or downcycling.
C
Circular economy
Definition: economic system that uses a systemic approach to maintain a circular flow of resources by recovering, retaining, or adding to their value, while contributing to sustainable development.
Notes on definition:
- Note 1 to entry: Resources can be considered concerning both stocks and flows
- Note 2 to entry: From a sustainable development perspective, the inflow of virgin resources is kept as low as possible, and the circular flow of resources is kept as closed as possible to minimize
emissions and losses (waste) (of resources) from the economic system.
Source: ISO 59004:2024
Type of source: Standards
CLEPA comments:
- Comment 1: among all the existing definition, CLEPA members decided on the definition from ISO59004, 2024 due to the fact that was developed by ISO after reviewing more than hundred existing definitions. Additionally, this definition will be also adopted by Corporate Sustainability Reporting Directive (CSRD). There are several circular economy strategies available such as Framework
C
Circular economy principles
Definition: are fundamental basis for decision making or behaviour. The implementation of a circular economy is facilitated by incorporating circular economy principles into organizational
policies, actions, and procedures. Examples of circular economy principles are given under CLEPA
comment.
Source: Modified from sources
Type of source: Associations
CLEPA comments:
- Comment 1: ESRS E5 includes the following circular economy principles (but not limited to): -minimizing waste -maintaining the value of products, materials and other resources
at their highest value -enhancing the efficient use of products, materials and other
resources in production and consumption - Comment 2: the European circular economy principles are:
- i. usability;
- ii. reusability;
- iii. repairability;
- iv. disassembly;
- v. remanufacturing or refurbishment;
- vi. recycling; vii. recirculation by the biological cycle;
- viii. other potential optimization of product and material use.
- Comment 3: ISO59004:2024 defines 6 circular economy principles:
- systems thinking;
- value creation;
- value sharing;
- resource stewardship;
- resource traceability;
- ecosystem resilience.
- Comment 4: According to the Ellen MacArthur Foundation, the circular economy is based on three principles, driven by design:
- 1. eliminate waste and pollution.
- 2. circulate products and materials at their highest value
- 3. regenerate nature.
C
Core product or part
Definition: a previously sold, worn or non-functional (used) product or part, intended for the remanufacturing process. During reverse logistics, a core is protected, handled and identified for remanufacturing to avoid damage and to preserve its value. A core is not waste or scrap and is not intended to be reused before remanufacturing.
Source: ISO 472:2013
Type of source: Standards
C
Critical Raw Materials
Definition: critical raw materials as defined in Article 2, point (2), of Regulation (EU) [Critical Raw Materials Act];
Source: ELV Regulation Draft
Type of source: Legal – Draft
CLEPA comments:
- Comment 1: link to the list of materials: https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX%3A52023PC0160
D
Design for circularity (DFC)
Definition: design and development based on the circular economy principles.
Source: ISO 59004:2024
Type of source: Standards
