GLOSSARY
Circular economy
The circular economy is a way of running an economy that keeps products and materials circulating for as long as possible, and minimizes new resource extraction and waste generation through reuse, remanufacturing, and recycling even at the disposal stage. It's widely used in contrast to the linear economy of 'take, make, dispose.'
Why it matters for Tier-2/3
The automotive industry increasingly asks suppliers about recycled-material content and waste-recycling rates, and EU regulations on batteries and packaging directly require circular-economy elements. For Tier-2/3 suppliers, turning existing scrap and waste-management practices into data is a practical starting point.
Related
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.