ESRS E5 Circular Economy
Comprehensive ESRS E5-compliant capture of resource inflows, resource outflows and waste — from material flows with automatic matching against the critical raw materials of the EU Critical Raw Materials Regulation and waste management based on the European Waste Catalogue through to the assessment of product circularity. All indicators are calculated automatically per period and documented audit-ready.
ESRS E5 Circular Economy
Materials, waste and product circularity in one module
The E5 module runs from the double materiality assessment through material flows and waste data to policies, product circularity and targets and actions. Deterministic reference data and AI-supported classifiers work hand in hand — indicators are derived automatically from the data you record.
Double materiality assessment
Three sub-topic areas: resource inflows, resource outflows related to products and services, and waste. Each impact and the risk or opportunity it creates is one IRO, assessed from both sides – impact on people and the environment and financial effect – scored against the materiality threshold of the reporting period (default 12.5 of 25) or decided by written reasoning. "Discover IROs with AI" suggests entries from your own records but does not score them. Sub-topic areas that clearly do not apply are defined not material, with reasoning. A materiality matrix with chart export, a completeness check and activation, which switches on the disclosures of the material areas, are included; a finalised CSRD reporting boundary is the prerequisite.
Material flows
Materials are captured with name, material type (technical or biological), weight, identification as secondary raw material including proportion, evidence documents and assignment to an organisation and optionally to a facility. Deterministic matching against the EU Critical Raw Materials Regulation checks 34 critical raw materials, 18 of which are additionally flagged as strategic, and sets identification and specification automatically. An AI material classifier steps in where materials cannot be readily assigned — with confidence score, rationale and an explicit reservation for review. Weights are always stored in tonnes, with entry in kilograms as a convenience feature; period indicators for total weight, number of materials and secondary raw materials are generated automatically.
Waste management
Waste streams are set up as reusable configuration with European Waste Catalogue code, key materials and identification as hazardous or radioactive — based on 842 preloaded waste codes with chapter, hazard classification and mirror-entry flag. Waste records hold reporting period, organisation, optionally facility, waste stream, reference date, weight, destination category, type of operation, measurement method, waste contractor and evidence documents. An AI waste classifier selects the waste code exclusively from the stored reference list, takes the hazardous classification from the table and explicitly marks mirror entries as a provisional assessment. Period indicators for total weight, the proportions recovered, disposed of and unknown, and the breakdown by type of operation are calculated automatically.
Circular economy policies
Six policy types are managed with sub-topic coverage, scope of application, integration of circular principles with explanation, responsible person, third-party standards, stakeholder interests, availability, and effectiveness and review dates. Life cycle, coverage view, statements of non-existence and the completeness check make gaps visible and document them with a justification.
Assessment of product circularity
Per product and reporting period, the module captures durability (type of disclosure, description, designed lifetime, warranty period), repairability (type of disclosure, description, repairability score and underlying rating system) and the recyclability of product and packaging via total and recyclable weights. Recyclability rates are derived automatically from the weights — separately for product and packaging. Period indicators provide the average repairability score and the average recyclability of product and packaging; the materiality of the sub-topic "resource outflows" is displayed as a status indicator taken from the activated materiality assessment.
Actions and targets
Targets can be set as absolute or relative and intensity-based, with eight target metrics ranging from reduction of resource inflows through product circularity, recycled content and recovery rate to absolute waste reduction and reuse and recycling rate. The life cycle runs Draft → Active → Expired or Archived with automatic expiry; activation requires a passed completeness check, automatically supersedes any existing statement of waiver and locks the baseline — changeable only by archiving and re-creating it, a deliberately audit-proof design. Actions come in nine types; completing an action requires at least one evidence document and triggers recalculation of the progress of linked targets. AI-supported target suggestions are based on your own recorded data from material flows, product circularity and waste management; if data is missing, the fields remain empty and are marked as to be completed before activation — no values are invented.
FAQ
Frequently asked questions
Yes. Every material you record is matched deterministically against the EU Critical Raw Materials Act: 34 critical raw materials, 18 of them additionally flagged as strategic. The software sets the flag and specification automatically. Only for materials that cannot be assigned easily does an AI material classifier suggest a classification – with confidence, rationale and an explicit review caveat.
The 842 waste codes of the European List of Waste are stored with chapter, hazard flag and mirror entry flag. The AI waste classifier chooses exclusively from this reference list and understands German and English descriptions, including everyday terms. It takes the hazard property from the table; for mirror entries it is explicitly marked as a provisional assessment.
From your waste records the software automatically derives the total weight and the shares diverted from disposal, directed to disposal or unknown, each relative to the non-radioactive base. Radioactive quantities are shown separately. A breakdown by treatment method, from preparation for reuse to landfill, and the split into hazardous and non-hazardous waste complete the picture.
For each product and reporting period you record durability, reparability with the underlying scoring system, and total and recyclable weights of product and packaging. The software derives the recyclability rates automatically, separately for product and packaging. Period metrics show the average reparability score and the average recyclability.
No. The baseline is locked on activation and can only be changed by archiving the target and creating a new one – a deliberately audit-proof design. Activation also requires a passed completeness check. Actions can only be completed with at least one supporting document, and completion updates the progress of linked targets.
No. AI-assisted target suggestions are based on your own data from material flows, product circularity and waste management. Where data is missing, the fields stay empty and are flagged as to be completed before activation. Every suggestion can be reviewed and edited before you accept it; your team makes the decision.
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