ISO/TR 59031:2026

Technical
Report
ISO/TR 59031
First edition
Circular economy — Performance-
2026-03
based approach — Analysis of case
studies
Economie circulaire — Approche basée sur la performance —
Analyse de cas pratiques
Reference number
© ISO 2026
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ii
Contents Page
Foreword .v
Introduction .vi
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 General information . 2
4.1 Objective.2
4.2 Selection of cases .3
4.3 How to use this document .3
5 Analysis of cases . 4
5.1 Process to collect and analyse cases .4
5.2 Approaches taken in the use cases .5
5.2.1 General .5
5.2.2 Related aspects of the performance-based approach in the cases .5
5.2.3 Circular design .5
5.2.4 Extended producer responsibility .6
6 Case studies . 7
6.1 Overview of cases .7
6.1.1 Items for describing each case .7
6.1.2 Criteria for selecting cases as exemplars and reporting .8
6.2 Business A — Sweden .8
6.2.1 General information .8
6.2.2 Quantitative information .9
6.2.3 Qualitative information .10
6.2.4 Replicability (how the case can be scaled up and applied in other contexts) .10
6.2.5 Performance-based approaches .11
6.2.6 Description of the mechanical cycle .11
6.2.7 Description of the service cycle .11
6.2.8 Life cycle assessment .11
6.2.9 Greenhouse gas emissions .11
6.3 Circulô — Brazil .11
6.3.1 General information .11
6.3.2 Quantitative information . 12
6.3.3 Qualitative information . 13
6.3.4 Replicability (how the case can be scaled up and applied in other contexts) . 13
6.3.5 Performance-based approaches . 13
6.3.6 Description of the mechanical cycle .14
6.3.7 Description of the service cycle .14
6.3.8 Life cycle assessment .14
6.3.9 Greenhouse gas emissions . 15
6.4 Business B — France . 15
6.4.1 General information . 15
6.4.2 Quantitative information . 15
6.4.3 Qualitative information .16
6.4.4 Replicability (how the case can be scaled up and applied in other contexts) .16
6.4.5 Performance-based approaches .16
6.4.6 Description of the mechanical cycle .17
6.4.7 Description of the service cycle .17
6.4.8 Life cycle assessment .17
6.4.9 Greenhouse gas emissions .17
6.5 Michelin — France .18
6.5.1 General information .18
6.5.2 Quantitative information .18

iii
6.5.3 Qualitative information . 20
6.5.4 Replicability (how the case can be scaled up and applied in other contexts) .21
6.5.5 Performance-based approaches .21
6.5.6 Description of the mechanical cycle . 22
6.5.7 Description of the service cycle . 23
6.5.8 Life cycle assessment .24
6.5.9 Greenhouse gas emissions . 25
6.6 Business C — Germany . 26
6.6.1 General information . 26
6.6.2 Quantitative information . 26
6.6.3 Qualitative information .27
6.6.4 Replicability (how the case can be scaled up and applied in other contexts) .27
6.6.5 Performance-based approaches .27
6.6.6 Description of the service cycle . 28
6.6.7 Life cycle assessment . 28
6.6.8 Greenhouse gas emissions . 28
6.7 Free Pack Net — Switzerland . 28
6.7.1 General information . 28
6.7.2 Quantitative information . 30
6.7.3 Qualitative information .32
6.7.4 Replicability (how the case can be scaled up and applied in other contexts) .32
6.7.5 Performance-based approaches .32
6.7.6 Description of the mechanical cycle and the service cycle . 33
6.7.7 Life cycle assessment . 33
6.7.8 Greenhouse gas emissions . 33
6.8 Kuradashi — Japan . 34
6.8.1 General information . 34
6.8.2 Quantitative information . 34
6.8.3 Qualitative information . 36
6.8.4 Replicability (how the case can be scaled up and applied in other contexts) .37
6.8.5 Performance-based approaches .37
6.8.6 Description of the mechanical cycle .37
6.8.7 Description of the service cycle .37
6.8.8 Life cycle assessment . 38
6.8.9 Greenhouse gas emissions . 38
7 Conclusion .38
Bibliography .40

iv
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out through
ISO technical committees. Each member body interested in a subject for which a technical committee
has been established has the right to be represented on that committee. International organizations,
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with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are described
in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the different types
of ISO document should be noted. This document was drafted in accordance with the editorial rules of the
ISO/IEC Directives, Part 2 (see www.iso.org/directives).
ISO draws attention to the possibility that the implementation of this document may involve the use of (a)
patent(s). ISO takes no position concerning the evidence, validity or applicability of any claimed patent
rights in respect thereof. As of the date of publication of this document, ISO had not received notice of (a)
patent(s) which may be required to implement this document. However, implementers are cautioned that
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For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and expressions
related to conformity assessment, as well as information about ISO’s adherence to the World Trade
Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 323, Circular economy.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.

v
Introduction
0.1  Background
The global economy is “linear” as it is mainly based on extraction, production, use and disposal. This linear
economy leads to resource depletion, biodiversity loss, waste and harmful losses and releases, all of which
collectively are causing serious damage to the capacity of the planet to continue to provide for the needs of
[7]
future generations. Moreover, several planetary boundaries have already been reached or exceeded.
There is an increased understanding that a transition towards an economy that is more circular, based on
a circular use of resources, can contribute to meeting current and future human needs (welfare, housing,
nutrition, healthcare, mobility, etc.). Transitioning towards a circular economy can also contribute to the
creation and sharing of more value within society and interested parties, while natural resources are
managed to be replenished and renewed and in a sustainable way, securing the quality and resilience of
ecosystems.
Organizations recognize many potential reasons to engage in a circular economy (e.g. delivering more
ambitious and sustainable solutions; improved relationships with interested parties; more effective and
efficient ways to fulfil voluntary commitments or legal requirements; engaging in climate change mitigation
or adaptation; managing resource scarcity risks, increasing resilience in the environmental, social and
economic systems), while contributing to satisfying human needs.
The ISO 59000 family of standards (see Figure 1) is designed to harmonize the understanding of the circular
economy and to support its implementation and measurement. It also considers organizations, such as
government, industry and non-profit, in contributing to the achievement of the United Nations (UN) Agenda
[8]
2030 for Sustainable Development.
Figure 1 — ISO 59000 family of standards
0.2  Relationship between ISO 59004, ISO 59010 and ISO 59020
ISO 59004, ISO 59010 and ISO 59020 are interconnected, as shown in Figure 2, and support organizations in
implementing a transition towards a circular economy.

vi
Figure 2 — Relationship between ISO 59004, ISO 59010 and ISO 59020
0.3  Introduction to performance-based approaches
Performance-based approaches, such as functional economy, service economy and product-as-a-service
(PaaS) system, are currently acknowledged as being relevant for helping organizations to face the challenges
in developing circular-economy-related approaches. Such business models can enable and strengthen their
economic viability while simultaneously improving their environmental and societal impacts.
Indeed, in a performance-based approach, the revenue stream of an organization or group of organizations
is less dependent on the amount of product or “service unit” delivered and more related to the real impact or
outcome of their activities on the customers or beneficiaries. These impacts can be economic and/or social
and/or environmental. The performance-based approach has the potential to contribute to the decoupling
of economic development from the negative impacts of resource use.
EXAMPLE A car is one of several possible solutions to meet the mobility need of travelling from point A to point B,
which is the desired outcome.
Performance-based approaches within a circular economy are currently well documented from a theoretical
point of view; however, there seems to be a lack of operational reference for their implementation. Many
organizations therefore state that while such approaches are interesting, they are not applicable to their
business model and they would require a dramatic transition in their business model, which would threaten
their existence in the short term (even if their situation in the long term can be improved). Providing examples
of transitions to a performance-based economic model across a range of businesses and companies can
bring valuable insight and aid new organizations and economic players to transition to a circular economy
(regardless of their size or status). To ensure that this document is a useful tool for promoting changes in
business models, the barriers that impede the adoption of a performance-based approach are detailed.
For consistency with the scope of ISO 59010, which covers specific issues of circular economy, this document
does not aim to illustrate the many actions, measures and strategies for the implementation of a circular
economy within an organization. Instead, it addresses a key question involving the decoupling of revenues
from the use of material resources. Decoupling is critical as it reduces the impact of the “rebound-effect”
in which reducing the environmental impact of a product has limited effect because one way or another
the organization needs to sell more products to grow or survive, which can negate the benefits of circular
economy initiatives on resource preservation.
This question of growth is central in this document: it shows how some organizations have managed (at
least partially) to make PaaS consistent with sustainable financial results and the preservation of material
or intangible resources. In these examples, there are no environmental or social constraints to abide to
for mutual development of these three aspects of sustainable development. Of course, achieving synergy
from these three aspects demands significant redesigning of all the aspects of an economic model (how
to produce value in new ways, ensuring these are valued by customers and, hence, financially rewarding,
how the new business models affect work within the organizations, and the relationships between the
various stakeholders and the significant time investment needed prior to implementation). This document

vii
complements ISO 59010, which provides a guidance on circular-economy-compliant business models, in
particular the service economy cited in this document.
When the sale of performance is considered, the question of assessment is essential. The assessment covers,
for instance, not only environmental impacts such as carbon dioxide (CO ) emissions, but also other aspects
such as resource conservation, wellness and intangible resource or value development (e.g. attractiveness
of a territory for upcoming investment, reinforcement of relationship between partners for new projects).
While a product–service system business model has the potential to improve environmental performance
or decrease the environmental impact, the superiority is not always guaranteed (e.g. user mis-behaviour).
There is no accepted approach for quantifying this superiority at present. The outputs of using ISO 59020,
which centres on the issue of metrics and assessment of circular economy, are essential. This document
highlights to what extent they are or can be relevant for the assessment of the contracted performance in
each case.
viii
Technical Report ISO/TR 59031:2026(en)
Circular economy — Performance-based approach — Analysis
of case studies
1 Scope
This document provides an analysis of various case studies for the implementation of specific aspects of
the circular economy in organizations, regardless of their status. This document specifically focuses on
performance-based approaches such as functional economy, service economy, product-as-a-service (PaaS)
and other performance-based approaches.
This document mainly describes a selection of use cases of operational implementation of such performance-
based approaches as observed in different organizations. It stresses the challenging context faced by
concerned organizations in changing their economic and business models. This document depicts cultural,
organizational and industrial changes induced by the move of business models toward a performance-based
approach. It emphasizes to what extent the total economic value can increase and how this is converted into
revenue streams for the concerned organizations.
This document does not apply to the implementation of any circular economy domain of actions (circular
design, recycling; responsible purchase policy, etc.), but focuses on the systemic level of development of
economic models based on the commercialization of various performance aspects.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminology databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at https:// www .electropedia .org/
3.1
performance-based approach
economic models relying on the sales of solutions with the aim to ensure usage intensity, useful effects or
results to be achieved
Note 1 to entry: Solutions are a combination of services and products that cannot be separated.
3.2
reuse,verb
use a product or its component parts after their initial use, for the same purpose for which they were
originally designed
Note 1 to entry: Utilization intended by the original design can involve either single-use or multiple-uses by the initial
user or customer over time.
Note 2 to entry: Minor treatment (e.g. cleaning) of the product can be needed by the user to allow for reuse.
Note 3 to entry: In some cases, resources, such as water, are considered as a product, in which case, the purpose of
“original design” is not applicable.

[SOURCE: ISO 59004:2024, 3.5.17]
3.3
economic system
system by which a society organizes and allocates resources
Note 1 to entry: The economic system can vary depending upon the geographic region or governmental jurisdiction.
Note 2 to entry: This can include the regulation of resources and the production, use and disposal of these resources.
[SOURCE: ISO 59004:2024, 3.1.2]
3.4
business model
organization’s chosen system of interconnected and interdependent decisions and activities that determines
how it creates, delivers and captures value over the short, medium and long term
Note 1 to entry: A business model is more than the organization’s processes and the solutions it provides.
Note 2 to entry: A business model is a subset of value-creation models wherein the chosen system determines how the
organization creates, delivers and captures economic value.
[SOURCE: BSI 8001:2017, 2.8, modified — “solutions” replaces “products or the services” in Note 1 to entry.]
3.5
functional economy
economic model that optimizes the use of solutions and, thus, the management of existing wealth (products,
knowledge and nature)
Note 1 to entry: This model fosters usage rather than ownership.
Note 2 to entry: The economic objective of the functional economy is to create the highest possible use value for the
longest possible time while consuming as few material resources and energy as possible.
Note 3 to entry: The functional economy is therefore considerably more sustainable, or dematerialized, than the
present economy, which is focused on production as its principal means to create wealth and material flow.
3.6
product-as-a-service
PaaS
business model (3.4) that allows customers to purchase the performance of a product rather than the product
Note 1 to entry: This model can offer environmental and economic benefits to all the parties along the value chain by
reducing manufacturing and intensifying use.
Note 2 to entry: At the end of the life of the product, the service provider has the responsibility for the reuse (3.2),
recycle, regeneration or disposal of the product.
4 General information
4.1 Objective
This document shares examples of various globally distributed organizations that have developed circular
economy practices involving a performance-based approach.
This document can be a resource for an organization:
— from the same sector as that of the case study depicted in this document (sectorial analogy);
— facing a similar barrier in moving from a traditional linear economy approach as seen in the example
case study (problems of analogy);

— considering a business model similar to a case study in this document (business model analogy, e.g. PaaS,
sharing platform).
This document provides relevant examples for consideration when shifting from a sales-based or ownership-
based business model to a circular performance-based one.
4.2 Selection of cases
Many cases were submitted for investigation. The selection of the use cases for further consideration for use
in this document was based on several factors that allowed selection of examples to illustrate performance-
based approaches:
— the extent to which the considered solution relies on the sale of a delivered performance or set of outputs
and outcomes;
— the scope and the documentation of the economic, environmental and social impacts (whether direct or
as external effects) that were taken into account;
— the extent to which intangible effects (including customer satisfaction) of the deployment of the
considered solution are taken into account and documented;
— the consideration of one or several aspects of a performance-based approach that contribute to a circular
economy (e.g. a sharing economy, remanufacturing strategies, product extension life strategies);
— the demonstration of mechanical and/or service cycles that are compliant with the principles of a circular
economy;
— the ability to scale-up or replicate the considered solution in the same sector or in another field;
— the accuracy of the environmental analysis underlying the deployment of the considered solution. e.g.
use of life cycle analysis, accounting for greenhouse gas (GHG) emissions balance in a relevant scope
(with a preference for analysis in Scope 2 or Scope 3 rather than Scope 1).
From these considerations, cases selected for more extensive investigation and selection for reporting were
chosen as detailed in 6.1.2.
4.3 How to use this document
This document provides relevant examples of performance-based approaches developed by different types
of organizations: companies, business associations and start-ups. Each example shows the main barriers
determined by the transition from a traditional linear approach and how these can be overcome. Each
example presents the concept of the proposed solution before describing the progress of its delivery. Each
description of the case study emphasizes the change in the use of products to enable economic revenue
generation and articulates the service element contribution towards effective performance provision. As
a conclusion, the case study description underlines the extent to which the initial shortcomings of a linear
approach are overcome through the change in business towards a performance-approach.
The case study description also shows how the described approach can be adapted to other situations and
the conditions under which this can be considered.
This document can be used to provide the means to identify critical issues when an organization moves
towards a performance-based approach. This includes consideration of:
— technical and service cycles;
— quantitative assessments, especially environmental and social impacts (external effects) and cost-
benefit analysis, focusing on life cycle simulation (LCS) approaches (when they exist) and GHG emission
assessment through life cycle assessment (LCA);
— qualitative assessment and its use, especially regarding consideration of intangible effects;

— the type of performance-based approach considered (product–service system, remanufacturing and
life-extension strategies, sharing economy platforms, etc.);
— replicability, and scale-up opportunities and conditions.
Moreover, each case study provides an overall overview on why a performance-based approach is relevant
from a global point of view and what is important to implement a performance-based approach of a circular
model, beyond a list of criteria to abide by.
Some of the cases do not focus on or provide for end-of-life treatment (largely because of a lack of information
provided). These aspects can be considered in a performance-based approach and in a circular economy.
5 Analysis of cases
5.1 Process to collect and analyse cases
Following a widely distributed invitation from ISO/TC 323 during 2020, and a second call with a special
focus on developing countries launched in early 2021, a total of 121 cases were submitted for analysis (see
Table 1).
In order to have an impartial analysis, two experts from countries different than the submitted case studies
analysed each case. The main criterion was the existence of a performance-based approach. The selected
cases were those that provided the clearest evidence of a performance-based approach. In total, seven cases
were selected to be reported in this document, based on information given and the expert analysis.
Table 1 — Cases received
Country Cases received
Benin 1
Bolivia 3
Brazil 2
Cameroon 1
Chile 4
Columbia 1
France 6
Germany 1
Indonesia 1
Iran 1
Italy 24
Japan 46
Kenya 2
Mauritius 1
Serbia 1
Spain 18
Sweden 2
Switzerland 1
Uganda 1
Uruguay 4
Total 121
5.2 Approaches taken in the use cases
5.2.1 General
The selection of cases represents the different aspects of the performance-based circular economy approach.
Some cases come from small companies, and others from large companies, but all have based all or part of
their business model on an approach that focuses on the sale of the performance of the products rather than
on the products themselves. In this way, the link between the manufacture of products and the profitability
of the company is broken.
Firstly, it is a question of selling a subscription to the performance of use (mobility, light, industrial stripping,
protection of transported and stored products, etc.). The cases presented by these companies never talk
about selling products.
Secondly, these companies have recurring income that strengthens their financial stability and strengthens
their resilience in the event of economic accidents.
Finally, these companies participate in the fight against global warming and in achieving the Sustainable
Development Goals by reducing their demand for materials and energy through the reuse, reparability and
controlled recycling of products used for the realization of a performance-based business model.
Some of the companies started directly with a performance-based approach business model and others
created or transformed a business unit into a performance-based approach business model (see the
information for each use case).
All the data stated for each use case are considered true at the time of collecting the information from the
respective institutions and represent a picture of the moment when the data were collected.
5.2.2 Related aspects of the performance-based approach in the cases
Each case is an example of a business model that is based on selling the performance of the product rather
than selling the product itself. In all business models, products are at the heart of the service.
This means that the company will first conduct a circular design of the service it wants to provide, then it will
use the service’s circular design to conduct a good circular design and finally it will provide the specification
of the products in relation to the service’s circular design.
NOTE The cases are consistent with the principles and definition of circular economy as defined in ISO 59004.
Several of the cases received were not included in this document because they were not consistent with these
principles. In particular, some examples of recycling without any systemic thought were excluded for this reason.
5.2.3 Circular design
Each of these cases have their own challenges. Some of them have used circular design, while others
(regarding the cost and the size of the company) try to do their best to provide what comes closest to a
circular design.
Circular design is used to deliver the best performance while minimizing negative impacts during the whole
life cycle, in accordance with the best available technology (BAT) and best available methodology (BAM).
The focus of circular design is on curtailing a loss of value that is embedded in raw materials and products,
by keeping them circulating in closed loops. These loops, such as reuse, repair, remanufacture, return,
refurbishment and recycling, extend the product’s life cycle and improve the resource productivity.
In accordance with extended producer responsibility (EPR), circular design methodology is performed by
each one of the economic subjects that is introducing a raw material into the market.
The key lies in how a product or material is designed and how different requirements are balanced. The
product design phase affects both product life and product performance along the entire supply chain/value
chain.
This does not rest solely on the designer’s shoulders since economic entities are required to implement all
available methodologies to guarantee the entire supply chain up to the reuse of the product itself and the
materials that compose it.
5.2.4 Extended producer responsibility
EPR is a policy approach under which producers are given a significant responsibility (financial and/or
physical) for the treatment or disposal of post-consumer products.
Part of the cases presented here are from EPR regulations. Companies often state that it was the arrival of
these EPR regulations that triggered the reflections on the change of business model.
EPR is not a mandatory element in the implementation of a circular economy business model, but some of the
cases shown here infer that each time this proposal has been implemented, it has accelerated the transition
from industrialized business models to the circular economy.
A representation of different types of performance-based approaches for addressing EPR challenges is given
in Figure 3.
In business models that rely on a mix of products and services, step one (on the left in Figure 3) is just selling
products with some services linked to it (maintenance, consultancy, etc.). The second step is to rent or lease
the products and the last step is to sell the use of products; the result provided by products and service is
closely linked.
Figure 3 — Different types of performance-based approach for addressing EPR challenges

6 Case studies
6.1 Overview of cases
6.1.1 Items for describing each case
The template for the presentation of the case studies was composed of the following information:
— Proponent of the case.
— Basic information: Location, industry and size of the organization.
— Agreement to share the necessary information for analysing the case.
— Proposed documents: List of the documents presented.
— Reasons to include the case in this document.
— A short description about the organization and actions in circular economy areas.
— Linear economy:
— Current problem to be solved: The challenge raised by the environmental sustainability of the initial
linear economic model of the considered organizations along the supply chain and eventually up to
the final customer. The linear problem was identified with the following dimensions: local, regional
(where) or global/international.
— Circular economy:
— Proposed solution: Describing how the initial “linear value offer” has been, is going to be or can be
shifted towards a more “circular and performance-oriented” solution with respect to the problem
to be solved. It can be justified through an LCA and a five-year plan, as the
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