# ISO 59020 Circular Economy Reporting: What Indian MSMEs Should Track

Canonical: https://senseible.earth/climate-intelligence/msme-circular-economy-iso-59020-reporting

Published 2026-05-06.

ISO 59020:2024 standardises how organisations measure and report circular economy performance. Some EU buyers and lenders are starting to ask about circularity metrics.

## The four core indicators

| Indicator | What it measures | MSME starting target |
| --- | --- | --- |
| Material circularity rate | % of material from secondary sources | Set from your baseline |
| Product life extension | Average use life vs sector benchmark | Set from your baseline |
| End-of-life recovery rate | % of product recovered for reuse/recycle | Set from your baseline |
| Resource productivity | Revenue per kg material | Year-on-year improvement |

## Why circularity reduces carbon

Most embodied carbon comes from primary material extraction and processing. Replacing primary inputs with secondary, refurbished or remanufactured ones can cut upstream Scope 3 substantially. It is one of the most underused decarbonisation levers for component MSMEs.

## A practical tracking sheet

For each product line:

- Mass of inputs by source (primary vs secondary)
- Mass of waste generated by stream
- Mass of waste recycled, recovered, landfilled
- Take-back program existence and volume
- Average product life from warranty data

## How to report

ISO 59020 does not require an external audit but does require traceability. The same data feeds CSRD ESRS E5 (Resource Use and Circular Economy) and ESRS E1 (Climate Change) Scope 3.

Circularity can cut cost, cut carbon and create a buyer story at the same time. Skipping it is wasteful in three dimensions.

## Quick wins

- Take-back deposit on packaging
- Refurbished spare parts catalogue
- Design for disassembly review on top 3 SKUs
- Switch primary aluminium / steel for recycled (see [aluminium recycling article](https://senseible.earth/climate-intelligence/msme-aluminium-recycling-scope-3-savings))

Use [Senseible](https://senseible.earth/) to track material flows alongside emissions in one ledger.

## Related guides

- [How do we maintain historical carbon data when methodologies change?](https://senseible.earth/climate-intelligence/maintain-historical-carbon-data-methodology-changes)
- [What are the different types of carbon credits in voluntary markets?](https://senseible.earth/climate-intelligence/carbon-credit-types-voluntary-markets)
- [How do we select the right emission factors for our calculations?](https://senseible.earth/climate-intelligence/emission-factors-selection-guidance)