Ask Oxano Series: Circular Business Certifications: Are They Worth It?

In today’s economy, where sustainability claims are increasingly scrutinized, circular business certifications have emerged as a way for companies to prove their commitment to environmental responsibility and closed-loop practices. But as these certifications proliferate from Cradle to Cradle, B Corp, and Ellen MacArthur Foundation's CE100, to ISO 14001 and EMF-aligned frameworks, a critical question arises: Are they truly worth the time, money, and effort for businesses, especially in emerging markets? 

The Rise of the Circular Economy 

At its core, the circular economy challenges the traditional “take-make-dispose” model by emphasizing reuse, regeneration, and value retention across the entire product lifecycle. With the global circular economy market projected to reach $712 billion by 2026, certifications are becoming a key lever for companies to differentiate themselves in a crowded field. 

Consumers, investors, regulators, and supply chain partners are all demanding transparency and accountability. A circular business certification can provide third-party validation signaling that your company isn’t just greenwashing but embedding sustainability into its operations. 

What Do Circular Certifications Measure? 

Depending on the certification, evaluation may include: 

1. Product lifecycle impacts 
   
2. Use of renewable/recyclable materials 
   
3. Waste and water reduction 
   
4. Energy efficiency
   
5. Design for disassembly or repair 
   
6. End-of-life recovery plans 
   

1. Social equity and fair labor practices (especially in B Corp and similar models)  Some, like Cradle to Cradle Certified®, assess material health, product circularity, clean air and climate protection, water and soil stewardship, and social fairness. Others, like ISO 14001, focus on broader environmental management systems. 

The Business Case: Benefits vs. Costs 

Pros: 

1. Market Differentiation: In sectors like fashion, food, construction, and packaging, being certified can set brands apart, especially in B2B procurement where sustainability credentials are increasingly a prerequisite. 
    
2. Investor Appeal: ESG (Environmental, Social, Governance)-aligned funds are growing. A 2023 Morgan Stanley study showed that 70% of institutional investors consider ESG metrics in decision-making. Certification can serve as a tangible metric. 
    
3. Supply Chain Access: Some multinational corporations require circular or sustainability certifications from their suppliers as a condition for doing business. 
    
4. Operational Efficiency: The audit and compliance process often reveals ways to reduce waste and improve efficiency, cutting costs in the long term. 
    
5. Regulatory Readiness: As regulations evolve, such as the EU Green Deal or Extended Producer Responsibility (EPR) policies, being certified can help companies stay ahead. 

Cons: 

1. Cost and Complexity: Certification can cost between $10,000 to $100,000+ depending on company size, geography, and certification type. The process is resource-intensive, often requiring months of preparation and internal alignment. 
    
2. One Size Doesn’t Fit All: Some frameworks are heavily geared towards Western industrial contexts and may not account for informal economies, infrastructure gaps, or cultural practices in Africa, Asia, or Latin America. 
    
3. Maintenance Burden: Certifications often require annual renewals, continuous monitoring, and third-party audits, which may strain SMEs or startups with lean teams. 
   
   So, going to the question, are they worth it? Yes, but strategic selectivity is essential. For businesses operating in regions with growing export ambitions, circular certifications can unlock premium markets and elevate brand reputation. For example, certified sustainable cashew processors in Ghana or textile upcycling firms in Kenya have successfully entered the EU and North American markets using certification as leverage. 
   

However, for local-facing businesses, especially SMEs, a phased approach may be more practical: aligning operations with circular principles first, leveraging local or regional eco-labels, and then pursuing global certifications when capacity allows. 

 Circular business certifications are not magic bullets, but they are powerful tools when aligned with a company’s goals, markets, and values. They can reinforce your credibility, improve internal practices, and open doors to finance and partnerships. But they must be pursued with clarity of purpose, not just for optics. 

As circular economy principles become mainstream, the value of third-party verification will only grow. But the ultimate worth lies not just in the badge, but in how deeply a business is willing to transform. 

 In the transition to a sustainable future, certification is not the destination. It’s a waypoint on a longer, regenerative journey.