GOV: Governance

1. Definition and Issues

Governance refers to the way decisions are made, steered and monitored within a company. In a circular economy approach, it plays a key role by enabling these issues to be integrated into the overall strategy, rather than being treated as isolated actions.

For a micro or small-to-medium enterprise, structuring its governance around these topics — even in a simple way — helps set a clear direction, engage teams, and ensure consistency between economic and environmental objectives. This includes in particular the definition of objectives, the allocation of responsibilities, and the monitoring of commitments.

Key issues:

• Providing the company with a vision and direction
• Structuring decision-making
• Ensuring consistency of actions
• Progressively meeting regulatory and societal expectations

2. What does a good score mean?

A high score on the governance pillar indicates that the company has already integrated sustainability and circular economy issues into its operating model.

In practice, this means that:

• Management is committed and acts as a driver on these topics
• Clear objectives (even simple ones) are defined
• Responsibilities are identified (even within a small team)
• Decisions take environmental and social impacts into account
• The company anticipates certain regulatory developments or client expectations

The company is not merely reacting to the transition: it is beginning to steer it.

3. What does a low score mean?

A low score generally reflects an absence of structure around these issues. The circular economy may be perceived as secondary, or approached in an ad hoc manner, without an overarching vision.

This can lead to:

• Isolated actions lacking coherence
• Difficulty in mobilising teams
• A lack of visibility on priorities
• Falling behind market or partner expectations
• Decision-making based solely on the short term

In the long run, this can hinder the company’s development and limit its ability to adapt to changes in the economic and regulatory environment.

4. Priority action pathways

1) Formalise an intention or vision

Define a simple orientation around the circular economy (e.g. waste reduction, improvement of purchasing practices).

Example: a catering company drafts a short internal charter to limit food waste.

2) Designate an internal point of contact

Identify a person responsible for monitoring these topics, even on a part-time basis.

Example: in a 10-employee SME, the administrative manager oversees environment-related actions.

3) Integrate these issues into day-to-day decisions

Begin to include environmental or social criteria in operational choices.

Example: compare two suppliers by factoring in their environmental impact, not just the price.

4) Establish a regular monitoring checkpoint

Organise exchange sessions (monthly or quarterly) to review progress on actions.

Example: add a 10-minute “eco-responsibility” item to team meetings.

5) Raise awareness among management and managers

Train or inform yourself on circular economy issues in order to steer more effectively.

Example: attending a webinar or reading a practical sector-specific guide.

5. Expected benefits

Implementing governance, even in a simple form, quickly helps structure the approach and improve efficiency.

In the short term:

• Better clarity on priorities
• More consistent decision-making
• The beginning of team engagement

In the medium term:

• Savings in time and efficiency in actions
• Improvement of the company’s image
• Greater ability to respond to calls for tender or client requirements

In the long term:

• A more resilient and adaptable company
• Natural integration of environmental issues into strategy