Report "The Role of Labelling in Closing Material Loops"

Circular Economy? Only with Effective Identification!

A circular economy cannot function without reliable data tracking—especially when it comes to packaging. Efficient identification is made possible by GS1 standards. The latest report by the Institute of Innovation and Responsible Development and GS1 Poland is a comprehensive guide to the effective use of modern identification technologies in support of circularity.

Is there an alternative to the current linear model of "take, make, dispose"? Yes—but it requires data. The report, published in October 2023 by INNOWO and titled "The Role of Labelling in Closing Material Loops", highlights the critical importance of information, labelling, and standardisation in achieving a circular economy. The publication was co-authored by experts from GS1 Poland.

REPORT [PDF]

Product and Packaging Identification: The Key to Implementing Circular Economy Principles

The report highlights how efficient identification of packaging can contribute to effective data management and the implementation of digital solutions. This, in turn, supports sustainable development—for example, through automation. It enables more efficient resource use, reduces material and energy consumption, lowers emissions, and minimizes waste generation.

The circular economy cannot be successfully implemented without effective identification of packaging and products, emphasize the authors of the INNOWO report. INNOWO is a non-governmental organization that supports innovation development and systemic changes for sustainable growth. As experts note, only a fully identified product or raw material can be effectively reused. Therefore, it is crucial that data can follow a product throughout its entire life cycle. Achieving this requires standardization and compatibility of systems used in production and recycling.

“Information is a key ally in the transition to a circular economy model, which our planet and humanity urgently need in the face of numerous threats. Using common standards for data collection, processing, and sharing can dramatically accelerate this process,” argues Dr. Agnieszka Sznyk, CEO of INNOWO.

Breaking down data “silos” — that is, their isolated and non-shared nature — and opening data for sharing is essential in the circular transformation process. Standardization plays a crucial role here, as it enables seamless data exchange between processing systems. Shared, open, and universal standards such as GS1 are used worldwide by millions of companies. Data encoded in one- and two-dimensional codes is utilized by both businesses and consumers.

Effective product tracking goes beyond barcodes

The report also presents GS1 Poland’s solutions regarding product labelling. GS1 Poland is an organization that provides global identification standards which help streamline supply chains worldwide. Its solutions play a key role in the circular economy by increasing operational efficiency, building sustainable supply chains, reducing waste, and lowering operational costs. Barcodes and RFID tags placed on packaging allow precise management of products and inventory, resulting in improved customer service and higher quality of operations.

In logistics and transport, labelling shipments using GS1 standards enables real-time tracking of their location, minimizing losses, errors, and delivery delays, thereby reducing costs. Thanks to standardized documentation and smoother data exchange, manufacturers and transport companies can cooperate with partners from different countries and regions. Additionally, GS1 standards support the digitization of transport and logistics processes.

“Efficient data management is key to sustainable development. I believe that GS1 standards also form the foundation of the circular economy,” says Dr. Marta Szymborska, Communications, PR, and ESG Manager at GS1 Poland.

We invite you to read the report!

Information about the report's authors:

INNOWO

The Institute for Innovation and Responsible Development INNOWO is a non-governmental organization and a THINK to DO TANK focused on supporting innovation development and implementing systemic changes to achieve sustainable socio-economic development. INNOWO collaborates with diverse stakeholders, including researchers, government administration, policymakers, businesses, and NGOs, to initiate joint actions aimed at improving societal well-being and environmental conditions.

GS1 Poland

GS1 Poland is part of GS1, a global organization that develops the world’s most widely used system of standards. Our standards enable organizations to efficiently identify, capture, and exchange information. The unified GS1 data standard creates a common language that forms the foundation for systems and processes worldwide. This support also extends to retail networks, helping them operate more effectively, safely, and sustainably. By combining multidisciplinary expertise with experience working alongside local governments, government representatives, and international communities, we achieve a broader perspective and conduct effective, coordinated actions.