B7: Resource use, circular economy and waste management
Circular economy principles, the waste you generate and how much of it goes to recycling or reuse.
In brief
B7 asks whether you apply circular economy principles and, if so, how. It also asks for the total weight of the waste you generated, split into hazardous and non-hazardous waste, and the share sent to recycling or preparation for reuse. Companies in sectors with significant material flows, such as manufacturing, construction and packaging, also report the annual mass of the materials they use. Unlike VSME, the VS has no exemption for household-type waste, so office waste counts too.
At a glance
- Requirement
- Essential: circular economy principles, total waste by hazard class and the recycling share. Material flows if your sector uses significant material flows.
- 10 employees or less
- Voluntary.
- Value chain cap (from 2027)
- Whether you apply circular principles, total waste by hazard class and the recycling share, for companies with more than 10 employees.
- In Selko Report
- Page "Resource Use & Circular Economy"
What changed from VSME
- Changed: the share (%) of waste sent to recycling or preparation for reuse replaces the mass diverted to recycling or reuse.
- Removed: the exemption for companies that generate only household-type waste. Every company reports its waste.
- Changed: the circular economy principles are now three: eliminate waste and pollution, circulate products and materials at their highest value, and regenerate nature.
- New: voluntary for companies with 10 employees or less.
- EFRAG's guidance recommends classifying hazardous waste with the European List of Waste, reporting radioactive waste with hazardous waste, and using volume when weight is not a suitable unit.
VS Standard Reference
The official text of the Voluntary Standard, Annex I to Commission Delegated Regulation (EU) 2026/1560.
Selko Insights
How Selko applies it
Waste classified with the European List of Waste
Each row in the waste table is one waste stream with a code from the European List of Waste, for example "20 03 01 – Mixed municipal waste". You can search by code or by everyday names such as mixed waste, cardboard or electronics. A six-digit code sets the hazard class, because entries marked with an asterisk are hazardous. Radioactive waste is outside the list: leave the code empty, choose Radioactive, and it is counted with hazardous waste.
Tonnes or cubic meters
Each row is in tonnes or, when the waste is not weighed, in cubic meters. Weight and volume are never added together. The recycling share is calculated by weight, or by volume when there is no weight to use.
What counts as recycled or reused
Following EFRAG's guidance, count the waste you sort and send to recycling or reuse operators, not what the operator finally recycles. In our reading, separately collected fractions such as paper, cardboard, plastic, biowaste, glass and metal count, and mixed residual waste does not.
Where to find the data
The easiest source is the annual summary from your waste contractor. In shared premises, EFRAG suggests allocating the building's waste by floor area, number of employees or another fair key.
Circular economy and material flows
Answer Yes to the circular economy question if you, for example, design durable and repairable products, use recycled materials, repair or resell used products, or reduce waste in a planned way. Then describe what you do. Material flows are asked from companies in sectors with significant material flows, such as manufacturing (NACE C), construction (NACE F) and packaging (NACE 82.92). List your key materials with their weight or volume for the year. Energy and water are not counted as materials.
Waste also feeds Scope 3
If you use the Scope 3 calculator, the waste streams from B7 feed category 5 (waste generated in operations) automatically, so you enter them only once.
Frequently asked questions
Related content
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Read moreReady to make progress?
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