Procurement Glossary
Recycling rate: definition, calculation and significance in Procurement
November 19, 2025
The recycling rate is a key indicator for the circular economy and measures the proportion of recycled materials in the total use of materials. In Procurement , it is becoming increasingly important for sustainable procurement strategies and the evaluation of suppliers. Find out below what the recycling rate is, how it is calculated and what role it plays in modern procurement processes.
Key Facts
- Measures the percentage of recycled materials in total material consumption
- Important indicator for circular economy and resource efficiency
- Increasingly integrated into supplier assessments and ESG criteria
- Varies greatly between different material groups and industries
- Supports companies in achieving sustainability goals
Contents
Definition: Recycling rate
The recycling rate describes the ratio between recycled and newly used materials in a defined system or process.
Basic aspects of the recycling rate
The recycling rate is expressed as a percentage and can be measured at various levels:
- Product level: proportion of recycled materials in a specific product
- Company level: total proportion of recycled materials in the company
- Industry level: Average quota for an entire industry
- Economic level: National or regional recycling rates
Recycling rate vs. recovery rate
While the recycling rate only considers material recycling, the recovery rate also includes energy recovery. This distinction is crucial for the life cycle analysis of products.
Importance of the recycling rate in Procurement
In modern procurement management, the recycling rate serves as an important criterion for sustainable supplier selection and compliance requirements. It supports companies in implementing decarbonization strategies and meeting regulatory requirements.
Methods and procedure for recycling rate
Determining and optimizing recycling rates requires systematic approaches and precise measurement methods.
Calculation methods
The calculation is based on the formula Recycling rate = (amount of recycled materials / total amount of material) × 100. Various factors must be taken into account:
- Delimitation of the area under consideration (cradle-to-gate vs. cradle-to-cradle)
- Quality of the recycled materials (downcycling vs. upcycling)
- Timing of the measurement
Data collection and monitoring
Successful implementation requires robust data acquisition systems. The traceability of materials forms the basis for reliable measurements. Modern companies use digital platforms to continuously monitor their recycling rates.
Integration into procurement processes
Systematic integration is achieved by adapting supplier contracts and qualification criteria. Codes of conduct for suppliers define specific minimum requirements for recycling quotas.
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Important KPIs for recycling rate
Measuring and controlling recycling rates requires specific key figures and evaluation criteria.
Primary recycling KPIs
The most important key figures include the absolute recycling rate, material-specific rates and developments over time. Costs per recycled kilogram and quality indices are also measured:
- Total recycling rate in percent
- Material-specific recycling rates (metal, plastic, paper)
- Recycling cost efficiency (€/kg recycled material)
- Quality retention rate according to recycling cycles
Secondary performance indicators
Supplementary key figures evaluate the impact on sustainability and business success. The recyclability assessment of products is becoming increasingly important for strategic decisions.
Supplier evaluation metrics
Special KPIs evaluate the recycling performance of suppliers. These are incorporated into EcoVadis assessments and other sustainability ratings. Regular supplier audits check compliance with agreed recycling quotas.
Risks, dependencies and countermeasures
The implementation of recycling quotas entails various challenges and dependencies.
Quality risks
Recycled materials can exhibit qualitative fluctuations that impair product properties. Downcycling effects reduce material quality in every recycling cycle. Companies must therefore implement robust quality assurance systems and maintain alternative material sources.
Supply chain dependencies
High recycling rates require functioning take-back and processing systems. Disruptions in the recycling infrastructure can lead to supply bottlenecks. Due diligence processes must therefore also include recycling partners.
Compliance and reputational risks
Incorrect information on recycling rates can lead to legal consequences and reputational damage. The risk of greenwashing increases with insufficient documentation. Regular audits and transparent reporting in accordance with GRI standards minimize these risks.
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Practical example
An automotive manufacturer implements a minimum recycling rate of 25% for plastic components. Procurement develops new supplier criteria and carries out quarterly audits. Through partnerships with specialized recycling companies, the quota rises to 35% within two years. The measure not only reduces the environmental impact, but also cuts material costs by 12%.
- Definition of clear recycling rate targets per material group
- Integration into supplier contracts and qualification processes
- Building strategic partnerships with recycling specialists
- Continuous monitoring and optimization of processes
Trends & developments around recycling rates
The importance of recycling quotas is constantly growing due to regulatory requirements and changing market expectations.
Regulatory developments
New EU regulations significantly tighten the requirements for recycling quotas. The EU taxonomy defines specific threshold values for sustainable economic activities. At the same time, WEEE directives are increasing the pressure on electronics manufacturers.
Technological innovations
Artificial intelligence is revolutionizing the sorting and processing of recycling materials. Machine learning algorithms are optimizing recycling processes and significantly increasing the achievable quotas. Blockchain technology enables transparent tracking of material flows.
Market dynamics and customer expectations
Consumers and B2B customers are increasingly demanding higher recycling rates. This is leading to new business models such as second-life concepts and increased material substitution towards recyclable alternatives.
Conclusion
The recycling rate is developing into a key management tool for sustainable procurement. It enables companies to systematically implement circular economy principles and meet regulatory requirements. However, successful implementation requires robust measurement and control systems as well as strategic partnerships along the entire value chain. The continuous development of technologies and standards will further increase the importance of this key figure.
FAQ
What is the difference between recycling rate and recovery rate?
The recycling rate refers exclusively to the recycling of materials, while the recovery rate also includes energy recovery (incineration to generate energy). The recycling rate is the more relevant indicator for sustainable procurement, as it reflects a genuine circular economy.
How is the recycling rate calculated in practice?
The calculation is based on the formula: (amount of recycled materials / total amount of material) × 100. System boundaries must be clearly defined - whether product-related, company-wide or industry-specific. It is important to take into account quality losses during the recycling process.
What are the advantages of a high recycling rate in Procurement?
High recycling rates reduce raw material costs, improve the sustainability balance and strengthen compliance with regulatory requirements. They minimize dependencies on primary raw materials and can increase supply chain stability. They also meet growing customer expectations for sustainable products.
What risks are associated with high recycling rates?
The main risks include fluctuations in the quality of recycled materials, dependencies on recycling infrastructure and potential supply bottlenecks. Downcycling effects can impair product properties. Insufficient documentation harbors compliance risks and can lead to accusations of greenwashing.
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