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What is driving circularity?
Companies in all three sectors we spoke to saw growth opportunities from a circular transition. Supply risk was a particularly strong demand driver in the electronics industry but was also a factor in the construction sector. Even in textiles, where it was not a current concern, businesses expected it to become an issue in future. Voluntary, internal targets on carbon, waste and the environment are supporting market development for circular goods and services across all the sectors, albeit to a limited extent.
However, carbon related measures are having a particularly strong impact on driving circularity in the construction sector. This is the only sector required to produce statements on embodied carbon and reuse to win business, and it is driving progress at pace. Interviewees gave us examples of companies developing new offerings and forming innovative partnerships in response to policy imperatives. There is an opportunity to learn from the construction sector’s experience to foster a more rapid transition to circular business.
Factors driving circular business in three major sectors
Construction products
External reporting requirements on carbon Internal carbon targets Other internal targets on waste and environment
Commercial concerns about supply chain resilience Opportunities for business growth Electronics Fashion and textiles
