SYSTEMIC challenges are preventing businesses in Scotland from adopting the practices necessary to achieve a circular economy at a greater scale, a new report has warned.
The report, published by the University of Stirling and Zero Waste Scotland, is based on interviews with representatives from trade, business, and financial support organisations, as well as knowledge centres and academia.
The work explored the ways in which conditions need to improve to ensure Scotland’s economy becomes more circular and businesses are to achieve the resultant benefits – such as increased competitive advantage, resource resilience, and reductions in CO2 emissions and waste.
As part of its findings, the report found a lack of shared understanding and language across the economy and society regarding circular economy practices (CEPS). Furthermore, it also found gaps in understanding as to why CEPs are important and how they can be implemented in practice, as well as a lack of role models and peer support within the business community.
Similarly to other countries, Scotland’s economy is optimised for the linear model of ‘manufacture, use, and discard’. A more circular economy minimises the use of virgin resources by using less, using for longer, using again, and switching to regenerative material use.
However, products and services based on CEPs are considered not-yet-proven at scale and comparatively riskier which makes it harder for businesses to raise investment and find a broad customer base, says the report.
The report’s authors call for a clear and actionable vision setting out the value of CEPs, simplified language around CEPs, and broadening out how the value of goods, services, and materials capture the wider societal and environmental impacts.
Dr Michaela Hruskova, lecturer in entrepreneurship at the University of Stirling management school and co-author of the report, said, “This study is crucial to ramping up the adoption of circular economy practices in Scotland and to working towards a healthier planet. While increasing circularity in the economy is widely acknowledged as the way forward, we identified a number of systemic challenges that prevent Scotland’s business community from making the transition.
“Our report sets out the ways the business community, customers, and the Governments, Scottish and UK, can work together towards a more circular economy, making it truly part of our culture.”
Simon Amos, Zero Waste Scotland’s research analyst, added, “The research identifies 11 systemic elements as areas which have influence on how easy it is for businesses to adopt circular economy practices. These elements include things like networks, finance, and talent.
“Through detailed analysis of these 11 elements, we can identify more strategic interventions and, crucially, explore for the first time how influencing changes in one ecosystem element has causal effects in another. In so doing, we aim to influence holistic change which removes barriers preventing the adoption of circular economy practices and, instead, create positive reinforcing ‘loops’ tipping the system towards increased sustainability and circularity.”
Iain Gulland, chief executive of Zero Waste Scotland, commented, “Businesses have a huge part to play in evolving a more sustainable, circular economy, but we must create the conditions needed for them to develop and scale successfully. This report maps out, for the first time, a systems-based approach to the environment within which businesses operate and explores how we can make changes to make the adoption of circular practices easier.
“Our current ‘linear’ economic model is working against businesses that are trying to do things differently for the good of both people and planet. The Scotland’s Circular Economy Practices Ecosystem report spotlights what we need to do to turn this around, signposting the collective action we need to take to drive widespread, impactful change.”
