The UK’s shift towards a circular economy marks one of the most significant transformations in how we produce, consume, and regulate resources. It moves beyond waste management and sits at the core of modern business strategy, policy, and sustainability performance.
What is the circular economy?
The circular economy model is moving the UK away from the traditional linear model of “take, make, use, dispose”, which depends on constant extraction and disposal. This linear approach is increasingly incompatible with planetary boundaries and tightening sustainability legislation.
Instead, circular systems are designed to eliminate waste and pollution, keep materials in use for as long as possible, and regenerate natural systems. By reintroducing materials back into the production cycle, they create continuous value rather than waste and turn end-of-life products into valuable inputs for new processes.
The goal of a circular economy is to decouple economic growth from resource consumption (ensuring that growth does not rely on extracting more resources from nature). It operates through two core mechanisms:
- Slowing the loop – extending product lifespan through repair, reuse, and refurbishment.
- Closing the loop – recycling or remanufacturing materials for re-entry into production.
Together, these mechanisms conserve resources, reduce emissions, and build resilience across supply chains. The circular economy model also supports the triple bottom line: benefitting people through green job creation, protecting the planet by minimising waste and pollution, and improving profitability through resource efficiency and innovation.
What is the difference between the circular economy and Doughnut Economics?
Both models share the aim of achieving sustainable prosperity within environmental limits.
The circular economy provides the operational framework (through strategies such as eco-design, reuse, and recycling). Doughnut Economics offers the conceptual model that balances human needs within the planet’s ecological boundaries. In practice, businesses can use circular economy tools to deliver on Doughnut principles, translating theory into measurable environmental and social outcomes.
What business models support a circular economy?
Organisations are adapting through models that prioritise value retention:
- Product-as-a-Service – shifting from ownership to access through leasing or subscription models.
- Product Life Extension – using modular and responsible design for longevity, repair, and upgradeability.
- Resource Recovery – capturing materials from end-of-life products for reprocessing.
- Sharing Platforms – maximising utilisation of assets across users or sectors.
- Circular Supply Chains – sourcing renewable or recycled materials to reduce dependency on virgin inputs.
These models are not only environmentally responsible but also commercially strategic, enabling innovation, cost savings, and brand differentiation in an increasingly regulated market.
© European Union, 2023 — Source: European Parliament, European Parliamentary Research Service (EPRS). Source.
What legislation does the UK have for a circular economy?
UK policy now embeds circular principles through a series of interlinked frameworks and regulations, including:
- Resources and Waste Strategy (2018) – setting a long-term vision for waste reduction and material efficiency.
- Circular Economy Package (2020) – implementing EU-aligned recycling and landfill targets.
- Waste Prevention Programme (2023) – encouraging reuse, repair, and sustainable design.
- Extended Producer Responsibility (EPR) – holding producers financially responsible for the environmental impact of their products through a framework of legislation.
- Circular Economy (Scotland) Act 2024 – introducing statutory reuse and recycling targets alongside enhanced product stewardship obligations.
Together, these measures establish a compliance landscape where transparency, traceability, and performance reporting are essential to demonstrating corporate responsibility and meeting investor expectations.
How can iCOR Systems support compliance with UK circular economy legislation?
iCOR Systems helps organisations transition towards circular operations through data-driven compliance management.
Automatically generated bespoke legal registers (updated monthly) consolidate environmental and waste legislation to reduce administrative burden and ensure accurate compliance. The platform also supports evidence management, enabling auditable tracking of environmental performance and legal compliance.
Book a demo here to learn how iCOR Systems can help you close the loop on compliance and contribute to a sustainable circular transition.