Zero Waste Scotland has launched a free Business Information Hub to help businesses across Scotland identify and adopt circular economy practices, offering personalised guidance through a Circular Business Quiz and a structured 12-month programme called the Journey to Circularity.

The platform is a direct response to findings from the organisation's own research, Exploring Circular Economy Engagement Among Scottish Businesses, which surveyed 131 firms across priority sectors including manufacturing, construction, hospitality, textiles and energy. Fieldwork was carried out by Progressive Partnership in early 2025, with the full report published in January 2026.

Commenting on the development, Ciaran McGuigan, Chief Executive at Zero Waste Scotland said: "Our market research shows businesses are interested in these competitive advantages, but many feel unsure where to start, or how circular economy principles even apply to them, which is why we've developed this new Business Information Hub."

Bridging a language gap

The research found that while 77 per cent of Scottish businesses are favourable towards adopting more circular economy practices, only 44 per cent fully or mostly understand the term. There was a clear gap in awareness between established environmental terms and circular economy language: 95 per cent of businesses had heard of "net zero" and 87 per cent recognised "carbon offsetting", but only 65 per cent were aware of the term "circular economy".

When asked what it means, 59 per cent described it as reusing or repurposing waste, 37 per cent mentioned reducing waste, and 37 per cent said recycling. Only 12 per cent referred to keeping products and materials in use for as long as possible. Qualitative interviews with 27 businesses confirmed that most tended to equate circularity with recycling or waste reduction, rather than the broader principles of product redesign and circular business relationships.

Yet when businesses were given a brief definition of circular economy practices, 75 per cent said they understood this, suggesting the barrier is more about language than comprehension. The Circular Business Quiz at the centre of the new hub is designed to tackle this, translating circular economy principles into personalised, sector-specific recommendations rather than relying on terminology that many businesses find unfamiliar.

The hub also offers businesses a 12-month Journey to Circularity, a structured programme of learning and implementation support. The Circular Business Quiz provides the starting point, tailoring its output to a firm's size and sector, and the journey programme then guides participants through identifying and acting on circular opportunities within their operations.

"Historically, circularity has been thought of as an environmental solution, or too time consuming to tackle. But, in reality, it can unlock new revenue streams, attract investment, fuel innovation, build long-term resilience, and much more," said McGuigan.

What's holding businesses back

Most businesses surveyed had already adopted at least some circular measures. Recycling was reported by 95 per cent, followed by waste reduction (83 per cent) and resource efficiency (79 per cent). Around half had made supply chain changes (56 per cent) or redesigned products and services (52 per cent). But these tended to cluster around "end of pipe" activities, with fewer businesses pursuing more substantive changes such as circular business relationships with suppliers and customers.

Fewer than half (46 per cent) said they plan to adopt any further circular practices in the next three years. Cost and funding were the most commonly cited barriers, with two thirds of respondents rating a lack of available or accessible funding as a significant obstacle. Almost half (48 per cent) cited a shortage of circular material suppliers, and 45 per cent pointed to a lack of external support and guidance. Construction businesses were the least likely to have adopted circular practices and the most likely to cite barriers across the board.

The support gap was notable among smaller firms. Businesses with 10 to 50 employees were far less likely to have accessed circular economy guidance (36 per cent) compared with those employing 51 to 100 staff (65 per cent) or more than 100 (80 per cent). Zero Waste Scotland was already the most commonly cited source of sustainability advice among those who had sought support, named by 36 per cent of respondents, ahead of the Scottish Government (23 per cent), private consultants (19 per cent) and SEPA (16 per cent).

The report categorised Scottish businesses into four groups by readiness: "CE-literate" firms that already understand and apply circular principles; "CE-curious" businesses that need practical direction; "CE-hesitant" firms that require convincing evidence of commercial benefit; and "CE-uninformed" companies that may already be recycling but have not encountered the circular economy as a distinct framework. ZWS said it expected the greatest impact from working with the curious and uninformed groups.

When asked what would motivate them to go further, the prospect of reduced costs and increased profits scored highest, with an average rating of 8.6 out of 10. Some 81 per cent said funding would be the most helpful form of support, followed by case studies (75 per cent) and online tools (70 per cent).

ZWS's own Circular Jobs Tracker has previously identified 56,000 circular economy jobs in Scotland, contributing around £4 billion to GDP. As one small manufacturer in Tayside told researchers: "I think people just need to be more informed about it and that would be kind of a good baseline to start."