--- description: In GetApp’s latest survey looking at the circular economy, respondents expressed doubts on companies’ motives to embrace sustainable and waste-cutting practices. image: https://gdm-localsites-assets-gfprod.imgix.net/images/getapp/og_logo-94fd2a03a6c7a0e54fc0c9e21a1c0ce9.png title: Circular economy: UK consumers doubt environmental motives --- # Consumers believe profits drive the adoption of circular economy practices Canonical: https://www.getapp.co.uk/blog/3078/public-doubts-companies-investment-anti-waste Published on 20/09/2022 | Written by David Jani. ![Consumers believe profits drive the adoption of circular economy practices](https://images.ctfassets.net/63bmaubptoky/sPDWVeOuSR58x2M6oxtdhDOkFy_cV0AHxlmoUnCsjdg/e3ba9075a4ac4cfa382fe65d5ba48bbf/Circular-Economy-1-UK-GetApp-Header.jpg) > The use of circular economy practices by UK companies could prove an essential way to control waste management and energy usage at a time of environmental crisis. However, many doubt the adoption of circular principles is driven by sincere environmental beliefs. In our latest survey, participants expressed cynicism about why businesses adopt circular economy practices. ----- ## Article Content The use of circular economy practices by UK companies could prove an essential way to control waste management and energy usage at a time of environmental crisis. However, many doubt the adoption of circular principles is driven by sincere environmental beliefs. In our latest survey, participants expressed cynicism about why businesses adopt circular economy practices.In this articleWhat is the circular economy?Does the UK public understand the circular economy?Do British consumers believe company claims about circular economy practices?Are the UK public more motivated to purchase products from circular economy manufacturers?What is the public perception of the UK circular economy?Would UK consumers pay more for circular economy products?Is the public playing its part in helping circular economy practices?Sustainability is a major issue for governments, businesses, and the public. According to the most recently collected data from the Department for Environment, Food and Rural Affairs (Defra), Britain generates approximately 222.2 million tonnes of waste each year, with 43.9 million tonnes generated by commercial and industrial sources. This represents 20% of all waste currently generated in the country. Circular economy practices are gradually being adopted by UK industry and commercial entities, and many businesses are keen to publicise their dedication to environmental methods. However, what is the public perception of these efforts and are they seen as authentically driven by environmental goals?   In GetApp’s latest study, we surveyed 1,027 UK consumers to find precisely how motivated consumers are to engage with the circular economy and if people believe company claims about sustainable practices via these processes. Our full methodology can be found at the end of this article.What is the circular economy?The European Parliament defines a circular economy as ‘a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible’. In other words, a business focused on the circular economy aims to optimise the processes of manufacturing and distribution, whilst making it easier to reuse, repair, and recycle its generated products. The overall aim is to help companies avoid waste and reduce overall input in terms of energy and raw materials.Does the UK public understand the circular economy?One of the first things we wanted to learn about circular economy processes was how well the public understands the concept. After all, companies will be eager to talk more about their efficiency practices related to this concept if it is well known amongst UK consumers.As a result, we showed our UK participants the European Parliament’s definition of a circular economy seen in the section above. We then asked them several questions about how familiar they were with it as an idea. We found that circular economy processes are still little known by the British public. Whilst there are numerous positive benefits of a circular economy, most members of the UK public don’t have any recognition of the term. In our survey, when shown the definition of this process, 39% of the respondents had not heard the name or the concept of a circular economy. Another 15% knew the name and not the concept.This means over half the people surveyed didn’t understand ‘circular economy’ as a term. This suggests that the expression ‘circular economy’ has low market recognition, despite its positive sustainability credentials.Tips for SMEsThese findings show that an opportunity exists to educate the public on the values of circular processes to differentiate themselves from competitors. Whilst many members of our sample aren’t yet aware of the expression ‘circular economy’, many are receptive to it when they know what it means.Companies could educate consumers about the circular economy by communicating with their end users through many means such as:Optimised brandingCustomer communication strategiesRevised packagingSocial media marketing campaignsDo British consumers believe company claims about circular economy practices?It has become increasingly common for businesses to publicise their green credentials and resource efficiency when advertising their products. Historically, however, ‘ greenwashing’, when companies purposely mislead about their environmental impact, has been a common practice. This prevalence has been noted by the UK government, which recently tasked the Competition and Markets Authority (CMA) to investigate the validity of deals branded as ‘green’ or ‘environmentally friendly’. The organisation had previously found that around 40% of online green claims were false or misleading.Whilst steps are being taken to address this issue at a government level, previous and more recent cases of greenwashing may still remain in the public consciousness. This could affect how people perceive efforts by businesses to apply circular economy practices.In our findings, we broadly observed this cynicism towards companies’ motives to use the circular economy.  Overall, our participants believed that money was the overriding factor that influenced the use of the circular economy, whether it be through cost savings in manufacturing, improved brand image, or to gain an edge over competitors.Whilst 42% did express the opinion that companies have sincere convictions in using circular principles, this was only the third most popular choice for our sample.Additionally, 41% believed companies were using circular economy processes to take advantage of government initiatives. A further 36% felt that it was just a greenwashing practice. There is also an overriding opinion amongst British consumers that the government could do much more to ensure compliance with the circular economy. We found that 89% of our sample agreed that the authorities should do more to foster compliance with these principals.We also observed more doubts about how well companies manage anti-waste measures. 72% of our sample disagreed with the statement that companies are investing enough in cutting waste. Overall, this paints quite a negative picture of how seriously claims of action on the circular economy are taken. These results suggest that businesses in the UK can still do more to show that they sincerely adopt sustainable practices that cut waste.How can businesses avoid greenwashing?The CMA published the Green Claims Code in September 2021 to help businesses avoid making incorrect claims about environmental practices. This can be done by making clearer factual statements about their green credentials.The code highlights six points businesses should follow when making green environmental claims:Make only factual claimsAvoid vague terms and phrases Give enough information to make informed choices easyOnly compare products with the same purposes or usesProvide credible evidence of the claims being madeTake into account the entire life cycle of a productAre the UK public more motivated to purchase products from circular economy manufacturers?Companies may wish to adopt a circular economy business model to engage with an environmentally focused section of the public. However, does the use of these sustainable practices have an impact on the purchasing decisions of UK consumers?We asked our respondents this question to determine whether people were more or less likely to buy a product due to the mention or use of circular economy processes. We found that most people do not currently consider the circular economy to be an important factor when choosing a product.At the moment, using circular economy practices doesn’t have a significant impact on how likely consumers are to buy from a company. When asked whether they considered circular economy practices when making a purchase, a combined total of 68% answered no. However, it is worth noting that in the group that said no, 45% of answers indicated an interest in these sustainable concepts. This shows that giving the public more information about these practices may lead to more consumers considering circular economy methods as an essential purchasing decision. When looking at how these results varied by age, it was clear that younger people were more likely to consider the circular economy in their purchasing decision. Nearly half (49%) of those aged 18 to 25 say they always or sometimes take these factors into account, compared with only 16% of those aged over 65.Yet, there is also a trend to show that the older the consumer, the less likely they are to highlight the circular economy as an important purchasing decision. However, even amongst the youngest groups, consideration of these practices never exceeded 50%.What is the public perception of the UK circular economy?As we’ve already seen, there is no strong recognition of the term circular economy amongst the public. Nevertheless, people are much more aware of its practices, such as energy efficiency, recycling, zero waste, and reusability.Therefore, to find out more about how the UK circular economy is perceived and how it could be better marketed, we’ve examined how British consumers value its practices. We looked at the features that most impressed the public about the circular economy. We also examined whether this influenced how much money they were willing to spend on products manufactured using its sustainable practices.What elements of the circular economy model attract UK consumers the most?Many circular economy principles may prove attractive to the UK population. The UK recorded its hottest temperature in 2022 due to pollution-driven climate change, and there are also worries about energy consumption in the face of the Ukraine invasion. This may make the public pay closer attention to how individual businesses maximise efficiency, use clean energy, and champion the reuse of their products.Did you know?Some examples of circular economy practices have been written into law. One such case is the right-to-repair that fosters eco-design processes and encourages the repair of products to increase their overall lifespan. When we asked our participants what would be the most admirable efforts companies could make for stimulating the circular economy, we found that three factors stood out the most.Our sample was most impressed by factors such as recycling waste, material reuse in production, and renewable energy. However, 63% were also in favour of producing products with longer lifespans, and 60% were eager to see waste reduction during product production. Tips for SMEsCompanies can use one of the many types of sustainability software to help themselves become greener. These can assist businesses in the following ways to reach net zero:Collecting and analysing sustainability dataDigitising and automating data processesProducing environmental, social, and governance (ESG) and environmental impact reportsWould UK consumers pay more for circular economy products?A big question about circular economy-derived products is whether consumers would pay more for the perceived sustainability benefits. However, we discovered a split in opinion. There was an equal balance between those who would and would not spend more on circular economy practices in our findings.To dive deeper into this finding, we also asked those who had said they would pay more for circular economy processes how much extra they would be comfortable spending.What can be learned from these results is that many people will happily spend up to 20% more on circular economy-made products. There are even some who would spend much more than this, but they are in the minority.Despite no clear trend between those that would and wouldn’t spend more on circular economy products, it is at least clear to see how much more those motivated to pay extra would be happy to expend.Tips for SMEsInvesting in new circular economy manufacturing processes could be expensive upfront, even when they equal bigger savings further down the line. Having a clear view of how your pricing strategy will change whilst undergoing a green or net zero transition is therefore essential.Using price optimisation software, companies can plan ahead and test out scenarios that will allow them to figure out potential unit costs under a new paradigm. This can also ensure that production changes won’t drive prices beyond what consumers expect to pay for the added value of sustainability. Is the public playing its part in helping circular economy practices?We’ve now seen how the public perceives businesses’ involvement in the circular economy and what companies do to facilitate it. Overall, industry and commerce in the UK didn’t inspire much public confidence in the handling of sustainability issues.Our sample felt that companies use practices such as the circular economy to become more profitable and don’t invest enough in cutting waste. It is therefore important for businesses to ensure that they are transparent with their practices and work to educate their customers about the benefits of the circular economy and their place in it.Whilst there is clear evidence that businesses must do a lot more to show they sincerely support the circular economy, it also requires the participation of all sections of society, including consumers. This is especially true with the repair, waste-avoidance, and recycling of products.This is something we’ll examine in more detail in our second report, which details consumer behaviour and interactions with second-hand products and food waste apps. Looking for waste management software? Check out our catalogue. ## Disclaimer > MethodologyData for GetApp’s Circular Economy 2022 survey was collected in July 2022. Results comprise responses from 1,027 UK participants. The criteria to be selected for this study are as follows:UK residentAged 18 or olderUnderstands the definition of the circular economy ## About the author ### David Jani David is a Content Analyst for the UK, providing key insights into tech, software and business trends for SMEs. Cardiff University graduate. He loves traveling, cooking and F1. ## Related Categories - [Accounting Software](https://www.getapp.co.uk/directory/236/accounting/software) - [CRM Software](https://www.getapp.co.uk/directory/230/crm/software) - [Human Resources Software](https://www.getapp.co.uk/directory/256/human-resources/software) - [POS Systems](https://www.getapp.co.uk/directory/195/point-of-sale/software) - [Warehouse Management System](https://www.getapp.co.uk/directory/225/warehouse-management/software) ## Related Articles - [A third of managers admit to willingly overstepping legal boundaries when using monitoring tools](https://www.getapp.co.uk/blog/1973/managers-admit-overstepping-legal-boundaries-with-monitoring-tools) - [Benefits of RFID systems in inventory management](https://www.getapp.co.uk/blog/3513/benefits-of-rfid-systems) - [Is time up for the 5-day working week in the UK?](https://www.getapp.co.uk/blog/3515/time-up-for-5-day-week-uk) - [COVID-19 has redefined the workplace for the majority of employees](https://www.getapp.co.uk/blog/1844/covid-19-has-redefined-the-workplace-for-the-majority-of-employees) - [What is the difference between DaaS and VDI?](https://www.getapp.co.uk/blog/2178/difference-between-daas-and-vdi) ## Links - [View on GetApp](https://www.getapp.co.uk/blog/3078/public-doubts-companies-investment-anti-waste) - [Blog](https://www.getapp.co.uk/blog) - [Home](https://www.getapp.co.uk/) ----- ## Structured Data