A Practical Guide for the Housing and Hospitality Sectors to Eliminate Waste and Build Supply Chain Resilience
Why do we need a circular economy model?
The housing and construction sector is the largest waste producer, contributing approximately 62% of all UK waste. In total, 60 to 62 million tonnes of waste are generated per year.
Hospitality and food service sector generates approximately 1 million tonnes of food waste per year. It generates approximately 1.8 to 2.5 million tonnes of CO2e. To put that into perspective, it is roughly equivalent to the annual emissions of over 400,000 cars on UK roads.
The hospitality industry alone contributes a significant portion of the 34 million tonnes of commercial waste generated in England. This includes packaging, cardboard, and textile waste.
Circular economy is a transformative economic model designed to be restorative and regenerative by design. Instead of extracting finite resources to create products that eventually end up in landfill, the model keeps materials and products in use for as long as possible through recycling, repair, and reuse. It benefits UK businesses in reducing their carbon footprint and building supply chain resilience.
Why is waste management important in building the circular economy model?
The total cost of landfill disposal, including the landfill tax and other potential fees for transportation and handling, can often exceed £100 per tonne.
Specifically, in the hospitality and food service sector alone, the 1 million tonnes of food waste generated annually is valued at approximately £3.2 billion.
Effective waste management saves resources by minimising the volume of waste sent to landfill and encouraging the recycling and repurposing of materials. This extends product lifecycles for common waste streams, including food and organic waste, single-use plastics, cardboard and paper packaging, inert construction materials, textiles, and soft furnishings.
Which legal requirements do you need to pay attention to?
Starting from 31 March 2025, the UK government’s Simpler Recycling legislation requires all business properties in England with 10 or more full-time equivalent employees to separate specific waste streams from general waste. The premises under regulation must separate plastic, paper and card, glass, metals (cans, tins, and foil), and food waste from general waste.
What strategies can you implement to a circular economy model?
In a linear economy model, we take raw materials from the earth, make a product, and throw it away when we’ve finished with it. Conversely, a circular economy model bends that line into a loop to keep resources in use. An essential part of this transition is setting measurable goals for waste reduction, reuse, and recycling, while monitoring progress regularly. Furthermore, it is essential to engage staff with your waste management policies by providing comprehensive training and clear communication.
Follow these three simple steps to create a circular economy model:
Strategy 1: Sustainable Procurement and Ethical Sourcing
Source products locally and establish sustainable procurement standards to ensure all goods carry eco-labels or originate from responsible, ethical suppliers.
Strategy 2: Circular Resource Management
Maintain items at their highest value for as long as possible by repurposing old materials, donating to charity, or utilising second-hand markets.
Strategy 3: Organic Waste Recovery
Implement robust food waste management systems with on-site composting, anaerobic digestion, and controlled aerobic decomposition processes.
Businesses in the housing and hospitality sectors and the supply chain can collect and compost organic waste, donate or resell items through second-hand markets, and repurpose their waste to better use. These actions will strengthen the readiness of a business for upcoming legal requirements and boost brand reputation if you showcase your sustainability commitment to customers effectively.