A recent study by the British Standards Institution (BSI) has highlighted a significant hurdle in the widespread adoption of circular economy principles: a pervasive trust deficit. Published on July 9, 2025, the findings suggest that a lack of confidence among businesses and consumers is acting as a substantial impediment to the transition towards more sustainable, circular business models.
The BSI’s research, which surveyed various stakeholders across different sectors, identified that concerns about the quality, durability, and transparency of products and services offered within a circular economy framework are undermining its progress. Specifically, businesses are hesitant to invest in or fully embrace circular practices due to uncertainties surrounding the reliability of recycled materials, the longevity of refurbished products, and the ethical sourcing of components. This hesitancy is further compounded by a perceived lack of clear standards and verification processes that would build confidence in the integrity of circular offerings.
Similarly, consumers appear to be harboring reservations. While there is a growing general awareness and desire for more sustainable consumption, many are reportedly wary of products labelled as “circular” or “recycled.” This skepticism often stems from past negative experiences or a general unfamiliarity with what a truly circular product entails. Questions about the performance, safety, and environmental claims associated with these offerings are frequently raised, indicating a need for greater clarity and assurance.
The study posits that this trust deficit is not only hindering the willingness of companies to innovate and adapt their supply chains but also limiting consumer demand for circular products. Without a strong foundation of trust, the economic viability and widespread acceptance of circular business models remain at risk.
To address this critical issue, the BSI study recommends a multifaceted approach. A key recommendation is the development and implementation of robust, internationally recognized standards and certification schemes. These standards would provide a clear framework for defining and verifying circularity, ensuring that products and services meet agreed-upon criteria for durability, repairability, recyclability, and responsible sourcing. Such benchmarks would serve to build confidence among businesses by providing them with the assurance that their investments in circularity are well-placed and to reassure consumers about the quality and sustainability of their choices.
Furthermore, the report emphasizes the importance of enhanced transparency and communication. Businesses need to be more open about their circular processes, from material sourcing and product design to end-of-life management. Clearer labelling, accessible information on product lifespans, and demonstrable commitment to ethical practices are crucial for fostering consumer trust. Educational initiatives aimed at both businesses and consumers could also play a vital role in demystifying circular economy concepts and showcasing its benefits.
The BSI’s findings serve as a timely reminder that while the ambition for a circular economy is strong, its successful implementation hinges on building and maintaining trust across the entire value chain. By addressing the current deficit through standardization, transparency, and education, stakeholders can pave the way for a more sustainable and resilient future.
BSI study finds trust deficit impeding circular economy adoption
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