Embedding Circularity into Contracts and Strategy
Procurement is one of the most powerful tools for driving the circular economy. By writing
circular requirements into policies, tenders, and supplier contracts,
organisations can shift entire supply chains toward reuse, repair, and material recovery.
This page explores how to
write, structure, and apply circular procurement policies that work – with real examples and downloadable templates.
What is Circular Procurement?
Circular procurement is the practice of sourcing products and services that:
- Are
durable, repairable, and
made for disassembly
- Come with
reuse, refurbishment or take-back options
- Are made using
recycled or responsibly sourced materials
- Encourage suppliers to maintain
product stewardship after sale
It goes beyond price and delivery, embedding
lifecycle thinking and
waste avoidance into every purchasing decision.
Core Elements of a Circular Procurement Policy
Circular Design Requirements
- Require products to be durable, modular and upgradeable
- Request evidence of design for disassembly
Material Specifications
- Minimum % recycled content
- Avoidance of hazardous substances
- FSC, Cradle to Cradle, or equivalent certifications
End-of-Use Commitments
- Take-back or buy-back schemes
- Recovery, refurbishment or remanufacture options
- Landfill avoidance targets
Lifecycle & Reporting
- Request lifecycle analysis (LCA) or environmental product declarations (EPDs)
- Include supplier KPIs for reuse or material recovery
Supplier Evaluation Criteria
- Use circularity scoring in tenders
- Weighting for suppliers with closed-loop practices
Policy Snippet Example
“Suppliers must demonstrate how their products support circularity through design, materials, and end-of-life strategies. All office furniture must be either:
a) modular and refurbishable,
b) returnable via a take-back scheme, or
c) certified as recyclable to 80% or higher by weight.”
Tips for Implementation
- Start small:
apply circular clauses to one contract or pilot fit-out
- Train your team: run internal workshops or lunch & learn sessions
- Engage suppliers early: circularity starts with collaboration
- Measure results: include simple metrics like % refurbished or reused
Case Example: Policy in Practice
A large UK government agency added circular furniture clauses to all new contracts in 2023. Within 12 months:
- 70% of procured items were refurbished or remanufactured
- £400k saved in capital spend
- Waste-to-landfill cut by 92%
Key Takeaways
- Circular procurement drives real change at scale – but it must be clearly defined in policy and practice.
- Policies should include requirements on design, materials, reuse and reporting.
- Templates help build consistency and confidence.
- Supplier engagement and internal training are essential for success.