Circular Procurement
Circular procurement leverages buying power to prioritise reuse, repair, and whole-life value, closing material loops and reducing environmental impact beyond traditional sustainability approaches.
Unlock growth, reduce risk and build stronger supply chains through the adoption of circular economy practices.
What is circular procurement?
Circular procurement is not only about sustainability – it is also about using buying power to prioritise reuse, repair, remanufacture, leasing or service provision, high durability, modularity and verified recycled content, with contracts awarded based on whole‑life cost rather than the purchase price alone.
This extends beyond ‘traditional’ sustainable procurement by actively contributing to closing energy and material loops within supply chains, while minimising any negative environmental impact or waste creation across their whole life cycle.
By choosing products and services designed for reuse, repair and efficiency, we can help cut costs, reduce risk, improve profitability and support delivery of net-zero aspirations.
Why circular procurement matters for business
Circular procurement can help businesses achieve whole-life value by choosing products and services designed for reuse, repair and efficiency. While outcomes will vary by sector and contract, evidence suggests that circular approaches may reduce costs, strengthen resilience, strengthen competitiveness and open new markets.
- Reduce costs by lowering material and disposal spend.
- Build resilience by managing risk of supply chain shocks.
- Take the opportunity to develop new and innovative service models such as leasing, repair and product-as-a-service.
- Gain a competitive advantage that addresses the circular solutions public sector buyers are beginning to look for.
With Scotland’s public sector spending between £14–16 billion each year, there is a significant opportunity for suppliers who can provide demonstrable circular solutions.

Scotland’s public sector as a market driver
Scotland’s public sector is one of the largest buyers in the economy. As stewards of a significant annual public spend, Scotland’s contracting authorities have a unique opportunity to lead by example.

Tackling a growing demand for circular solutions
Under the Procurement Reform (Scotland) Act 2024 and the Circular Economy (Scotland) Act 2024, public bodies must consider environmental and social outcomes in their contracts. This is likely to mean public buyers will:
- Offer more opportunities where tenders include circular requirements.
- Place greater emphasis on whole-life costing rather than upfront price.
- Look to address more predictable demand for circular goods and services through long-term frameworks.
Embedding circular principles into procurement strategies can help deliver statutory duties, achieve best value and stimulate local economies.
Scottish Government Procurement Policy Notes (SPPNs) are available to help you understand the latest and developing requirements.
Third sector partnerships
Scotland’s third sector – from reuse charities to social enterprises – plays a vital role in delivering circular outcomes.
Unlocking added value through collaboration
Partnering with both public and private entities can help offer improved community benefits and extended product lifecycles, which may in turn strengthen tender responses and secure value for money through contract delivery.
- For businesses, third sector partnerships can help you meet specific aspects of tender requirements, helping to strengthen your bid and add relevant social impact.
- For public sector buyers, those collaborations can support identification of local opportunities for delivery in line with community wealth building principles.
- For the third sector itself, developing partnerships can help you become involved in the provision of goods and services at a scale that might otherwise not have been possible.
With up to £16 billion of public spend in play each year, social enterprises and charities can position themselves as delivery partners that extend product lifecycles and deliver measurable community benefits. Collaborating with businesses and public bodies may help scale your involvement and offer secure stable revenue streams.

Circular Procurement
Resources and tools
Scottish procurement: Policy Manual
This manual provides guidance on the procurement policies that apply to Scottish Government (SG) procurement activity.
Procuring for a Circular Economy - Key Principles and People
This guide is an introduction to the role of the procurement of goods and services in supporting the essential transition to a circular economy and ‘net zero’ and the environmental and socio-economic improvements possible.
Procuring for a Circular Economy - Key Principles and People
Procuring for a Circular Economy - Category and Commodity Guidance
The Category and Commodity Guidance is linked to the introductory resource above and highlights key opportunities and examples of applying circular approaches to planned procurements
Procuring for a Circular Economy - Category and Commodity Guidance
Compendium for Transnational Circular Procurement Scale Up
The purpose of this document is to provide a targeted path for five stakeholder groups with the tools and resources developed under ProCirc that can support them in accelerating the transition to circular public procurement.
Support from external organisations
ProCirc
This site houses an exhaustive collection of all the Interreg North Sea Region ProCirc project findings, outputs and resources. The material is useful for those embarking on the procurement journey, those seeking to integrate circularity into their procurement practices, and those aspiring to be leaders in the procurement industry’s circular efforts
Scottish Procurement and Property Directorate
The Scottish Procurement and Property Directorate lead and deliver public procurement at national, central government and Government levels.
Supplier Development Programme (SDP)
Supplier Development Programme (SDP) offer free expert training, support and information to Scottish SMEs or third sector organisations interested in working with the public sector.