Facility managers and asset owners in commercial real estate are under increasing pressure to reduce waste and embrace sustainable practices. With the UK's push towards net zero, the circular economy strategy stands as a key pillar. Yet, recent announcements reveal a delay: England's Circular Economy Strategy, now rebranded as the Circular Economy Growth Plan, will not launch until 2026. This shift from the autumn 2025 timeline creates uncertainty for businesses aiming to align with government goals on resource efficiency and waste reduction.
In this post, we explore the reasons behind the delay, its implications for sectors like construction and transport, and how property portfolios can prepare. You'll gain insights into the priority areas outlined by the Circular Economy Taskforce and practical steps to turn policy into action. Whether you're tackling ESG reporting or tenant billing, understanding this strategy helps future-proof your operations against regulatory changes.
The Delay in England's Circular Economy Strategy
The government's Circular Economy Strategy for England was meant to kick off public consultation in autumn 2025. Instead, Defra Secretary of State Emma Reynolds confirmed during a session with the Environment, Food and Rural Affairs Committee on 11 November 2025 that it pushes back to the new year. She referred to it as the 'Circular Economy Growth Plan', signalling a focus on economic benefits alongside environmental ones.
This postponement stems from the need for deeper consultation. The plan builds on the work of the Circular Economy Taskforce, set up in December 2024 and chaired by Andrew Morlet, ex-CEO of the Ellen MacArthur Foundation. Over the past year, the taskforce has consulted industry leaders, local councils, and environmental experts to craft detailed roadmaps. Rushing the release could undermine the strategy's credibility, especially since it aims to overhaul material use across key sectors.
The core challenge here is the tension between ambition and execution. The UK government wants to 'end throwaway culture' and normalise reuse and repair, as former Defra Secretary Steve Reed emphasised. But without solid, sector-specific plans, businesses face a planning vacuum. For commercial real estate, this means delayed clarity on waste management rules, potentially stalling investments in sustainable building practices.
Implications for Businesses in Priority Sectors
The delay in the circular economy strategy ripples through England's economy, hitting commercial real estate hard. The Taskforce pinpointed five priority areas where circular principles promise big wins: textiles, transport, construction, agri-food, and chemicals and plastics. Each will get roadmaps with actions, timelines, and policy tweaks to boost reuse, cut waste, and drive efficiency.
Construction: A Hotspot for Waste Reform
Construction tops the list for impact. This sector generates massive waste volumes, often from demolition and fit-outs in commercial buildings. The strategy will likely mandate better material recycling and reuse, aligning with CSRD and GRESB standards. For asset managers, this means higher compliance costs if portfolios aren't ready. Imagine retrofitting multi-tenant estates without clear guidelines, it could inflate operational expenses by 10-20% in the short term.
Failing to adapt risks fines or lost tenant appeal. ESG leads know that investors now scrutinise waste metrics closely. A delayed strategy amplifies this pressure, as businesses must guess at future rules while reporting on current practices.
Transport and Beyond: Broader Supply Chain Shifts
Transport, another priority, affects logistics for real estate portfolios. Expect policies promoting electric fleets and shared mobility, reducing embodied carbon in deliveries to sites. In agri-food and plastics, the focus turns to packaging waste, relevant for office canteens or retail units.
Overall, the implications spell risk and opportunity. Economically, the Taskforce sees job creation and growth from resource efficiency. Andrew Morlet highlighted how this transition fuels net zero and positions Britain as a clean energy leader. But for now, the hold-up creates uncertainty. Facility owners might delay sustainability upgrades, missing out on grants or facing retrospective compliance burdens.
From an ESG perspective, this ties directly to reporting obligations. With GRI and CSRD demanding granular data on circularity, incomplete strategies make benchmarking tough. Tenant billing could get complicated too, especially in mixed-use buildings where waste streams overlap. The result? Potential disputes and eroded trust if recharges aren't transparent.
In commercial real estate, the stakes are high. Portfolios with high waste footprints, like logistics parks or urban developments, stand to gain most from early action but suffer if caught off-guard. The delay underscores a broader issue: policy lag versus market urgency. Businesses can't wait; proactive steps now build resilience.
Leveraging AI for Circular Economy Readiness
While the circular economy growth plan takes shape, forward-thinking property managers are turning to technology for an edge. AI-driven platforms offer real-time insights into waste streams, helping align operations with upcoming mandates before they hit.
Take waste tracking in commercial buildings. Traditional methods rely on estimates, leading to inaccuracies in ESG reports. Modern solutions change that by automating data collection from bins and lifts, providing precise metrics on diversion rates and material flows. This directly supports circular goals in construction and plastics, where tracking recycled content is key.
For instance, in multi-tenant estates, AI enables fair tenant recharging based on actual usage, not guesses. It flags inefficiencies, like excess packaging waste, and suggests circular alternatives, such as reusable systems. This not only cuts costs but boosts compliance with future roadmaps.
Wastify AI exemplifies this approach. Our platform delivers real-time waste tracking tailored for real estate portfolios, integrating with ESG frameworks like GRESB. By generating automated reports, it simplifies the shift to circular practices. Imagine dashboards showing your site's progress towards reuse targets, complete with GenAI insights on optimisation.
Preparing now means embedding circularity into daily operations. Start with audits of priority sectors in your assets, then layer in tech for visibility. As the strategy rolls out in 2026, those ahead will lead, turning policy into competitive advantage. Tools like these bridge the gap, ensuring your portfolio thrives in a resource-scarce world.
From Policy Delay to Practical Circularity
England's circular economy strategy delay to 2026 highlights the complexity of systemic change, but it also buys time for businesses to gear up. Key takeaways include the focus on five priority sectors, the emphasis on roadmaps for reuse and efficiency, and the economic boost from ending waste. For commercial real estate, this means prioritising waste data accuracy to meet ESG demands and avoid future pitfalls.
The real value lies in action: use the interim to audit operations, especially in construction and transport-linked activities. AI solutions make this feasible, offering the precision needed for credible reporting and tenant management.
Ready to enhance your portfolio's circular credentials? Explore how Wastify AI can provide automated, compliant waste insights and start transforming data into sustainable decisions today.
