A shift to a circular economy could provide a significant boost to the hospitality sector by cutting costs and extending the lifespan of resources, while simultaneously curbing greenhouse gas emissions, according to a new report.
The 'Hospitality Spotlight Report' delves into how circular economy business models, which focus on reusing materials and minimising waste, can help the hospitality industry operate more efficiently, reduce costs, and lower its environmental footprint.
Conducted as part of the National Interdisciplinary Circular Economy Research (NICER) programme, the report draws on consultations, including two workshops with 42 stakeholders from across the sector and its supply chains. These discussions highlighted both the challenges and opportunities associated with adopting a circular economy and set out criteria for measuring success.
The report champions a 'whole-system approach' to waste and pollution reduction, emphasising the importance of circulating products and materials during three key phases – inflow, use, and outflow. This strategy, it suggests, has the potential to lower emissions, improve resource productivity, and cut costs.
Among the initiatives highlighted is the work of creative design agency Object.Space.Place (OSP), which helps hospitality businesses incorporate circular principles into their refurbishments. Their approach prioritises durability, energy efficiency, and the use of low-impact materials from the outset.
The report also showcases Silentnight’s efforts to address the low rates of mattress recycling. By redesigning their mattresses to use fewer materials and incorporating a modular system where the top comfort layer can be replaced, the company has reduced the carbon footprint of each mattress by 23%.
Other examples include the work of Loopcycle, now part of ImpactLoop, which aids businesses in refurbishing, reusing, or reselling unused equipment via a digital platform, generating significant savings. Meanwhile, the Textiles Services Association has introduced a recycling programme aimed at extending the lifespan of high-quality textiles, addressing the 6,000 tonnes of textile waste produced annually by UK hotels.
The hospitality sector, which contributes £103 billion annually to the UK economy and employs 2.74 million people, also generates 2.8 million tonnes of waste each year at a cost of £3.2 billion. It is responsible for around 1% of the UK’s total greenhouse gas emissions.
Hotels, pubs, and restaurants are particularly heavy users of materials, whether through construction and refurbishment or via goods and services such as textiles, laundry, and electrical items.
As the industry grapples with tight profit margins, staff shortages, and the rising cost of living – food prices increased by 26.2% between 2021 and 2023, while energy costs soared by 238% in 2022 – the report outlines how a circular economy can alleviate some of these pressures.
It reveals that approximately 84% of emissions from the hospitality sector stem from its supply chains, making a net-zero approach, which tends to focus on renewable energy and efficiency improvements, insufficient on its own.
While the report acknowledges barriers to adopting circular economy practices, such as a lack of awareness and clear targets, it identifies six key enablers that could speed up the transition: funding and incentives, data transparency, collaboration, leadership, knowledge-sharing, and regulatory support.
It also sets out tailored recommendations for five groups – hospitality businesses, policymakers, academics, manufacturers, and third parties – aimed at fostering collaboration, improving data transparency, and embedding circular economy principles into corporate missions and values.
Danielle Farrow, Industrial Impact Fellow at the NICER Circular Economy Hub, commented: “Our report highlights how a circular economy can address the challenges facing the hospitality sector. Focusing solely on net-zero targets misses the opportunity to realise financial savings, enhance supply chain resilience, and increase profit margins through innovation.”
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