Digital tool sought to unlock investment in circular businesses

A digital solution is being sought to help businesses prove the commercial value of circular economy practices and strengthen their case for investment.

While circular business models can offer benefits including greater supply chain resilience, improved resource security, stronger customer retention and reduced exposure to market shocks, companies can struggle to measure and communicate that value in a way which resonates with investors, lenders and other decision makers.

A new challenge through the Scottish government’s CivTech Accelerator is seeking an intuitive, evidence based tool which could help businesses demonstrate those benefits more clearly.

The aim is to build greater confidence in circular business models, support access to investment and help accelerate the adoption of circular practices across Scotland.

The challenge is sponsored by Zero Waste Scotland and is open to companies and individuals from all over the world. It has a potential contract value of up to £650,000.

CivTech is the Scottish government’s flagship technology accelerator, bringing together public sector expertise and private sector innovation to develop solutions to real problems and create better public services. 

Since launching in 2016, companies taking part in CivTech have created more than 400 jobs, with every £1 of public investment in the programme leveraging around £5 in private funding.

Sam Chapman is director of Kenoteq, a climate tech company based just outside Edinburgh, best known for developing the K-Briq, an ultra low carbon alternative to traditional brick.

Sam said, ‘For us, being circular has opened doors to leading architects, designers and contractors who are serious about sustainability, and it gives us a strong point of difference in the market. The challenge is that the commercial benefits are not always straightforward to demonstrate, particularly when you are asking people to look beyond the short term. You often have to explain a completely different business case and help investors understand why the longer term value matters.

‘A digital tool which brought that evidence together in a clear and credible way would be hugely valuable. It could help reduce perceptions of risk, provide independent validation and take some of the burden away from individual businesses having to prove the case themselves. Making that information easier to access and understand would help companies like ours and others trying to grow circular business models.’ 

Helen Lavery, business support manager at Zero Waste Scotland, said: ‘The shift to a more circular economy presents a huge opportunity for Scottish businesses to create value, strengthen resilience, and stay competitive. Zero Waste Scotland's aim is to make the commercial benefits clearer to help businesses and investors turn this potential into action.

‘Through this challenge, we are seeking innovative technologies that can accelerate the pace of circularity for people, planet, and prosperity.’

This new challenge is one of six being launched through CivTech Round 12, supported by £5.7 million in investment. The other five are seeking solutions focused on issues including demonstrating the commercial value of circular economy business practices and improving the efficiency and patient experience of NHS transport.

Applications for the Round 12 Challenges close at noon on Tuesday 20 October. Successful applicants will progress through the CivTech selection process before the Exploration Stage begins in January 2027 and the Accelerator begins in March 2027.

For more information on the CivTech Scotland process, visit www.civtech.scot/process