Untangling circularity: Transitioning to a regional circular economy in the clothing and textile sector in England

The transition to a Circular Economy (CE) presents a paradigm shift, emphasizing sustainability, resource efficiency, and waste reduction. The existing literature extensively covers the principles and benefits of CE, but there is a notable gap in understanding how these practices are implemented at a local level. Specifically, there is a lack of detailed insights into the localized challenges, adaptation processes, and contextual factors influencing the adoption of circular practices. Additionally, the implications for different types of stakeholders and the effectiveness of localized strategies remain underexplored. By employing causal loop diagrams to depict system dynamics, interactions, and connections inherent in the transition to a CE, this research delves into the significance of understanding the complexities of circularity within a specific localized context. We draw qualitative data from semi-structured interviews and workshops with participants from key stakeholders within the textile and clothing sector in the Southwest of England. We find that legislation has a different impact on multinational corporations (MNCs) and small and medium-sized enterprises (SMEs) in their CE engagement. We also find that, while the flow of materials from MNCs to SMEs fosters regional innovation and knowledge-sharing, it does not always facilitate inter-organizational learning. Finally, both MNCs and SMEs recognize the CE's potential for job creation, which highlights the need for more effective knowledge exchange strategies between businesses of different sizes. The study concludes that balancing CE principles with profit-driven pressures remains a significant challenge for both those founded on circular principles and those who are gradually incorporating CE principles into their organisation. • The literature lacks insights into localized challenges of CE implementation. • The study addresses this through a causal loop diagrams (CLD) method. • The CLD maps the textile and clothing sector in the region of Southwest England. • Findings show that profit making remains a challenge in localized CE transition. • Policy recommendations suggest further place-based approaches to address this issue.