A Proposed Circular Economy Readiness Framework for the Rail Sector, A Literature Review and Conceptual Framework

ABSTRACT The circular economy ( CE ) offers a transformative approach to addressing global sustainability challenges, yet few frameworks integrate it with business strategy, systems thinking (ST) and asset management (AM), especially within critical infrastructure sectors like rail. This paper conducts a comprehensive literature review to assess existing CE frameworks and their application in the rail sector, exploring how these frameworks intersect with ST and AM practices. The analysis reveals significant gaps, particularly in the application of ST at a complex level necessary to drive meaningful shifts in business models and stakeholder behaviour. To address this, the paper proposes a novel Circular Economy Readiness Framework tailored to the rail industry, offering a systematic approach to transitioning from traditional, linear business models to sustainable, networked or circular practices. The framework underscores the role of AM in driving circular outcomes, aligning business strategy with long‐term economic, environmental and societal goals. This research contributes to the broader discourse on CE readiness by offering actionable insights for industries aiming to enhance resilience and sustainable growth.