A Circular Economy Strategy for Scotland – Consumer Duty Assessment (CDA)

Circular Economy Strategy for Scotland: Consumer Duty Assessment

The Scottish Ministers are specified as a relevant public authority under the Consumer Scotland Act 2020 (Relevant Public Authorities) Regulations 2024 (SSI 2024/78). This means that the Scottish Ministers are subject to the consumer duty (“the Duty”) under the Consumer Scotland Act 2020 (“the 2020 Act”) and must therefore comply with the four requirements of this duty, which are:

• When making decisions of a strategic nature about how to exercise their functions, to have regard to the impact of those decisions on consumers in Scotland;
• When making decisions of a strategic nature about how to exercise their functions, to have regard to the desirability of reducing harm to consumers in Scotland;
• To publish information about the steps they have taken to meet the Duty; and
• To have regard to any guidance published by Consumer Scotland about the Duty.

The Duty ensures consumers are at the heart of all strategic decisions within the Scottish Government. Under the 2020 Act, the definition of consumers includes individuals and small businesses who buy, use or receive in Scotland goods or services (or who could potentially do so) which are provided by public bodies.

As with similar publications of its type, the Circular Economy Strategy collectively constitutes a ‘strategic decision,’ even if each of the various policies contained within it do not. The approach taken to meet the Duty considers the impact of the constituent elements as well as the cumulative impact of the Strategy.

The Circular Economy Strategy has met the requirements of the 2020 Act. The following impact assessment has been carried out and has been updated following a public consultation and analysis of consultation responses.

Stage 1 – Planning:

1. Is this a decision of a strategic nature? Yes

The Circular Economy (Scotland) Act 2024 places a statutory duty on Scottish Ministers to publish or revise a Circular Economy Strategy every five years. The strategy is intended to provide a high-level framework for Scotland’s transition to a circular economy, setting out priorities across policy mechanisms, priority sectors, and product stewardship and the monitoring and evaluation of the growth of Scotland’s Circular Economy via a Circular Economy Monitoring and Impact Framework (CEMIF).

2. Is the strategic decision likely to have an impact on any/all consumers?

Yes

Stage 2 – Evidence Gathering:

3. What is the proposal trying to achieve?

Circular Economy Strategy Vision

By 2045 Scotland will be a net zero and nature positive nation helped directly by the significant progress in transitioning towards a circular economy with sustainable levels of material use.

Scotland will have a thriving economy that meets societal needs and is based on circular economy principles, and we will have reduced the negative global impact of our production and consumption.

People, businesses and the public sector will have the skills and knowledge to benefit from opportunities arising from a circular economy and these will be fairly distributed across society.

Outcomes

The strategy aims to improve the wellbeing of everyone in Scotland, including children and young people. The aim of the Strategy is to ensure that everyone can enjoy the life-supporting benefits the environment provides. This includes improving people’s health and wellbeing, tackling poverty and inequalities, and supporting green jobs and businesses in the transition to net zero by 2045.

The priorities set out in the strategy aim to support the achievement of our net-zero ambitions, the restoration of nature and a thriving economy that meets societal needs. It aims to help reduce the negative global impact of our production and consumption and help people and businesses gain the skills and knowledge to benefit.

The Circular Economy Strategy builds on Scotland’s Circular Economy and Waste Route Map to 2030. While the Route Map focuses on more immediate actions linked to sustainable resource use and reducing the carbon impact of our waste, the Strategy sets out the strategic direction to 2045, which is about embedding circularity across the economy - by looking at sectors, systems and products. Future interventions that relate to the Strategy’s priorities may include policy proposals, potential legislative measures, and supporting activity to drive systemic change across production, consumption and disposal of materials and products in Scotland.

4. What are the impacts on consumers?

The Strategy is likely to result in a positive impact for consumers in Scotland by empowering them to adopt circular behaviours, not only reducing environmental impacts but saving consumers money by reducing the current “take, make and dispose” model.

The Strategy’s priorities are designed to make sustainable choices the easier ones for consumers, and benefit consumers who will see positive impacts for the climate, environment, economy and public services.

Consultation responses to the question directly related to initial consumer duty assessment were limited with the analysis report confirming overall (n=24), and individuals (n=5).

The responses received from individuals and organisations provided general commentary regarding further information or evidence to consider following the implementation of the Strategy including: -

• The need for large scale consumer research and consideration of the impacts of previous campaigns in order to identify interventions that will be truly impactful
• The need for a more detailed assessment of how any cost increases to consumers, brought about by implementing circular economy principles, would be affordable
• The importance of education to embed knowledge among consumers, rather than simply aiming to develop skills for jobs in the sector by integrating circular economy into education.
• A need for clear communication (and consumer information), education, incentives and disincentives would be needed, as well as system enablers to make the circular economy easy and cost effective to engage with
• A need for clear product information on durability, repairability, and environmental impact, as well as clear food labelling to make informed decisions.
• A need for greater awareness among the general public/consumers of such things as the chemicals that are in primary and recycled products, as well as circular economy principles in general.

As a result, the revised strategy gives greater emphasis to the need for systems change to be considered alongside behaviour change. It also highlights the consideration of the circular economy as part of the review of the wider curriculum. Specific points will be considered as actions are implemented following the publication of the final Strategy, for example the development of the Product Stewardship Plan. Further specific impact assessments, including Consumer Duty Impact Assessments, will also be carried out where appropriate.

5. Is it likely that harm will be experienced by consumers as a result of this proposal?

While the overall direction of the Circular Economy Strategy is designed to benefit consumers, the Strategy’s other impact assessments identify that there is potential for some additional costs for consumers, or risks of unintended negative consequences.

For example, placing a charge on a product would directly increase the price of goods available on the market (depending on the extent that a business chooses to pass on the cost) or there may be initial cost implications for consumers when pursuing reusable product options.

Consultation responses stressed that cost burdens and risk of harm should never be placed on the consumer and that regulation and targeted support had a key role to play in ensuring that vulnerable individuals were not penalised (especially low-income consumers).

Further assessment of these potential impacts will be important in the development and implementation of actions to ensure any negative impacts on consumers are identified and mitigated.

6. What alternative proposals are there that can improve outcomes for consumers and/or reduce harm to consumers?

In preparing the draft Circular Economy Strategy for consultation, we considered the possibility of “doing more and sooner”, where the Circular Economy Strategy would seek to meet its aims much sooner than those set out in the draft strategy. However, systemic change to overarching economic systems requires careful consideration and requires engagement with all parts of society, including consumers, to avoid unintended consequences. We have not considered a ‘do nothing’ scenario, as the strategy was placed on a statutory basis by the Circular Economy (Scotland) Act 2024.

7. How do these alternative proposals compare to the original proposal?

It was decided that the “doing more and sooner” option would be discounted as the strategy vision must take account of the Scottish Government’s Climate Change Plan and our target to achieve net zero greenhouse gas emissions by 2045. The option taken forward in this Circular Economy Strategy to align with the 2045 target ensures consistency with other Scottish Government net zero commitments

Stage 3 – Assessment and Improvement of Proposal:

8. What is the expected impact of a strategic decision on consumers in Scotland?

Evidence shows that many people want to reduce the carbon impact of the products that they buy but can struggle to move beyond low-impact changes. It is expected that the impact of the Circular Economy Strategy will be positive for consumers, helping them to easily make sustainable choices including increased reuse of products and materials, and reduced costs through promotion of remanufactured or second hand goods.

As noted in consultation responses, it will be important for the impact of subsequent measures on consumers, particularly those in vulnerable circumstances, to be fully considered. The actions that follow the publication of the final Strategy will be assessed for their impact on consumers, including through Consumer Duty Impact Assessments, where appropriate.

9. Has SG had regard to the desirability of reducing harm to consumers in Scotland?

Yes – implementation of the final Circular Economy Strategy will help to provide local and sustainable employment opportunities and access to lower cost goods for consumers. For example, increasing opportunities for reuse and repair can shorten and strengthen supply chains, potentially provide lower cost options for consumers through mechanisms such as sharing libraries, and teach skills through repair cafes. It can also address some of the environmental blights on communities through reduced littering. In these ways, a more circular economy contributes strongly to community wealth building, which seeks to enable local communities to have a greater stake in, access to, and benefit from the wealth our economy generates.

This is at the heart of place-based thinking, with the potential to create jobs, reduce supply chains and strengthen local and regional economies as part of a just transition. Further impact assessments, including the Consumer Duty Impact Assessment, will be carried out where appropriate as the strategy is implemented.

10. Is there a need for further engagement with consumers?

A public consultation was held with a wide range of inputs from the relevant stakeholders and sectors to help inform our understanding of the potential impact on consumers. Feedback received during the consultation has been considered as part of this assessment and within the final Circular Economy Strategy.

We are aware that there may be other impacts, either positive or negative, which have not yet been identified in this impact assessment and we will continue to engage with consumers, and develop associated Consumer Duty Assessments, as the strategy is implemented.

Stage 4 – Decision:

11. Has SG met the Consumer Duty for this decision?

Yes

12. If yes to above, explain how?

In the process of carrying out this assessment, we have considered the impact of the Circular Economy Strategy for potential impacts on consumers in Scotland during the assessments made whilst developing the wider impact assessments.

We engaged with relevant stakeholders and reviewed the consultation responses received when updating the strategy. We have therefore considered the needs of consumers as part of this Strategy and the impact it is likely to have on consumers and to the desirability of reducing harm to consumers.

Stage 5 – Publication and Review:

13. Section 23 of the 2020 Act requires relevant public authorities to publish information about the steps which they have taken to meet the Duty. The relevant public authority must publish the information no later than 12 months after the end of period to which it relates.

This statement will be published on Citizen Space on 24 March 2026.

14. How will the process carried out be reviewed and evaluated?

As referenced above, the actions that follow the publication of the final Circular Economy Strategy will be assessed for their impact on consumers, and further impact assessments, including the Consumer Duty Impact Assessment, will be carried out where appropriate.