Why Circular Economy Makes Business Sense: In Conversation with Lamia Sbiti

As businesses across London face rising costs, supply chain pressures and growing expectations around sustainability, the circular economy is increasingly seen not as a “nice to have”, but as a strategic necessity. 

We sat down with Lamia SbitiSenior Manager for Business Transformation at ReLondon, to explore what circular economy really means in practice, and how businesses in areas like Knightsbridge can start making meaningful changes that deliver both environmental and commercial value. 

Many businesses want to embrace circular economy principles. Based on your experience, what are the most effective steps to get started? 

The most important first step is focus. 

Circular economy is most powerful when businesses concentrate on the materials that really matter to them, not the fringe issues that feel easy but don’t move the needle. 

Lamia advises businesses to ask three simple questions: 

  • Which materials cost us the most? 
  • Which materials carry the greatest supply chain risk? 
  • Which materials are central to the customer experience? 

“For hospitality, it might be food or customer-facing materials. In fashion, it’s textiles. In manufacturing, it might be packaging,” she says. “Circular economy, at its core, is just good business practice, being more efficient and creative with the materials that already matter most to you.” 

Starting with these priorities also helps secure internal buy-in, because the changes clearly align with operational and commercial goals. 

How can retail, hospitality and property businesses work together rather than acting in isolation? 

Some circular actions can be done independently, but the biggest opportunities often need collaboration. 

The key, Lamia explains, is identifying challenges that: 

  • Are shared across multiple businesses 
  • Fall “between the cracks” if tackled alone 
  • Require changes in behaviour or systems 

Reusable packaging is a classic example. If every café or restaurant uses a different system, customers become confused and participation drops. 

“You need collective buy-in so the solution feels as easy as what people are used to already,” she says. 

Collaboration also unlocks scale. For reuse marketplaces to work, where one business passes on items it no longer needs, there must be enough participants for supply and demand to align. 

Importantly, circular economy is not just technical; it’s relational. 

“It requires trust and new ways of working together,” Lamia notes. “Platforms like business forums help build that foundation, so people feel confident picking up the phone and creating shared solutions.” 

She also points to the value of partnering with existing innovators, rather than building from scratch. London is home to a thriving circular innovation ecosystem, including platforms like the Circular Economy Matchmaker, which showcases reuse, repair and material innovation happening across the city. 

Where have you seen businesses reduce materials without compromising brand or experience? 

Successful examples tend to enhance the customer experience, rather than asking customers to compromise. 

One standout case is Blue Checka pub near a stadium that introduced reusable plastic cups on match days. Originally required to use plastic for safety reasons, they found reusable cups: 

  • Improved the drinking experience 
  • Reduced procurement and disposal costs 
  • Attracted customers 

“Nobody wants a pint in a flimsy cup,” Lamia explains. “The reuse model actually worked better for both customers and the business.” 

Another example is Homestead Cafe. Situated in Beckenham Place Park, the cafe introduced reusable packaging to tackle the high volume of waste generated in the park through picnics to support a cleaner, calmer environment. 

That said, Lamia is clear that packaging remains one of the hardest challenges to solve, particularly where items leave the premises and rely on customers returning them. 

“There’s still a lot of innovation happening, but no one has cracked it completely yet,” she says. “It requires a whole new way of thinking about responsibility and system design.” 

Other relevant examples Lamia referenced include: 

  • ReLondon’s research on shifting away from single-use plastics, highlighting both challenges and opportunities for collaboration 

Behaviour change is often seen as a major barrier. What actually works? 

Lamia challenges the idea that behaviour change is uniquely difficult. 

“We already put huge effort into understanding customers to sell products and experiences,” she says. “It’s the same skill set.” 

The key is designing circular solutions around what customers value, not asking them to act out of guilt. 

In fashion, for example, resale is booming, but it’s framed in different ways depending on the brand: 

  • Luxury brands emphasise craftsmanship, durability and heritage 
  • Other brands lean into individuality, creativity and self-expression 

Digital innovation is also making participation easier, from resale platforms to emerging AI tools that simplify fitting and discovery. 

“People aren’t consuming to harm the planet,” Lamia adds. “They’re responding to the systems around them. If businesses redesign those systems well, behaviour change follows naturally.” 

For businesses worried about cost and ROI, how can they build a strong business case? 

Circular economy works best when environmental and commercial metrics aren’t treated separately. 

“If you’re being more efficient with materials, you’re automatically reducing environmental impact,” Lamia explains. “The metrics should line up.” 

Circular models can also unlock new insights and value, including: 

  • Better data on how customers use products 
  • Stronger long-term customer relationships 
  • Opportunities for loyalty and repeat engagement 

Repair services, for example, help businesses understand where products wear out — feeding directly into better design. Reusable schemes can drive return visits and brand affinity. 

“There’s no one-size-fits-all,” Lamia acknowledges. “But when circular economy is aligned with core business needs, the commercial case often becomes very strong.” 

Final Thoughts 

Circular economy isn’t about perfection, it’s about rethinking value, focusing on what matters most, and collaborating where it counts. 

For places like Knightsbridge, where retail, hospitality and property sit side by side, the opportunity lies not just in individual action, but in shared systems that make sustainable choices easy, attractive and commercially smart. 

As Lamia puts it: “When the right materials are prioritised, the stars align for the business, the customer and the planet.” 

 

What’s next for Knightsbridge

Building on these insights, Knightsbridge Partnership is developing a Sustainability Strategy and Action Plan, launching this summer. Co-designed with businesses, property owners, residents and stakeholders, the Strategy will provide practical guidance on reducing waste, adopting greener practices, staying ahead of evolving legislation, and contributing to a cleaner, healthier Knightsbridge.

The work will continue to be driven forward through our quarterly Knightsbridge Sustainability Forum and community drop-in events, ensuring the Strategy remains grounded, collaborative and action-focused.