Number of circular economy businesses on the rise in Espoo

Since 2022, the City of Espoo has been conducting surveys on local circular and sharing economy operators as part of the city’s sustainable development goals and related monitoring. Information has been collected on all local circular economy operators, from businesses to third-sector and municipal operators.

The circular economy is an economic model that aims to generate wellbeing within the limits of the Earth’s carrying capacity. The methods used in a circular economy to extend the life of products and materials include sharing, repairing, reusing and recycling. Espoo promotes the circular economy and related services by developing its own activities and cooperating with businesses and partners in the area. “By consistently collecting comparable survey data, we can observe changes in different circular economy industries. To support innovation and strengthen collaboration related to the circular economy, we must know who the key operators are. In addition, the circular economy enables sustainable solutions for city procurement and provides residents with opportunities to reduce consumption-based climate emissions,” says Development Manager Reetta Jänis.

Espoo has a large number of businesses, organisations and other operators that practise circular economy principles. The survey carried out in 2024 identified a total of 1,012 circular economy operators, including:

• 25 municipal operators (incl. libraries, city bikes and equipment lending services)
• 16 education providers (incl. Aalto University, universities of applied sciences and vocational colleges)
• 27 third-sector operators (incl. Martha Association, Finnish Red Cross and other charitable organisations)
• 777 businesses operating in the circular economy industries defined by Statistics Finland
• 167 circular economy businesses operating in other industries.

The number of circular economy operators in Espoo has grown by nearly 100 since the previous year. Around 50 new businesses were established, and over 30 previously undiscovered businesses were identified in the survey. The number of circular economy operators in Espoo has grown by 64 from last year.

Circular economy activities in Espoo span multiple industries and serve a large portion of the city’s residents. According to the survey, the largest group is circular economy businesses, which totalled 944. Among businesses, the most prominent industry is Wholesale and retail trade; repair of motor vehicles and motorcycles. The industry includes various motor vehicle maintenance and circular economy-based commercial activities. This industry accounts for about 46% of all activities. The second-largest industry is Repair of computers and personal and household goods (14%), followed by Rental and leasing activities (11%).

Third-sector circular economy operators, numbering 27, also play a vital role in Espoo. Charitable organisations help distribute surplus food from supermarkets and schools to those in need. Through their own activities, environmental organisations raise public awareness of the circular economy. The third sector also includes a large number of second-hand shops, one of the most familiar forms of circular economy for many people.

Espoo has conducted an annual survey on circular and sharing economy operators since 2022 to support development in the field. In 2023, the survey was expanded to include educational institutions and third-sector organisations in addition to businesses and municipal operators. The criteria for business selection were also adjusted to align with Statistics Finland’s definitions of circular economy industries, incorporating recycling, repair, reuse, rental, and leasing services. Previously, the survey criteria were more limited. The 2024 survey was conducted in line with the 2023 criteria, ensuring the comparability of data between the two years. The VAINU company and contact database was used to find the operators. While the survey offers a comprehensive overview of Espoo’s circular economy operators, the list is not exhaustive – the circular economy field is extensive and some relevant businesses may not have been identified. Nevertheless, the survey provides valuable information on the number and characteristics of circular and sharing economy operators in Espoo and on the development of the circular economy in the city. Espoo aims to be an attractive area for circular economy businesses as well as research, development and innovation cooperation in the field. The comprehensive group of circular and sharing economy operators identified in the survey provides an excellent foundation for promoting the circular economy and increasing cooperation. Espoo’s goal is to foster cooperation in order to strengthen Finland’s position as a world-class hub for clean technology expertise, making it an attractive investment opportunity for both domestic and international players.

Read more about the circular economy and the latest news on our carbon-neutral circular economy website.