Introduction to context
Wales’s Foundational Economy, encompassing everyday essential services such as care, housing, food, transport and energy, has long experienced structural challenges, particularly among smaller organisations facing capacity constraints, limited innovation infrastructure, and barriers to adopting circular and fair‑work practices.
These challenges are particularly acute among SMEs, which often lack access to structured learning and collaboration networks. FEIN was created to address these systemic barriers by providing a practical, regionally rooted framework that aligned with the Well-being of Future Generations Act and the Welsh Government’s ambitions for Net Zero and a fairer economic landscape.
The approach
The Circular Economy Innovation Communities programme (CEIC Programme) is 6-month programme introducing design thinking and circular‑economy principles. FEIN engaged 34 organisations from the Cardiff Capital Region and Swansea Bay Area through a structured programme of:
- Experiential workshops
- Mentoring and specialist support
- Network building
- Peer‑learning activities with practical planning and innovation tools
The programme was enriched by collaboration with partners such as WRAP Cymru and Cwmpas, who provided technical guidance on procurement, marketing, resource efficiency, and fair‑work implementation. Participants developed innovation, HR, and Net Zero action plans tailored to their organisational context, while establishing a regional network across South Wales spanning Cardiff Capital Region and Swansea Bay Region to support ongoing collaboration. Participants consistently reported that the interactive format deepened understanding and translated effectively into workplace practice.
Experiential learning activity
Impact
Between 2023 and 2024, 34 organisations joined the programme; including 21 small, 7 medium and 6 large organisations. During their participation in this programme, the participants – 17 from organisations in the Cardiff region and 7 in the Swansea Region – developed:
- Clean growth / Net zero plans
- Fair work / HR development plans
- Innovation plans
Group photo of the Cardiff Capital Region cohort
The programme generated meaningful improvements in innovation confidence, sustainability practices, and workplace culture.
- 80% of participants reported increased innovation skills and understanding of circular and foundational economy principles
- 77% reported improved circular‑economy knowledge
- 72% improved innovation knowledge
- 94% of participants recommended the programme
- 55% of organisations adopted the real Living Wage, with a further 30% planning to do so, demonstrating a major shift toward fairer work practices
The development of multiple innovations, Net Zero, and fair‑work plans provided organisations with practical roadmaps for future action. This action has contributed to an increase in Fair Work adoption, an increase in innovation-active SMEs, and a decrease in carbon footprints across participating SMEs. FEIN also strengthened relationships between SMEs and public‑sector partners, contributing to a more connected and resilient regional ecosystem.
You can watch the video case studies and participant testimonials here.
Some organisations that credit CEIC with their circular economy success thanks to participating in the FEIN programme include:
- Balmoral Tanks who worked on a challenge to reduce stock being held on the shop floor by 25% to reduce cost and were able to rearrange factory and introduce new machines due to cost savings. Link to video case study here.
- D&G Office Interiors Ltd worked on bridging the gap between facilitating and providing a service of reusing furniture for their clients. Thanks to the programme, they made connections with other companies and charities working in the field of reusing office furniture to find synergies and scope potential collaboration opportunities. D&G Office Interiors Ltd started a trial project to engage with customers on how to reduce their carbon footprint and implement circular economy principles. Link to video case study here.
- Awen Cultural Trust joined the CEIC programme with the vision to grow more produce at its facilities rather than relying on outside procurement. After 18 months of work, Awen Cultural Trust are now producing the fruit and veg used in the menus of Bryngarw House directly on site. Read the full story here.
Challenges
Some SMEs faced limited capacity to fully engage with circular‑economy practices or sustain innovation activity beyond the workshops. Overall, the programme was praised for its inspirational style, with only one comment finding aspects of the content academic in tone (Source: independent external evaluation). Regional economic disparities also shaped the readiness of organisations to adopt new practices. Nonetheless, the structure of the programme, particularly the mentoring and peer‑learning elements, helped organisations overcome many of these obstacles.
Looking ahead
Evaluation findings suggest strong potential for scaling the FEIN model. Many participants expressed interest in continued support, further funding opportunities, and additional collaboration. The FEIN model has demonstrated clear value as a driver of inclusive, sustainable economic development, deeply aligned with the Future Generations Act and Wales’s broader ambition for a resilient foundational economy.
Since delivering FEIN, the CEIC team secured funding for future iterations of the programme via the UK Government Shared Prosperity Fund helping participants from 40 private and third sector organisations to find ways to save 1,150,639.33t of CO2e emissions in the next five years.
Quotes from participants
What did participants value most about the programme?
“Everyone should understand the process of design thinking an innovation to be able to make the changes to they want to see in their business efficiently and effectively.”
“A great source of knowledge, even if you think you know, you don’t!”
“I most valued the working relationships built in our community and the shared knowledge and ideas which have really helped build our own innovation plans and think of the big picture from time to time.”
“It’s so good. Such a great way to understand where you fit within CE and in honing skills and devising an innovation plan. Thank you all!”
“Empowered to approach stakeholders and try to influence stakeholders. Empowered to attempt to implement my innovation plan.”
