The aim of this study is to understand what influences companies in Luxembourg shifting towards circularity and to develop circular economy guiding principles for Luxembourg companies. Based on approaches from different scholars in sustainability research (i.e. industrial ecology, transition studies), existing circular business practices and potentials in Luxembourg will be identified and analysed. The research will consider different levels of analysis, such as economic feasibility, geographical and technical requirements, awareness (organizational readiness and market demand), legal and regulatory framework, operability (e.g. standardization, public guidance, expert guidance, performance measurement), risks (e.g. maturity of technologies and materials, availability of qualified workers and expertise, technologies, materials and other resources), consumer acceptance, and stakeholder involvement. It is likely that the research will focus on a specific activity sector in Luxembourg in the aim to accurately understand the impact factors that might differ from one sector to another. This focus area might be the construction sector because of its high potential for circular economy in Luxembourg, its general impact on regional sustainable development and because it is one of the most under-researched if not neglected industry in contemporary economic geography.The research will follow a mixed-methods approach, combining qualitative and quantitative research methodologies. Emphasis will be put on three points highlighted by different authors for need for further research: 1) the socio-cultural specificities of Luxembourg and related challenges for the implementation of a circular economy (e.g. mix of technical standards, multilingualism, corporate cultures), 2) internal dynamics of actor networks and hybrid organizations that aim to bring circular economy theory into practice and 3) the articulation between sustainability effectiveness and the cost from the perspectives of various stakeholders.