Eco-efficiency and resource optimization for business strategy and the environment can be achieved by the circular economy (CE) practices in supply chains (SCs). The leather industry is a significant industrial contributor to the economic growth of some countries, but at the same time, it leads to tremendous environmental pollution. This research focuses on the identification and evaluation of critical success factors (CSFs) needed in the business strategy development of CE practices as well as to minimize environmental pollution in leather industry SCs. The CSFs are identified via a comprehensive literature review and are validated by experts' opinions. The validated CSFs are further analyzed using the best–worst method (BWM) and the decision-making trial and evaluation laboratory (DEMATEL). The BWM is used to identify the weights of the CSFs, and DEMATEL is used to determine the cause–effect relationship between the CSFs. The findings show that “leadership and top management commitment” is the most important CSF. Six CSFs are classified as causal towards CE practices: “leadership and top management commitment,” “strong legislation towards CE practices,” “ecological scarcity of resources,” “knowledge of CE practices,” “funding support for R&D from the government,” and “competitor pressure on CE practices.” The findings of this study can help managers in the leather industry implement CE practices in their existing SCs to minimize waste.