Circular Economy System Enablers Report
Circular Economy System Enablers Report
Circular Economy System Enablers Report
a Circular Economy
www.ukgbc.org
1 - SYSTEM ENABLERS FOR A CIRCUL AR ECONOMY U KG B C - TO G E T H E R F O R A B E T T E R B U I LT E N V I R O N M E N T
i
Contents
Executive summary 3
ii
i) Introduction 6
iii
A systems change: from linear to circular 7
F. Green finance 27
H. Education 31
iv
iv) Conclusion 33
Acknowledgements 35
Endnotes 36
iii government, industry, and civil society will need to economy from these impacts have proven largely
unsuccessful, compared to the impact required. A
rally behind the common goal to shift from our current circular economy is an important part of the puzzle to
solve the challenges we are facing.2
extractive and wasteful linear economy towards a Our current system is contributing to the climate
regenerative, circular one. and biodiversity crises.3 To stand a chance of solving
these interlinked crises, we need to move to a new
way of thinking, working, and delivery; a circular
economy must be part of the equation, to minimise
virgin resource use in the built environment and
maximise reuse at a higher value.
This report uses the Three Horizons framework4 as a
way of mapping how a shift could take place from the
established patterns of the first horizon (business-as-
usual) to the beginning of new patterns and emerging
future in the third horizon. Disruptive innovations and
industry actions of the second horizon will be crucial to
make the shift from the current system to the emerging
future a successful one.
iv
Environmental:
iii The Three Horizons model5
• Planetary boundaries are not exceeded
“The new normal” • The true value of raw non-regenerative materials is reflected
“Business as usual”
in their price (balance tips in favour of secondary materials)
More
H2- H2+
H1 • Zero carbon trajectory
Social:
Dominance
Time Economic:
• Reliant on regenerative, renewable, and inclusive resource
flows
• Urban development supports localised loops (e.g.
knowledge, space, and tools needed to maintain, reuse,
upcycle and recycle materials locally and regionally)
• Creation of new sustainable market opportunities such as
iv secondary materials market as well as the market for eco-
designed products
• Focus on a thriving economy beyond GDP growth
iv
i
need for a shift to a circular built environment. have been consolidated into their present
UKGBC’s 2019 Circular Economy Guidance form through an iterative process and review.
for Construction Clients identified five circular Furthermore, the Task Group investigated
ii economy design principles which help enable and collected key stakeholder actions
a circular economy. This was followed by necessary to deliver these enablers and
the 2020 ‘Reuse’ and ‘Products as a Service’ help transition the built environment industry
iii implementation packs. In the Net Zero Whole to a more circular one.
Life Carbon Roadmap for the Built Environment,
6 U KG B C - TO G E T H E R F O R A B E T T E R B U I LT E N V I R O N M E N T
i
A systems change:
ii from linear to circular
iii How can we transform the current system to make
circular value creation second nature, easy to do,
financially rewarding, and embedded so that future
innovations don’t revert to old systems?
A system is a set of things, interconnected in a self- Because of the complex nature of systems, changing
governing network of relationships that produce their the way they operate is a challenging task. Differing
own patterns of behaviour.7 This behaviour cannot time horizons make coordination challenging, existing
be determined by looking at the parts that make infrastructure supports the current way things are done,
up the system alone, and their outcomes are often and inconsistent visions for the changes ahead can
surprising or unintended. Systems can create conditions make the direction of travel unclear. Many might not
that lead to their own failure. Parts of the way our recognise that the current system is not fit for purpose
economy operates can be seen as an example. The and requires change.
linear economy is under multiple threats it has itself
To facilitate navigating this complexity, this report
created. Built on the idea of infinite supply of resources,
uses the Three Horizons Model for systems change.
their fading availability, as well as impacts from climate
Looking along the short, medium, and long-term
change and biodiversity loss, put not only the economic
timelines, this model helps us work out how to
system but our society as a whole under threat.
prioritise our actions now and in the future.
iv
The Three Horizons Model is a way The built environment industry’s “The new normal”
i of structuring our thinking about the current business-as-usual approach “Business as usual”
transition towards an emerging future, is an extractive, ‘use and dispose’,
giving us a simple tool to handle the linear economy (Horizon 1). This report More
H2- H2+
ii complexity of multiple facets of change will look at some important changes H1
happening at the same time, and over required for a regenerative, circular built
time. It acts as a roadmap to resolve environment (Horizon 3 – chapter ii). In
tensions between incremental change addition, it will outline practical industry
iii
Dominance
and radical transformation. enablers that can be harnessed to
deliver this (Horizon 2 – chapter iii).
In a complex world, each of these
horizons is needed to create meaningful
change by bringing these different
H2
perspectives together in a constructive “Not fit for
way to face the challenges ahead. the future”
H3
Time
H1 H2 H3
Education
Horizon 3
i H2
ii
iii
ii H3
Economic shift
Complex systems can’t be understood by simply looking at their
constituent parts in isolation. For this reason, this chapter looks
at inherent flaws of the current system, exposing why changing
its goal is necessary to drive change, informing and enacting the
shift from the current linear to a circular built environment.
iv
i
What drives our Our current economic model is based on the
business-as-usual assumption of the infinite
availability of resources and labour that support
ii
linear economy? a linear economy. The table below summarises
some of the main drivers behind this.
iii
Cheap and widely available Products and materials are made Waste production is not very well
primary materials as disposable and/or treated as disposable monitored or regulated
Industries and networks built around Lacking a culture of repair and maintenance Disposing of end-of-life materials is still
primary raw materials, which makes it seen as a viable option
reliable and easy to specify Culture of convenience
Legal barriers preventing easy
Cheap/exploited labour Desire for new trumps desire to reuse of certain materials
restore and reuse
Globalised, interdependent markets Land in cities is expensive and
Lacking reuse (materials; secondary raw low-value activities (composting,
Lack of accountability materials) and recycling infrastructure waste management, repair) cannot
(along with a lack of space, knowledge of be afforded on that land
iv what is needed, and skills to run these
places) Cost/perceived cost to reuse
Economic:
• Reliant on regenerative, renewable, and inclusive resource
flows
• Urban development supports localised loops (e.g.
knowledge, space, and tools needed to maintain, reuse,
upcycle and recycle materials locally and regionally)
• Creation of new sustainable market opportunities such as
secondary materials market as well as the market for eco-
iv designed products
• Focus on a thriving economy beyond GDP growth
iii F I G U R E 3 : T H E B U I LT E N V I R O N M E N T A N D I T S U S E O F R E S O U R C E S
T O D AY FUTURE
We are currently overshooting several planetary Our economy and the built environment are
boundaries such as carbon and have also pushed embedded in society and the environment,
beyond what our ecosystems can cope with on waste operating in balance with the Earth’s resources.
and pollution, to increasingly detrimental effect.
Current emmision
sources sources
th’s re levels are exceeding th’s re
Ear the carbon budget Ear
y y
Societ Societ
nomy nomy
Eco Eco
Drive down
ion
s emissions to zero
ironment onment
env t Em
mi s nvir
lt n lt e
ui
e
ui r r
Cu
ions
B
B
mis
n Em
rbo
Ca
Waste Waste
Today’s resources / demand
Pollution
Pollution
Resources / demand
Horizon 2
i H2
H3
ii
iii iii
Industry enablers The industry enablers presented
in this report are based on
the sphere of influence of
practitioners in the built
environment. They constitute
focus areas to work towards with
the potential to act as critical
This chapter outlines some more practical, enablers for the shift from a linear
to a circular built environment.
iv
F I G U R E 4 : I N D U S T RY E N A B L E R S A N D T H E C O N S T R U C T I O N L I F E C Y C L E
uf
C Circular economy design principles
ac
F
tur
E
er
D Green contracts and leases D
C
B
E Tax and legislation A
Des
ign s
Green financing
tage
G Metrics, Benchmarks, and indicators
H Education
iv
In-
us on
ep ti
has
st ruc
e Con
ii
Collaboration and practical expertise of contractors, demolition
contractors, and deconstruction engineers,
and vice versa. This leads to inefficiencies
between the design and delivery teams, as
impact. A more collaborative approach enables
knowledge from various project stages to be
shared and considered where it previously has
been absent. To overcome current barriers,
iii
early engagement well as incompatibilities between design and
build that only arise in later stages of the
project which can often only be overcome
there needs to be a common vision/shared
goal, and a connection between early project
stages with later ones. For example, by
at a high cost, if at all. involving demolition contractors in the design
Turning the highly linear and Established and mature processes in
process, challenges to deconstruction can be
addressed early on, leading to a design for
fragmented construction process into a more place. The construction industry follows
an established, formalised process that is
disassembly as a precondition for the successful
implementation of a circular economy in the
collaborative approach, enabling circularity. based on linear thinking. The process is
construction industry. If the option to retain a
often dictated by programme and just-in-time
building is properly considered before the team
need for materials.
assumes demolition, chances are higher that a
Lowest-cost tendering is the norm. Contracts retrofit approach is taken.
are commonly awarded at the lowest cost
in a highly competitive tendering process.
Therefore, contractors are incentivised to
Detailed enabler
Related enablers:
optimise finances over quality, discouraging
Secondary materials exploration of circular economy principles if Integrated Project
market they don’t come at a clear cost saving. The Insurance (IPI)
emphasis on low cost can also lead to the
dismissal of innovation. Also known as insurance-backed
Education
alliancing contracts, IPI is a model for
Fragmentation of the industry. The procurement in the construction industry.
established, business-as-usual construction To overcome fragmentation, all involved
process is characterised by individual, parties sign up to a single multiparty
disconnected work packages in the design and contract with shared responsibility,
build approach, pushing risk down the supply encouraging collaborative working.11
chain. The complexity of the construction This ensures a more integrated design,
industry will only increase in the transition especially between the design and
to circularity before it settles into the next delivery teams. With deconstruction
business-as-usual, making siloed processes engineers involved from the very start,
highly inadequate in the transition and in fact this can facilitate a better uptake of
iv not conducive to the collaborative approach
required to be competitive in future scenarios.
circular economy principles and lead to
delivering higher quality.
Stakeholder actions
INDUSTRY AC TIONS:
i
- Clients should appoint demolition
contractors or deconstruction engineers
ii Secondary as part of the design team, or early enough so
pre-refurbishment or pre-demolition audits can
materials
market be considered by design teams.
iii
ors
Ext
rac
tio
n&
- Architects, engineers, developers, and owners
explore the use of models for collaboration and
nvest construction procurement such as IP insurance or
I
m
the Two Stage Open Book model.
an
-
ufa Des
Allows contractor to Architects and engineers should involve
ctu ign
work with supply
the expertise of contractors and demolition
rer
chain to secure
materials needed contractors early on (Stage 1/ Stage 2) to
(reused options can
take longer than new) inform the design based on salvaged materials
sta
by sharing pre-refurbishment or pre-demolition
ge
audit. The contractor can help to de-risk low-
Allows design team,
client, and contractor to carbon designs, ensure buildability and optimise
work together to procure
secondary materials and
procurement.12 Early structural reviews help assess
End of first life
Collaboration between
deconstruction and
Collaboration
and early
design principles
-
Engagement with
whole team
All stakeholders should share best practice
examples and challenges so the industry can
In- learn how different processes (e.g. procurement
us of reused materials) can happen.
ep on
has c ti
iv e
nst
ru
Co
Education
ii
Secondary when a building reaches its end of life and is
carefully deconstructed, timelines of material
demand and availability often don’t align. Tight
programmes on most construction projects
Simpler building materials such as bricks,
steel, and insulation are suited to reuse
hubs, while more technical products are
better suited for manufacturer schemes –
iii
materials market make it difficult to procure secondary materials,
which means most projects default back to
traditional procurement routes using new
products and virgin materials.
for example, refurbished lighting, raised
access floors, and glass partitions.
Example application
A marketplace for materials and Limitations on storage of secondary
construction products that had a materials. Because of the tight timelines Material passports
in the construction industry, storage of
previous life. Easy to procure from. secondary materials is often necessary
until their destination and onward use are
Material passports offer a tool to
gather data on construction products
confirmed. A lack of widespread storage and materials, linked to an accessible
options, and often high costs associated with database. This provides proof of
it, make it difficult to store materials, rendering provenance, as well as clarity on existing
potential reuse more unlikely. materials and refurbishment cycles, critical
Difficulties in the procurement of secondary information to obtain the confidence of
materials. Secondary or reused materials buyers in a secondary materials market.
compete with a global market of new materials By providing detailed information on
that offer a reliable and quick route of the composition of a building prior to its
procurement in a tried and tested process at deconstruction, a material passport can
Related enablers: fixed prices. Reused materials, in comparison, act as an enabler for potential reuse as
lack this ease of procurement and currently it provides insights to designers on the
Collaboration and require some investigation into their availability, future availability of materials. This ‘track
early engagement quality, associated warranties, and cost. and trace’ element is vital for the Horizon
Risk is pushed onto contractors. When 3 vision of buildings being designed
Circular economy
second-hand materials are specified without according to the availability of secondary
design principles
availability and access to these products, the materials.
risk for procuring disproportionately sits with
contractors as they might not be able to procure Reuse hubs
the specified materials at the required time.
To overcome the shortage of storage for
How it helps overcome them: secondary materials, local reuse hubs
iv can offer an affordable solution. This way,
A functioning secondary materials market is materials that free up from deconstruction
essential for mainstreaming the procurement can be stored, remanufactured, and
of reused building materials by making this restored, building a basis for a second-
process easy and accessible, and therefore a hand materials market for construction
true alternative to the current procurement of procurement. This will also increase quality
new products. The wide availability of these control and support the development of
secondary materials will help distribute risk higher-value secondary markets.
fairly and give confidence to markets and
POLICY AC TIONS:
i
Circular
- National government to establish a nationwide
second-hand materials database, building on
economy city-level networks.13
ii
Ext
design
principles - National government needs to incentivise
secondary materials markets to be established
rac and create conditions for investment.
iii
Invest
ors
tio
n& - National government update waste planning
policy to require space provision is made in
m
an
local plans and provide funding for this.
ufa Des
National government to introduce
ctu ign
Procure secondary
materials via
pre-demolition and pre-redevelopment
rer
secondary
materials markets surveys nationally to identify items for
e.g. reuse hubs
Collaboration reuse and recycling, with local authorities
sta
and early providing channels to where they can
ge
engagment be applied and stored.
Design to the
availability of
secondary
- Local authorities should collate information
on secondary material availability and
End of first life
iii
design principles difficult.
Design as barrier to future refurbishment.
Flexible and adaptable approaches to -
ensuring take-back schemes or mass
balance recycling initiatives are in place.
National government should incentivise
refurbishment, redevelopment, and repair are the use of circular design principles and
An architecture characterised by reversible partly prohibited by a construction design that work with local authorities to have policies
does not focus on the ability to be adapted, supporting this. A national circular economy
connections, allowing buildings and or partially or fully disassembled, making planning framework policy should be
components to be taken apart in a way that demolition or partial demolition more likely. developed.
allows for future reuse or lengthens the Tight construction programmes. Clients have
strict programmes and cost drivers, conflicting
- Local authorities should require all
developments to demonstrate design stage
building’s life by being flexible and adaptable. with deconstruction which takes more time and actions taken to reduce embodied carbon
is often, initially, more expensive. The whole throughout the life cycle of the building
This should be considered within the wider context of circular picture is not addressed if the value of salvaged and maximise opportunities for reuse
economy design principles, as outlined in UKGBC’s Circular materials from deconstruction is neglected. through the provision of a Circular Economy
Statement.31
Economy Guidance for Construction Clients and Insights on how
Circular Design Principles Can Impact Carbon and Value. How it helps overcome them: - Local authorities should support the
growth of regional specialist circular
A deconstructable architecture that uses products and services relating to the
reversible connections over compound construction industry, working and
materials creates the basic conditions to enable mobilising supply chains.32
the onward reuse of materials by making it
Related enablers:
easier to salvage materials without damage. INDUSTRY AC TIONS:
Secondary materials
market
This makes building design in response to
secondary material availability more likely. By
designing in layers according to their lifespan,
- Investors and agents should understand
and communicate the benefits of design for
the full potential of circular design principles disassembly to the asset owners.
Education
can be harnessed. While structural elements
are likely to last for decades and beyond,
- Developers should adopt circular economy
design principles and construction
short-life layers such as building services processes for residential, commercial, and
and fit-out need to be circulated more often. major infrastructure projects.33
iv Design for flexibility and adaptation ensures a
building remains fit-for-purpose and premature
demolition can be avoided.
- Clients should evaluate circular
economy design principles and set
out clear objectives in contracts and
track performance (Refer to UKGBC
publications Circular Economy Guidance
for Construction Clients, Implementation
guides, Insights on how circular economy
principles can Impact carbon and value).
m
an
Architects and engineers should prioritise
ufa Des
reuse, demonstrating to clients how the existing
ctu ign
Materials designed to
be disassembled at end
structure or sub-structure can be retained whilst
rer
of first use to enable
reuse or take-back still achieving site development potential.
schemes
Structural engineers should proactively
sta
identify opportunities to utilise reused structural
ge
elements and design for disassembly, and
Consider flexibility,
adaptability, and advocate for maximum re-use of existing
longevity alongside building structure/substructure (and if structures
buildings in layers
End of first life
-
enabled by design to
enable reuse or
manufacturers to
design
take back products principles Occupiers need to adopt circular economy
design principles (e.g. as part of fit-out)
and ensure materials are reused where
possible. Engage in the reuse market.
ii
Green contracts responsibilities in the built environment,
the ambition of one stakeholder might
not necessarily impact the actions of
The Chancery Lane project is an
international initiative collaborating to
develop contracts that are integrated
with sustainability objectives. They
POLICY AC TIONS:
i - National government to review Landlord & Tenant
Act 1954 to require by law that all new business
Secondary Collaboration leases include green lease clauses, the standards of
Circular and early
ii economy
materials
market engagment
which should be developed with industry.37
design
principles INDUSTRY AC TIONS:
iii - Owners and developers to develop alternatives to
Cat A fit-out wherever possible.
Ext
rac
- Owners should embrace green contracts and
leases for their assets. These might include clauses
tio on fit-out, waste avoidance, restrictions on material
rs n&
vesto selection, or responsibilities for deconstruction at
In
m
the end of the lease.
an
ufa Des
Owners and occupiers should add a clause to the
ctu ign
tenancy agreement whereby the tenant must notify
rer
Ensure aspirations for
circularity are shared the Facilities Estate Manager of any changes that
by all stakeholders will be made to the building during the lease. This
sta
Reduce cat A fit-outs
and work with future
process enables any unwanted materials to be sent
ge
tenant where possible for onward reuse and new materials to be added
to the inventory.38 This could also be achieved by
requiring material passports to be used.
-
End of first life
Legally binding
obligations on circular Legally binding
principles of fit-outs obligations in different
lifecycle phases
iv
In -
us
ep n
has ti o
e uc
str
Con
Secondary materials
market
- Local authorities should require
Circular Economy Statements
(see London’s CE Statement policy).
Circular economy
design principles
- Local authorities should have a
minimum percentage of secondary
materials as a planning requirement to
Green finance give certainty to the market for secondary
materials and drive investment in materials
iv passports and reuse hubs.
m
require mandatory disclosure of supply
an
chain data, and track and reduce
ufa Des
Incentivise reuse
to stimulate
construction site emissions. Carbon should
ctu ign
market
be evaluated alongside cost in all value
rer
Stimulate green Tax on virgin
engineering exercises.42
-
innovation materials
sta
All product manufacturers should
ge
develop embodied carbon reduction
Mandate WLCA plans for their products and operations,
to inform design focusing on reducing materials, energy
Legislation for decisions
pre-redevelopm usage, manufacturing waste, packaging,
End of first life
ent audits
and transport needs.43
Tax and
legislation
Remove VAT
on retrofit
Conditions that
minimise construction
WLCA to assess of new buildings and
repair/maintenance incentivise
refurbishments
iv In-
us
ep n
has ti o
e uc
str
Con
ii
Green financing quicker and cheaper option compared to more
innovative pathways.
Insurance currently favours the linear
economy. Finance is an essential enabler
increase in the creation of debt and equity
instruments related to the circular economy,
however, far more capital and activity will be
needed to scale the circular economy and fully
for the transition to a circular economy but seize the opportunity it presents across the built
Using the scale, reach and expertise of investment in circular activities remains far environment. The role of finance in accelerating
iii
private sector investors, banks, and the below the necessary levels. Regulations,
markets, investment tools, and practices,
the circular economy transition is expected to
-
Secondary materials
market Unpriced externalities. Since negative
National government should develop
environmental impacts are often not factored
reporting standards for the linear risks of
Circular economy in, the true cost remains hidden, making
investments and incorporate them into
design principles harmful materials and practices appear cheaper
standard accounting practices.
Investo
rs Cheaper debt
financing for assets
rac
tio
n& - Investors will need to champion their
key role in financing the transition to a
m
which adopt
circular economy, offering the potential
an
circularity , net zero
carbon pathways, and
ufa Des
Financing
green credentials,
for competitive returns while reducing
ctu ign
to support waste, preserving natural resources, and
rer
innovative
circular business addressing climate change.
Financing to
- Owners should consider circular economy
sta
match ambitions
Utilising circular
set out in the design principles across the life cycle of
ge
client brief design principles to
help investors align to
ESG and new
ownership and as part of due diligence
regulations and asset management can help support
ESG objectives, deliver value and mitigate
End of first life
iv
In -
us
ep n
has ti o
e uc
s tr
Secondary Con
materials
market
ii
Metrics, benchmarks measure circularity consistently, resulting in the
lack of a shared industry goal to work towards
on circularity. Circular economy approaches are
currently disjointed and incomparable.
should support requirements for WLC data
to be collected (see Part Z). Support the
industry in measuring and reporting to help
i
Secondary Circular
economy Education
materials
ii Design stage market design
principles
iii
Ext
rac
tio
rs n&
vesto
In
m
Marking of
an
materials for
ufa Des
identification to
help maintenance
ctu ign
/repair/disassembly
rer
e.g. by using
material passports
sta
ge
Target for %/# of
reused materials
within a building
as part of brief
End of first life
Metrics,
Detailed benchmarks,
monitoring of
materials at and indicators
end of life
Detailed
measuring of
waste on site and
Monitoring of where it goes
performance and
waste In-use
Monitor
iv secondary
materials
In-
us
ep on
has
e ru c ti
Co nst
ii
Education impacts this can have along with the ability to
implement solutions.
Lack of knowledge of circular design
principles. It is not widely taught or
with the necessary knowledge to transition
toward a circular economy. This includes
creating a common vision with buy-in from all
stakeholders to work towards the emerging
future of Horizon 3. Organisations should
understood how looking at different circular
iii Empowering practitioners and decision- economy design principles can benefit the
invest in training for their employees as well
as allowing for learning through experience
project depending on its use and make it
makers with the necessary knowledge to easier to adapt and deconstruct buildings
and experimentation to put ideas into
practice while upskilling the industry at the
be able to implement circular economy which can enable further uses of the
building and the materials.
same time. Strong collaboration across the
industry will be required.
more widely within their work and raising Lack of knowledge on how a circular
economy can be beneficial financially. Stakeholder actions:
awareness more widely on what is achievable. Seeing buildings as material banks and urban
mining can be beneficial to asset owners as POLICY AC TIONS:
they can mean the materials have more value
at end of use as they can be sold to be used
in future projects.
- National government should send a clear
message to the industry on the direction
of travel to provide the conditions for
Lack of knowledge on carbon and resource increased education and investment in a
intensity of the linear economy. Awareness circular economy.
of the importance of a circular economy to
remain within planetary boundaries is not
widely shared among professionals.
- Local authorities should upskill on
expertise and the importance of circularity
Related enablers: and whole life carbon in planning
Siloed knowledge. Expert knowledge is not applications and the benefits these bring,
Collaboration and commonly shared widely between actors environmentally, socially, and economically.
early engagement
Secondary materials
across the supply chain. Furthermore, there
is insufficient collaboration and exchange
between circularity and carbon reductions,
- Local authorities should perform a skills
mapping to identify skills necessary to
market as well as the relationship between a support the transition to a circular economy
circular economy and building for climate and have a policy to support filling the gap.46
Circular economy resilience and adaptation.
design principles INDUSTRY AC TIONS:
Green contracts
Perceived cost and risk rather than
real costs and risks often prevent circular - All stakeholders should implement
iv and leases
principles from being implemented. net zero carbon skills and training plans
supported by professional institutions, to
establish carbon literacy among all students
Tax and legislation and staff.47 This should also include circular
economy design principles and retrofit
competency requirements. This applies to
Green finance all built environment stakeholders, not
just sustainability professionals.
Metrics, benchmarks
and indicators
i Green
- Business associations and NGOs should work with businesses on
sustainability to help with sharing and dissemination of practical
contracts learning and best practice.
ii
and leases
Secondary
- Developers, investors, and agents need to understand the value of
materials through buildings as materials banks - materials as assets.
iii Green
materials
market
- Architects and engineers need to consider the use of different
design principles in the brief dependent on the expected use and
finance lifespan of the building and educate clients on circular economy
Ext
rac design principles and how they may benefit the longevity of the
tio
ors n& building and create value.
Inv
est Increase investor Collaboration - Architects should help make reused materials mainstream by
m
understanding of
and early
an
Education on
how CE fits into ESG educating clients and developers on misconceptions about the
ufa Des
circular economy
portfolios and lowers engagment
design principles aesthetics of reused materials.
-
risk associated with
ctu ign
climate change
rer
Benefits of green
Architects and engineers need to work with contractors to
contracts and leases Education on understand how the design choices and specifications will impact
circular economy
the disassembly of buildings and fit-outs and work with each other to
sta
design principles
ge
Circular educate the team on how materials should be salvaged to maintain
economy their condition.
design
principles - Demolition contractors need to become deconstruction contractors
End of first life
Benefits of early
engagement who are skilled in deconstructing the whole range of products,
each element will need specialist knowledge. Receive training
Educate demolition
contractors on from contractors and manufacturers on how materials should
deconstruction to Education Challenge be installed and uninstalled so that they can be reused, including
maintain the value perceptions of
of materials rescued and training on how to repair and increase the lifespan of products.
secondary
materials being
inferior to new - Contractors and demolition contractors should seek further
education to understand the value of materials and implications on
their reuse vs recycling.
Education on facilities
management (BIM,
Training to minimise
waste and better
segregate products.
Education on how to
install materials so they
Tax and
legislation
- Cost consultants, quantity surveyors, and project managers
will need to ensure that circularity as well as carbon is evaluated
materials passports)
alongside cost in all value engineering and optioneering exercises.48
-
can be uninstalled
Green
Engineers and manufacturers should work with insurers, so they
In - procurement Metrics, are aware of how the disassembly and re-testing/warranty occurs.
iv us training and skills
ep for using
on benchmarks, Carrying out due diligence and sharing information with the insurers
has
e
secondary
materials
ru c ti and indicators may help to de-risk reused items, and overcome barriers that are
Co nst rooted in perception only.
ii The built environment is a complex system made bringing us closer to an emerging new way of
Conclusion
Therefore, the transition to a circular economy designs. Many are already pioneering a more
cannot be achieved with some simple collaborative approach with contractors
alterations to the status quo but will require being increasingly consulted at the early
a fundamental systems-level change in our stages of the design.
economy and cross-industry collaboration. The
Other solutions, such as reuse hubs and
Three Horizons framework is a model of systems
material passports are in their infancy and will
change along short, medium and long-term
The resources of our planet are finite, yet
require concerted industry efforts to develop
timelines, which help us to work out how to
and become mainstream. As a call to action,
prioritise our actions now and in the future.
this report outlines a set of policy and industry
our economy is based on a linear model This report has examined the current state of
the industry from a systems perspective (H1),
actions for all levels of the value chain to rally
behind these enablers and deliver the necessary
– a system that is bound to fail. Shifting identifying some practical industry enablers
that are currently emerging (H2) and must be
pieces of the puzzle so they can become the new
business-as-usual in a circular built environment.
from a linear to a circular economy is a implemented to set us on the necessary path to
achieve a regenerative circular economy (H3). Transitioning to a circular economy will be a
fundamental necessity in our response to The eight industry enablers identified in this
crucial element in tackling the ecological and
climate crises. The built environment must
report can support this much-needed shift,
the climate and ecological emergency. acting as tipping points toward a circular future
drastically reduce its resource use in a short
period of time; embracing complexity, novel
by overcoming key barriers and unlocking
approaches and business models will be
circular opportunities. Supported by stakeholder
required across all stakeholders of the built
actions, they propose achievable solutions,
environment to deliver this.
iv
F I G U R E 1 3 : I N D U S T RY E N A B L E R S S U M M A RY
cle
ii Extraction and
Investors
manufacturer
iii Designed for easy repair
and maintenance
Inner circle:
Procurement of Enablers
secondary materials
Cheaper financing for assets
that adopt circular principles