Embracing circular economy thinking to drive absolute zero in the building sector

While the idea of a circular economy has been around for quite some time, it’s only now gaining momentum as part of the broader discussion around sustainability and decarbonisation. In the property and buildings industry, we’ve adopted circular economy principles such as biophilic design, adaptive reuse, net zero buildings and design for deconstruction.

But it’s not enough for only a few industries to embrace circular economy thinking. It’s clear that to transform our economy into one where waste is eliminated, resources are circulated and nature is regenerated, we need to focus on solutions throughout the project lifecycle, think beyond decarbonisation alone and just start the journey.

Circular economy solutions address the lifecycle of an asset, from its design and operation through to its disposal or renewal. Buildings require large amounts of carbon-intensive materials like concrete and steel for their construction. Addressing embodied carbon (scope 3 emissions) is a pressing challenge for the property and buildings industry. Unless the entire supply chain decarbonises, it’s very difficult to deal with embodied carbon.

Adopting sustainable practices across the supply chain can significantly reduce the carbon footprint of an asset. In the buildings industry, this means using more sustainable construction materials like crushed waste glass or green steel, adopting sustainable methods of production and transportation, and reusing materials at the end of their life, rather than sending them to landfill.

In the renewable energy space, when we think of solar or wind farms, we think sustainability. However, renewable energy projects are not inherently sustainable. While they may produce green power, they often clear land of natural vegetation and biodiversity. They can also have unsustainable supply chains including at the end of life where parts go to landfill instead of being recycled.

Successfully applying circular economy thinking requires greater clarity on roles and responsibilities at every step of the supply chain. To reach net zero targets, we need cross-industry collaboration and holistic thinking across the entire lifecycle of every project. We can’t simply design better assets; we need governments to intervene and help fossil fuel-intensive industries transition so that our entire supply chains are more sustainable and circular.

If we only focus on carbon and decarbonisation, we get just over 50 per cent of the way to carbon neutral. According to the Ellen MacArthur Foundation, the other 45 per cent is attributed to making products, in particular, steel, cement, aluminum and plastics – key materials in our built environment. While decarbonisation of our energy and transport systems is incredibly important, we must broaden our focus to incorporate other aspects of sustainability like green infrastructure, regenerative design and social sustainability.

Embracing a circular economy involves finding ways to put green back into the environment (known as biophilia), whether through green roofs, vertical gardens or urban agriculture. This not only enhances built spaces but also promotes biodiversity and mitigates the urban heat island effect.
Regenerative design also plays an important role in the circular economy. By utilising natural materials, embracing renewable energy and implementing regenerative systems, we can minimise negative impacts on the environment while actively working to restore and revitalise ecosystems.

The circular economy promotes social sustainability because it prioritises people and communities. When we adopt circular economy thinking, we can create spaces that are environmentally sustainable and socially inclusive, enabling communities to thrive.

No one has implemented the circular economy perfectly, but we have to start somewhere. The circular economy does not present us with one answer but rather a conversation to be had about what we value and how to keep that value working for us in our businesses.

Often it’s hard to know where to begin the journey because there is so much information out there but no globally agreed methodologies for measuring and assessing circularity. While progress continues to be made, the time to start is now.

The challenge for many businesses is the potential risk that they may be seen to be greenwashing in their efforts to be circular. We need to balance taking risk with taking action, otherwise progress will stagnate. The key will be better collaboration between industry, community and governments to improve the opportunity for shared wins that will help us all move forward together.

• Understand what comes into your business, how you use it and what happens to it after its first life – this is where circular economy thinking comes in.
• Understand where your business is generating waste – i.e., products, materials, human resources, logistics – and the potential impacts – i.e., emissions, solid waste generation, etc.
• Understand your supply chain: Who do you purchase from and who purchases from you?
• Know your neighbours: What problems do they have, and can you solve them together for mutual advantage?
• Get help to understand the opportunities available for your business to save money, achieve targets and be future ready.