How Circular Economy Principles Can Transform Construction Supply Chains

There is widespread acknowledgement across construction of the benefits of circular economy production systems, where materials and products are reused, shared, recycled, repaired, leased or managed in any way that extends their life cycle.

The circular economy is increasingly seen, within the built environment sector, as the preferred alternative to a linear economy, in which used products are thrown away. A more cost-effective circular economy, that circulates materials along supply chains, is aligned with global sustainability goals.

Circular economy principles in action

Some of the ways in which circular economy principles can be put into practice in construction are:

Design for reuse and adaptability

Modern building methods such as modular construction and flexible designs can extend the lifecycle of buildings and materials

Material recovery and recycling

Recycling materials such as concrete, steel and wood preserves natural resources and eliminates the carbon emissions produced during extraction and manufacture

Collaborative supply chain models

Partnerships that support resource sharing, leasing and product take-back schemes boost the impact of circular economies across all areas of the construction industry.

Real-world circular economy applications and case studies

The Building the Circular Economy report published in conjunction with The University College London, cites UK case studies of projects including the VEEP initiative (Value-added Energy Efficiency Products and Services) and Queen Elizabeth Olympic Park, where cost savings were made through a circular economy approach.

The study found that the VEEP modular construction initiative “demonstrates significant cost reductions by recycling construction waste into prefabricated components”.

VEEP was pivotal in recycling construction and demolition waste into high value products and materials. The initiative brought about reduced reliance on new, unprocessed materials, a decrease in waste disposal expenses and a notable decrease in carbon emissions (Ghaffar et al., 2020).

The Queen Elizabeth Olympic Park project generated significant revenue through the circular economy by repurposing 90% of demolition debris. This created numerous jobs and boosted the local economy, with projected long-term economic benefits estimated at £13 billion (Greater London Authority, 2018).

The role of policy and industry collaboration for successful circular economies

As evidenced in case studies referenced in this article, circular economies directly impact sustainability in construction. The built environment is responsible for 30% of the UK’s carbon emissions, so advances in sustainability, including the adoption of circular economies, are critical for meeting government policies and reaching the net zero target of the Paris Agreement by 2050.

By reusing, sharing, recycling, repairing and leasing materials and products, with meaningful collaboration across supply chains, a circular economy supports the principles of sustainable construction:

• Sustainable design
• Durability
• Energy efficiency
• Waste reduction
• Indoor air quality
• Water conservation
• Sustainable building materials

Collaboration between stakeholders through resource sharing, leasing and take-back schemes throughout the supply chain is essential for circular economies to be truly successful and drive change.