Circular Construction Guide

The Circular Construction GuideWhy and how your company should embrace circularity

Introduction Construction is the world’s largest in- What can the construction dustry, consuming around one-third of industry do to help? all raw materials and generating a similar proportion of waste. It also accounts for By adopting business strategies up to 35-40% of all global greenhouse that integrate sustainability factors gas emissions. Looking at the entire alongside economic ones, you can global economy, less than 10% of all not only minimize environmental resources are being reused, and in 2022, impact, but also help ensure the the share of circular inputs – materials long-term success of your com- that are reused, recycled, or regenerated pany. A good place to start is by to minimize waste and environmental embracing circular economy princi- impact – dropped from 9.1% to 7.2%.1 ples. 1/3 % 1/3 35-40 of all raw materials of all global greenhouse of all global waste are used by the gases can be attributed to is produced by the construction industry the construction industry construction industry Circular vs. Linear Economy Finite materials Stock Management The traditional linear economy model involves extracting raw materials, man- Parts Manufacturer ufacturing products, and disposing of Product Manufacturer them at the end of their life cycle, often into land昀椀lls and after very little use. Service Provider Refurbish/ Recycle A circular economy, on the other hand, Share Remanufacture is all about designing out waste and pollution to keep resources in use for as long as possible. This means reducing User Maintain/ Reuse/ our reliance on raw materials, reusing Prolong Redistribute and recycling spent products – and Collection even reimagining waste as a valuable resource. Minimise systematic leakage and negative externalities / 2

Ways to Embrace Circularity 5 Use Resources Extend Product More Ef昀椀ciently Life 1/ 2/ Adopting resource-ef昀椀cient construction Though a closed-loop system of reuse strategies helps reduce waste and opti- and recycling is the ultimate goal of the mize building performance. For example, circular economy, extending product BIM (Building Information Modeling) al- lifetimes can help minimize waste. The lows architects, engineers, and construc- concept of lifetime extension involves tion professionals to identify opportuni- designing durable, repairable, and recy- ties during the design process to reduce clable products. This helps keep prod- material waste during construction. ucts in use for as long as possible, re- ducing the need for new production and Another approach is Equipment as a minimizing the environmental impact. Service (EaaS), a service model that lets companies access equipment, tools, or The bene昀椀ts of a circular economy ex- other resources on a usage basis. This tend beyond the ecological – they can can minimize waste by reducing the bring economic gains too. For example, need for new purchases and disposals. a construction company could recycle EaaS providers are typically responsible concrete from demolition sites and use it for maintaining and repairing equipment, to make new concrete, which would not helping to ensure it's always in good only reduce waste but also save money working order while maximizing its value on disposal costs. over its lifetime. / 3

Design for designed for disassembly may not be Disassembly 3/ economically viable for a new owner who may not have the same focus on One key principle of the circular econo- sustainability or may not be willing to my is designing products and materials invest in the necessary disassembly with their end of life in mind. In construc- and recycling infrastructure. tion, this could mean designing build- ings, products and tools that can be eas- Reuse Materials ily dismantled and the materials reused 4/ or recycled. This is known as “designing for disassembly.” Salvaging materials from demolition sites, using reclaimed wood or other One example is designing a building materials in new construction, and using modular components – such as refurbishing existing buildings and mechanical, electrical and pipe support tools can help save money on pur- systems – that can be disassembled and chasing new materials, reduce waste, reused in other buildings. This would and minimize environmental impact. help reduce the amount of waste gen- erated during the construction process, Recycle Materials save money on disposal costs, and 5/ potentially generate additional revenue from the sale of the reused or recycled Recycling is an important component materials. of the circular economy. By recycling materials at the end of their life cycle, However, there are challenges to imple- construction companies can reduce menting circular design in construction. waste and conserve natural resourc- Construction projects often have long es. Recycling can include everything timelines, which means that the own- from concrete, asphalt, scrap metal, ership of a building or tool may change and plastic to tools, consumables, multiple times over the course of its life. and packaging. Purchasers can also This can make it dif昀椀cult to ensure that contribute by seeking out suppliers the disassembled building materials are who prioritize recycled materials in reused or recycled. In addition, a building their products. / 4

How Can You Participate in a Circular Economy? o implement circular economy Imagine: Express your vision for a principles in your company, circular future while also identifying Tyou can follow the seven steps potential risks and challenges. of the Circular Navigator, as outlined by the University of St. Gallen’s Institute of Incorporate: Incorporate the circular 3 Management and Strategy. business model into your company’s culture, policies, procedures, and Impulse: Explore why your company operations. should adopt circular economy princi- ples, such as to attract customers and Implement: Execute the steps outlined talent or gain a competitive advantage. in the previous stages, such as recycling materials and optimizing resource Identify: Analyze your current situation consumption. to identify areas where circular princi- ples can be implemented. By following the seven steps outlined in the circular navigator, you can identify Ideate: Look beyond existing solutions areas where circular principles can be to 昀椀nd new ways to reduce resource implemented and realize the bene昀椀ts consumption and waste production. of a closed-loop system. Once you take action, you could save money on Integrate: Design your own consistent disposal costs, reduce your carbon ecosystem to ensure that circular princi- footprint, and create new business ples are integrated into every aspect of opportunities by attracting environmen- your company. tally conscious customers and talent. / 5

Need Help Reaching Your Circularity Goals? Partnering with companies like Hilti can help you reduce your environmental footprint Hilti offers: the tool reaches the end identify areas where you of its useful life. A glob- can improve. Fleet Management, al network of 65 repair a form of Equipment centers helps keep mate- BIM solutions that help as a Service (EaaS), rials in use for longer. designers optimize that allows you to resources and generate choose from a wide Optimized packaging maximum value from selection of tools, access that uses more sustain- a minimum use of raw tools on demand for able materials such as materials. short-term use, and get paper and cardboard and help tracking, repairing toolboxes made of up to Modular support and replacing tools, all at 50% recycled content. systems for mechanical, a 昀椀xed cost. electrical and plumbing Sustainability reports installations that help Tools designed to be that provide transpar- optimize materials and repairable with parts ency on your circularity can be disassembled for that can be reused when performance to help you reuse. Find out how Hilti can help you reach your sustainability goals by visiting www.hilti.com/circularity Sources 4. “It’s Time for Construction to Embrace the Circular Economy”: https://www.rolandberger. com/en/Insights/Publications/It%E2%80%99s-time-for-construction-to-embrace-the-circular- 1. Deloitte Circularity Gap Report: https://www.circularity-gap.world/ economy.html 2. Circular Economy Diagram: https://ellenmacarthurfoundation.org/circular-economy-diagram 5. “Closing the Loop on the Circular Economy”: https://www.rolandberger.com/en/Insights/Publi- 3. “Circular Ecosystems: Business Model Innovation for the Circular Economy”: https://www. cations/Closing-the-loop-on-the-circular-economy.html alexandria.unisg.ch/259076/ 6. “Sustainability and the Emerging Circular Economy”: https://www.rolandberger.com/en/In- / 6 sights/Publications/Sustainability-and-the-emerging-circular-economy.html