Circularity in Capital Projects: Innovations and Opportunities
Construction is one of the world’s largest resource consumers and waste generators, responsible for more than 50% of domestic materials consumption. Many companies are taking advantage of a long-term reduction in resource consumption to realize a cost-saving opportunity. They are finding that shifting toward a circular economy (CE) paradigm (i.e., reduce, reuse, and recycle) creates opportunities to generate new value, as well as to burnish their reputations and support marketing goals.
CII created Research Team 380 (RT-380) to develop knowledge and tools so CII members can successfully pursue the greatest opportunities, effective value propositions, and key business models for driving a circular economy in capital projects. CE aims to use materials more efficiently, for longer, and in closed loops as part of the transformation to a more sustainable and competitive economy. While this shift offers opportunities for businesses, it also requires new business models, core values, and policies.
RT-380's global scan indicated that the construction industry applied the circular business models shown in the figure. In Figure 9, the size of each circle reflects how many companies use that topic (FR-380, p. 15).
Through semi-structured interviews with 13 companies located in North America and Europe, the research team investigated the motivations, drivers, challenges, and lessons learned of companies involved with the circular economy. Table 15 summarizes the team's findings (FR-380, p. 30):
RT-380 developed a “how-to guide” to support companies in the process of implementation. Final Report 380 is composed of two major sections: a Circularity Readiness Guide and a Circularity Implementation Guide (FR-380, p. 45).
The team also identified and reviewed eight external tools created by circular economy-focused companies and organizations. The team included these tools in its how-to guide as an appendix, to serve as a helpful resource for companies that are transitioning from a linear to circular economy model:
- Circular Economy Redesign Workshop Kit
- Circular Business Model Canvas
- Business Model Canvas
- Circulator: The Circular Business Models Mixer
- The Circular Transition Indicator
- Sustainability Return on Investment
- The Circularity Indicators Project
- One Click LCA
