The construction sector - responsible for around a quarter of CO2 emissions and first waste producer in Europe - is called upon to accelerate its transition to an economy that is more sober in terms of natural resources and greenhouse gas emissions. This effort is all the more crucial at a time of new geopolitical instabilities and persistent tensions in the supply chain following the two-year pandemic, which make it more difficult to supply world markets. So how can we remove the obstacles to the development of the circular economy in construction and successfully transform the professions in cities and regions?

1. EMERGING
TRENDS
BUILDING
THE CIRCULAR ECONOMY:
TIME TO SHIFT!

2. 2

3. 3
3
I. From a linear to a circular economy
II. Top three reasons for going circular now
III. Getting circular
3
TABLE OF CONTENTS
La Grande Halle par Encore Heureux Architectes - 2019

4. 4
I. FROM A LINEAR
TO A CIRCULAR ECONOMY

5. 5
OUR CURRENT LINEAR ECONOMY MODEL IS NOT SUSTAINABLE
”Take, Make, Waste”: linear economy involves taking raw materials to make products that are used and then
discarded as waste
According to the Ellen MacArthur Foundation, 80% of waste is simply the result of poor (linear) design:
Choice of non-recyclable materials
Lack of eco-design/disregard of products life cycles
Lack of consideration of environmental impacts
Without change, by 2050, we will need the resource equivalent of 3 Earths every year!
However, we already see shortages of some resources (sand, metals, water…)
Resource
extraction
Production Distribution Consumption Disposal
TAKE MAKE WASTE
Assumption:
Infinite
resources
Assumption:
Infinite regenerative
capacity of the Earth

6. 6
ALTERNATIVES TO OUR LINEAR APPROACH
Reduction
The best waste is none at all!
From decreasing the amount
of raw material used
to sharing – rather than
buying – we can develop
alternatives to the take-
make-waste approach.
Reduce is the first strategy
to consider when serving one
of our needs or designing
a product/service: can we
achieve similar – or
acceptable – results with
lesser resource consumption,
or none at all?
Reuse
Products such as glass bottles
can be reused several times
before being discarded.
Reuse is the first strategy to
consider instead of recycling
because there is no need
for further treatment:
it reduces pollution, waste
and makes the process
more sustainable.
Repair
Products are generally
less durable and repairable
than they were in the past.
Enabling and promoting repair,
for instance by making spare
parts and information more
easily available, can bring old
products back to life.
Choosing repairing rather
than recycling allows
financing savings, contributes
to waste reduction
and extends the product life
cycle (principle of Product
Lifecycle Extension or PLE).
Remanufacture
Products such as electronic
goods can be rebuilt to
the original manufacturer
specifications using a
combination of reused,
repaired and new parts.
Whereas recycling promotes
material recovery without
retaining any design features
or specifications,
remanufacturing retains
the identity of the product,
aiming to reestablish
the product as a new or even
higher performance levels
than the original product.
Recycle
Recycling is a process
to obtain the same
(high grade) or lower
(low grade) quality
of materials from waste
(Kirchherr et al. 2017).
Recycling itself is an energy
intensive process and does
not preserve the embodied
energy used in the resource
extraction, production
and distribution process. It
is the last option to consider.
Products such as metals,
paper, glass or plastics can be
recycled as a source
of secondary raw materials.

7. 7
7
The smaller the loop:
SLOWING, NARROWING,
CLOSING LOOPS The less reclamation, and reprocessing
time costs associated
The higher the chance of using the product
or material several times in different levels
of the value chain
Abandon
Reclamation
costs
Reprocessing time and costs
Remanufacture
Recycle
Disposal costs…
Clean-up costs…
Externalized costs…
( + )
( - ) ( + )
Reuse
Repair
( - )
Reduce
6

8. 8
A CIRCULAR ECONOMY MODEL: SUSTAINABILITY-BY-DESIGN
The Circular Economy (CE) is a disruptive economic model that promotes restorative/regenerative systems in
which products, components, and materials continuously add, recreate, and preserve value.
In practice, CE uses design in order to minimize waste through reusing, repairing, remanufacturing
and recycling existing materials and products. Applying the principle of ”designing for X” (X being reuse, repair,
remanufacture, recycle accordingly) in order to extend product lifecycles and avoid extraction of virgin materials.
One of the other positive effects of circular economy is the expected creation of jobs in services.
This approach can be applied to all products and all sectors of activity.
Resource
extraction
Production Distribution Consumption Dispose
Reuse
Repair
Remanufacture
Recycle

9. 9
9
ONCE THE LOOP IS CLOSED
In opposition with the “Take, Make, Waste” linear approach, the
circular economy model ultimately takes the shape of a closed
loop, in which a product’s end of life results in the creation
(through recycling) of new resources that can be used to produce
new products.
This is of course an idealized representation. Even in the best-
case scenario, recycling implies a certain percentage of loss, and
we’ll still need additional new resources as an input for
production. Nonetheless, such an approach would allow a drastic
diminution of resource extraction.
In addition to a strictly economical benefit, a Circular Business
Model (CBM) can have positive consequences on an
environmental level by reducing waste and pollution or limiting
climate change and biodiversity loss.
EXTRACT
8

10. 10
LINEAR VS CIRCULAR ECONOMY: THE KEY DIFFERENCES
LINEAR ECONOMY CIRCULAR ECONOMY
Steps Take-make-dispose
Take-make-
reuse/repair/remanufacture/recycle
Focus
Eco-efficiency
(i.e. process-oriented)
Eco-effectivity
(i.e. result-oriented)
System boundaries Short-term, from purchase to sale Long-term, multiple lifecycles
Reuse None or limited downcycling
Upcycling, cascading, high-grade
recycling
Business models Focus on products Focus on services

11. 11
II. TOP THREE REASONS
FOR GOING CIRCULAR NOW

12. 12
12
GAIN A FIRST-MOVER ADVANTAGE
REASON #1
I I . T O P T H R E E R E A S O N S F O R G O I N G C I R C U L A R N O W

13. 13
A TRANSITION PROCESS ALREADY UNDERWAY
Growing corporate focus on sustainable products and services all along the value chain with an emerging drive towards
(and interest in circularity)

14. 14
14
EUROPE IS STRONGLY COMMITTED
REASON #2
I I . T O P T H R E E R E A S O N S F O R G O I N G C I R C U L A R N O W

15. 15
EU-BASED RESEARCH LEADING THE WAY
The concept of a circular economy first appeared in the 70’s and matured at the beginning of the century. An exponential
increase in research has been noted over the last decade on the topic of circular economy.
The EU is the world leader in CE-based academic research, followed by China and the UK.
0
20
40
60
80
100
120
2007 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020
123
86
29
15 14 11 10
393
91
67
56
32 25 24 21 15 13 13 13 12 11
CHINA
UK
USA
AUSTRALIA
BRAZIL
SINGAPORE
CANADA
TOTAL
EU
SPAIN
ITALY
NETHERLANDS
PORTUGAL
GERMANY
FRANCE
BELGIUM
SWEDEN
DENMARK
FINLAND
ROMANIA
POLAND
AUSTRIA
Increase of the number of articles published on circular economy
over the last 15 years
Number of research papers published on circular economy by country
Source: J-Global Source: J-Global

16. 16
16
IMPROVING THE WELL BEING OF PEOPLE
Become climate
neutral by 2050
Protect human life,
animals and plants
by cutting pollution
Help companies
become world leaders
in clean products and
technologies
Help and ensure a
just and fair
transition
THE EUROPEAN GREEN DEAL:
MISSION AND OBJECTIVES
The European Green Deal is the European
Union’s blueprint to:
Decarbonise the EU economy by 2050
Revolutionise the EU's energy system
Profoundly transform the economy and inspire
efforts to combat climate change
A dedicated circular economy action plan
has been launched (CEAP). The CEAP focuses
on eight sectors – which include
construction - that use most resources and
where the potential for circularity is high.
The
European
Green Deal

17. 17
17
CREATING GREEN BUILDINGS FOR THE FUTURE
THE RENOVATION WAVE STRATEGY,
A BOOST FOR THE CIRCULAR
ECONOMY
Building and renovating is one of the key policy area
of the European green deal
The strategy aims to double the annual energy
renovation rate within 10 years and to foster deep
renovation
By 2030, 35 million buildings could be renovated and
up to 160,000 additional green jobs created in the
construction sector.
Circular Economy is identified as a key factor to
achieve this objective
Renovating schools
and hospitals
by investing the money saved through
building efficiency to support
education and public health
Lift national regulatory barriers
that inhibit energy efficiency investments in
rented and multi-ownership buildings
Making existing buildings circular
Refurbished and sustainable buildings in the EU will help
pave the way for a decarbonized and clean energy system
Renovation of social
housing
Particular attention will be paid
to the renovation of social
housing, to help households who
struggle to pay their energy bills
Renovation
wave

18. 18
WITH NEXTGENERATIONEU, €750 BILLIONS FOR EUROPE’S RECOVERY!
NextGenerationEU
Grants 390.0
of which provisioning for guarantees 5.6
Loans 360.0
TOTAL 750.0
Funding
under NGEU
Funding
under MFF
Total
funding
Recovery & Resilience
Facility
672.5 0.8 673.3
Of which GRANTS 312.5 - 313.3
Of which LOANS 360.0 - 360.0
REACT-EU 47.5 - 47.5
Rural development 7.5 77.9 85.4
Just Transition Fund 10.0 7.5 17.5
InvestEU 5.6 3.8 9.4
RescEU 1.9 1.1 3.0
Horizon Europe 5.0 79.9 84.9
All amounts in EUR billion in commitments, 2018 prices. Source: European Commission
POWER UP
Clean technologies and renewables
RENOVATE
Energy efficiency of buildings
RECHARGE & REFUEL
Sustainable transport & charging stations
CONNECT
Rapid broadband services – incl. fiber & 5G
MODERNISE
Digitalization of public administration
SCALE UP
Data cloud and sustainable processors
RESKILL AND UPSKILL
Education & training to support digital skills

19. 19
WITH NEXTGENERATIONEU, €750 BILLIONS FOR EUROPE’S RECOVERY!
672.5B€
The majority of funds from NextGenerationEU
(€672.5 billion) will be spent through the
Recovery and Resilience Facility (RRF)
programme.
37%
will be targeted to climate-related expenditure,
supporting renovation investment and energy
efficiency-related reforms across Member States.

20. 20
IN CONCLUSION
A WAVE OF OPPORTUNITIES TO INVEST IN CE, IN EUROPE AND GLOBALLY
Changing the current economic system needs a
common vision and in this respect circular
economy is a unique opportunity for dialogue and
collaboration between private and public sector
entities to achieve the common goal of long-
term value creation. The European Green Deal
with the new Circular Economy Action Plan will
ensure all policies align with other European
regulations to transition to a resilient circular
economy fostering an enabling environment for
investments along the CE principles.
Building renovation, is one of the sectors facing
the largest investment gap. The EU 2021-2027
Multiannual Financial Framework and the
recovery instrument NextGenerationEU provide
an unprecedented opportunity to set off the
renovation wave, providing new economic
opportunities and investment possibilities for this
crucial sector.

21. 21
21
ECONOMIC, ENVIRONMENTAL & SOCIETAL VALUE
REASON #3
I I . T O P T H R E E R E A S O N S F O R G O I N G C I R C U L A R N O W

22. 22
22
0
200
400
600
800
1000
1200
1400
1600
Building construction, residential &non-
residential buildings
Civilengineering, transport, energy, ICT,
drinking water & wastewater
infrastructure
Consumer & capital goods, large
household appliances, small kitchen
appliances, consumer electronics, ICT
equipment, vehicules, clothing, etc.
Building technology,
heating systems,
radiators, pipes,
sanitary equipment
The largest part of the material stock lies in the construction sector
Mineral materials Metal Plastics Wood Others
CIRCULAR ECONOMY CAN HELP TO FACE
SUSTAINABILITY CHALLENGES
By reducing resource
consumption: While natural
resources are becoming scarce, the
largest stock of natural materials are
in the construction sector which
needs to be reused efficiently.
By eliminating waste generation:
Construction accounts for
more than 35% of total EU waste.
By controlling greenhouse gas
emissions: Buildings in
Europe generate 40% of
European emissions.
149
153
353
18
2
21
12 508
15 283
Source: Urban Mining – Resource Conservation in the Anthropocene, 2019, German Environment Agency

23. 23
23
GHG emission reduction
(non including potential transport)
CIRCULAR ECONOMY CAN HELP
TO FACE SUSTAINABILITY
CHALLENGES
Recycled
Recycled concrete +10%
Recycled brick façade 59-62%
Reused
Reused concrete 95-96%
Reused brick 75-79%
Conclusion: applying circular principles such as
recycling and reuse can save as much as 10-95%
of the GHG emissions. The savings vary with the
applied principle and type of material.
-150
-100
-50
0
50
100
150
concrete brick
Potential reduction in GHG emissions in %
(under experimental conditions)
Conventional scenario Recycled Reused
Source: Comparison of GHG emissions from circular and conventional building
components, Buildings and Cities

24. 24
24
Created in 2018, Waste Marketplace is a one-stop-shop waste management
platform. They help construction and manufacturing companies select the best
waste management solutions and monitor their cost and environmental
impact.
According to Jérôme de Tomasi, the platform’s CEO, they have recently
achieved a 95% rate of waste recovery on a multi-site construction project –
compared to an average 70% for similar projects. To reach the recovery rate
objective, Waste Marketplace applied an original approach, including:
Identifying, all incoming and outgoing flows
Auditing the nature and composition of the waste generated by each material
and equipment, and their packaging
Partnering with the client’s procurement team and key suppliers to identify
problematic waste and taking corrective measures upstream
Waste Marketplace was initiated by a VINCI intrapreneur
supported by Leonard.
Logo
HOW THINKING CIRCULAR CAN BOOST
WASTE RECOVERY ON CONSTRUCTION SITES
Case Study: WASTE MARKETPLACE

25. 25
CIRCULAR ECONOMY HOLDS A HUGE POTENTIAL OF ECONOMIC VALUE CREATION
Economic Value: innovative new business
models will account for an additional global
market opportunity of more than EUR 600
billion by 2025.
As shown in the study on the right, the
biggest market volume for Circular Economy
is projected in "renewable construction
material" and "recycled construction
material".
The growth rate (CAGR) in Europe is
forecasted to be maximum – up to 33% – for
"building life extension" and "EOL material
upcycling" activities.
Market Volume forecast for CE
Source: Roland Berger
Value Chain Step MARKET VOLUME [EUR BN] CGAR 2020-2025
PLAN
& DESIGN
PROCURE
CONSTRUCT
OPERATE
EOL
Europe World Europe World Europe World
2020 2025
1. Green building design
2. Advanced software
3. Renewable construction
material
4. Recycled construction
material
5. Resource-efficient
construction
6. Excess material recycling
7. Energy-efficient services
8. Space-sharing services
6. Building life extension
10. EOL material upcycling
2.9 9.8 5.3 24.3
110.1
268.9
193.3
471.7
13% 20%
10.9
27.7
15.5
42.5
9.4
36.3 21.6
67.1
1.2 4.0 5.0 13.2
12% 12%
7% 9%
18% 13%
33% 27%
∑ Overall circular construction market
134.6 346.7 240.7 618.8 12% 12%

26. 26
CIRCULAR ECONOMY HOLDS A HUGE POTENTIAL OF ECONOMIC VALUE CREATION
Zooming into the profit
margins, for different circular
strategies, the largest profit
margin is observed for
“resource efficient
construction” and “EOL
material recycling”
Profit Margin for Circular Strategy
Source: Roland Berger
VALUE CHAIN STEP Circular Strategy PROFIT MARGIN [%]
PLAN & DESIGN
PROCURE
CONSTRUCT
OPERATE
EOL
1. Green building design
3. Renewable construction material
5. Resource-efficient construction
7. Energy-efficient services
9. Building life extension
2. Advanced software
4. Recycled construction material
6. Excess material recycling
8. Space-sharing services
10. EOL material upcycling
10% - 15%
13% - 17%
8% - 12%
5% - 9%
20% - 25%
5% - 7%
13% - 17%
8% - 12%
10% - 15%
20% - 25%

27. 27
CIRCULAR ECONOMY PROVIDES SOCIAL VALUE
Employment generation
The circular economy offers
great potential for new activities
and jobs (Green Deal). By 2030,
an additional 160 000 green
jobs could be created in the EU
construction sector through a
renovation wave alone.
Enhancing productivity
Using environmentally
friendly construction
materials has positive impacts
on wellbeing, for example, and
has been shown to increase
productivity by up to 10%.
Enabling just and inclusive
transition
It allows member states
or regions which have a high
dependence on fossil fuels to
invest in new green
jobs, sustainable public
transport, renewable energy,
digital connectivity
and clean energy
infrastructure.

28. 28
III. GETTING CIRCULAR

29. 29
29
LEARNING FROM CIRCULAR BUSINESS MODELS
I I I . G E T T I N G C I R C U L A R

30. 30
30
A DEFINITION OF CIRCULAR BUSINESS
MODELS (CBM)
Circular Business Models (CBMs) or Circular Economy Business
Models (CEBMs) refer to innovative business models in which the
creation of value maintains the economic value of the product and its
inputs for as long as possible.
Once we realize that “80% of a product's environmental impact is
defined at the design stage” (Reniera O’Donnell of the Ellen
MacArthur Foundation), we can see that circularity and CBMs are first
and foremost a design challenge. Using this prism, any waste created
by a business model can thus be seen as a design and/or business
modeling flaw.

31. 31
A CBM CLASSIFICATION BASED ON 3 STRATEGIES THEY INTEGRATE
Retain Product Ownership
(RPO)
CBMs in which ownership is retained
by the producer or owner and
separated from usership, including
those that integrate Product as a
Service (PaaS), aka leasing solutions,
pay-per-use, and/or sharing (via
platforms like AirBnB), are prime
examples of RPO in action.
Product Life Extension
(PLE)
CBMs that integrate different circular
elements like reuse,
remanufacturing, upcycling, and
industrial symbiosis, for example,
demonstrate how PLE promotes and
enables circularity.
Design-for-Recycling
(DFR)
CBMs that integrate modularity,
simplified user maintenance,
design for disassembly, and other
“design for” elements (aka “Design
for X”), are examples of DFR
applications.

32. 32
32
MAINTAIN & REPAIR
Maintenance & Repair (aka Maintaining) usually refers to CBM
approaches that extend the useful life of a product by restoring a
decayed or damaged good to usable condition.
Maintain & Repair spotlight: La Ressourcerie du BTP
La Ressourcerie du BTP is a logistics platform linked to a digital
tool that optimizes reuse from deconstruction works while
enabling access-to-employment.
Audit of potential resources ahead of the project
Careful removal by workers in socioprofessional integration
Cleaning, re-packaging and storage
Retail via an online platform
La Ressourcerie du BTP was initiated in 2019 by a VINCI
intrapreneur supported by Leonard.
Logo

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33
SHARING AND SHARING PLATFORMS
Sharing CBMs: facilitate collaboration among product users,
whether individuals or organizations, for shared use of underutilized
products, services and/or capacity, most often via a platform.
Sharing spotlight: BlaBlaCar
Digital sharing platforms like BlaBlaCar that started with carpooling
(car sharing) have diversified into different forms of shared mobility
like BlaBlaBus. In 2021, BlaBlaCar, which was France’s first well-
known unicorn (a startup valued over $1 billion) announced the
following key figure: 90 million members, in 22 countries, with 25
million travelers per quarter, more than €1.4 billion saved by
members since BlaBlaCar’s creation. In addition, 263 kilometers is
the average distance of a BlaBlaCar trip and 30 billion kilometers
has been shared by the company’s community since its creation.
What is interesting from a circular economy standpoint is that
BlaBlaCar doubles the occupancy rate of cars (an underused
and over-polluting asset) whilst operating a carbon-saving
network. In just 2018 alone, 1.6 million tons of CO2 were saved
by BlaBlaCar carpoolers, thanks to the relative efficiency of
filled cars versus alternative modes of transport.
Logo

34. 34
34
PRODUCT AS A SERVICE (PAAS)
PaaS – aka servitization or Product-Service Systems (PSS) – refers to
a business model in which ownership is retained by the
manufacturer or the service provider and the product is leased to the
user. Not all PaaS business models are circular per se. The entire
value chain needs to be circular-by-design and PaaS business
models can be an important element in that design.
Product-as-a-Service (PaaS) Spotlight: Rent the Runway
Rent the Runway (RTR) is a fast-growing online rental service that
was founded in 2009. RTR offers high fashion to fashion-conscious
users in exchange for a monthly subscription.
The company has built out a massive logistics and supply chain
operation, uses data intensively to continually improve
customer experience and performance, and has invested in
artificial intelligence to streamline operations. RTR now allows
customers and non-customers alike to purchase the used
articles it usually rents out, thus also ticking the Reuse
business model checkbox. And since it repairs all its products
too, to maintain them in like-new condition, the RTR business
model also integrates Maintain, Repair and Reuse business
model elements.

35. 35
35
REUSE
Reuse refers to CBMs in which products or services are reused as is.
Originally used by non-profit set-ups, this business model has recently
spread to profit oriented online marketplaces. Reuse is often
accompanied by re-marketing, design for repair, and design for reuse
principles.
Reuse Spotlight: Patagonia Worn Wear
A longtime favorite brand of many sustainable-conscious consumers,
Patagonia has been quite innovative in creating durable and
sustainable fashion. One of its most recent initiatives is Worn Wear
that allows customers to trade in worn Patagonia products to get
credit to purchase new Patagonia products. The used products are
then cleaned, repaired and refurbished and offered for sale at a
significant discount from the new versions on the Worn Wear website.
Many other retail clothing companies like Tommy Hilfiger and
H&M are also offering similar trade-in schemes. While this still
drives consumption, it allows for the products to be used for
longer and more intensively, while boosting the sustainability
and the profitability of companies.

36. 36
36
INDUSTRIAL SYMBIOSIS
Industrial symbiosis CBMs refer to a process-orientated solution by
which waste outputs from one process or product are used as inputs
for another process or product. The CE principles of partnership,
collaboration and value cycles are exemplified in this CBM approach.
Industrial Symbiosis spotlight: Timberland & United Tires
Timberland has partnered with tire manufacturer Omni United in order
to create a branded line of tires that when worn are recycled and
repurposed as soles for its Earthkeepers boots and footwear. Co-
branded as Timberland Tires, the partnership aims to reduce demand
for virgin rubber from the footwear industry.
According to Timberland, “Timberland tires are the first tires ever
purposefully designed to be recycled into footwear outsoles after their
journey on the road is complete. The most low-tech, least intrusive
way to break down tires and reuse them is the best option for our
ecosystem.” In other words, Timberland is applying both industrial
symbiosis and “designed-for-recycling” approaches.
In order to industrialize the process, Omni United designed a tire
return process to ensure used, worn, defective and damaged
tires are returned to recycling facilities.

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37
REMANUFACTURING
Remanufacturing CBMs create a closed-loop industrial process by
which worn-out, decayed or damaged products are restored to new
production functional equivalence (“like-new” condition).
Remanufacturing spotlight: Cat REMAN
One well-known actor among the growing array of remanufacturers
is Caterpillar REMAN which has been operating remanufacturing
since 1973. It is now a global operation and Caterpillar offers 7600
Cat REMAN products, all available with the same warranty as new
parts. After decades of experience with remanufacturing, Cat
Reman products are now designed to help customers waste less
time and money on maintenance.
Through the remanufacturing process Caterpillar reduces
waste by 55-88%, lowers greenhouse gas production by 50-
88% and minimizes the need for raw materials.

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38
RECYCLE
Recycling consists in making new products with raw materials from
existing products. Downcycling, is the least representative of CE
principles as it implies a loss of value in the system and the
generation of waste. Upcycling (aka closed loop recycling) refers to
CBMs in which a company turns low value materials used products
into a new higher value product.
Closed-loop recycling spotlight: HP Planet Partners
While not an example of upcycling per se, HP's cartridge recycling
program “Planet Partners”, which was started in 1991, is a very good
example of closed-loop recycling. HP recovers and recycles 90% of
the cartridges it sells and then ensures that no parts of the cartridge
are sent to landfill. All parts are fully-recycled or go to thermal
recovery. According to Forum for the Future, in its first 15 years, HP
recycled more than 566 million ink and toner cartridges worldwide.
As stated on the Planet Partner’s website “Our product repair,
reuse, and recycling programs are part of the effort to create a
more circular, low-carbon economy.” As recycling has become a
bigger part of the HP business model, its products have also
been increasingly designed-for-recycling (DfR), another key
CBM principle.

39. 39
39
OVERCOMING THE OBSTACLES
I I I . G E T T I N G C I R C U L A R

40. 40
40
HOW DOES CIRCULAR ECONOMY
CHALLENGE TRADITIONAL THINKING?
Design out
waste
Build resilience
through diversity
Use energy from
renewable sources
Think
in systems
Think in
cascades
Five main circular economy characteristics will enable a
process rethink that can change the traditional
production and consumption chains by applying
innovative approaches to extend the life span of
products and materials and effectively contribute
towards the protection of the environment
When circular-by-design, a company’s value chain
becomes a value cycle
CIRCULAR
ECONOMY

41. 41
THE FIVE CHARACTERISTICS OF CIRCULAR THINKING
Design out waste Build resilience through
diversity
Use energy from
renewable sources
Think in systems Think in cascades
Waste does not exist when
the biological and
technical components (or
materials) of a product are
designed to fit within a
biological
or materials cycle,
designed for disassembly
and repurposing.
Modularity, versatility,
and adaptivity are
prized features that
need to be prioritized in
an uncertain and fast-
evolving world.
Any circular story
should start by looking
into the energy
involved
in the process.
Understanding how
parts influence one
another within a whole,
and the relationship of
the whole
to the parts. It involves
understanding flows
and stocks at stake.
Keep the materials, be
they products,
components
or materials or biological
nutrients, longer in
circulation and for them
to be transformed into
different types of products
or materials.

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BARRIERS TO IMPLEMENTING THE CIRCULAR ECONOMY
While many companies are indeed designing circular business models “by-design”, others are simply integrating
various principles of circular economy into their existing business models without making them fully circular.
Recent research has brought to light the numerous barriers to developing circular business models. Chief among the
barriers cited in various studies include:
Financial barriers (notably the inability to model the financial advantages compared to a more linear approach ex ante)
Structural barriers (organizational silos)
Operational barriers (lack of necessary infrastructure, of capacity, of talent)
Attitudinal barriers (managerial risk aversion and lack of understanding)
Technological barriers (lack of access, of knowledge, of expertise).
Finally, getting to a more circular economy requires collaboration throughout the value chain.

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BUILDING CIRCULAR ECONOMY CAPACITIES
I I I . G E T T I N G C I R C U L A R

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UPSKILLING AND RESKILLING FOR CIRCULAR ECONOMY
Training
Europe needs VET systems that
support young people to
manage their entry to a
changing labor market and
ensure that adults
access vocational programs.
Investing in upskilling
The green transition requires
investments in skills of people to
increase the number of
professionals who build and
master green technologies,
including digital, develop green
products, services and business
models, create innovative
nature-based solutions and help
minimize the environmental
footprint of activities.
Spreading awareness
Awareness and education at all
levels will be instrumental in
cultivating structurally and
systematically the Circular
Economy culture to the
economic and societal actors.
Transition to Circular Economy will reshape the way we live, work and interact. One needs to prepare for it with the
right skill-sets. ”Europe will only become a climate neutral continent, a resource efficient society and a circular economy with an
informed population and workforce that understands how to think and act green.” (EU-Skills Agenda).

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WHAT ARE THE SKILLS REQUIRED
FOR CE INTEGRATION?
Skills related to the circularity of materials, from
product design to recycling and reuse
Skills that support circularity infrastructure, e.g.,
reverse logistics and material infrastructure
management
Skills on repairing and maintaining goods
Service skills, e.g., knowledge on digital platforms in
sharing economy or second-hand markets
Creative skills, e.g., design and marketing of circular
products and services
Skill
Competence
Training
Learning
Knowledge
Advanced training
Growth
Experience
Ability

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GETTING READY FOR THE CIRCULAR TRANSITION
The construction sector is expected to be impacted considerably by the shift to circular economy.
A short-term strategy should include:
Risk Assessment Analysis that will emerge from the portfolio assessment with a Risk Management Plan developed to
address:
› Regulatory and policy barriers and opportunities
› Financing opportunities
› Environmental impact
Immediate training and awareness of key employees in view of identifying threats and opportunities from the radically
evolving environment
Increase communication outreach proving that the Circular Economy principles are within the focus of corporate
responsibly and the values of the enterprises

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REMAINING AT THE NUCLEUS OF THE DEVELOPMENTS AND HAVING A SAY
The long-term strategy should include:
Preparation for adaptation of those processes and operating models in line with the changes foreseen to have an
impact on the current model
Revise the corporate operating plans in view of ensuring long term sustainability
Invest in long term training plans given that the transition is expected to be continuously evolving at least the next
7 years
Seek representation in key national and international forums and/or monitor public consultations on polices and
regulations that are likely to impact the sector at European as well as international level

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LEVERAGING EMERGING TOOLS
& TECHNOLOGIES
I I I . G E T T I N G C I R C U L A R

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1. DESIGN FOR DISASSEMBLY (DFD)
Design for disassembly with dry connections
Source: Wikifactory
A concept where products are designed for material recovery, value
retention, and meaningful next use.
Achieved by:
Accessible and reversible connections between components, e.g., using
nuts and bolts instead of permanent connections
Using precast modular elements with accessible and demountable
assembly
Disassembly plans in the design phase

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1. DFD IN VENLO CITY HALL
Venlo applied a wide variety of circular measures for which they invested
€3.4 M. This investment creates a net saving of €16.8 M over the use time
of the building and a positive cash flow after year 1. Besides, the building
has been realized within the budget and without dependency on subsidies.
Since the building is in use (October 2016), the operational costs are
significantly lower compared to former and traditional (linear) buildings.
No need to demolish this building
Designed for Disassembly
To close the loop, 18% residual value for the furniture. This means total
savings >
of €300,000 for the city
“Green demolition” plan devised by the building contractor that provides
directives on how to disassemble the building to create continuous cycles.
Source : c2ccertified.org

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2. DESIGN FOR FLEXIBILITY
Design for flexibility with open plans layout
Source: dnainfo.com
Flexibility allows for the same building to be used for
multiple cycles, for example office turned into library, in Covid
crisis schools transformed into hospitals, etc. It allows a building
to be functionally agile and respond readily to changing
requirements of the users. There are many ways to incorporate
flexibility in design like:
Movable partitions
Open plans
Large floor heights
Providing foundation and extra space for future extension

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2. DESIGN FOR FLEXIBILITY:
WATERFALL BUILDING, VANCOUVER
Photos en définition
moyenne
The concrete and glass structure houses units for artists that
combine living as well as a dedicated workspace.
Spaces are designed for flexibility:
No fixed interior walls, they can be readily moved
Future additions can be easily made to the structure
Any combination of residential and commercial occupancies is
permitted
Photo : Jeff Hitchcock

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3. RENOVATION
Renovation is often carried out to upgrade existing structure
and improve the performance. It helps reduce the environmental
impact of constructing a new facility by preserving the
embodied energy and embodied carbon of the existing
structure
EU seeks to renovate 35 million buildings by 2030 in the
"renovation wave" aimed at doubling the renovation rate of
existing buildings in the next 10 years
Historic residential building 1926, City Center Bolzano
The building has been renovated to ensure comfort and
minimize the energy demands without compromising on its
historic appearance. It was achieved with the following
measures:
› Insulating walls with a 10-cm insulation in the inside, leaving the
façade untouched
› Adding new wooden windows with triple glazing
› Replacing the single gas heater with a central heat pump
Historic residential building 1926, City Center Bolzano
Photo : Dr. Arch. Michael Tribus & Helmuth Moroder

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4. EXTENDING THE LIFE OF COMPONENTS
WITH REUSE
Emission
reduction:
7.4
million kg
CO2–eq
Implementation
2010
year
Investment
80.5
million euros
Reuse is the process of reclaiming components and
elements from an old building or site and using it again
While proven to have a positive impact on the environment and
financially viable, reuse is facing numerous challenges, including:
The lack of standardization of components over time
Mismatch of supply and demand and lack of reuse facilities locally
Reluctance to use products without certification
Safety and accessibility of old buildings
Derwent London’s Angel Building reused an existing concrete
frame, saving 7400 tons of CO2 in the construction process
Angel Building
Photo: Wikimedia Commons

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Photos en définition
insuffisante
Gasometer City, Vienna: Gas plant turned to residential project
Photo: Wikimedia Commons
5. GIVE A NEW LIFE TO BUILDINGS
WITH ADAPTIVE REUSE
Adaptive reuse is the process of taking an old building or site and
reusing it for a purpose other than it was designed for.
While the process is far from new and has gained momentum as a
mean to preserve cultural heritage, adaptive reuse holds a huge
potential in terms of circular economy
The most challenging barriers to adaptive reuse include:
Physical limitations and structural constraints associated with the existing
building and its environment
Regulatory constraints, from zoning to building permit to other local
development regulations
Potential environmental hazards from contaminants such as asbestos and
lead, or from former polluting activities
Gasometer City in Vienna is a good illustration of obsolete
buildings becoming the new center of a thriving community while
retaining the stock of energy and material embodied in the site.

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6. MATERIALITY - CHOOSING THE RIGHT CONSTRUCTION MATERIALS
Renewable/Finite
Prioritize renewables
like certified wood
over finite sources.
Recycled Content
Building materials having
recycled content save
the production energy
and resource extraction.
Hence it’s crucial
to prioritize then
over virgin materials.
Repairability Potential
Materials & products
which are easy to repair,
last longer with higher value
retention compared
to one time use materials.

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6. MATERIALITY: GANDHI CHAPLIN
MEMORIAL GARDEN, LONDON
The site was
transformed
for community purpose
50%
of all deconstructed
materials were reused
150 tons
of materials
reused
10,000 plants
collected for
community projects
Photos: semble.org / rosettaarts.org

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7. HEALTHY BUILDING OPERATIONS
Use Renewable Energy
Solar panels (BIPV)
Geothermal heating and cooling system
Energy efficient lighting
Increase Water Use Efficiency
Rainwater recovery
Grey water recyc
Thermal Comfort
Airtight building envelope
Controlled heat gain and losses
Integrate Greens
Vertical gardens
Green facades
Green roofs
Ai Quality
No toxic emissions (VOC and formaldehyde)
Proper ventilation
Day light and sunlight
Appropriate per function,
offices, households, hospitals, etc.

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Photos: Jeroen PM Mejer / Wikimedia Commons
7. HEALTHY BUILDING OPERATIONS:
THE EDGE, AMSTERDAM
The Edge is the most sustainable building in the world. It
produces 10% more energy than it consumes
Cleaning services are being optimized based on actual
use of spaces. Health has been also in the focus
Airflow management based on office occupancy and
density
Heating is tweaked to a precise degree to be able to save
energy by detecting when spaces are unoccupied

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8. BUILDING INFORMATION MODELLING (BIM)
BIM is a highly collaborative process that allows
architects, engineers, real estate developers,
contractors, manufacturers, and other construction
professionals to plan, design, and construct a structure
or building within one 3D model
BIM is an important enabler of circular buildings. For
instance, it fosters collaboration, transparency of data
and supports materials choices in Reversible Building
Design projects.
Advantages of BIM
Source: incide.it
1 Reduction of data duplication 2 Control of inconsistencies
between different models
3 Optimization
of costs and
resources
4 Automatic update of
the overall model
5 Inter-
operability
6 Better
collaboration
between teams
7 Shorter
project lifecycles
8 Improved
facility
management
9 Safer constructions
sites
10 Visualization of the
supercharged project

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9. MATERIAL PASSPORTS
A MATERIAL PASSEPORT FOR A HOME:
Material Passports provide the necessary information about
materials, products and components for a circular use of building
materials, products and components. It is another important
enabler of circular buildings.
Facilitate reversed logistics and take back of products,
materials and components
Increase the value of materials, products and components for
recovery or reuse, or keep their value over time
Create incentives for suppliers to produce healthy, sustainable
and circular materials/building products
Make it easier for developers, managers and renovators to
choose healthy, sustainable and circular building materials
source
Source: Architect’s Journal

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10. LIFE CYCLE ASSESSMENT – LCA
The environmental impact is caused throughout different
stages of the life cycle such as:
Raw material extraction
Manufacturing
Transportation
Use Phase
End-of-life
To lower this impact, we must first measure it and that’s
when Life Cycle Assessment comes into play
It is an analytical tool which allows to quantify the impact of
different materials throughout the life cycle stages well
before a project is realized
LCA helps to identify the hotspot materials and allows to
find better alternatives with reduced impact
CIRCULAR
ECONOMY

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For this edition of our Emerging Trends series, LEONARD is partnering with the Circular Economy Research Center (CERC)
of École des Ponts Business School (EPBS) to provide a synthesized and structured overview of the upcoming transition to
circular economy and inspire adoption of circular economy principles in view of leveraging its full potential.
This report provides a concise overview of the current linear landscape vis-à-vis emerging Circular Economy trends,
practices, processes, regulatory frameworks and technologies, as well as a special focus on the construction sector and
buildings to provide preliminary insights on relevant emerging circular economy trends.
Trends and examples presented herein are representative, and by no means exhaustive.
ABOUT THIS REPORT

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