Circularity in the Built Environment 2024

Conclusion The retrofit market is poised to play a crucial role in reducing the environmental impact of the built environment. Given that more than 80% of today’s built environment will exist in 2050,47 it is imperative for stakeholders to act now, with first movers increasing their chances of long-term success. Stakeholders could consider prioritizing retrofits over new builds when existing structures can be feasibly upgraded to meet current performance and sustainability standards. This is particularly relevant in urban areas where space is limited, buildings have cultural and historical value, and the environmental impact of demolishing and constructing new buildings is substantial. Retrofits are often more cost-effective and less time-consuming than new construction, making them a practical choice for property owners looking to improve energy efficiency without the extensive resources required for new buildings.48 Furthermore, retrofitting can create more new jobs than new low-carbon buildings, contributing to GDP growth and enhancing economic stability by increasing household income and consumption, in turn stimulating demand in other sectors. Retrofitting, however, will create vast material demands, thereby diminishing its overall sustainability gains. Circularity can address material demands by promoting the retention, reuse, recycling and repurposing of existing materials, thereby reducing virgin resource extraction and minimizing waste. Further analysis will be needed to understand the impact of circular processes on environmental factors such as air pollution, water usage and contamination. Transitioning to a circular value chain in retrofits presents opportunities including reduced asset downtime, more resilient supply chains and the creation of local job opportunities. Circular approaches provide various pathways to capture value such as service-based business models and horizontal or vertical integration in the value chain. The question remains: how can stakeholders scale circular retrofit practices to encompass entire ecosystems? Implementing circularity requires a systems view and collaboration among stakeholders including real-estate owners, designers, manufacturers, renovators, and logistics and waste handlers. Focusing on entire cities’ circularly – not just individual projects – ensures the principles of a circular economy are integrated at scale into urban planning and development. Addressing key themes along the retrofit value chain – designing for reuse and disassembly, conducting whole life-cycle assessments and using technology such as space mapping – will be essential to widespread adoption of circularity. The success of circular retrofits hinges on access to circular materials, necessitating the establishment of efficient logistics and robust take-back mechanisms. Building specialized capabilities, providing financial incentives and fostering strategic partnerships and collaboration are essential enablers for circular retrofits, as are collaboration and capability development, a theme of a previous white paper.49The transition to a circular value chain Circularity in the Built Environment: Unlocking Opportunities in Retrofits 24