Circularity in the Built Environment 2024

Appendix Concrete actions per stakeholder to transition to a circular retrofit value chain FIGURE 9 •Set material reuse goals for the supply chain •Mandate pre-demolition audits to evaluate the retain/reuse potential •Introduce internal carbon pricing to support decision- making •Promote understanding that circular retrofits uphold quality •Demonstrate circular retrofits at scale through the public sector •Finance circular retrofits via energy cost savings •Maximize asset utilization through multi-use, flexible spaces •Pioneer building codes promoting circular construction practices •Secure green financing for circular retrofits based on carbon saving•Deploy modular, interoperable designs for easier disassembly •Integrate digital material passports incorporating whole life-cycle information •Prioritize retention and reuse of existing structure and materials •Leverage space-mapping technology to create three-dimensional (3D) models of existing assets •Incorporate best practice waste management plans in designs •Build capabilities to integrate circular practices in design •Adhere to building codes promoting circular strategies •Mobilize demand by leasing retrofit buildings with a circular strategy •Establish platforms among asset operators to exchange knowledge on circular initiatives •Ensure energy savings from circular retrofits are captured through sustainable building operations•Ensure sufficient supply of circular materials and parts •Expand business to new service-based business models (material-as-a-service, energy-as-a-service) •Integrate vertically to offer retrofit services (e.g. concrete strengthening) and take-back programmes •Provide whole life-cycle information for most important products including embodied carbon (e.g. environmental product declarations) •Strengthen circular materials and parts processing capabilities through dedicated line of reused parts •Partner with other manufacturers for reverse logistics of building components (e.g. aluminium and glass manufacturers)•Specialize in circular retrofit upgrading and renovation •Create a marketplace for secondary materials instead of sending them to landfill •Upskill and train for disassembly and deconstruction •Develop on-site recycling capabilities •Offer warranties on installations of circular materials and parts used in circular retrofit •Integrate horizontally to valorize waste as feedstock for other industries •Establish a network of disassembly, recycling and storage hubs •Employ unskilled workers to tear out and directly sort retrofit waste on-site •Develop reverse logistics networks and temporary storage/remediation facilities •Provide material management and sorting services •Establish secondary material and parts marketplaces•Prioritize reuse, recycling and recovery by bringing sorted materials to recycling hubs or manufacturers (zero waste to landfill approach) •Deploy technology for advanced sorting (e.g. near-infrared) •Develop capabilities for sorting and segregation of material through training •Develop standardized sorting and deconstruction guidelinesOwners and investors Distributors and logistics handlersWaste handlersOperators and users Designers, planners and auditorsMaterials and parts manufacturersUpgraders and renovators Source: McKinsey analysis Circularity in the Built Environment: Unlocking Opportunities in Retrofits 27