What do Sustainability Leaders say about the Business Case for Circular Economy?
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From left: fernando arias (clark Construction group), david rachelson (Rubicon), anthony guerrero (Natural resources defence council)
Reflecting on Greenbuild Week 2020, I’m reminded that despite the hardships of 2020, the decade ahead looks promising.
It’s been a vital time to think holistically about the many ways in which improving the efficiency of construction materials is a win-win for all construction project stakeholders. Circularity, which is also called the circular economy, and is based on the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems, is primed for significant innovations in the years ahead.
Clark Construction hosted our industry discussions, where I brought together some of the industry’s most innovative thinkers and captured some key takeaways that you might enjoy.
1. CIRCULAR ECONOMY
Getting to travel to Iceland at the beginning of this year seems almost like something that happened in a movie, but in reality, it was one of the most transformative experiences of my life. Not only did it seem powerful because of the blizzards and the white-outs while driving, and also the ice cave tours and glacier hikes, but also because I had the opportunity to meet some fascinating researchers working on improving circularity for road construction. (Read ahead to section "2. Green Asphalt" and learn about how this in-person meeting led to a recorded presentation about their latest findings.)
Since that meeting, I thought it would be an opportune time to organize a discussion panel with leaders who work in this circular economy space and explored ideas about increasing our understanding of the new emerging market’s risks and opportunities. (You can watch the full panel discussion embedded further along in this post.)
Meanwhile, there are significant aspects of the construction industry globally, which could be at risk due to changing global policies related to carbon management and net-zero targets aligned with the Paris Agreement of 2012.
So now, let me the set context for this discussion by describing the economic value of the global construction sector in GDP terms; which the World Bank reports that the global construction sector is valued at about $23 trillion US dollars and represented about 28% of global GDP — which in 2019 is estimated at around $88 trillion.
All these numbers are predicted to grow — right alongside population growth and the escalation of natural disasters fueled by climate change stress, so lots to consider in terms of risks and opportunities, right?
And as if that wasn’t enough, according to the World Green Building Council, the buildings and construction sector are together 39% of all carbon emissions in the world. When we also consider the Paris Agreement targets to reduce energy intensity in buildings by 30%, that’s going to create some disruptions that will define many industry players.
At the same time, there are significant aspects of the construction industry globally, which could be at risk due to changing global policies related to carbon management and net-zero targets aligned with the Paris Agreement of 2012.
So I wanted to take a closer look at this topic of the Circular Economy. During Greenbuild Week 2020, I enjoyed hosting a panel discussion with Rubicon’s David Rachelson and the Natural Resources Defense Council’s Anthony Guerrero to explore ideas about increasing our understanding of the risks and opportunities in this new emerging market. We tackled topical questions like:
What do you see as the business case for circularity and a net-zero carbon economy?
What are the standards, what do they measure, and how do they create corporate and social value?
What should design firms and materials manufacturers consider to raise circular opportunities for projects going forward?
Watch the full discussion below:
2. "GREEN" ASPHALT
Can asphalt be sustainable? Well, after talking with Guðrún Guðmundsdóttir from ReSource International during Greenbuild 2020 week about her grant-winning research into the durability and performance of plastics in asphalt, I was inspired to think that yes, asphalt can be “green,” too -- a highlight of my week! It’s so encouraging to think that solutions to material shortages and system needs for capturing waste downstream are vital to large scale urban redevelopment, especially for forward-looking road infrastructure.
And of course, this research is highly useful in Iceland because the roads are under constant stress from both high traffic and environmental impacts like intense frost for cycles. So Iceland’s broader solutions to climate resiliency, especially as described in their latest climate action plan, offer insightful takeaways for all regional and global construction leaders to evaluate when considering “sustainable” asphalt performance and durability.
As we look ahead, disruptions in entire construction material supply chains might become more prevalent worldwide as natural resource management confronts natural disasters and other raw material shortages. Our discussion touched on how the architecture, engineering, and construction industry can anticipate and adapt to these changes in the future and capture new value through innovation and productivity.
Watch the full discussion below:
3. WRAP UP
So taking all these insightful discussions to the next level, from an industry perspective, there will likely be multiple new initiatives to get various industries engaged in the circular economy as part of the incoming Biden administration’s fight against climate change.
My industry colleagues believe that "Constructive Disruption" will include alignment on global climate action benchmarks like the United Nations Sustainable Development Goals, but regional action is also necessary to expand access to equitable and profitable access to “second life” marketplaces that incentivize legitimate upcycling of post-consumer materials and that we adequately measure the carbon and water impacts of material recovery for “circular” construction materials.
Fernando’s post What do Sustainability Leaders say about the Business Case for a Circular Economy? was first written in abbreviated form for Clark Construction.
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