From Principles to Practices: Realising the Value of Circular Economy in Real Estate
Overview: "From Principles to Practices" is a collaborative project between Arup and the Ellen MacArthur Foundation aimed at translating circular economy principles into real estate practices. The project is divided into two phases. Phase 1 laid out the vision for a circular built environment and identified key barriers, opportunities, and enablers for implementing circular economy practices. Phase 2 focuses on demonstrating the value and process of implementing these principles to real estate investors and construction clients.
Main Focus:
- Objective: To articulate the business case for circular economy practices in real estate, highlighting benefits such as creating new value from assets, maintaining asset value, and reducing waste.
- Target Audience: Primarily real estate investors and construction clients, recognized as pivotal stakeholders capable of leading the transition to a circular built environment.
- Identification of Stakeholders: Policy makers are seen as potential early adopters but require an evidence base of benefits developed by investors and construction clients.
Key Findings:
- Role of Investors and Construction Clients: These entities define the value and creation of value from real estate assets through investment requirements, tenure models, and design briefs.
- Business Case Unarticulated: Despite the environmental and ethical benefits, the explicit business case for circular economy principles in real estate has not been presented to investors and construction clients to encourage a shift.
- Cross-Industry Collaboration: Collaboration between industries has supported the project, including contributions from RICS, which has helped develop five circular economy real estate business models.
Impact:
- Incentivizing Change: The project aims to signpost the business case for circular economy practices in real estate, encouraging investors and construction clients to implement these principles.
- Innovation in Tools: Embracing innovation, such as buildings passports and digital twins, and blockchain for material provenance assurance, will drive broader adoption among RICS professionals.
- Advancing Sustainable Practices: The project supports the realization of circular economy practices in real estate, aiming to contribute to sustainable city development and address the challenges of rapid urbanization.
Collaboration and Endorsements:
- Support from Industry Leaders: Endorsements from various industry leaders highlight the project's significance in promoting the circular economy in real estate, emphasizing the need for evidence-based benefits and practical changes to realize economic advantages.
Conclusion:
The "From Principles to Practices" project serves as a catalyst for integrating circular economy principles into real estate practices, offering a structured approach for investors and construction clients to realize economic benefits while addressing environmental and ethical concerns. Through cross-industry collaboration and tailored business models, the project aims to accelerate the transition towards a more sustainable and efficient built environment.
