London is frequently cited as one of the most polluted cities in the world. As recognition grows of the importance of an integrated approach towards post-COVID economic recovery and sustainable development, we can expect pressure to intensify on developers, contractors and all those involved in the supply chain to continue to improve their environmental impact.
In this article we look at one of the biggest obstacles standing in the way of a more sustainable construction sector: the systemic difficulties in moving away from the current "linear economy" approach. We also explore, with reference to "circular economy" principles, some of the changes that can be made to facilitate a new and improved approach to sustainability.1
The holistic approach to sustainability
Put simply, the basis of a linear economy is one in which raw materials are processed into a product that is thrown away after use. In this model, value is realised by producing and selling as many products as possible. In contrast, where circular economy principles are adopted, resource use is minimised, products are reused and raw materials are recycled. In this model, the business case is based on value preservation.
To date, the construction industry in the UK has typically operated in ways that are aligned with the linear economy model and without enough focus on environmental impact. Current procurement models, notably "design and build", do not encourage holistic thinking or long term vision on environmental issues. Typically, no-one has overall responsibility for sustainability during the build and thereafter. This drives the linear economy model and often renders sustainability a "tick box" exercise in the procurement process.
In contrast, the model of a circular economy requires that all parties consider sustainability as a key objective at all stages of the procurement process and, in particular, requires early buy-in from the design team. As sustainability increases in importance, we will see more consultants appointed to ensure the sustainability of the design and construction of any given project.
The London Plan has encouraged developers to think about sustainability at the outset of a project for a few years now, and sustainability objectives are embedded in the planning process for the Greater London area. However, more needs to be done to ensure that these objectives remain the cornerstone of the project as it progresses through design life and into the construction phase and beyond. Developers have widely publicised sustainability strategies and policies but more can be done to turn these into ambitious, standardised targets with application throughout the supply chain.
Changing the redevelopment model
Current drivers in the redevelopment process also encourage a linear economy. Redevelopment projects are often incentivised by changing land values, lack of suitability and lack of maintenance. The consequence is that commercial buildings are often refurbished or demolished before their structure or fabric actually fails.
This redevelopment model focuses primarily on current use classes with often little or no thought given to what will become of the building should its current use become redundant. During the current pandemic, there have been calls for the Government to change the "permitted use" rules to help real estate survive. Greater flexibility in these rules could also assist with more sustainable development.
Current demolition practices also have to change if sustainability is to be a priority in the redevelopment model. At the present time, demolition practices are largely mechanised. The drivers are health and safety – less manpower lowers the risk - and programme constraints that often require the site to be cleared as quickly as possible. These practices are detrimental to sustainability targets as they encourage disposal of raw materials that could be reused and are not enabled so as to permit diversion from landfill.
Adopting a circular economy approach means reconsidering the business model attached to redevelopment and focusing on future adaptability. This involves taking a different perspective on design: one which takes into consideration how the building could be converted to other uses and the impact on the structural design and internal reconfiguration.
By focusing on circular economy principles at the outset of any procurement, consideration can be given to design for disassembly and what happens to the constituent parts of a building at end-of-life.
Equally, developers will need to stop viewing the purchase of products as an end in itself and, instead, give greater attention to the maintenance, upgrade and disposal of products. To facilitate greater sustainability, relationships with the supply chain will have to be long term. On the flip side, manufacturers will have a vested interest in designing products that can be maintained, upgraded or recycled as this will enable repeat business. This in turn has the potential to reduce the developer's cost of ownership as disposal costs will be shifted to the supply chain.
Considering waste
The model of a linear economy is perpetuated by the rate at which the construction industry uses finite materials and resources and creates waste. In the UK, the majority of mixed waste from construction sites is processed at Materials Recovery Facilities (MRFs). While these facilities can ensure that some waste is diverted from landfill, the process is generally inefficient and MRFs struggle with a variety of unwanted materials . Such problems are intensified in the face of declining markets and lower prices for the materials they sell.
In contrast, the circular economy model requires that resources are kept in use and their value retained. This requires a market for salvaged products and materials. In the future we can expect to see more widespread use of sites like "Enviromate" – a peer to peer marketplace that keeps surplus and reusable material from the construction industry out of the waste stream.2 Inevitably, we will also see an increase in the use of biological materials which are more sustainable such as wood and sand as opposed to technical materials such as plastics and metals. The use of certification schemes when specifying materials will also increase, for example, the "Cradle to Cradle" certification which certifies materials based on reutilisation and carbon management, amongst other factors.
Final thoughts
Transitioning to a holistic approach to sustainability that embraces circular economy principles requires commitment from all involved in real estate development, including lawyers. Organisations such as The Chancery Lane Project - set up by lawyers and academics to provide legal teams with the tools to draft provisions that promote net zero - recognise the role lawyers can play in embedding ambitious sustainability targets into contracts.
Construction lawyers need to fully understand their client's sustainability goals in relation to any given project so that they can ensure the contracts fully reflect those goals. By doing so they can work with the project team to help build better buildings for future generations.
Author: Lauren Morrison
- David Cheshire, "Building Revolutions: Applying the Circular Economy to the Built Environment"; 2016; RIBA Publishing
- https://www.enviromate.co.uk/
