What is Circular Economy in regenerative Real Estate?
Three key principles need to be kept in mind when applying circular economy to real estate: eliminate waste and pollution + circulate products and materials + regenerate nature (Circular). Here we look at each in turn as well as integration into green building and healthy building certification systems.
How do we define circular economy?
The built environment is one of many man-made systems that typically operates as a linear process - it involves the extraction, use of, and eventual disposal of resources.
Sustainability experts describe this as an unnatural model as it accumulates immense amounts of waste and contributes to the negative impacts of the built environment on our planet.
This is in contrast to nature itself, a closed loop system that does not produce any waste.
For example, it has been found that 25-30% of the waste generated in the EU comes from manufacturing and construction waste, and 10% of global CO2 emissions come from steel and cement production (Acharya).
This makes steel and cement as the two main building raw materials to watch when it comes to reducing embodied carbon in a new construction and a transition towards more circular economy aims and alternative business models that consider economic growth in the context of a company’s greenhouse gas emissions and social impact, for example.
The circular economy real estate response
A circular economy perspective applied to a high-waste and high-growth system like the built environment can have meaningful impacts for all stakeholders involved through waste reduction and increased value of assets.
The overall goal of a circular economy approach to real estate is to manage the components of the built environment by keeping them in the loop, rather than producing waste for landfill, this means materials and products retain some of their intrinsic value for longer (Acharya).
3 Principles of Circular Economy: The Ellen Macarthur Foundation
The Ellen Macarthur Foundation is a leader in this realm, promoting the ideas and concepts around the circular economy, aiming to create an economic system that is better for both people and planet.
The foundation has designated three main principles of a circular economy that are considered the backbone of the concept:
eliminate waste and pollution
circulate products and materials
regenerate nature (Circular)
eliminate waste in circular economy real estate
The first principle, to eliminate waste and pollution works to override the current “take-make-waste” system that our economy recklessly deploys without much concern for future generations. The waste that is produced from the built environment commonly ends up in landfills and those resources are lost, depleting our global stores.
In order to instate this first principle in real estate particularly therefore, buildings must first be designed to reduce and eliminate waste at all stages of their lifecycle, while shifting from a linear system to a circular economy system using circular design products.
This includes strategies such as applying life cycle assessments to understand materials at end of life, and choosing materials and products that can be reused, repaired, remanufactured, and recycled (Circular).
See our dedicated HEALTHY MATERIALS page here.
circulate products and materials in circular economy real estate
The second principle, to keep products and materials in the loop, focuses on keeping them in use in the highest value form for as long as possible. This retains the value and usability of those materials while reducing extraction of additional natural resources from the planet.
Such products and materials can be kept in circulation through reuse, repair, remanufacturing, or recycling. In addition, biodegradable materials that often naturally decompose can be cycled back into the earth and circulated into the biological cycle.
To promote this strategy, designers should consider the ability for a product or material to be integrated into a cycle at end of life. For example, if wooden furniture was designed with biodegradable glues and paints rather than materials such as screws, they could be entirely biodegradable and more easily circulated (Circular).
regenerating nature in circular economy real estate
The third and final principle, to regenerate nature, is implemented through the conversion to a circular economy and the promotion of natural processes and cycles.
Through this principle, the extraction of resources should be shifted to their regeneration, which will in turn provide more space for nature as less land is required to source virgin materials.
This can be implemented within the built environment through careful material selection and use. If we shift the priority to not only doing less harm to the environment but improving it, nature can be regenerated through the incorporation of a circular economy and principles (Circular).
Building-Level Circular Economy
The circular economy can be applied at a building level through the consideration of its entire ecosystem and lifecycle. The principles can be implemented in the design, sourcing, construction, operations, renewal, disassembly, and repurposing processes. The goal is to integrate all building phases with one another and plan for a closed loop cycle from the onset of design (Ellen)
The design process should include operation and performance strategies and incorporate energy-efficient approaches. Modularity and adaptability should be a focus and can include strategies such as selecting efficient resources that are easily reusable, durable, and flexible. Construction can aid in efficiencies through strategies such as modular building or off-site construction to reduce waste production (Ellen).
In the in-use phase, buildings should incorporate self-sufficient methods to mimic a living system, such as water capture and reuse systems, or a net positive solar production and storage system. We can look to natural systems for a guide, and whenever possible buildings should utilize and create self-fulfilling cycles (Ellen).
End of life is often the most forgotten yet one of the most important factors of a circular economy. Buildings must be designed for longevity, which can come in the form of durability, flexibility, or adaptability. Structures should have the capability to easily shift to another use if the initial use is no longer desired through disassembly and reconfiguration or shifted off-site for another use.
The goal at end of life is to maintain all building products and materials at their highest value possible through reuse. If this is not possible, as with the case of many organic materials, they can biodegrade back into the earth and close the loop, giving back to the earth from which they were extracted (Ellen).
Cradle to Cradle Certification in real estate
The Cradle to Cradle Certified Product Standard is a global standard that recognizes products and materials that are circular, responsibly made, and healthy. This standard is a great starting point for material decision-making as it provides materials that align with circular economy goals.
The certified materials have been proven to be safe for both humans and the environment, and at end of life are guaranteed available for reuse without further pollution or contamination. When selecting materials, searching for this certification is a great indicator for a smart choice.
In addition, as recommended by the Cradle to Cradle website, Materiom is an open source platform that provides locally-sourced biological material “recipes”.
Integration with Sustainable Building Certification Systems
Sustainable building certification standards such as LEED, BREEAM, WELL, and the Living Building Challenge (LBC) encourage the use of circular economy concepts and products throughout a building’s design process.
These certification systems can provide guidance and direction for project teams looking for ways to implement circular economy principles into their real estate developments.
Each of the various standards encourage the use of water retention / reuse and rainwater management, forming closed-loop water cycles within buildings.
In particular LEED, BREEAM, and the LBC mention the importance of producing and using renewable energy and the incorporation of passive design, encouraging circular building design through self-sufficient energy strategies, whenever possible - most obviously in new build real estate construction.
In addition, each of these standards has a focus on choosing sustainable building materials that provide transparency and reduce waste opportunities at end of life.
Finally, each standard requires waste reduction and management throughout the design process and through smart material sourcing.
The LBC also contains the “Place” Petal, whose goal is to encourage ecological regeneration, connecting to the third principle of the circular economy as outlined above.
The WELL standard also touches some circular economy approaches through the mention of hazardous waste management and reduction, material transparency, and carbon disclosures and reduction.
Examples of Circular Design in Real Estate
There are many buildings in existence that utilize circular design principles. As highlighted by the Ellen Macarthur foundation, examples such as Villa Welpeloo (above) designed by Superuse Studios and Arup’s circular building pilot project (see video earlier in this article) both provide inspiration.
The Villa Welpeloo project focused on building locally with salvaged materials, highlighting the impacts of reusing resources that would otherwise become waste. Within the project, Superuse was able to include 60% locally recovered materials, which is now a strategy utilized in 90% of the company’s projects (Ellen).
In Arup’s circular building pilot project, they focused on creating a building that could easily be disassembled and re-fabricated if needed, designing for adaptability, and using the structure as a functioning material bank.
In addition, each material was carefully selected with a transparency and health focus instated from the beginning. Using BIM technology, the project team tagged each material with information on its properties and reuse capabilities to make collaboration across disciplines easier and to ensure the incorporation of the circular design principles (Ellen).
References
Acharya, Devni, et al. 2018, From Principles to Practices: First Steps towards a Circular Built Environment , Arup, The Ellen Macarthur Foundation, 3XN GXN. Accessed 9 June 2022.
“Circular Economy Introduction.” Ellen MacArthur Foundation, https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
Ellen Macarthur Foundation, 2019, Circular Economy in Cities. Accessed 9 June 2022.
Zimmann, Rainer, et al. ARUP, The Circular Economy in the Built Environment.
Circular Interior Design: Soma Studio Milano — Wellness Design Consultants
We talk about the key principles of this new interior design concept, the product categories in real estate and interiors that are excelling in circular design terms, take-back programs for used furniture, surfaces made of bio materials, waste as a design flaw, the importance of collaboration between brands, how nature offers guidance for circular designers, the endless potential of mycelium to replace plastic in future, the Eco wellbeing interior trend in homes as well as the role of biophilic design within circular economy.Talking Circular Design with Soma Studio Milano - advisors, trend forecasters and content producers focused on the circular economy
a conversation on circular design for the Green & Healthy Places podcast
“sustainability alone is no longer enough - besides not doing harm to the planet, we also need to do good. We can’t only sustain the current system, we need to regenerate”
This week we’re in Milan, Italy, talking to Ana Luiza Magalhaes the Brazilian co-founder ofoma Studio](LINK 1), a company engaged in the circular design sector as b2b advisors, trend forecasters, content producers and all round expert guides for those seeking to improve their knowledge of this relatively new industry that we call the circular economy. Soma Studio Milano works with interior designers to implement circular design principles, emphasizing the importance of incorporating sustainable practices into interior design to foster a more sustainable future.
We talk about the key principles of this new interior design concept, the product categories in real estate and interiors that are excelling in circular design terms, take-back programs for used furniture, surfaces made of bio materials, waste as a design flaw, the importance of collaboration between brands, how nature offers guidance for circular designers, the endless potential of mycelium to replace plastic in future, the Eco wellbeing interior trend in homes as well as the role of biophilic design within circular economy.
Ana Luiza Magalhaes
So Soma is a Milan based studio working to help professionals and companies to take action and shift from a linear to circular economy. And to do so we strive to raise awareness, provide relevant information to strategies within the circular economy and circular design. It is important to incorporate sustainable materials into interior design projects to minimize environmental impact and contribute to a more resource-efficient future. And then in terms of services, always under this umbrella of circular economy in design, we offer strategic consultancy for product development, which includes transfer testing, transporting and material research.
We also create content such as ebooks, reports, webinars to help organizations raise awareness around the superior economy and superior products and services. And we also create short courses, lectures or workshops in collaborations with companies and educational institutions.
Matt Morley
So in a way, you’re providing a series of consultancy services that are intended to push the industry forward by making it easier to integrate and understand circular design circular economy principles, would that be a fair description?
Ana Luiza Magalhaes
Yes, this would be a very good description because we try to raise awareness, educate, educate people and professionals and make it easier for them to apply the similar principles within their organizations and work in projects.
what are the circular design principles?
Matt Morley
And how do you define circular design and would you consider it in some ways to be different to let’s say, sustainable design or environmentally friendly design.
Ana Luiza Magalhaes
So, I think when we talk about circular design, we need to think about the three main principles of the circular economy which are designing waste out of products, systems, keeping materials and products in use in regenerating natural systems.
So, when we talk about structural design, we are dealing with a whole system from production to disposal and therefore with production in consumer waste. Circular design aims to minimize environmental impact through sustainable practices, focusing on restoring natural systems. When it comes to sustainable design or eco-friendly design, which are definitely important concepts, we are talking more about meeting the needs of the present without compromising the future of the planet in the next generations.
So we are talking more about minimizing our impact. However, we believe that with climate change sustainability alone****is no longer enough - besides not doing harm to the planet, we also need to do good. We can’t only sustain the current system we need to regenerate. And I guess this is the biggest difference between circular and sustainable design. Circular is more about the system as I mentioned in regeneration.
Matt Morley
Effectively you’re encouraging businesses to take full responsibility for the products that they create. Rather than produce something, sell it to a client and perhaps offer some customer service during the in-use phase but the relationship effectively ending there, taking no responsibility for what happens at the end of use phase, the circular approach includes what happens and how you reintegrate something back into the system.
the role of waste in circular design
So companies, they need to be held accountable for the construction waste they produce, they need to allow consumers to return materials and products, which is not really the case. For example, when we think about computers, phones, so they need to think about the whole system, you know, doesn’t matter if they do something with a sustainable material. But in the end, the consumer doesn’t know what to do with that when they don’t more than that product.
Circular design in real estate and interiors
We see that furniture design is taking important steps towards circularity with different approaches. So for example, we see some brands launching take-back programs to allow their clients to return their used furniture, IKEA is doing that in the US. So their clients for example, can return IKEA furniture get a discount on new purchases, while the brand turns those used materials into new resources.
Using furniture made from recycled materials is also crucial in circular interior design. This not only helps in reducing waste but also promotes sustainability by repurposing and repainting these materials.
Another approach that some brands are using is modular design, which allows for repair remanufacture and recycling. For instance, we see that with sofas in his leaping systems.
A very good example that we spotted at the London design festival in 2019 is from a Scottish design company that’s a modular sofa that you can repair so you can extend the lifecycle of this piece.
And also recently at the Milan Design Week, we saw the customm modular sofa by matches with the same idea of modular design.
Another interesting take on circular furniture is the emergence of companies renting office furniture instead of selling. So furniture becomes a service with companies have the possibility to rent and then return them after some time. And then these pieces can be used by other companies, or can be remanufactured or recycled into new materials. So this is very relevant nowadays for the circular economy because we are talking about services in ownership.
And we also see some remarkable innovations with come when it comes to surface design. We have now stunning tiles made of plastic waste coming from our oceans or from textile waste from the fashion industry.
We also see surfaces using biomaterials, like mycelium and innovative technologies to recycle vinyl floors. So yeah, we see a lot of steps forwards into secularity, we think different products.
Matt Morley
If we look at it from the other side, then where do you identify the problem areas? So what are the sectors or the products within interior design as an industry where you’re seeing the most work still to be done?
Waste is a resource in design
There is much more to do to transition to a circular economy. But in our opinion, what is really missing overall is more collaboration between different players. Because when we talk about the circular future, this future is only possible when we consider the whole system from production to disposal, including the challengesand demands related to the extraction and consumption of raw materials in a linear model. So brands must collaborate with each other, with designers, with consumers.
So for instance, one company’s waste can be another company’s resource. And as we were mentioning earlier, a company must be held accountable for their waste, what is really not happening with computers, phones and smart appliances for homes. So I think we need to work further to collaborate because collaboration is key for this circular economy. And it’s not so easy to do that between brains or brains and consumers and designers.
Matt Morley
So it’s an optimistic message and that you can see the solution. And we have a way through and a circular approach is really the way to resolve the issue of creating all this waste. But do you think perceptions of waste are changing now even that word, waste?
Closed loop cycles in design
Yes, definitely. So with the rise of the circular economy in interior design, we are turning our attention to nature and in nature, there aren’t linked fields. So nature basically doesn’t generate waste - it turns everything into resources.
Optimizing production processes to make them more energy-efficient and generate less waste is crucial in this context.
So materials flow in circles - one species wast is another species food, so more and more designers and architects are seeing waste as a design flaw.
So this is changing their approach to waste from organic waste to industrial waste. Everything now can be repurposed. All this waste is becoming a valuable resource. And this is happening not only with plastic, but with all kinds of industrial waste.
Matt Morley
Do you see a strong potential for biomaterials as an alternative? So just moving away completely from plastics or even recycled plastics and finding more bio based materials as an alternative route forward?
Recycled plastics and bio-based materials
I think sustainable materials have a lot of potential, of course, it’s something that we still need to explore more and manage to produce in large scale, because with some materials there are not enough support to make them more scalable. But I think that’s the future because again, it’s looking at nature to find solutions for our problems. And I believe this is the best way to to deal with climate change and all the environment crisis and waste.
And one of the materials the bio materials that is really a great material and it has been explored a lot lately is mycelium, which forms the root system of fungi. It’s really amazing because it’s fire retardant, has excellent insulation and acoustic properties, can sequester carbon, and it’s biodegradable and non toxic.
So we see mycelium used in lamp shades, acoustic wall panels, furniture packaging, often replacing plastic. Yeah, so I think there is a lot of potential for biomaterials.
Wellbeing interior design trend
In the past years, we have seen wellbeing becoming one of our highest values, even in Major Design festivals like Milan Design Week, London design festival, Dutch Design Week that designers and architects are starting to pay much more attention on how spaces can affect our creativity, efficiency, and overall wellbeing.
Embracing circular design principles in architecture, interior design, and construction is crucial for fostering a more sustainable future.
We see a lot of professionals and brands exploring neuro-aesthetics, biophilic design and how to create spaces for cocooning. So within this context, we see for example, soft and tactile materials becoming important in helping to integrate technology in our homes and also workspaces in a more natural and human way. And the pandemic has greatly accelerate this trend.
Now we have a new sort of wellbeing that we call eco wellbeing, which is about living a more sustainable and circular lifestyle. It’s about welcoming the imperfect and impermanent state of things inspired by the Japanese Wabi Sabi’s really strong now as well. And finally, it’s about feeling physically safe, while we face pandemics.
So we need to work we need to entertain ourselves, you know, we need to do everything at home and yet feel safe in your shirt. So wellbeing is very strong that homes also workspaces, hotels and public shared spaces. The idea is really to provide people with places to feel safe and reassured to cope with their very fast speed digital lives in all the multiple crises we are living through, like climate change, the health crisis, recession, and so on. So people really need spaces to feel reassured, to recharge in. So that’s why I think wellbeing is something that will only evolve and improve.
Matt Morley
You mentioned biophilic design, as well. I’ve noticed obviously a huge increase in interest in in the topic over the last 18 months really in the COVID era. But it was already happening before then - do you think that’s something that will completely change the way we think of buildings and interiors in years to come or is just another trend?
Biophilic design in buildings and interiors
No, I don’t think biophilic design is just a trend that will fade away, we see biophilic design As part of our journey to reconnect with nature and restore our broken ties with it, we believe that biophilic design can help us realize that we are part of nature that we have this innate connection and affinity towards the natural world. And above all, that we are responsible, we have responsibilities towards it.
The Circular Building by Arup in London is an excellent prototype using circular design principles, constructed with sustainably sourced materials and designed for easy disassembly, promoting resource efficiency and minimizing waste.
So and in fact, scientists have proved that nature does have a positive impact on us, both psychological and physiological. So we believe architects and designers will continue to improve their take on biophilic design, providing us with new shapes, forms, materials, and technologies that bring nature closer to us.
So I think this will only evolve, not fade away. And recently, we saw again at the Milan Design Week, very interesting options for outdoor kitchens and outdoor furniture, especially the ones designed for public urban spaces.
So we also see not only interior spaces, but cities trying to promote more their public spaces, like parks where people can interact and be in contact with nature. So we really believe believe there is no turn turning back when it comes to biophilic design.
Matt Morley
I wonder how you see that connecting with and integrating an element of technology? I think there is perhaps a misunderstanding of biophilic design that it’s trying to return us to some state of primordial nature and therefore, technology is not a part of that vision. What potential do you see for wellbeing design and biophilic design to integrate elements of tech?
Wellness tech in eco wellbeing interiors
Well, I think technology is really key for our eco wellbeing and in many ways for biophilic design as well. We see new technologies, for example, that allows for sofa fabrics to purify the indoor air, improving its quality and also improving our wellbeing our health.
There is a need for new business models that support circularity in the industry to fully leverage these technological advancements.
There are also technologies that make surfaces much easier to clean, which have become top priority to reduce the spread of germs indoor and make us feel safer. So again, we will impact our wellbeing.
We also see multi purpose and easily assembled furniture that accommodates different needs either at work or at home and make our routines more flexible, lighting technology that is evolving to set different moods in the same space, smart gardens becoming very popular in allowing us to grow our our own vegetables and spices, regardless of our home natural lighting conditions, we also see that technology can improve the planet’s wellbeing because it helps us manage our waste either at home or at work spaces. Technology can turn surplus into new resources, decreasing pollution and so on. So technology is definitely key to to help us with our wellbeing and to improve the ways we work with biophilic design I believe.
Matt Morley
You do talks, workshops, trend memberships, how can the industry typically engage with you?
Yes, so we have different approaches. So for example, we can work with manufacturers, product manufacturers, to help them identify future trends or also doing material research. We recently did that we for example an American tire company. We also provide circular consultancy, to help organizations on how to implement circular design principles within their products. Source services. We also work a lot with education.
So you know, because for us, the first step towards this transition to the circular economy is really to educate yourself. So we provide content that’s relevant within the circular economy and circular design, to companies or educational organizations, and so on.
We also collaborate with media outlets. And we have this product, as you mentioned, our train membership and some ebooks and webinars that we do in partnership with an Italian blogger and architect Italian bark.
And we provide people with the latest news innovations and trends in interior design, which always includes regular news and innovations. So we can we have many different services, but always within this, bro. Bigger topic, the supply point, I mean, supply design
Matt Morley
That makes complete sense. You know, I think there’s there’s so much movement happening in this industry that not everyone can stay up to date. And there’s a lot of confusion. I think still there’s a lot of these the terms and a lot of we don’t necessarily know how, how to go about making things better. What you do is effectively like you’re an educator, you’re there to help fill in the gaps and, and boost understanding increased understanding of why this matters.
Ana Luiza
Yes, we also like to build bridges between two companies in order to manage their waste. For example, we also do reports on events, you know, if a company wants to see what’s happening in a particular design fair festival, and they cannot go or even if they go but they want our insights. We also do that. We consider ourselves researchers and educators and content creators, a bit of everything really.