The construction sector generates over 60 million tonnes of waste per year which accounts for almost two thirds of the UK’s total waste.
Like all industries construction is coming under mounting pressure to adopt more sustainable practices, specifically reducing waste and the sector’s impact on the environment. As part of this, a ‘circular economy’ approach is becoming more common in projects across the country.
The circular economy is different from recycling, it is based on three pillars: reduce, recycle, and reuse. The goal is to extract as much use out of an item as possible. Reusing materials in accordance with the reuse pillar is a significant element of the concept, which not only offers environmental benefits but also creates new opportunities for innovation, cost reduction, and compliance with constantly evolving nascent regulations.
“Although it’s a big driver it’s not all about carbon,” explains Gilli Hobbs, director at circular economy consultancy Reusefully. “By reusing products and materials you’re reducing embodied carbon with the potential to also reduce costs.”
Hobbs adds the further benefits of a circular economy include reducing the impact of extracting materials from the earth, such as biodiversity loss, and responsible sourcing of materials or sourcing locally rather than importing which has a knock-on effect of mitigating risks such as modern slavery. Additionally, if lighter refurbishment can be achieved over demolition it will be less disruptive to the local community.
At its core, the circular economy challenges the traditional linear model of ‘take, make, dispose.’ Instead, it promotes designing out waste, keeping materials in use, and regenerating natural systems. For construction, this means rethinking how buildings are designed, materials are sourced, and resources are managed at every stage of a project’s lifecycle.
Gabriella Nizam, head of sustainability and public affairs, CELSA Steel UK, says: “There is a general reckoning of the need to think differently about procurement and efficiencies on site. There is also a certain level of consumer demand, especially in residential and commercial properties. Also, everyone understand that it looks good if you are actively working to reduce material consumption.”
LATEST TRENDS
Architects and engineers are increasingly adopting ‘Design for Deconstruction’ principles, ensuring buildings can be easily dismantled at the end of their lifecycle. Modular construction methods, bolted connections, and reversible assemblies are becoming common, enabling the recovery and reuse of components without degrading their quality.
Hobbs says: “If you’re designing for adaptability, disassembly, ease of maintenance, repairability, that in turn can reduce your running costs over the building’s lifetime.”
For example, warehouses are more commonly being constructed around steel frames rather than steel-reinforced concrete resulting in the steel having great reuse potential compared to extracted and recycled from the concrete in a more carbon intensive process.
Nizam says: “People are increasingly asking ‘how can we decommission it for reuse rather than demolish it to be recycled?’ Although reuse is only applicable to particular types of steel, not all steel.”
Digital twins, blockchain, and material passports could revolutionise how materials are tracked throughout their lifecycle. These technologies provide a digital record of materials’ provenance, specifications, and potential for reuse.
Hobbs adds: “That’s an enabler for circularity because you can keep track of materials and products over their lifetime better. Then at the end of that cycle you have a richer data set that is also easier to access. In a readily available format. Assuming it is made available at the time.”
The use of reclaimed steel, bricks, and timber is growing, supported by advances in cleaning and processing technologies. New products, such as modular panels made from construction waste or bioplastics for insulation, are creating fresh opportunities for eco-friendly design.
Clients, especially local authorities and developers, are introducing circular procurement requirements. These mandates ensure projects specify reused or recycled materials and prioritise suppliers who align with circular principles, fostering a competitive market for sustainable materials.
CELSA Steel UK consumes over 1 million tonnes of scrap steel per year which is melted down in an electric arc furnace to make new steel products. The company also reuses byproducts of this procedure, for example slag can be used in asphalt for road surfaces, zinc can be extracted from arc furnace dust, and mill scale can be pelletised and either put back into the furnace or used in crane counterweights.
“We’re trying to drive circularity by capturing value right across the chain,” Nizam explains. “We’re not just a steel producer, we’re a service provider, and we work with the construction sector to cater to all their needs and ensure they have clarity and traceability of the products that they are consuming, and also the benefit of working with a domestic producer here in the UK.”
REAL BENEFITS
By focusing on reuse and material efficiency, construction companies can significantly reduce waste disposal costs.
Roy Fishwick, managing director of Cleveland Steel and Tubes says: “If we are seeing any legislative push at all it is in planning permission; companies are being challenged on why they are planning to demolish a perfectly good building to build a new building.
“This promotes finding a lower embodied carbon solution such as demonstrating the demolished products are going to reuse and the reused products are going back into the building. Though, obviously, the lowest carbon solution is to use the one that is already standing.”
Reusing materials drastically cuts embodied carbon compared to using virgin materials. For example, reusing structural steel or reclaimed timber can reduce embodied carbon by up to 95%, contributing to net-zero goals and enhancing green credentials.
“We reclaim and repurpose 18,000 tonnes of pipe per year,” Fishwick states. “We save the need for new construction materials to be manufactured or have the old products melted down and recycled in another energy intensive process. We conduct testing and verification so that they can be reused as is in the construction sector. This is a growing market and there is a lot of interest.”
The global pandemic and geopolitical tensions have exposed vulnerabilities in supply chains. By reusing and sourcing locally recovered materials, construction firms can mitigate risks associated with material shortages and volatile prices.
Buildings designed with circular principles often achieve higher lifecycle value. For instance, properties with reusable components are easier to adapt, extending their economic lifespan. The growing preference for sustainable buildings in the rental market also enhances asset value.
The circular economy drives innovation across the value chain, fostering collaboration among architects, engineers, suppliers, and waste management firms. Such partnerships unlock creative solutions that not only benefit individual projects but also set new industry benchmarks.
OVERCOMING BARRIERS
While the benefits are clear, the construction industry faces challenges in fully adopting circular practices.
Many stakeholders remain cautious about reusing materials, citing concerns about performance, aesthetics, or perception. Education and case studies demonstrating success are essential to shifting mindsets.
“There’s a lack of understanding, confidence, or simply intransigence,” Fishwick explains. “People don’t like to do things any differently to how they’ve done them before, and certainly if they have to face personal risk in doing so.”
The complex and segmented nature of construction supply chains makes it challenging to coordinate circular practices effectively. Enhanced collaboration and digital platforms can bridge these gaps.
“There is a lack of understanding in the marketplace, Continues Fishwick. “You cannot order reused steel like you can with new steel, there is a limited supply, and engineers often source material a year or two before they need it.
“More flexible specifications are needed, especially on large construction jobs rather than small or medium builds which are inherently more flexible. If you ‘cut and paste’ your specifications based on the most modern materials, you immediately cannot use older ones because they will not match that specification.”
Despite growing legislative support, some regulations still focus on recycling rather than reuse. Clearer guidance and standards for reused materials are needed to build confidence in the sector.
Identifying, recovering, and reconditioning materials often require specialised skills and technologies. Investment in training and innovation is crucial to scale up adoption.
WHAT’S NEXT?
By prioritising reuse, reducing waste, and adopting innovative technologies, the UK construction sector can unlock a more sustainable and competitive future.
“Just five years ago people would say they tried to implement circular economy into their projects, but they could not get it done and that would be the end of it,” says Fishwick.
“Now, they are doing it because they will win more work based on the fact they did a green building for their previous client, it is something they can use as a USP going forward. All the major contractors are making green offerings now and the standards are in place to prevent greenwashing too.”
The circular economy is no longer a fringe concept but a critical strategy for sustainable growth in UK construction. Moving forward, we can expect increased integration of circular principles, driven by advances in technology, regulation, and market expectations.
Hobbs adds: “It’s important for everyone to do their bit because we’re disrupting the status quo of the last 80 years or so and doing things in a completely different way that people aren’t familiar with, so we have to create new processes and ways to deal with issues.”
To stay ahead, construction professionals must embrace innovative solutions, collaborate across supply chains, and invest in training and technology. By doing so, they not only contribute to a more sustainable future but also position themselves as leaders in an evolving industry landscape.
In an era of resource scarcity and climate urgency, the circular economy offers a path to resilience, profitability, and environmental stewardship. For the UK construction industry, the question is no longer if but how quickly it can embrace this transformative model.