Massey University student Lucy Cossar has produced a thesis on ‘The state of circular economy implementation in the building and construction sector in Aotearoa New Zealand’. Here she summarises her paper which reveals a number of insights into the sector’s current performance in this area.
The building and construction (B&C) sector is pivotal in achieving a global shift towards a circular economy (CE) and moving away from a linear or “take-make-dispose” model that drives unsustainable consumption rates and degrades vital ecosystem services.
However, little is known about the extent to which B&C businesses implement the CE concept in Aotearoa New Zealand. Therefore, this study assessed the current level of implementation of the CE concept among businesses in Aotearoa New Zealand’s B&C sector.
An exploratory sequential mixed-methods research design was utilised, beginning with the synthesis of circular strategies derived from existing literature.
Experts representing seven business types (manufacturing, architecture and engineering, construction, design-build, fit-out, demolition, and waste management companies) were interviewed to explore the relevance of circular strategies, informing the development of a survey distributed to professionals from across Aotearoa New Zealand’s B&C sector.
Interviewees suggested that CE implementation is insufficient, inconsistent, uncoordinated, and limited by a narrow focus on recycling, necessitating more education, emphasis on the design phase, and a systemic and collaborative approach.
According to survey responses from 213 professionals, most businesses are at a “beginner” stage of maturity regarding CE implementation, and most circular strategies receive minimal to moderate levels of implementation.
The following summarises the main findings obtained from this research. It then discusses the contribution and implications of this research, and concludes with future work and research opportunities.
Summary of the main findings
Most of the circular strategies presented to interviewees were considered relevant, with only a limited number excluded from the survey. Interviewees also identified some strategies as particularly important, most notably education, upskilling, and collaboration.
Other important strategies included:
• adaptive reuse,
• dematerialisation,
• circular materials,
• design for disassembly/deconstruction,
• design for standardisation,
• minimising waste onsite,
• offsite and modular construction,
• deconstruction,
• take-back schemes,
• service-based models, and
• regenerating nature.
The importance of the design phase and adhering to the waste hierarchy were also highlighted.
Interview findings also suggest that the current state of CE implementation in the B&C sector is in a nascent stage in Aotearoa New Zealand, lagging behind international advancements.
A notable focus on recycling in the end-of-life stage, particularly on open-loop recycling or downcycling, is evident, overshadowing the critical design phase, which tends to be overlooked.
Consequently, the current approach to a CE falls short of making substantial advancements, and can be described as the “ambulance at the bottom of the cliff”.
There are challenges in addressing particular waste streams, highlighting the widespread use of materials incompatible with a CE. Experts further pointed out that businesses exhibit differing levels of commitment, with some 138 masking their actual efforts through greenwashing.
Advancements occur in isolated siloes, highlighting the need for enhanced collaboration and a systemic approach for a coordinated CE transition.
Furthermore, CE implementation is hindered by a lack of education. Nevertheless, there was observed growth in awareness and interest, particularly among businesses leading in sustainable innovation and adopting forward-thinking approaches.
The survey results provide a high-level overview of the current state of CE implementation, and insight into the state of implementation of key circular strategies. The findings suggest that most professionals perceived the maturity of CE implementation in their businesses or workplaces at a “beginner” stage.
However, on average, respondents from demolition and waste management companies indicated higher maturity levels, between the “established player” and “well-engaged” stages.
Survey findings also show that the current level of implementation of circular strategies among surveyed businesses in the B&C sector in Aotearoa New Zealand is moderate. Respondents from manufacturing, architecture and engineering, construction, design-build, and fit-out businesses reported minimal to moderate levels of implementation on average.
In contrast, respondents from demolition and waste management companies were again recognised for indicating higher levels of circular strategy implementation, averaging at moderate to significant levels.
While this could suggest a more mature state of implementation, efforts at the end-of-life stage may be more visible and tangible than other life cycle phases, and the impact of open-loop recycling or downcycling may be overestimated.
It was found that larger and more recently established businesses tended to exhibit a slightly higher degree of implementation for some circular strategies.
These results are comparable to similar studies conducted in other countries, which have found low to above moderate levels of CE implementation — inadequate for the scale of transition required.
The results of this study indicate that most circular strategies require greater attention to accelerate a CE transition, with most circular strategies yet to be implemented to a significant extent among surveyed companies.
However, service-based models, followed by sharing platforms, material passports, remanufacturing, take-back schemes, organic recycling, and regenerating nature, appear to receive the least implementation, thus potentially requiring the greatest attention.
In summary, the findings of this research suggest that the current level of CE implementation among businesses in Aotearoa New Zealand’s B&C sector is at an early stage, and characterised by independent efforts and limited contributions at the end of material lifecycles.
Therefore, there is an urgent need for proactive measures from the design phase, replacement of materials incompatible with a CE, and a more comprehensive, systemic, and collaborative approach.
There are significant opportunities for businesses to increase their engagement in circular practices further to accelerate a CE transition.
Future directions
A CE transition represents a fundamental paradigm shift in our resource utilisation practices, thereby presenting a plethora of opportunities to challenge entrenched linear systems in the B&C sector, overcome institutional barriers, and embrace circular solutions.
Developing robust strategies, targets, and roadmaps founded on international best practices is crucial to bridge the rhetoric-action gap and measure progress. Modelling can demonstrate the benefits and repercussions of enforcing systemic action or choosing inaction and fragmented efforts.
However, accelerating a CE implementation is hindered by lobbying efforts from vested interest industry groups. Moreover, if historic patterns reoccur, the recent election of a right-wing coalition government may provide a challenging future environment for CE implementation.
The newly established CE policy framing, NZWS:2023, can be considered as environmentally assertive as the past zero waste NZWS:2002, which was subsequently abandoned in a historically similar right-ward swing in political ideology.
In addition, recent coalition agreements have been criticised for their “backward” stance on environmental policies.
However, there are reasons for optimism and avenues for progress, including awareness and education campaigns, corporate responsibility, engaging stakeholders and network building, academic research, grassroots initiatives, and advocating for legislative reforms, economic incentives, and lobbying transparency.
By rethinking and redesigning processes to embrace a CE, exciting R&D opportunities could be unlocked to create innovative, deconstructable solutions that align with technical or biological cycles.
Successful projects can be used as a case study for advancing progress. Additionally, opportunities exist for research to explore the design phase, higher-priority solutions than recycling, and the effectiveness of regenerative and adaptive solutions.
