Sustainability

Circular Economy

Keeping material and product in cycles.

Sustainability

What it studies

Circular economy studies how material and product are kept in cycles rather than discarded after use: reuse, refurbishment, material passports and design for disassembly. It focuses on the value-retention hierarchy — retain before reuse before recycle before incinerate — and on the institutional barriers that keep linear procurement in place.

Why Facility Management needs it

FM manages the life cycle of furniture, installations and building components, and is therefore the party that must operationalise circularity in practice: what happens to a removed floor, a written-off desk, a replaced unit. Without FM involvement, circularity stays a procurement clause without execution.

Questions it answers

  • Does a material passport exist for this component, and is it accessible at the point of disassembly?
  • Is 'circular' here a design choice, a procurement requirement, or only a supplier claim?
  • What does keeping an object functioning longer actually cost, versus replacing it with a newer, more efficient alternative?

Evidence sources

  • Ellen MacArthur Foundation — frameworks and research on circular business models.
  • EU Circular Economy Action Plan and related product regulation (Ecodesign, Construction Products Regulation).

Operating and management implications

  • Circular procurement requires different contract forms (leasing, product-as-a-service) than ownership-based procurement.
  • Circularity and life-cycle cost can conflict: keeping an inefficient object in use longer may harm the carbon target while serving the circularity target.

Related services

  • Procurement and sourcing of furniture and installations
  • Waste management (material flows at end of use)
To the Services Atlas

Related capabilities

  • Material passport and life-cycle registration

Related operating models

  • Demand organisation

    Circularity targets should be set at the client-role level before the procurement specification is written.

All operating models

Related standards

  • EU Circular Economy Action Plan; ISO 59000 series (circular economy, under development — verify status).

The standards section arrives in Part 7.

Common misuse

  • Recycling rate presented as circularity, when recycling is the lowest rung of the value-retention hierarchy.

Current research frontier

Material passports exist for new construction but hardly for the existing stock; the vast majority of the building base has no usable material data for future disassembly.

Further reading

  • Ellen MacArthur Foundation, Towards the Circular Economy.