Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate
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BOMA Canada The Circular Economy Guide for Commercial Real Estate Closing the Loop This Guide is Sponsored by:
Copyright Acknowledgments The Building Owners and Managers Association (BOMA) of Canada owns the trademark on the cover of this document. Use or reproduction of this trademark is prohibited for any purpose (except as part of an accurate reproduction of the entire document) unless written permission is first obtained. BOMA Canada would like to acknowledge This document is subject to copyright protection. However, this document may be and thank the members of Circular reproduced free of charge in any format or media without requiring specific permission, Building Operations Working Group with the exception of its reproduction in whole or in part, in any media or format that is wholly or partially for the purpose of commercial gain. This permission is subject to the and our patrtners at the Recycling material being reproduced accurately and not being used in a derogatory manner or in a misleading context. 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The Building Owners and Managers Association of Canada, including all of its officers, Ben Welch– Manulife Investment Management directors, employees, advisors, consultants, committee members, task force members, agents, volunteers and members (hereinafter collectively referred to as “BOMA”) Emily Victoria Nield– EPIC Investment Services has assembled the material in this document for the purpose of conveying how the circular economy might apply in commercial and institutional real estate. The information presented is solely and without exception, express or implied, for that Jamie Gray-Donald– QuadReal Property Group purpose. BOMA makes no express or implied representations, warranties, guarantees, or promises, that the information presented is current or accurate at any point in Jean-Michel Champagne– HEC Montréal time, be it presently, previously, or at any time in the future. The information in these documents is not meant in any way to advocate, promote, or suggest any preferred Jo-Anne St. Godard– Recycling Council of Ontario & method or methods for implementing circular economy opportunities in in commercial Circular Innovation Council and institutional real estate. BOMA Canada always encourages its stakeholders to retain independent professional advice in undertaking any activity that bears any risk Jodi Houston– Recycling Council of Ontario & of any kind whatsoever. The information provided is not a substitute for consulting with an experienced and qualified professional.BOMA, its partners and affiliates or Circular related organizations make no implied or express representation or warranty that the Innovation Council information contained herein is without risk. 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Welcome to our Guide This Guide will lay the groundwork for what it means to adopt circular economy principles in commercial real estate. This guide will: Introduce core definitions and Provide an overview of building Explore the potential for concepts operations opportunities immediate impact It represents the first of many BOMA Canada tools and resources that will investigate the numerous opportunities that exist for building managers to participate in the circular economy. Stay tuned! Table of Contents Letter from the President 2 A Call to Action 3 What is a Circular Economy? 4 What are the Benefits of a Circular Economy for Buildings? 6 Putting Circular Economy Principles into Action 8 Next Steps for the Industry 9 Appendix A: Circular Self-Assessment and Areas of Opportunity 10 Appendix B: Glossary 16 BOMA Canada Circular Economy Guide for Commercial Real Estate 1
We are proud to present the BOMA Canada Circular Economy Guide for Commercial Real Estate – an important tool for property owners and managers seeking to address pollution and waste. Thanks to the efforts of dedicated building management teams, buildings are now more energy and water efficient than ever, generating fewer carbon emissions As engineers, doing more with and promoting occupant health and wellbeing. However, less is part of our DNA at waste remains a persistent challenge. A Circular Dyson. We use a concept Economy approach to property management and called “lean engineering” to building operations provides real solutions to this issue inform our actions to reduce our impact while supporting a healthier and more regenerative and that of our products. In our environment. pioneering technology, this means engineering products that use fewer With this Guide, BOMA Canada recognizes the critical role our industry can take in eliminating pollution, resources, that are long lasting, high reducing waste and building a more resilient economy. performing and efficient. For example, By favouring practices that retain the value of a resource our hand dryers are engineered to help throughout its entire life cycle, building managers and business achieve their sustainability owners can reduce their operating and maintenance goals and our lighting products are costs while delivering on their strategic sustainability highly efficient and long lasting. We are objectives. introducing more challenging serviceability requirements and Strategies outlined in this Guide will help BOMA members specifications into our products and understand and achieve the benefits of participating in a improving our repairability infrastructure circular economy. Tangible next steps can be identified by taking the Circular Self-Assessment in the Appendix which to recycle and reuse as many parts and will help you identify future areas of opportunity. materials as possible. Across our own offices and spaces, we prefer to restore We are excited about this next frontier for building our old buildings around the world and excellence and will be working closely with you, our build pioneering low energy spaces that members, as we move forward to ensure that BOMA celebrate good, sustainable engineering. Canada’s future resources continue to support transition We are committed to reducing waste in to a circular economy. our offices and powering as many of our sites as possible with renewable, clean Sincerely, energy. Tom Crawford, Global Director of Sustainability at Dyson Benjamin Shinewald President & CEO, BOMA Canada 2 BOMA Canada Circular Economy Guide for Commercial Real Estate
A Call to Action Waste has long been considered an inevitable by-product Key stakeholders are also taking notice. Tenants of the human consumption of goods and services as well are beginning to work with building managers to as an inescapable reality of modern life. As the volume find responsible and innovative solutions to waste of waste generated grows every year, currently sitting management. Likewise, investors are increasingly looking at 7-10 billion tonnes per annum, so to has general for solutions that support long term value creation. It is awareness of the extent and importance of the issue1. The becoming evident that awareness is growing on how to need to shift our perspective on waste has never been improve the resource productivity of commercial real more critical. estate while responding to market demand from varying stakeholders with increasing levels of sophistication. While significant efforts have been taken to reduce the amount of waste sent to landfill, this remains a significant This BOMA Canada Circular Economy Guide is a first step challenge due to the sheer complexity of the problem – in helping our member firms begin their journey towards recycling abilities vary by municipality and the presence adopting circular economic practices in their assets. To of a post-consumer market for diverted materials is not that end, BOMA will continue to work with the commercial guaranteed. real estate industry, various levels of governments, academics, and other key stakeholders to ensure that Building owners and managers have recognized the this work is as meaningful as possible to accelerate the environmental, social, and economic benefits of reducing transition towards a Circular Economy. the amount of waste being generated. They are seeking solutions to achieve ambitious reduction targets by questioning the very concept of waste, embracing a concept called “Circular Economy”. Put simply, in a circular economy, waste is not a by-product that must be disposed at the end of its life but rather a resource that continues to generate value. 2 Adopting circular economy practices within building operations and management can lead to the following benefits: Reduction in Decrease in Engaged tenants Innovation and Mitigate exposure operating costs procurement and and employees differentiation to risk disposal costs 1 S2 Partnership Limited, 2017. Waste Not, Want Not in the Commercial Real Estate Sector 2 Idem. BOMA Canada Circular Economy Guide for Commercial Real Estate 3
What is a Circular Economy? Even when we try to maximize the use of a given product, it may still end up in a landfill. This can change if we start to adopt the core principles of a circular economy. Also referred to as “CE”, “circularity” or “circular thinking”, it Did you know? promotes an economic state where resources are kept Annual global waste production will in a continuous cycle of use so resources are no longer increase by 70% if current conditions extracted and existing products are reused or recycled, persist, according to the World Bank 5 avoiding the very need for final disposal. 3 A circular economy is based on three principles: Circular economy contrasts with the existing “take-make- waste” linear model which is associated with significant consumption of materials, energy, and water. The goal of a circular economy is to keep products and materials in use for as long as possible. Products are therefore designed to last, to be reused, repaired, and remanufactured. The material components of the product can be disassembled and re-introduced into the Design out waste and pollution production loop to become new products, reducing our need for landfills. The value of the resource is therefore retained during its entire life cycle, eliminating the very concept of waste. This economic model favours the use of renewable resources and does not depend on continuous resource extraction. The circular economy drives performance and innovation by making greater use of its physical assets, all while protecting the critical services provided by nature such as Keep products and materials in use food and freshwater. 4 Regenerate natural systems 3 BRE, 2019. The circular economy – Under construction 4 Accenture, 2014. Circular Advantage: Innovative Business Models and Technologies to Create Value in a World without limits to Growth 5 The World Bank, 2018. Press Release: Global Waste to Grow by 70 Percent by 2050 Unless Urgent Action is Taken: World Bank Report 4 BOMA Canada Circular Economy Guide for Commercial Real Estate
Did you know? While recycling plays a role in CE, it is only one of the processes that may be applied to a material. Most materials decrease in value every time they are recycled, leading to the concept of “downcycling”. Eventually, the material or product will end up in a landfill. Repairing, upgrading, and remanufacturing are some of the ways through which the value of the original material can be continuously retained. BOMA Canada Circular Economy Guide for Commercial Real Estate 5
What are the Benefits of a Circular Economy for Buildings? Circular economy, and the notion that we cannot continue to deplete resources indefinitely, is now at the forefront of discussions for those who design and operate buildings. The benefits of designing out waste and keeping materials in use are now more clearly understood. 6 Some of the benefits of a circular economy in real estate include: 1 Reduce operation and maintenance costs 4 Increase occupant health, comfort, and performance Achieve savings by implementing circular design principles during construction, extending Selecting materials and products for use inside equipment life through preventative maintenance the building that meet circular criteria will and repair, and reduce disposal costs thanks to improve indoor air quality such as by reducing the supplier take-back models and repairability. concentration of pollutants in offices, leading to improvements in workforce performance. 2 Deliver strategic sustainability objectives Integrating circularity into ongoing operations 5 Engagement opportunities with occupants will support the organization’s achievement of The circular economy provides a new and exciting UN Sustainability Development Goals, further framework to engage tenants and occupants to reinforcing the organization’s environmental and consider new opportunities for creating positive social commitments. impact. 3 Mitigate risk 6 Enhance innovation, long-term value, and competitiveness Selecting products that are made from recyclable or renewable materials reduces the risks of Integrating circular economy principles into overall price volatility associated with extracting virgin strategic direction will foster a culture of innovation resources and minimizes the organization’s in the organization, highlighting its leadership in the associated carbon impact. industry and helping to attract new investments, tenants, and staff who share the same priorities. A new generation of investors, tenants, and building owners and managers are highly aware of the environmental and social costs of existing practices. Using a circular economy model will provide commercial real estate with a framework for reaching ecological and social goals while simultaneously enhancing economic value. 6 Greengage Environmental, 2019. Putting Circular Economy Principles into Practice 6 BOMA Canada Circular Economy Guide for Commercial Real Estate
BOMA Canada Circular Economy Guide for Commercial Real Estate 7
Putting Circular Economy Principles into Action What does circular economy mean for buildings? Since Many of these areas of opportunity focus on the materials, building managers oversee all building operations, goods, or products used in the building. By emphasizing they have considerable influence and are well placed to maintenance and repair, and by selecting materials and integrate circular economy practices into their processes. products that can have a useful end of life, it becomes possible to minimize the amount of waste generated. The following areas provide an opportunity for putting circular economy principles into action: 7 Construction/Renovation/Retrofit Food & Catering • Select building materials and components that are • Select suppliers that use locally sourced ingredients; find made from recycled content; can be dissassembled; value from food and food waste (e.g. food banks, farms) returned for remanufacture • Innovate with suppliers and tenants to offer waste free • Document materials used in construction including service options recommended destination in a second life (a “material • Create centralized collection point for used take away passport”) containers to return to retailer Utilities Office Furniture & Supplies • Reduce water consumption by using grey water or • Select products and supplies that are durable; can rainwater in toilets & landscaping be repaired or refurbished; are modular and can • Optimize energy use through building automation be re-configured; are designed for disassembly or systems (sensors, metering, BAS, BIM) remanufacture • Integrate renewable energy technologies such as • Create opportunities for extending the life of furniture combined PV and solar hot water, small-scale biodigestion through re-use such as by donation or sharing programs Building Operations, Repair, and Maintenance Landscaping & Site • Select equipment made from materials with a low • Conserve habitat and biodiversity; restore native flora environmental impact over the full lifecycle of the and habitats building; are durable; are high efficiency • Encourage food production on-site, also supporting • Implement a preventative maintenance program to employee engagement and education prolong the life of materials & equipment Waste Management Occupant Experience and Engagement • Reduce waste creation by procuring materials that are • Provide occupants with opportunities to engage with more durable; can be repaired; can be adapted to new uses sharing economy such as by providing space for a tool library; exchange spaces; repair cafes; car/bicycle sharing • Change procurement criteria to require vendor take-back • Create a collection point for certain materials such as • Support reverse logistics to recover and return textiles, to be distributed to partner organizations for materials to manufacturers re-use or re-manufacture • Avoid material waste by procuring services instead of • Explore new lease agreements upon renewal or tenant products themselves (e.g. purchasing lighting instead of changes that align tenant and building manager’s the lamps themselves) circularity objectives 8 BOMA Canada Circular Economy Guide for Commercial Real Estate
Next Steps for the Industry There are many ways that building owners and managers • Buildings as enablers & anchors: Facilitating the can benefit from implementing elements of a circular creation of social value and equity by providing spaces economy. The areas of opportunity include: where occupants can engage in sharing and repairing activities • Circular Procurement: The process of purchasing works, goods or services that keep resources within • Buildings as regenerators: Supporting the restoration the supply chain and avoid creating waste across the of native flora and habitats around the building and product’s life cycle creating new forms of energy for the community (e.g., waste recovery processes, on-site renewables) • Optimize waste management: Working with suppliers to enhance the availability of reliable waste management The circular economy provides significant opportunities data for creating long term value and reduce operating costs. Building managers interested in starting the process are • Buildings as a “materials bank”: Supporting invited to complete the circular building operations self- construction projects that select materials that are assessment in Appendix A. modular or can be disassembled for re-use Did you know? Circular economy has the potential to deliver on the global 2030 Agenda for Sustainable Development and the United Nations’ Sustainable Development Goals (SDGs). Specifically, asset owners and managers can help move forward the following SDGs: 7 RICS, 2018. Circular economy: role of facilities manager BOMA Canada Circular Economy Guide for Commercial Real Estate 9
Appendix A: Circular Self-Assessment and Areas of Opportunity For each area of opportunity, identify existing strengths and consider future areas of opportunity. Areas of Starting Point: Next Steps Opportunity Existing Strengths Building һ Equipment is selected for һ Procure equipment made with materials with low operations, repair, maximum efficiency embodied emissions and maintenance һ Procure equipment made with materials with low environmental impact over lifecycle of building һ Procure equipment that is durable and repairable һ Equipment use generates no emissions (e.g., fuel switching) һ Configure equipment to minimize waste of resources (e.g., task lighting vs area lighting) һ Develop procurement templates (e.g., RFP, SOW) that incorporate elements of circular economy Building һ Suppliers are selected һ Purchase products as services instead of standalone items to minimize their impact operations, repair, һ Select performance contracts to ensure efficiency and maintenance across the supply chain (e.g., avoid resource һ Select suppliers that support take back models extraction and use of һ Develop procurement templates (e.g., RFP, SOW) that harmful chemicals; fair incorporate elements of circular economy labour practices) Building һ A preventative һ Conduct ongoing improvements to building envelope operations, repair, maintenance program and maintenance has been implemented to prolong life of materials/ equipment Building һ Energy and water һ Provide and participate in training focused on operations, repair, efficiency training is maximizing efficient use of technology provided to building and maintenance һ Provide and participate in training on understanding operations staff system efficiency (optimizing system based on configuration and equipment selection) һ Provide and participate in training on future trends (smart buildings) Building һ Paperless billing and/or һ Regularly review ongoing operational practices (e.g., operations, repair, monitoring (e.g., through work order details, contractual obligations) to ensure and maintenance apps) is requested they meet best practices 10 BOMA Canada Circular Economy Guide for Commercial Real Estate
Areas of Starting Point: Next Steps Opportunity Existing Strengths Utilities һ Energy use is optimized һ Purchase products as services instead of standalone items through building automation һ Select performance contracts to ensure efficiency systems (e.g., sensors, metering, BAS, BIM, etc.) Utilities һ Potable water is used һ Implement grey water or rainwater collection and use efficiently (e.g., toilets and landscaping) һ Water-conserving measures are implemented (e.g., aerators, timers) Utilities һ Low carbon energy һ Integrate renewable energy technologies such as sources are selected / A combined photovoltaic and solar hot water, small-scale switch has been made to bio-digestion, and electricity storage via batteries for cleaner fuel types (e.g., emergency back-up power natural gas to renewably һ Purchase green energy through power purchase agreements generated electricity) Utilities һ Active heat recovery һ Include the financial impacts of potential carbon strategies are implemented reductions into the evaluation and analysis of new (e.g., ventilation air heat energy efficiency projects recovery, wastewater heat recovery, heat pump systems) Construction/ һ Building materials һ Draft SOWs that require that materials and components: are selected for their Renovation/ һ Can be repurposed Retrofit environmental properties һ Can be returned for remanufacture into the same or a different product (e.g., drywall) һ Are designed for disassembly һ Are made using bio-based materials or bio-mass waste products (e.g., sawdust) һ Are made from recycled content (e.g., steel, gypsum) Construction/ һ Management program һ Document materials used in construction, including their Renovation/ has been developed to recommended destination in a second life (a “material Retrofit minimize construction, passport”) renovation, and demolition waste being sent to landfill Construction/ һ Environmental renovation/ һ Design buildings and space to be able to flex with Renovation/ fit-up criteria are included demand, modifying the space to fit different needs Retrofit in green leases (commercial, residential, education) BOMA Canada Circular Economy Guide for Commercial Real Estate 11
Appendix A (cont’d) Areas of Starting Point: Next Steps Opportunity Existing Strengths Food and catering һ Suppliers are selected һ Select suppliers that: who demonstrate һ Use regenerative food growing methods commitment to sustainability һ Use locally sourced ingredients һ Prevent avoidable food waste һ Find value from food and food waste, such as through partnerships with local food banks, farms. һ Avoid material waste (e.g., packaging) Food and catering һ Retailers are engaged һ Innovate with suppliers and tenants to offer waste free in an environmental service options procurement program һ Create centralized collection point for used take away containers to return to retailer һ Collaborate with food retailers to source recyclable and municipally compostable cutlery/plates Waste һ Initiatives are һ Select products that implemented to decrease management һ Are more durable the amount of waste generated һ Can be repaired һ Can be adapted to new uses һ Can be remanufactured or refurbished һ Procure services instead of products themselves (e.g., purchasing lighting instead of the lamps themselves). һ Develop waste reduction and education programs on the importance of valuing materials throughout their entire lifecycle Waste һ Waste diversion programs һ Change procurement criteria to require vendor take-back are implemented management һ Select suppliers that support reverse logistics to recover and return materials to manufacturers һ Identify partners who can use certain waste streams as their inputs һ Use local digestors and other clean technologies that capture the value of organic waste streams, such as bio- digestion, heat recovery, mineral extraction and compost for on-site food production or general soil amendment. 12 BOMA Canada Circular Economy Guide for Commercial Real Estate
Areas of Starting Point: Next Steps Opportunity Existing Strengths Waste һ Final disposition / һ Improve data collection (e.g., waste types, amounts, management destination of all materials meters) to inform public policy/initiatives and calculate leaving the building is GHG avoidance identified һ Work with waste haulers to improve data transparency or add weight reporting requirements to contracts һ Collaborate with other building managers to provide consistency to waste haulers Office furniture һ A green / sustainable һ Select products and supplies that: procurement program is and supplies һ Are durable implemented һ Can be repaired or refurbished һ Are modular and can be re-configured һ Are designed for disassembly or remanufacture һ Use materials efficiently һ Are created using 100% recycled content (e.g., paper products) һ Hold a third-party certification for disassembly һ Select furniture/supply leasing services һ Request that products arrive in minimal packaging that can be recycled or reused һ Collaborate with other building managers to share items between buildings or spaces, and/or to purchase in bulk to reduce packaging and emissions from shipping Office furniture һ Re-furbished furniture and һ Create opportunities for extending the life of furniture and supplies supplies are selected and through re-use such as by donation, sharing, or re- preferred selling programs Office furniture һ Maintain warranty һ Take advantage of product repair, disassembly, and and supplies documents for furniture takeback services instead of outright disposal һ For modular items, repair or replace just the parts that require it Landscaping and һ Landscaping practices that һ Conserve or restore native flora support ecosystem health Site һ Prevent soil erosion are implemented һ Select landscaping products that do not contain any harmful chemicals һ Design landscaped areas to require little or no irrigation (e.g., xeriscaping) BOMA Canada Circular Economy Guide for Commercial Real Estate 13
Appendix A (cont’d) Areas of Starting Point: Next Steps Opportunity Existing Strengths Landscaping and һ Biodiversity and ecological һ Encourage food production on-site, supporting employee Site resilience are supported engagement, education, and mental health Occupant һ Occupants are engaged in һ Provide occupants with opportunities to engage with sharing experience and waste diversion initiatives economy such as by providing space for a tool library, engagement exchange spaces, repair cafes, car/bicycle sharing һ Create a collection point for certain materials such as textiles, to be distributed to partner organizations for reuse or remanufacture Occupant һ Occupants align with һ Align occupants with circular objectives building’s environmental experience and һ Allow occupants to participate in decision-making engagement criteria through lease agreements һ Support/select retailers/tenants with aligned CE business models such as stores that sell products made from recycled content, reusing materials, valorizing food waste Information һ A sustainable һ Select products and supplies that: procurement program for Communication һ Are durable Technology (ICT) ICT is implemented һ Can be repaired or refurbished һ Can be upgraded with new components һ Are designed for disassembly or remanufacture һ Use materials efficiently һ Are created using a minimum percentage of recycled content (e.g., plastics and metal alloys) һ Hold a third-party certification or ecolabel (e.g., EPEAT) һ Are energy efficient һ Have a low carbon footprint һ Reduce the use of hazardous substances Information һ Suppliers that offer repair һ Select suppliers based on transparency of supply chain Communication and refurbishment are for: selected and preferred Technology (ICT) һ Environmental impact of operations (material extraction, manufacturing) һ Labor and human rights records/commitments һ Select suppliers that support reverse logistics and include end-of-life management in the contract 14 BOMA Canada Circular Economy Guide for Commercial Real Estate
Areas of Starting Point: Next Steps Opportunity Existing Strengths Cleaning һ Green cleaning program һ Select products and supplies that: with third-party certified һ Are made from non-toxic ingredients products and supplies is implemented һ Hold third-party certifications һ Have minimal packaging or 100% recyclable packaging һ Use materials efficiently һ Select cleaning equipment that: һ Are durable һ Can be repaired or refurbished һ Are designed for disassembly or remanufacture һ Use materials efficiently һ Are created using recycled content Cleaning һ Training is provided to һ Develop a program focused on continuous improvement janitorial staff on the where specific custodial staff are tasked with testing out benefits of using specific new environmentally friendly technologies and products, equipment / supplies subsequently sharing their experiences to increase their as per recommended adoption specifications Fleet һ Low-carbon transportation һ Support and encourage subscription models to sharing options (e.g., electric services for bicycles or cars (e.g., through subsidy) vehicles) are supported һ Offer staff membership to sharing services and encouraged һ Develop partnerships with and offer resources to (space, electricity access, internet connection) organizations and businesses that offer low-carbon transportation options (e.g., charging stations for electric bicycles, dedicated parking spaces for car-sharing) BOMA Canada Circular Economy Guide for Commercial Real Estate 15
Appendix B: Glossary Circular economy: Looking beyond the current take-make-waste extractive industrial model, a circular economy aims to redefine growth, focusing on positive society-wide benefits. It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. It is based on three principles: 1) Design out waste and pollution; 2) Keep products and materials in use; 3) Regenerate natural systems.8 Design for disassembly: Design principle that calls for the end-of-life options of how the product, components and materials can be deconstructed.9 Design for repairability: Design principle that calls for products to be manufactured using fasteners, materials and processes that allow them to be easily be fixed.10 Downcycling: Turning materials from one or more used products into a new product with lower quality.11 Reuse/Redistribute: Technical products and materials can also be reused multiple times and redistributed to new users in their original form or with little enhancement or change. Marketplaces such as eBay are proof of this already well-established approach.12 Refurbish/Remanufacture: Remanufacturing and refurbishment are two similar, yet slightly different, processes of restoring value to a product. When a product is remanufactured it is disassembled to the component level and rebuilt (replacing components where necessary) to as-new condition with the same warranty as a new product. Refurbishment is largely a cosmetic process whereby a product is repaired as much as possible, usually without disassembly and the replacement of components.13 8 Ellen MacArthur Foundation, 2017. Circular Economy Concept 9 Circular Economy Practitioner Guide, 2018. Glossary 10 Idem. 11 Forum for the Future. Circular Business Models 12 Ellen MacArthur Foundation, 2017. The Circular Economy in Detail 13 Idem. 16 BOMA Canada Circular Economy Guide for Commercial Real Estate
Recycle: Recycling is the process of reducing a product all the way back to its basic material level, thereby allowing those materials (or a portion of them at least) to be remade into new products. While this is undoubtedly and important process in a circular economy, the loss of embedded labour and energy, the necessary costs to remake products entirely, and the inevitable material losses mean that it is a lower value process than those closer to the centre of the system diagram, such as reuse and remanufacturing.14 Regenerative Design: A whole systems approach to creating solutions that offer back more than is taken in their creation by exploring the way natural systems solve problems and creating things that are interconnected with natural systems.15 Renewable materials: Materials that are replenished at a rate equal to or greater than the rate of depletion. Renewable materials include, for example, cotton, hemp, maize, wood, wool, leather, agricultural by-products, nitrogen, carbon dioxide, and sea salt. To be renewable such materials (where relevant) must be produced using regenerative practices or, in a transition phase, using sustainable practices.16 Service: A service is something a company provides, and the customer pays for, but there is no transfer of material ownership. A service cannot be transported or stored and only exists while the provider is supplying it and the customer is using it. For example, refurbishing is a service. There are three types, dependent on whether there are material flows, and who owns them: 1) Services with material flows, where your business owns the materials (e.g., a company that owns and leases furniture); 2) Services with material flows, where your business doesn’t own the materials (e.g., a company that services IT hardware owned by others); 3) Services without material flows (e.g., consultancy).17 Sharing model: Business model based on the sharing of under-used assets as a service.18 Waste: Unwanted materials or substances. In a circular economy, waste is designed out. 14 Ellen MacArthur Foundation, 2017. The Circular Economy in Detail 15 Leyla Acaroglu, 2018. Quick Guide to Circular Economy Business Strategies 16 Ellen MacArthur Foundation. Circulytics Definitions List 17 Idem. 18 Circular Economy Practitioner Guide, 2018. Glossary BOMA Canada Circular Economy Guide for Commercial Real Estate 17
Closing the Loop For further information about the guide, please contact: BOMA Canada 1 Dundas Street West, Toronto Ontario, Canada M5G 1Z3 info@bomacanada.ca May 2021 Ce rapport est disponible en français. BOMA Canada www.bomacanada.ca
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