Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate

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Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate
BOMA Canada
The Circular Economy Guide
for Commercial Real Estate

Closing
the Loop
    This Guide is Sponsored by:
Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate
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By reading this guide you hereby agree to abide, without restriction or limitation of
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any kind whatsoever, by the terms of this disclaimer.

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”)
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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
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purpose. BOMA makes no express or implied representations, warranties, guarantees,
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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
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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. Furthermore, absolutely none of these
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reliance, in whole or in part, on this written report or any of its contents or inferences.
The same parties disclaim all responsibility or liability to any person, whether in contract,
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relating to the use of this Guide.                                                                    Philippe Bernier– JLL Canada
The information in these documents is not intended to cover every situation. Details
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which may be relevant to a user’s particular circumstances may have been omitted.
Users are advised to seek professional advice before applying any information contained
in this document to their own particular circumstances. Users should always obtain
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Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate
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
Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate
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
Closing the Loop - BOMA Canada The 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
Closing the Loop - BOMA Canada The Circular Economy Guide for Commercial Real Estate
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
Closing the Loop - BOMA Canada The 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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