Welcome to circular construction - 2021 The future of the sector to generate a positive and profitable impact - Upcyclea
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Welcome to circular construction The future of the sector to generate a positive and profitable impact. 2021
Table of contents
Welcome 2
Arturo Fernández, CEO and co-founder
of Grupo Construcía
Prologue 6
Arnoud Walrecht, Global Lead Circular Economy in KPMG
01 Why this report? The end
of the linear production model 9
TALK WITH Emilio Miguel Mitre, Director
of International Relations of GBCe
02 Circular economy:
in search of the positive footprint 16
TALK WITH William McDonough, architect
and Cradle to Cradle theorist
03 Circular construction, healthy
spaces with value and future 29
TALK WITH Ignasi Cubiñà, CEO and co-founder
of EIG/Eric Allodi, General Director of UPCYCLEA
04 Case study: Bio Edificio
Gonsi Sócrates 48
TALK WITH Immaculada Simó, CEO of Gonsi
Conclusion 60
Pablo Sainz de Baranda, General Director
and co-founder of Grupo Construcía
Glossary 63
Basic ABC so as not to get lost in
the new environment
Welcome
We aim to decouple the
construction sector from
the mass consumption
of raw materials and to
create healthy, zero waste
and profitable spaces”
Arturo Fernández
CEO AND CO-FOUNDER OF GRUPO CONSTRUCÍA
2
Grupo Construcía is the first construction company to have
developed its own certified methodology for building under a
circular economy model, a model that does not consume new
resources, does not generate waste, but does create healthy
spaces for people and is profitable. It has taken us eight years of
intense work to get to where we are today. Knowledge that we
want to share through this report, in which we express its benefits
for the economy, health and the environment, and thus being
able to add more companies to this change of model.
We began this revolution in 2012, when we incorporated the Lean
Construction methodology into the Group’s strategy to control
the risks of the construction process, which gave us the capacity
to transform an architectural project into an industrialised one,
eliminating processes that do not add value to the final product
and avoiding the waste of materials, time and human resources.
As we landed this system, it crossed our path Eco Intelligent
Growth (EIG) raising questions we had not thought about before:
How much does a building weigh? What are the chemicals that
make it up? What kind of products are used in its construction?
And, above all, what are their impacts on the environment and
people? We mainly detect two major negative impacts: on the
one hand, the toxicity of the spaces we live in and in which we
spend more than 90% of our time, whether working, living or for
leisure purposes, and on the other, the waste we generate not
only during the construction phase but also until the end of the
materials’ useful life.
3
Grupo Construcía Offices, Barcelona.
In December 2012, we incorporated EIG into It then became clear that by combining
the group and at that time we undertook Lean Construction with Cradle to Cradle,
the challenge of making Construcía the it would be possible to construct buildings
first construction company in the sector with materials that, once their use was
capable of recovering all the resources over, would be dismantled to recover
it uses, carrying out our activity without them, preserving their value, and return
generating waste and with a positive them to the industry.
impact. It is no secret the construction
is a devourer of raw materials and a T h e r e s u l t i s t h e development of
great generator both of waste and CO2 Lean2Cradle ® Construcía as the first
emissions. A mission that, later, with the methodology designed to build under
Agenda 2030 of the SDGs we have seen a circular economy model, which aims
endorsed. to create healthy spaces that generate
zero waste and that dissociates human
To achieve this, we defined along with activity from the massive exploitation of
EIG an ambitious ten-year roadmap raw materials.
and made our second strategic leap:
the incorporation of Cradle to Cradle Once the circular construction model had
principles. A design paradigm inspired been proposed, a final step was needed:
in nature, in which nothing is wasted and having the tools to quantify the positive
all waste from one system constitutes a impacts produced. We had to measure
nutrient for another. the change. In the linear construction
4
model, the usual parameters are price, Our proposal is an economic model that
quality and time. For our Lean2Cradle® not only seeks to neutralize the negative
Construcía methodology we also needed environmental impacts that construction
to measure the impact on health, CO 2 has traditionally had, but to create a new
emissions, the cyclability of materials, one that transforms them into a positive
their residual value and the impact on footprint for the environment and also
productivity. We needed tools that could for people and the economy. A model
be used for the first decision-making in that generates abundance, value and
the evaluation of a project. To this end, competitiveness from circular economy
we developed a set of tools, such as values: healthiness, eliminating the
Material Passport, which provides us with toxicity of materials, and sustainability,
detailed information on the composition which impacts both on the planet and
of the materials we use in construction on the resilience of companies. And all
and, together with other tools, quantifies this without higher construction costs. We
the benefits of the circular economy now have the methodology and tools to
in construction. do so. For us, change is a reality.
At Grupo Construcía we
firmly believe that if we
transform construction,
we will transform society.
Welcome to the change!
5
Prologue
Measuring the impact
of circular construction
leads to decisions
based on financial,
environmental and
social parameters”
Arnoud Walrecht
GLOBAL LEAD CIRCULAR ECONOMY IN KPMG
6
The construction sector plays an important role in the
transition to a circular economy and the use of clean
energy. Its operations worldwide account for 36% of
energy consumption and are responsible for 40% of
36%
global carbon dioxide (CO2) emissions. In addition, the
sector generates 60% of global waste, and consumes
26% of aluminium, 60% of steel and 25% of plastics1.
OF ENERGY CONSUMPTION In many sectors and markets today, an organisation’s
COMES FROM THE
impact on society can make the difference between
CONSTRUCTION SECTOR
being awarded a contract or not. Therefore,
measuring and managing those impacts, both
positive and negative, is the test of a company’s good
business sense. In recent years, the methodologies
developed to quantify them have become much
more sophisticated. KPMG True Value has been at the
40%
forefront of this movement since its launch in 2014.
KPMG True Value is a tool for understanding how the
value a company provides to society can affect the
OF GLOBAL CO2
EMISSIONS COME FROM THE value it creates for investors. This knowledge provides
CONSTRUCTION SECTOR a new perspective for decision making to enhance
performance, inform about strategy and increase the
influence of the organisation.
The use of Lean2Cradle® Construcía methodology
in the design, planning, logistics and construction
60%
of buildings increases efficiency and significantly
reduces environmental impact. Whereas an efficient
management of resources focuses on the elimination
of process waste - such as transport, overproduction
OF GLOBAL WASTE IS
and defects - Cradle to Cradle principles prescribe the
GENERATED BY THE
CONSTRUCTION SECTOR
1 World Economic Forum (2016). Can the circular economy
transform the world’s number one consumer of raw
materials.
7
use of products and processes that can based on financial, environmental and
be perpetually cycled. The joint application social parameters, taking into account
of these two approaches in the built the creation of value in the short, medium
environment leads to the use of efficient and long term. It is therefore important
techniques and regenerative design. that Lean2Cradle ® True Value Toolkit is
available to a wider audience, for which
Combined with True Value, the approach KPMG and Grupo Construcía through
allows the impact of circular construction EIG are already developing a digital
to be measured for decision making approach to support it.
Torre d’Ara Coworking, Barcelona.
801 Why this report? The end of the linear production model
Adequa Business Park, Merlin Properties. Madrid.
Manufacture, use, consume and throw away. This is the scheme that has sustained
the economy and society over the last century, giving rise to a system with
greater welfare, but also to a model in which more resources are consumed and
demanded than are available, which is depleting the planet.
If this continues, the Organisation for In addition to the loss of diversity, the
Economic Co-operation and Development acceleration of climate change, the rise in
(OECD) estimates in its report The Global the cost of raw materials and the increase
Material Resources Outlook to 2060 that in social imbalances2, the linear model
as the global economy expands and also has another negative impact: the
living standards rise, world consumption generation of waste, which will grow up to
of raw materials will double by 2060, 70% by 2050 compared to current levels,
putting twice as much pressure on the an estimate made by the World Bank
environment as we are seeing today. in its report What a Waste 2.0: A Global
“Without concrete action to address Snapshot of Solid Waste Management to
these challenges, the projected increase 2050, reaching 3.4 billion tonnes.
in the extraction and processing of raw
materials such as biomass, fossil fuels,
metals and non-metallic minerals is likely
to worsen air, water and soil pollution and
contribute significantly to climate change.
The agency predicts that total emissions
from material management will grow from
28 to 50 gigatonnes (Gt) of CO2 by 2060. 2 https://www.un.org/
sustainabledevelopment/es/inequality/
10Curbing the overexploitation
of natural resources
Given these forecasts, it is urgent to
change the production model and
decouple economic development from
70 %
IS WHAT WASTE WILL GROW GLOBALLY BY
the use of materials that continue to
2050 IF URGENT ACTION IS NOT TAKEN
degrade the environment. “Our use of
energy and resources is totally abusive
and inconsiderate, which is producing
an environmental deterioration that spheres. The year 2030 was set as the
economic analyses did not contemplate. date for their fulfilment.
The economy is mutating in order to
survive and this mutation consists of “In the current scenario, the linear model
recognising the environmental input. It is inherited from the Industrial Revolution
a question of conscience and ethics, but has become obsolete,” explains Ignasi
also of survival,” says Emilio Miguel Mitre, Cubiñà, co-founder and director of Eco
co-founder and Director of International Intelligent Growth (EIG), a consultancy
Relations of the Green Building Council in firm of Grupo Construcía that has been
Spain (GBCe), an organisation created in operating in the field of circular economy
2009 to push the evolution of building and since 2006. “The need to make this change
urban planning towards sustainability. does not mean the linear system has not
worked, it has worked and has given us a
The aim is to create a society that is more quality of life unimaginable 150 years ago,
efficient in the use of natural resources but it has reached its saturation point and
and to promote renewable energies, there is nothing more to it”.
while meeting the needs of a continuously
growing world population3 and curbing To maintain the current rate of
the consequences of climate change consumption, a number of mineral and
resulting from such overexploitation. In line fossil fuel resources are needed which,
with this, in 2015 the United Nations (UN) at the end of the cycle of use, end up as
defined the 17 Sustainable Development waste. This waste is not designed to be
Goals (SDGs)4 with the aim of puttig an
end to poverty, protecting the planet and
3 The United Nations (2019). Revision of World
ensuring prosperity for all, and adopted Population Prospects
an agenda with targets covering the 4 https://www.un.org/
sustainabledevelopment/es/objetivos-de-
economic, social and environmental desarrollo-sostenible/
11its value? “If, in addition to manufacturing
50
non-renewable products, we cannot
recover them, then we not only generate
an economic and environmental impact,
but also a social impact because we are
gigatons of CO2 destroying the resources that tomorrow’s
WILL BE RELEASED IN 2060 ONLY generations will need,” stresses chemical
BECAUSE OF MATERIAL MANAGEMENT engineer Cristina Sendra, Circular
Construction manager at EIG. In this
sense, the construction sector is critical
35 % - 45 % because it is a major consumer of these
materials, not only for construction,
but also because it generates all the
IS THE AMOUNT OF STEEL COMMONLY USED
infrastructure we need today.
IN CONSTRUCTION PROJECTS
Of the resources extracted worldwide (92
Gt), 55% (50.8 Gt) is represented by stone
minerals, sand and clay which, after being
cycled or returned safely to the natural processed, are converted into residential
environment. How can we prevent it and non-residential construction
from being harmful to people and the materials. On the other hand, in the
natural environment, and how can we European Union, the construction sector is
prevent it from ending up in landfills or responsible for 36.4% of waste generation,
incineration processes where it loses all followed by extraction activities (25.3%)5.
The need to transform the economy
and the production model implies the
evolution from a linear system, which
GHG EMISSIONS RESULTING FROM THE EXTRACTION
generates waste, to a circular one, with
OF MATERIALS, THE MANUFACTURE OF BUILDING
PRODUCTS, AND THE CONSTRUCTION AND
zero waste. “The path to a low-carbon
RENOVATION OF BUILDINGS, RANGE FROM future is circular,” urges the Circularity Gap
Report, the first report on the circularity
5 % - 12 %
OF TOTAL NATIONAL GHG EMISSIONS
5 Circle Economy (2020). The circularity gap
report
12gap in which global economy is estimated
to be only 9.1% circular by 2018. A change
that, supported by innovation, drives the
search for new business opportunities,
while ensuring the biodiversity of the
Earth’s ecosystems and the supply of
materials to perpetuate society’s welfare.
Waste generation by economic activities
and households, EU-28, 2016 (%)
8.5 % 0.8 %
Households Agriculture, forestry
1% and fishing
Wholesale of waste
and scrap
4.6 %
Services (except
25.3 %
wholesale of waste Mining and
and scrap) quarrying
10.3 %
Manufacturing
36.4 %
Construction
3.1 %
Energy
10 %
Source: Eurostat 2019 Waste/water
13If, in addition to
manufacturing non-
renewable products, we
cannot recover them,
not only do we generate
an economic and
environmental impact,
but also a social one by
destroying the resources
that future generations
will need”
Cristina Sendra
CIRCULAR CONSTRUCTION MANAGER IN EIG
14Construction can
provide a real business
model for the future”
Emilio Miguel Mitre
What opportunities does this
DIRECTOR OF INTERNATIONAL
RELATIONS IN GBCe construction model offer?
Construction will be a key factor in the
future of humanity. In the last eight years
You hold a clear discourse on the built area in the world has increased
bioclimatics and the economic by 24%. The sector can provide a real
plundering of the environment. What business model for the future, not only
problems can circular economy solve based on the spaces we inhabit, but also
in the construction sector? on the way cities are conceived.
The most serious problem is that the
construction industry does not know what What is the main challenge
it can contribute with. Currently, we are from now on?
designing spaces to last 40 or 50 years Our work has to be on the ground and of
and we are not aware of the importance relating to people. It has to be focused
they have in our lives. Circularity starts on mobilizing actors, increasing public
from the initial stages of design, up to the investment, on appealing proposals for
approach of how a building is constructed the industry, on establishing a stable legal
so that it can be dismantled and reused framework and on defining an economic
so that, when it ceases to exercise its future. And all this has to do with the
function, it can be given another life. circularity of building.
1502 Circular economy In search of the positive footprint
BMW Barcelona Premium, Barcelona.
A circular economy is one that is restorative by concept as is the very nature that
inspires it, and therefore, seeks to preserve the usefulness and maximum value of
products, components and materials at all times.
In short, it is a question of decoupling Understanding how the urbanisation
economic development from the process will unfold in the coming years
consumption of finite resources, while at is fundamental, which implies not only
the same time generating wealth, creating designing more efficient buildings, but
jobs and reducing environmental effects6. also healthier and more liveable cities.
Today, 55% of the world’s population
The first approaches to this economic lives in urban areas, a percentage that
model emerged in the 1970s promoted by the UN predicts will rise to 68% by 20509.
the Swiss architect Walter Stahel, but it was “Depending on how cities develop, so will
not until the 1990s that the great schools7, the planet,” says McDonough, for whom
but it was not until the 1990s that the great climate change is the result of ‘bad design’.
schools emerged, such as the Cradle to “Following the principles of C2C Design ™
Cradle (C2C) design philosophy by the [...], cities can move out of the linear flow
also architect William McDonough8. The
proposal of these thinkers is to develop
a model based on the rematerialisation
6 McKinsey/ Ellen MacArthur Foundation (2013).
of products and services by eliminating Towards the Circular Economy: an economic
unnecessary consumption of raw materials and business rationale for an accelerated
transition.
and non-renewable resources on a human 7 http://www.product-life.org/en/cradle-to-
cradle
scale. That is, minimising the use of raw
8 Michael Braungart / William McDonough
materials and reducing or even eliminating (2002). Cradle to Cradle: Rehaking the Way
We Make Things.
waste through their recycling and reuse
9 The United Nations (2018). Revision of World
from the very moment of product design. Urbanization Prospects.
17of ‘take, do, waste’ and adopt a circular Circular Ecnomy within
flow of ‘take, do, take back, redo, restore’. the European Green Deal
Buildings and cities can be designed
The European Union launched its first
to be carbon positive. In doing so, they
Circular Economy Strategy in 2015 and
create possibilities for positive growth that
in March 2020 approved the New Action
support all forms of life while providing city
Plan 10 for the circular economy “for a
dwellers with clean and healthy air.”.
cleaner and more competitive Europe”
as a key block within the European Green
Agreement or Green Deal, the new EU
agenda for sustainable growth.
Strategy goals for 2030
30% reduction of national
material use with regard to the
GDP, with 2010 as reference year
Reducing GHG Reducing to 15%
emissions to below waste generation with
10 million tons of respect to what was
equivalent CO2 generated in 2010
10% improvement Reducing food waste
of the efficiency in generation in all the food
the use of water chain: 50% of reduction
per capita in households
and retail consumption
and a 20% in production
and supply lines from
2020, thus contributing to
the SDGs
Increasing the reuse and
preparation for reuse until reaching
a 10% of generated municipal waste
10 European Union (2020). Circular Economy
Action Plan for a cleaner and more
competitive Europe.
18Grupo Construcía Offices, Madrid.
Meanwhile, in Spain, the Spanish Strategy The contribution of construction must
for Circular Economy was approved in be to “address the challenges arising
March 2020, and construction has been from the agglomeration and urban
11
identified as one of the priority sectors . development model and the problems
The document, which is in line with the of energy efficiency and under-utilisation
European Union’s strategy for the circular of the existing building stock, both for
economy, sets objectives for this decade household and economic uses. [...] It is
that will make it possible to reduce necessary, in any case, that the evaluation
national consumption of materials by 30%, of environmental impacts be carried out
cut waste generation by 15% compared through an analysis of the entire life cycle
to 2010 and reduce greenhouse gas in order to obtain an adequate view of
emissions to below 10 million tonnes of the situation”, states this regulation.
CO2 equivalent.
11 (2020). España Circular 2030
19No human creation
lasts forever and
design does not solve
every problem, but we
can seek continuous
improvement to
innovate, expand and
accelerate positive
change. Buildings and
cities can be designed
to be carbon positive”
William McDonough
ARCHITECT AND CRADLE TO CRADLE THEORIST
20Mac Donough & Braungart Graphic,
Cradle to Cradle (C2C)
RENEWABLES FINITE MATERIALS
Regenerate Substitute materials Dematerialise Restore
RENEWABLES FLOW MANAGEMENT STOCK MANAGEMENT
Farming/Collection
Recycle
PARTS
Regeneration MANUFACTURE
Refurbish/
PRODUCT Remanufacture
MANUFACTURE
Biochemical
feedstock Reuse/
Share
Redistribute
SERVICE
Biogas PROVIDER
Cascades
Maintenance/Prolong
Anaerobic
digestion
Extraction Consumer User
of biochemical
feedstock COLLECTION
Minimise systematic
losses and negative
externalities
Source: Ellen MacArthur Foundation, SUN, and McKinsey Center for Business and
Environment; Drawing from McDonough & Braungart, Cradle to Cradle (C2C).
21The circle of value
80 %
The current recycling process generates
waste and consumes energy because
products are manufactured to be
recycled only once. Afterwards, most of OF A PRODUCT’S ENVIRONMENTAL IMPACT IS
their components are useless and end DETERMINED IN THE DESIGN PHASE
up in a landfill. For example, about 30% of
the plastic packaging on the market can
never be reused or recycled because it Following this model, the circular economy
was not designed from the start to keep can reduce global CO2 emissions from
in use or regenerate the natural system. cement, steel, plastics and aluminium by
They respond to a model of downcycling. 40% or, in other words, reduce 3.7 billion
tonnes of CO 2 by 2050, thus achieving
Upcycling is taking it one step further. It almost half of the industry’s zero
means that it is designed to be able to emissions target, an estimate made by
separate the components and use them Ellen MacArthur Foundation in its report
in the same or a similar type of product, Completing The Picture How The Circular
keeping or increasing their value from Economy Tackles Climate Change. An
the material and energy point of view. opportunity arising from better use of
It is estimated that up to 80% of the products and materials within key sectors
environmental impact of products is such as construction, which currently
determined in the design phase. uses between 35% and 45% more steel
than is needed.
The circular model is based on the
idea that nothing is a waste, nothing is
discarded. This is why products must
be designed from the outset to ensure
that this is the case, both in the use of
materials, in their manufacture, assembly
and installation, and in their subsequent
dismantling. Only in this way can their
components be preserved to extend
their use after each cycle in a constant
recirculation or cyclability. This is what is
known as cascade management: reuse,
repair, recycle, recirculate.
22Global C02 emissions from four key
materials production
Billion tonnes of C02 per year
Steel
Aluminium
Plastics
Cement
9.3 0.9
1.1
1.7
-40 %
6.7
5.6
Current
Baseline
scenario 2050
Product
reuse
Materials
recirculation
Circular
scenario 2050
Waste
elimination
Source: Ellen MacArthur Foundation (2019). Completing The Picture
How The Circular Economy Tackles Climate Change
23Emissions from four key materials
used in buildings
Billion tonnes of C02 per year, globally
Steel
Plastics
Aluminium
Cement
5.3 1
0.2
0.3 -2.0 -3.0
(-38 %) (-56 %)
0.3
0.3
3.3
2.9
Current
Baseline
scenario 2050
waste
waste
(construction)
Cement
recycling
Circular scenario
2050
Circular scenario
Eliminate
(buildings)
Sharing
Reuse
beyond 2050
Eliminate
Prolonged lifetime
Source: Ellen MacArthur Foundation (2019). Completing The Picture
How The Circular Economy Tackles Climate Change
24The three principles
of circular economy
01
Eliminate the concept of waste
and pollution from the design,
based on the idea that resources are limited
and balanced with renewable resource flows.
02
Maintain products and materials in use,
designing them to keep their components in
permanent circulation.
03
Regenerate natural systems,
detecting and eliminating negative external
factors from design.
Source: Ellen MacArthur Foundation
25The book Cradle to Cradle: Remaking
the Way We Make Things was written
in 2002, what has changed since then?
It is interesting to see how the specific
concepts of Cradle to Cradle, such
as biological and technical nutrients,
product as a service and being “better”
and not “less bad” are being adopted in
any description of a circular economy
system, where products and materials are
optimised to be safe and therefore circular.
In the circular model it is not only a
question of having a less negative
impact, i.e. being “less bad”, but also of
generating a positive impact, i.e. being
“better”. What does this mean?
In some organizations the emphasis
is on being more efficient but it is also
important to be effective. Therefore, I
encourage organisations not only to
reduce negative behaviours such as
carbon emissions, but also to challenge
The fact that them to reinforce positive aspects such
as biodiversity where they operate, social
something is equity for their employees and the supply
recycled or chain, or water management in the
production process. This can be done at
reused does not multiple scales.
automatically Can you explain the fundamental
make it good” concept of biological and technical
cycles?
William McDonough At Cradle to Cradle Design ™ we recognise
ARCHITECT AND CRADLE that there is a nature-based biological
TO CRADLE THEORIST metabolism where waste equals nutrients.
26Industry can design for this cycle by using Is it realistic, optimistic or pretentious to
ingredients and materials that can be say that circular economy can save the
safely reused or even returned to the soil. world?
I would never suggest that circular
And there is a second cycle that we call economy can save the world, but it is a
technical metabolism, made up of things critical piece of the puzzle. We practice
like televisions, computers, cars and plastic humility in design because no human
bottles that, if designed for later use, can creation lasts forever and design does
be remade and enjoyed from generation not solve all problems; however, we can
to generation. We see these products as seek continuous improvement to build on
technical nutrients. And it opens up new existing principles to innovate, scale up
business opportunities for companies and accelerate positive change.
in the recovery of these materials. For
example, Philips, the lighting company will
sell lumens as a service (i.e. light source)
and will take back the lamps when their
use is finished. This is a product as a service.
What opportunities do you see around
circular construction nowadays?
There is a great opportunity to implement
circular economy concepts and best
practices in this sector. In our years of
work, we have seen how concepts such
as material passports for traceability,
design for disassembly, nutrient recovery
and anticipatory design were pioneered
twenty years ago and are now generally
accepted. A challenge for construction
is to ensure that the materials used are
truly ‘good’ for people’s health. I am very
interested to see companies raise their
discourse to say that things must be
safe first and then circular. The fact that
something is recycled or reused does not
automatically make it good.
27Cradle to Cradle Certified™ stamp
Assessment criteria for products made for circular economy:
Material Health
Ensures that chemicals used in manufacturing are
as safe as possible for people and the environment.
Material Reutilization
The aim is to eliminate the concept of waste in order
to guarantee the cyclability of products.
Renewable Energy and carbon management
Guarantees that products have been manufactured
with renewable energy, reducing or eliminating the
impact of greenhouse gases.
Water Stewardship
Helps ensure that water is recognised as a valuable
resource, that watersheds are protected and clean
water available.
Social Fairness
The product is marketed respecting the people and
the environment.
Registered products per category:
Platinum: 1 Gold: 124 Silver: 201 Bronze: 296 Basic: 4
Source: The Cradle to Cradle Products Innovation Institute.
2803 Circular construction Healthy spaces with value and future
Wallbox Headquarters, Barcelona.
Construction requires a transformation that enables it to cope with the economic,
social and legislative changes of the coming years. Without delay and without
half measures.
The diagnosis is clear and the challenges For this reason, Construcía’s strategy is to
pressing. In order to reverse the impact capture the value that this model means
of this sector in terms of material for people and society, and bring it to
consumption and waste generation, “a perks for companies.
new business model is urgently needed
that solves these three aspects: caring In this sense, Arturo Fernández points
for the planet, caring for people and out that a circular building “generates
ensuring the profitability of construction more demand due to its sustainability
companies to guarantee their continuity, characteristics and, as a result, an
as they are an economic driving force in increase in sales”; it reduces operating
this country”, says Arturo Fernández, CEO costs throughout its useful life “because it
and co-founder of Grupo Construcía. allows actions and material recovery to
be carried out under a much more orderly
Developing a circular construction model and cheaper construction process” and,
is essential to improve the management likewise, it is anticipating legislation12 13 “that
of materials and their toxicity. “Buildings will most probably cause a decrease in
must be designed so that they expoliate the value of buildings already constructed
as little as possible, so that they can be because they contain high levels of toxicity”.
transformed, dismantled and reused,”
argues Emilio Miguel Mitre, Director of
12 Anteproyecto de Ley de Residuos y Suelos
International Relations at (GBCe). Contaminados, Draft. June 2nd 2020
13 Real Decreto 553/2020, June 2nd, which
regulates the transport of waste within Spain
30An innovative methodology To ensure this cyclability it is necessary,
firstly, to select materials that are free
Construcía’s answer has been to innovate
of harmful elements and, secondly, to
in its own certified methodology that
define how they will be used after their first
responds to the challenges posed. Thus,
useful life at the design stage. “A building
Lean2Cradle ® Construcía arises from
is built with many layers, so we work with
the fusion of the principles of Lean
manufacturers and their entire chain
Construction with the circular economy
of suppliers to identify all the chemicals
paradigm Cradle to Cradle (C2C)
contained in a product, and with installers
mentioned in chapter 2. The first is a
to ensure that the execution of the project
project management system that gets to
is in line with this whole design,” says
optimise processes in order to eliminate
Cristina Sendra, Circular Construction
overproduction - even unnecessary
manager at EIG.
transport movements are limited - and
reduce the risks inherent to the sector, such
This paradigm applied to construction
as overruns or late deliveries. McKinsey
implies that buildings gain value over time
estimates that the application of Lean
and that, in addition, spaces are healthy
Construction can offer reductions of 10-
and contribute to well-being because
30% in expected completion time and cost
they are designed and built with those
savings of 10-25%.
who live in them in mind. According to the
International WELL Building Institute (IWBI),
The other pillar, the Cradle to Cradle
people spend approximately 90% of their
principles, advocates a regenerative
time in closed spaces. During this time,
production system in which the materials
inhalation of volatile organic compounds
that make up a product are cyclable, i.e.
(VOCs) from indoor air can lead to short
they can be reused indefinitely and safely
and long term health problems14.
for people and the environment. The joint
application of these two approaches in
the built environment leads to efficient
processes and regenerative design.
“When Cradle to Cradle design is used
for circular economy, there is room for
real impact,” says William McDonough,
architect and Cradle to Cradle theorist.
14 https://wellservices.itg.es/certificado-well/
31How is a Cradle to Cradle product (C2C)
Coworking Torre d’Ara
TITAN Paint Honext Material DM Finsa Skirting
• C2C Certified Gold • C2C Cert. in process • C2C Certified BRONZE
• Very low emissions of VOC • Biological nutrient • E1or Ez
• 100% cyclable and 100% cycled
Interface Carpets ABN Pipes
• Carbon neutral • C2C Cert. in process
• Easy to dismantle and • Technical nutrient
recyclable • Halogen-free
• On floor tiles • Reticular polypropylene,
• Improves air and 100% recyclable
acoustic quality • Electro-welded
• High content in connections
recycled material
DYNAMOBEL Furniture SITAB Partitions
• C2C Cert. in process • C2C Certified
• Technical nutrient • Technical nutrient
• High cyclability • Control of heavy
• Low VOCs metals
Arqustica mobile partitions Garviled Luminaire
• C2C Cert. in process • C2C Certified and C2C in process
• High cyclability • Technical nutrient
• High acoustic performance • Halogen-free
• Space versatility • By definition Programmes in take-back
32Buildings as banks of materials As part of the Lean2Cradle® Construcía
methodology, the company has
In addition to avoiding the use of toxic
also developed a circular materials
materials, Lean2Cradle ® Construcía
management platform (UPCYCLEA) to
methodology does not generate waste
create traceability of raw materials and
because the buildings are conceived as
manage them over time. “This system
banks of materials. In other words, these
allows us to know at a molecular level
materials can be extracted after their first
each of the products and materials
use to be used in other projects or returned
used in a building, thus facilitating the
to the earth as organic components. “If you
management of their toxicity. The first cost
have designed the building well and know
that is avoided is the cost of sending it to
what you have in it, you will be able to take
landfill and the second value it generates
the materials out of where they are and
is its recovery as a future raw material”,
manage them properly,” explains Sendra.
points out the EIG engineer. And since
This information is obtained through the
most materials are easy to dismantle,
Material Passport, the identity card of the
their residual value increases.
materials that constitutes the first tool in
the decision making process of circular
Tangible benefits
construction.
“The achievement of circular economy
The Material Passport is a digital duplicate is to make sustainability profitable for
of the building, a database in which the business and society. And we have
information of the construction project developed the tools to measure and
is collected and in which the materials make tangible the economic and health
are characterized at the highest possible value generated by our methodology,”
level of detail. “It is the tool that generates says Arturo Fernández. With it, the negative
a change of paradigm. Until now, in impacts of our activity are identified with
the linear economy, price, time and the aim not only of neutralising them
quality have been measured. Now, with but also of transforming them into other
the Material Passport , health, building positive ones.
cyclability, residual value and impact
on productivity are evaluated,” points To measure these economic and social
out Pablo Sainz de Baranda, General impacts, Construcía has developed two
Manager and co-founder of Grupo tools that quantify their financial and
Construcía. social value:
33as well as the residual value and some
• Lean2Cradle® Value to Business.
non-financial metrics that improve the
• Lean2Cradle® True Value.
sustainability rating for the property, such
The first calculates the value that the as carbon footprint, circularity, waste, etc,
building generates for the business over i.e. environmental, social and governance
time and which is clearly reflected in factors (ESG).
the financial accounts. In order to get to
know this value, traditional profitability While L2C True Value, a tool co-developed
metrics are taken into account, such as by Grupo Construcia together along with
NPV (net present value), ROI (return on KPMG, measures the value provided to
investment), IRR (internal rate of return), society and the environment and which,
Lean2Cradle® True Value
Lean management Cradle to cradle True Value
Maximize value, Eco-effectiveness Connecting corporate
minimize waste instead of efficiency and societal value
creation
• Identify value • Everything is a resource • Asses the company´s
• Map the value stream for something else `true´ earnings
• Create flow • Use clean and renewable • Understand future
energy earnings at risk
• Establish pull
• Celebrate diversity • Create corporate and
• Seek perfection
societal value
5 CORE PRINCIPLES
1. Have a thorough understanding of circular shared value creation for all stakeholders
2. Create organization-wide insight in core processes and critical functions
3. Measure performance on a regular basis with timely feedback loops
4. Develop an effective prioritization method for improvement possibilities
5. Put safeguards in place for continuous improvement
34generally, is not directly reflected in When the toxicity of a space is reduced,
the financial accounts of the business, the economic impact translates into a
but rather corresponds to negative return on investment for companies and
externalities avoided or positive for the health of those who live in those
externalities generated. In this way, the buildings. “To reflect this in numbers we
building’s occupants benefit from higher used KPMG’s True Value methodology,
levels of productivity and comfort and a which discovers and quantifies the social
healthier working environment; society, value generated through the use of the
from a lower carbon footprint; and the Lean2Cradle® Construcía methodology”,
environment, from lower toxicity impacts adds Ignasi Cubiñà.
in the building’s value chain.
What does Lean2Cradle® True Value measure?
L2C Principles Scope Aspects
Lean Management • Reduced project timeline
• Waste reduction
Productivity • Natural and artificial lighting
• Temperature control
• Noise levels
• Air quality
• Plants and vegetation
Healthy • Human toxicity
materials • Marine eco-toxicity
• Fresh water eco-toxicity
• Land eco-toxicity
Material • The impacts were spread over the
cyclability lifetime of the material. The loss in
economic value is used as a proxy to
determine what part of the impact is Source: BUILD BACK
transferred to the second user BETTER, Route to resilient
and circular real estate
management de KPMG.
35A circular building in data
+ 10 %
WHAT AN ASSET INITIAL VALUE
-20 %
WHAT THE MAINTENANCE COST
-10 %
WHAT OPERATING COSTS
MAY WORTH MORE OF A SUSTAINABLE BUILDING MAY DIMINISH
MAY BE REDUCED
Source: Estimate according to KPMG.
KPMG’s True Value methodology helps means implementing initiatives that take
companies to understand the social into account business, society and the
impact of their activity. This knowledge environment in a balanced way.
provides a new lens in fact-based
decision making to improve performance, With Lean2Cradle ® Construcía, the
inform strategy and enhance influence. environment and people can be taken
Lean2Cradle ® True Value is a toolkit care of without extending the execution
for creating forward-looking business time or increasing the construction costs
strategies aimed at organisational of the traditional model. “Sustainability
resilience and capturing the shared means consuming less and we say:
value that, in the short and medium term, let’s change the model to continue
generates the circular model for business consuming, but from what already exists.
and society. Let’s build banks of materials in our cities
because the economy has to move
“It is estimated that the initial investment towards a better model. Our proposal is
in sustainable buildings can increase to extract materials from nature just once
the value of the asset by 10% or more, and give them a life that is as long as
reduce maintenance costs by 20% possible or infinite in the circular model”,
and lower the operating cost by 10%,” describes Sainz de Baranda.
lists Arnoud Walrecht, Global Lead
Circular Economy at KPMG. Shared This methodology for the design and
value is the result of combining social construction of circular buildin gs
and business value. And maximising it creates value for society and also allows
36SDGs Circular
10 % - 30 %
ARE THE REDUCTIONS IN EXPECTED
Construction
has an
COMPLETION TIME OFFERED BY THE
APPLICATION OF LEAN CONSTRUCTION
impact on
companies to align themselves with
the SDGs, which are set to be achieved
by 2030.
“We sometimes articulate Cradle to
15
Cradle design as The Five Goods™ :
good materials, good economics, good
energy, good water, good lives. When we
look at each of them closely, we realise
that they cover all 17 UN SDGs, which
were created to achieve a better and
more sustainable future for all”, argues
William McDonough. Grupo Construcía
is part of that transformation by creating
spaces that positively influence people,
the economy and society. Along these
lines, the Lean2Cradle ® Construcía
methodology impacts on 9 Sustainable
Development Goals by being able to build
healthy, profitable and environmentally
friendly spaces.
15 https://mcdonough.com/the-five-goods/
37The difference
between sustainability
and circularity is the
traceability of raw
materials throughout
their life cycle.
Sustainability advocates
consuming below the
resource generation
base, but the circular
economy makes our
cities and buildings
material banks”
Arturo Fernández
CEO AND CO-FOUNDER OF GRUPO CONSTRUCÍA
38A challenge for the industry
to consider is to ensure
that the products used in
construction are actually
‘good’ and not ‘bad’”
William McDonough
ARCHITECT AND CRADLE TO CRADLE THEORIST
The world of construction has
never had an opportunity like
now to generate a positive
impact on society”
Ignasi Cubiñà
CEO AND CO-FOUNDER OF EIG
39Our methodology Lean2Cradle® Construcía
Circularity Diagnose
Reuse Identify existing materials and products.
Creation of new Calculation of the recoverable value and
materials recovery routes
Traceability Platform
Commercialisation of Circular Design
materials. Nutrients Collaborative work
Management
Pull Sessions
Project detailed
Deconstruction study
Dismantling
C R A D L E 2 C R A D LE
LE A
N CONSTRUCTION
Update LEAN2CRADLE ® Last planner system
Works detailed
Replacement
of materials
Construcía programming
Logistic plan / Hub
Maintenance
Delivery of ‘just in time’
During its useful life
material. Storage and
collection of materials
according to the
Traceability Platform logistics plan
Material registration
Smart Solutions
Prefabrication, solutions
Material Passport* and hub delivery
Material traceability
Learning and Improvement
Works operation and monitoring
Lean2Cradle ® Construcía is the first It is based on Lean Construction planning
methodology that aims to build under and control techniques that minimise
a circular economy model. On the one construction risks, such as economic
hand, with the use of materials that deviation and occupational accidents,
generate zero waste and, on the other, and optimise deadlines and execution
systematizing the construction model for quality. This way of working implies having
the subsequent recovery and custody of pull sessions, both for the detailed study of
these materials until they are put back the project and during the execution of the
on the market. work; building a detailed planning of each
40work (last planner system); prefabricating Construcía has gone a step further by
constructive solutions before construction; digitising projects to offer more value,
making a just-in-time distribution of increase productivity, anticipate decision-
the materials that are stored in a hub making and manage circularity. This way,
and applying an improvement process Lean2Cradle® Construcía focuses design
during the whole project. A system where on people, thinking of their well-being,
transparency in the processes, materials and manages to involve the entire value
and budgets are prioritized. chain from the outset, in order to ensure
the sustainability and profitability of the
project and offer solutions that optimize
price and reduce time.
Our Lean Construction methodology
Operational capacity
Waste Planification, organisation and
Waste=Nutrient exhaustive control of the project
Works safety Productivity
ORP. Material control Team management
and control
Logistic problems
Delivery at the works. Commitment
Deliveries as planned Responsible of all
M I N I M IZE
participants
Lean
MA XI M I Z E
Defects & errors
Construction
Improves quality on
site. Prefabrication. Quality
HUB. Increaseing Works
operation qaulity
Decision and
operation times Meeting deadlines
Improved production Planned production,
planning allows time optimisation of deliveries
commitments to be met and transport routes
Risks Client satisfaction
Deadlines, quality, Commitment
security at works compliance
41Tools to turn circular construction into a reality
1. Material Passport: the cornerstone of a project. It makes it possible to determine
circular construction. It allows the traceability the energy impact of the materials used,
of the materials used through the: to generate a virtual model with all the
• Identification of each material as a data and documentation of the project
nutrient for the biological (return to soil) and to reduce errors in the design and
or technical (return to industry) cycle. construction phases.
• Situation of its location in the building
and identification of the most suitable 5. Circular Materials Management
route for its recovery. Platform (MYUPCYCLEA): facilitates the
traceability and management of materials
• Estimation of the economic value
and products installed in projects over time
of the materials according to the
for their subsequent use and trading. It is the
planned recovery routes and possible
first software driven by Artificial Intelligence
alternatives.
for the management of circular resources.
It is a digital copy of the building that It is based on the information entered at
becomes the first tool for decision making product level (circular product passports)
and operation in the circular construction which is combined with its storage at
sector. “warehouses” (inventory of products in a
specific location). This platform helps us
2. Lean2Cradle ® Design Manual: guide learn about residual value, manage carbon
for architects to manage their projects cycles properly and continue cycling
according to the principles of the circular valuable and healthy materials. It allows
construction model. It serves to maximize us to determine the energy impact of the
your value throughout the design process. materials used, to generate a virtual model
with all the data and documentation of the
3. BEDEC: set of databases of the Catalan project and to reduce errors in the design
Institute of Construction Technology and construction phases.
(ITeC) for construction - from prices and
Specifications to environmental data, 6. Circular signature: having circular
library of BIM objects and regulations, passports of products, complete deposits
among other aspects - which Construcía and monetization rates of resources used,
has enriched with the circular approach. it is possible to deduce four indicators: the
carbon footprint, the circularity rate, the
4. BIM (Building Information Modeling): health of the materials and the residual
collaborative working methodology that value. This is known as the circular
integrates all the agents that are part of signature of a building.
42AI identifies needs and
proposes resources
and transformations to
be incorporated into a
Eric Allodi construction to meet
GENERAL DIRECTOR
AT UPCYCLEA circularity criteria”
What are the benefits, in terms of How does Artificial Intelligence applied
circularity, of having a digital platform to software work? How does the
that makes it possible to know the technology understand the “material
traceability and toxicity of the raw ID” it categorizes and what indicators
materials that are going to be used to does it offer?
construct a building? Artificial intelligence is used to suggest
The immediate benefits are a reduced and determine circular ecosystems. The
carbon footprint through the choice of different algorithms identify needs and
low CO2 products, along with resource propose resources and transformations
conservation and waste reduction. that have to be incorporated into a
This has a positive impact both on the construction so that it meets the criteria
ecosystem and on the health and well- of circularity, based on the analysis of the
being of the people who live in these composition of the materials.
buildings and at the same time generates
an increase in the residual value of the The data is analysed using the “circular
products used in a construction, which passport” model, an database for each
can be reused indefinitely. material and/or product that is used or
43will be used in a construction. From this Without a doubt, especially when it comes
analysis, opportunities for transformation to identifying suitable ecosystems based
are identified along with descriptions. on the assessment of products and
materials used.
The software basically provides two
indicators: the Circular Signature of the What role does Upcyclea play in Grupo
building and the Ecosystem Signature. Construcía’s circularity digitalisation
The first provides information on the strategy?
carbon footprint, the circularity rate, the Upcyclea allows the company’s Building
degree of non-toxicity and the residual Information Modeling (BIM) to be linked to
economic value; while the ecosystem the environmental information contained
signature provides the CO2 and waste in the circular passports. It also plays a
avoided, as well as the savings and strategic role in identifying new business
income generated. models based on the data available in
the Circular Signature and Ecosystem
Is Artificial Intelligence applied to Signature.
material banks the present and future
of circular management?
Circular signature indicators
Carbon footprint* Material health
*of the production of all products and materials considered
5%
49%
4.3 (2) 28%
362 (1)
X 17%
tons CO2 eq. tons CO2 eq.
/ton of products Healthy products
Products with controlled and verified toxicity
Products with controlled toxicity
(1) Total carbon footprint (2) Total emission factor X Products of known or unknown toxicity
Circularity Total residual value of the building´s components*
*with regard to the acquisition cost of materials/products
of recycled or
1% (1) 14.1%
41/100 rapidly renewable Min Max
54% materials
Min 3.2% (2) 11% Max
(% by mass)
Min 1.2% 30 (3) 20.2% Max
Product and deposit dismountability
Next identified uses (1) Deconstruction scenario (2) Renovation scenario
Presence and reliability of information (3) 30-year renovation scenario
The Circular Signature considers only the deposits of building and materials characterized in myUpcyclea
44How is Lean2Cradle® Construcía value measured?
FINANCIAL VALUE SOCIAL VALUE
L2C Value to Business L2C True Value
This is the value the building generates for Value a circular building generates for
the business, which is clearly translated into society and the environment. It shows
results in the financial accounts. generated positive impacts and reduced
negative ones.
• Increase in revenue from demand: CNV, IRR • Reduction carbon emissions
• Reduction of operational costs: CNV, IRR • Reduction environmental pollution: ecotoxicity
• Generation of residual value • Reduction of human toxicity
• Reducing regulatory risks: protecting the value • Disposal of waste through cyclability
of the asset • Increasing people’s productivity
• Decrease in reputational risk
• Improvement of the sustainability rating / ESG
of real estate assets
Circularity Benefits
01 Operational Costs
Reduction 06 People’s health
improvement
02 Regulatory Risks
Reduction 07 Higher
Productivity
03 Reputational Risks
Reduction 08 Fighting against
Climate Change
04 Residual Value =
Nutrient Value 09 Natural Resources
Protection
Increased Demand,
05 10
Turning industries into
higher earnings a more competitive
and resilient model
Lean2Cradle® Construcía Advantages applied
to Bio Edificio Gonsi Sócrates
5%
OF OPERATIONAL
17 %
OF A POTENTIAL
15 %
OF RESIDUAL
99 %
OF MATERIALS
COSTS REDUCTION EARNINGS INCREASE VALUE ARE HEALTHY
45Where does Cradle to Cradle fit into the
circular economy? What has changed
since then?
C2C argues that things must be designed
to generate abundance, and it starts from
three principles: eliminating the concept
of waste, using only clean and renewable
energy, and celebrating biodiversity.
The circular economy is based more on
macroeconomic aspects, while C2C is
based more on how to design things and
how this makes everything else work.
What are the characteristics and
advantages of C2C Certified™
products?
This certificate analyses the healthiness,
reuse, water cycle, energy cycle and
social justice. Therefore, a C2C product
has to have, above all, a good intention
behind it. C2C aspires that all its products
have a positive impact. And that is what
we apply in Lean2Cradle® Construcía.
What is the contribution of Lean
C2C aims to Construction to Construcía
ensure that all its methodology?
Lean Construction is limited to risk control
products have a and planning in the execution of a project.
positive impact” By combining it with C2C, we transform it
into Lean2Cradle® Construcía, a circular
project in which the maintenance of
Ignasi Cubiñà what we do and the subsequent use of
CEO AND CO-FOUNDER OF EIG materials is part of the equation.
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