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Exploring the True Cost of Circular Schemes

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By Jonny Plant – 5th August 2024

We are at the start of a journey. A sustainable journey where, through the adoption of circular economy principles, the design and procurement of the built environment will mimic nature.

One of our latest projects, the new headquarters and research building for Unusual Rigging, is an exemplar and test-bed project for circular economy principles and low-energy design. At its core is the circular economy, a closed loop approach to building that departs from the linear economy of take, make, use and dispose and looks to create a building that is built using sustainable materials that can be dismantled and repurposed at the end of its hopefully long life. At its heart, it has been designed for durability and disassembly.

Unlike many exemplar circular schemes, this building doesn’t rely on the retention of an existing building or building superstructure to benefit from the many tonnes of embodied carbon already held within the structure. This scheme required a rigour in the design process to ensure an in-depth understanding of the embodied carbon this new structure will hold. Not only that, wherever possible materials have been chosen as carbon sinks; biogenic materials (those derived from nature), which have already absorbed carbon from the atmosphere during their growth and that is then held within them.

The adoption of circular economy principes within the industry is developing rapidly. However, its adoption faces significant challenges; a supply chain in its infancy for reused materials, the need to upskill the consultant professions, an understanding and appreciation by those commissioning buildings and perhaps one of the most significant, the perceived and sometimes actual additional ‘cost’ to develop along circular economy principles.

Fundamental when considering circular economy design principles and indeed sustainable design is that of true cost. The true cost of materials and supplies. An understanding of true cost requires us to go beyond the market price of a product and into the hidden costs required to repair any social and environmental damage caused along the supply chain. This includes pollution, climate change, availability of resources or the impact their extraction could have on the environment and community in which they were sourced.

An appreciation of and application to recognise the true cost of materials requires a broader approach to the design of the built environment. When investing in their own HQ, Unusual were able to take a more holistic and long-term approach than perhaps others might. But they’re certainly not alone. If you consider other investors, such as say London’s Great Estates for example, the appreciation of true cost sits side by side with their fundamental role of the stewardship of their assets and the environment.

Through careful stewardship, the London Estates have been able to preserve and invest in significant swathes of London, ensuring the long-term success of their portfolios, whilst equally ensuring the creation of environments where businesses, communities and the environment can not only survive but prosper side by side in perpetuity. This is done not just through a philanthropic desire to do the right thing for the Estate and future generations, but balanced with the economic necessity to ensure that the portfolio can be not only economically viable in the short term but generate sufficient profits to reinvest for the long term.

We all have the role of stewardship of our built environment. We all have a responsibility to understand the impact we have on the world we are creating and our planet’s health. This will need to become a more long-term view across the industry, with premium value placed on durability and reuse. The true cost of materials is a vital part of that understanding and is a tangible measure that we can use to help in the design and procurement of the buildings of the future.

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