Circular FM: The Role of the Circular Economy in Facility Management

Dr. MATT TUCKER, Ph.D.

EXECUTIVE SUMMARY: Facility management is inherently circular, because it's about maintaining and repairing things. That‘s a beautiful thing from the beginning.

Introduction:

Unprecedented Planetary Impact

Our planet is facing unprecedented levels of resource consumption, leading to significant environmental issues such as climate change, biodiversity loss and pollution. The business-as-usual, linear economic model exacerbates these problems by creating waste that often ends up in landfills or oceans, harming ecosystems and human health. Transitioning to a circular economy is not just a choice but a necessity to ensure the sustainability of our planet for future generations.

A Paradigm Shift is Needed

The transition to a circular economy represents a paradigm shift from the traditional linear "take-make-dispose" model to a sustainable "closed-loop" system in which resources are continuously reused. This transition has the potential to simultaneously prevent planetary harm and generate economic business growth. By adopting circular practices, businesses can unlock new revenue streams, increase resource efficiency, and create a more resilient economic model that decouples growth from resource use.

IFMA's Role

The International Facility Management Association (IFMA) has undertaken a comprehensive study to explore the role of the circular economy within the facility management sector. This study, grounded in 36 in-depth interviews with experts across the built environment and facility management fields, aims to provide actionable insights and recommendations for IFMA members.

It’s in Our DNA

Embodying Circular

The facility management (FM) industry inherently embodies circular economy principles through its core activities of maintaining and repairing assets, thereby prolonging their life cycles and reducing waste. These practices align naturally with the circular economy's emphasis on resource efficiency and sustainability. However, the role of FM in supporting and advancing the circular economy is rarely discussed or fully capitalized on.

Untapped Potential

Traditional linear approaches within the built environment often lead to rapid resource depletion and increased waste. By highlighting and leveraging the intrinsic circular practices of the FM industry, there is a substantial opportunity to drive broader adoption of sustainable practices, reduce environmental impacts and enhance economic efficiency. Recognizing and promoting the circular economy's presence within FM can catalyze a transformative shift toward more sustainable and resource-efficient facility management.

Key Findings:

Concepts and Principles

Core Principles

The circular economy is centered on three core principles:

  • Designing out waste;
  • Keeping products and materials in use; and
  • Regenerating natural systems.

Rethinking Business Practices

Transitioning to circular models requires rethinking business practices to maximize resource value and minimize waste. This involves breaking away from the traditional take-make-dispose model to create a closed-loop system in which resources are continuously cycled.​

Economic and Environmental Benefits​

Embracing circular principles can unlock new revenue streams, improve resource efficiency and reduce costs. A well-designed circular system can decouple economic growth from resource use and environmental degradation, leading to a more sustainable and prosperous future.​

The Built Environment Impact

Life Cycle Considerations

Implementing circular economy principles in the built environment involves considering the entire lifecycle of buildings, from design and construction to use and eventual deconstruction. This approach ensures that buildings are designed for adaptability, flexibility and minimal waste.

Material Reuse

The built environment can significantly benefit from material reclamation and reuse. For example, reusing materials from deconstructed buildings can reduce the demand for new resources and minimize waste.

Innovative Practices

Successful examples of circular practices in the built environment include the reuse of bricks, city-level up-scaling, implementation of modular construction, and the use of digital materials passports to track and manage building materials.

Circular Facility Management

Maintenance and Repair

Facility managers play a crucial role in the circular economy by maintaining and repairing assets rather than replacing them. This approach extends the life of building components and systems, reducing waste and conserving resources.

Sustainable Procurement

Facility managers can influence the choice of materials and products used in buildings by incorporating circular economy criteria into procurement policies. This includes favoring products that are designed for longevity, repairability and recyclability.

Data Management

Utilizing digital tools and platforms to track resource use, manage building information and optimize circular economy practices is essential for effective facility management.

Good Practice

Implementing circular economy practices includes models such as Cooling-as-a-Service (CaaS) and Furniture-as-a-Service (FaaS), which reduce capital expenditure and promote reuse. The food and catering industry can minimize waste by sourcing imperfect produceand adopting regenerative agriculture. Additionally, the carpet industry's use of replaceable tiles and recycling, transitioning to energy-efficient LED lighting systems with repair strategies, and effective management of transportation items like pallets all contribute to sustainability and resource efficiency.

Adoption Challenges

Entrenched Linear Practices

One of the main barriers to adopting circular economy practices is the entrenched linear mindset within organizations. Shifting to a circular model requires significant changes in culture, behavior and business processes.

Business Model Transformation

Transitioning to a circular economy often necessitates fundamental changes in business models. Organizations must shift from traditional ownership models to service-oriented models, such as leasing or product-as-a-service, which can be challenging due to existing financial structures and market expectations.

Regulatory Hurdles

Although there are advancements in particular regions (e.g., Europe), the lack of clear regulations and standards for circular economy practices can hinder their adoption. Governments and policymakers need to provide clearer guidance and incentives to support the transition.

Data and Technology Gaps

Effective implementation of circular economy practices requires robust data management systems and advanced technologies. Many organizations still lack the necessary infrastructure to support these initiatives.

Organizational Roles

C-suite Leadership

The commitment and understanding of top executives are crucial for embedding circular economy principles into the core strategy of the organization. Without top-level support, circular initiatives are unlikely to succeed.

Cross-departmental Collaboration

Facility management must work collaboratively with other departments, including procurement, IT and sustainability, to promote circular practices across the organization.

Employee Engagement

Educating and engaging employees at all levels about the benefits and practices of the circular economy is essential for fostering a culture of sustainability.

Procurement as a Major Lever

Procurement plays a pivotal role in driving the adoption of circular economy practices. By prioritizing sustainable and circular criteria in procurement policies, organizations can significantly influence their supply chains and resource use. This includes selecting suppliers who adhere to circular principles, opting for products that are designed for longevity and recyclability, and integrating life-cycle thinking into purchasing decisions. Effective procurement strategies can thus serve as a major lever for embedding circular economy practices throughout the organization.

Global Differences

Wide Variation

The adoption and implementation of circular economy practices vary widely across regions and countries. Factors such as regulatory environments, economic conditions and cultural attitudes influence how circular principles are embraced.

The Forerunners

For instance, in Europe, countries like the Netherlands and Sweden are at the forefront of circular economy initiatives, driven by strong governmental policies and a cultural emphasis on sustainability.

US Fragmentation

Adoption in the United States is more fragmented, with some states leading the way through progressive legislation, while others lag behind due to differing economic priorities and regulatory frameworks.

Circularity as Necessity

In developing regions such as Africa and South Asia, the circular economy is often driven by necessity and innovation in informal sectors, with practices like waste repurposing and local material reuse being common but not always formally recognized or supported by robust policies.

Frameworks for Action

Guidelines and Toolkits

Developing comprehensive guidelines and toolkits, such as the Circular FM Business Model Canvas, and the ReSOLVEFM Framework, can help facility managers understand and implement circular economy practices.

Industry Collaboration

Collaboration within the facility management industry and with other sectors is crucial for advancing circular economy practices. Sharing knowledge, experiences and best practices can accelerate the transition to a circular economy.

Continuous Improvement

The journey toward a circular economy is ongoing. Organizations must commit to continuous improvement, regularly reviewing and refining their practices to enhance sustainability and resource efficiency.

Recommendations:

1

Adopt Circular Design Principles

Facility managers should prioritize use of assets that facilitate disassembly, adaptability and reuse. This includes selecting durable, recyclable materials and designing for adaptability and flexibility.

2

Enhance Maintenance and Repair Practices

Prioritize proactive maintenance strategies to extend the life of building components and systems. This reduces the need for replacements and minimizes waste.

3

Implement Material Reuse

Develop programs to reclaim and repurpose materials from decommissioned buildings and infrastructure. This can include partnerships with social enterprises, circular economy firms and the adoption of digital tools to track material use.

4

Promote Sustainable Procurement

Incorporate circular economy criteria into procurement policies, favoring assets and services that are designed for longevity, repairability and recyclability.

5

Leverage Technology for Data Management

Utilize digital tools and platforms to track resource use, manage building information and optimize circular economy practices. Accurate data is crucial for informed decision-making and reporting. All of this should be achieved while remaining risk averse and knowledgeable of cyber security.

6

Foster Collaboration and Education

Engage stakeholders across the value chain, from suppliers to occupants, to promote circular economy practices. Continuous education and training programs are essential to build awareness and skills.

7

Transform Business Models

Encourage leaders to shift from traditional ownership models to service-oriented models, such as product-as-a-service or leasing arrangements. This transformation can drive more sustainable resource use and long-term economic benefits.

8

Inspire Leadership to Build a Circular Culture

Promote visionary leadership within organizations to embed a circular economy mindset. C-suite leaders should champion circular economy principles and encourage their integration into the organizational culture.

9

Address Regulatory Barriers

Advocate for clearer regulations and standards that support circular economy practices. Policymakers should provide incentives and frameworks to facilitate the transition to a circular economy, removing obstacles that hinder adoption.

10

Utilize Decision-making Frameworks

Apply ReSOLVEFM Framework and the Circular FM Business Model Canvas to guide a just transition to circular practices.

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About International Facility Management Association (IFMA) IFMA supports over 24,000 members in 136 countries. Since 1980, IFMA has worked to advance the FM profession through education, events, credentialing, research, networking and knowledge-sharing.