Circular Economy

Overview of Circular Economy

The traditional, linear economic model is based on a take-make-consume-throw away pattern. This traditional economic model relies on large quantities of cheap, easily accessible materials and energy. Also part of this model is planned obsolescence, when a product has been designed to have a limited lifespan to encourage consumers to buy it again.

The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. In practice, it implies reducing waste to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible. These can be productively used again and again, thereby creating further value.

The Global Stage

Currently, the Earth takes almost 1.5 years to regenerate what we use in a year.
The world generates 49 Mt of e-waste worth USD 63 billion, per year, and only 20% is collected and recycled under appropriate conditions
Globally, consumers waste up to USD 460 billion each year by dumping still-wearable clothes in landfills
Circular opportunities for fast-moving consumer goods could amount to USD 700 billion per annum in material savings
The 2021 Circularity Gap Report estimates that the global circularity rate (recovered materials as percentage of overall materials used) stands at 8.6%, down from 9.1% in 2018.
In the EU, the rate increased from 8.3% in 2004 to 11.9% in 2019, but with very slow progression since 2012.
In 2018, the EU set a target for recycling up to 65% of municipal waste by 2035

A Solution Oriented Approach

Benefits of a circular economy, include but are not limited to:

Environmental
- The first advantage of a circular economy is the protection of the environment, reducing waste and the emissions of greenhouse gases, systematizing recycling, and ending planned obsolescence. The circular economy also allows to decrease the dependence on importation of resources (raw materials, water, energy).
Economic
- Another huge benefit of the circular economy is that it stimulates innovation and boost economic growth, and could in the long run enhance the competitiveness of national and global companies.
Social
- In addition, the circular economy creates jobs and enables people to save money, cutting unemployment and poverty as well as reducing the social impacts of pollution, climate change, and natural resources depletion/degradation.

Why the circular economy is the business opportunity of our time

World Economic Forum

Our global economy is growing, reaching an unprecedented $94 trillion in 2021 – with rising population, urbanization and living standards. Our challenge now is to keep up this momentum in a way that works for people and the planet.

Looking at today’s consumption levels, sustaining our current growth trajectory would require the ecological resources of 2.3 planets by 2050. This number is significantly higher for mature markets. The US, for example, would need five planets to sustain present-day consumption levels; Germany would need three.

The good news is that a solution is within our reach. We can decouple our world’s growth from the consumption of the Earth’s resources by shifting from a linear “take, make, waste” economy to a circular “reduce, reuse, recycle” one.

The business opportunity of our time

Creating a circular economy is the business opportunity of our time. It strengthens local economies in a socially-inclusive way, creating far more jobs than taking the traditional linear approach to waste. The repairing and leasing economy creates even more jobs. Enhancing circularity is an efficient lever to help society reach net-zero and by bringing our economy more into line with the Earth’s boundaries circularity is also clearly nature-positive.

Construction at the forefront

Some of the most exciting possibilities for a circular economy are in the construction sector. Broad-based recycling of construction materials coupled with smart design could reduce CO2 emissions generated by buildings by over 30%.

Circularity is also good for construction jobs. Transitioning to a circular economy will create a host of new jobs, from recycling and repair all the way to digital and innovation-driven work.

At Holcim, we are putting the principles of “reduce, reuse, recycle” at the heart of our business model – and driving circular construction. To reduce the footprint of buildings, we are continuously advancing our portfolio of green building solutions, like ECOPact green concrete, which is sold at a range of low-carbon levels, from 30% to 100% fewer carbon emissions compared to standard (CEM 1) concrete. Where regulatory conditions allow, ECOPact+ concrete integrates upcycled construction and demolition materials.

In 2021 we recycled 54 million tonnes of material. Our goal is to double that to 100 million tonnes by 2030 and to turn even more construction and demolition waste (CDW) into new products – 10 million tonnes of CDW by 2025. We are well on our way, having launched Susteno, the world’s first cement with 20% recycled CDW inside. Taking an example from our roofing business, our average residential roof uses 3,200 upcycled plastic bags and five upcycled rubber tyres.

To promote reuse, our advanced roofing, waterproofing, and insulation systems enhance the energy efficiency of buildings and extend their lifespan, making buildings last longer. Smart systems such as Airium – a proprietary mineral insulating foam technology – contribute to the building’s insulation, as do our cool, green and insulating roofs.

By continuing on this path to create a circular economy we will come ever closer to achieving our vision for construction, which is to build more new from the old with recycled materials in every new building…