The circular economy and its impact on the construction sector
- Ayman Abziouad
- Nov 25
- 6 min read
With several of the panel discussions at last week's London Build Expo focused on the topic of exploring the meaning behind the circular economy in construction, now seemed an opportune time to explore this concept in more detail.
We share our thoughts on what a circular economy really means for the construction sector in practical terms – and how we at Henriksen Studio might be able to assist clients, as they strive to meet new standards and requirements. In particular, we take a look at the London Circular Economy Framework and the impact this could have not only on the sector, but the UK as a whole.
The London Circular Economy Framework focuses on four key areas:
Prolong: Supporting residents in prolonging the life of their items.
Reuse: Providing opportunities for residents to give away items they no longer need and take things they may have a use for.
Refurb: A requirement for development to take a 'retrofit first' approach, prioritising the retention and retrofit of existing buildings.
Recycle: Improving opportunities for residents to recycle.
A change in focus: a circular economy
The planning and sustainability landscape is undergoing a significant shift, moving away from ‘build, use, dispose’ towards ‘design, retain, reuse.’
Essentially, the premise is simple: treat materials as assets, design buildings to be adaptable and repairable, and prioritise retention over demolition.
However, with much change required to achieve a truly circular economy, there is a lot to consider, before embarking on a future construction project.
The City of London Corporation has stated that it plans to become ‘fully circular’ by 2040, a progressive but ambitious target. Earlier this year (February 2025), the Corporation unveiled a new Circular Economy Framework and supporting action plans, which detailed various interventions and set out its targets through to 2027.
A key focus within these plans is to tackle waste from construction. New project standards will have circular economy standards embedded, and the City Corporation is working with construction companies to standardise how circular economy metrics can be reported in pre-development and pre-demolition audits.
What does the circular economy framework mean for today’s construction projects?
With construction and demolition responsible for 60% of the UK’s material use and waste generation, there is no denying that change is required - but the sector faces a significant challenge ahead.
At present, it is incredibly difficult to classify a building as circularity-ready, due to the current state of the industry. However, while there are still many hurdles to overcome, there is already positive movement towards reducing emissions, and waste across the sector, and not just in London.
What we have already seen is a greater focus on lowering both embodied and operational carbon footprints through greater considerations when selecting materials and production processes (via EPDs), and by becoming Passivhaus accredited. By lowering the impact of buildings on the environment, waste is therefore reduced – as a result, taking us one step closer to circularity.
How will London's Circular Economy Framework shape the future of the construction industry?
Adapting to circularity will significantly alter the design and demolition stages of a building’s lifecycle. From the offset, buildings will be designed with flexibility at their heart. It will be important to ensure that they are suitable for multiple types of use, and that we extend their design life.
The below diagram effectively demonstrates how stakeholders will likely change over time, as new roles emerge and existing roles will be required to take on new responsibilities.
Across procurement and design, developers are being asked to justify their material choices, to demonstrate building adaptability, and to show how components can be recovered and reused at end-of-life.
As a result, this will drive demand for:
demountable and modular facades designed for disassembly
material passports and traceability systems
greater reuse of structural elements and cladding materials
stronger collaboration between design disciplines early in the project lifecycle
For facade manufacturers and specialist consultants, these shifts translate into new technical requirements. These might include connection details that allow non-destructive removal; specifications that favour repairable finishes; and the introduction of new ways of capturing data about materials (quantities, coatings, attachments) so that items can be reused efficiently in the future.
However, we are still at the early stages and there is much more to do in terms of understanding what is possible. When focusing on facades, the majority of components can be reused, however, this could limit architectural expression and potentially impact building performance – and this needs to be factored in.
Glazing in particular is an area that could face challenges. Double-glazing units for example currently have a limited lifespan, after which time, their performance cannot be guaranteed. This is an area that needs more consideration – but the prospect of future design solutions and the use of new materials is both exciting and crucial.
There is plenty of change ahead, and plenty of possibilities. Projects that ignore these trends will face greater planning friction as well as reputational risk, while those that embrace them could realise cost savings and achieve easier compliance.
How does the circular economy framework advance the sustainability agenda?
Circular strategies are one of the fastest ways we can cut embodied carbon and construction waste. By keeping materials in use for longer, by refurbishing instead of demolishing (where appropriate), and by designing for disassembly, we can reduce waste and the emissions, which result from the production of new facades and building materials. As well as reducing waste, the framework can generate new markets for reused components and could provide opportunities for job creation in repair and remanufacture too.
London's Circular Economy Framework: what developers need to know
According to the Mayor of London’s London Plan Guidance, there are six circular economy principles, which should form a fundamental part of the building design process:
Building in layers – ensuring that different parts of the building are accessible and can be maintained and replaced where necessary.
Designing out waste – ensuring that waste reduction is planned in from project inception to completion.
Designing for longevity
Designing for adaptability or flexibility
Designing for disassembly
Using systems, elements or materials that can be reused and recycled
If you’re delivering a scheme in London, there are now additional considerations:
Do you need a Circular Economy Statement? Check the London Plan thresholds — referable schemes (e.g. large-scale schemes, tall buildings or buildings on Green Belt) are expected to include one.
Have you considered retention first? Can any existing structure or facade elements be retained or adapted rather than demolished?
Is your facade designed for disassembly? Use connection details that allow removal without damage, specify reversible fixings and avoid permanent bonding where reuse is intended.
Do you have a materials strategy? Material passports, inventory schedules and reuse pathways should be traced from design through to site management.
Have you considered whole-life carbon and circular cost benefits? Early-stage analysis commonly shows that reuse and repair reduce embodied carbon and can lower long-term lifecycle costs.
London's Circular Economy Framework: benefits for developers and clients
If embraced and incorporated from the early design and planning stages, a circular framework can deliver many benefits:
Lower embodied carbon: By retaining existing structures and reusing components, you can reduce some of the emissions associated with new material production.
Reduced waste and disposal costs: By designing for reuse and deconstruction you can reduce waste and landfill costs on site.
Planning certainty and faster approvals: A robust Circular Economy Statement and clear materials strategy can streamline the planning process.
New revenue and PR opportunities: Salvaged high-value components (stone, metal, glazing units) can be reused or sold. Clients championing and demonstrating a commitment to the circular framework can benefit from positive sustainability credentials.
It is our belief that London’s move to embed circular economy principles into planning and procurement should be seen as an opportunity. Developers who act early — by prioritising retention, designing facades for disassembly, and preparing robust Circular Economy Statements — will save carbon, reduce waste, and they could unlock value.
It is important to remember that circularity does not have to compete with performance — it can in fact enhance it. By designing facades that can be easily repaired and reused, we can deliver materials that are easier to maintain and will perform better for years to come. By prioritising retained structures or cladding we can reduce embodied carbon, while saving both time and in some cases money too.
As facade consultants, we can work closely with clients, translating circular policy into resilient, maintainable facades that perform now and keep performing for the long term.
If you’re preparing a planning submission or want help turning circular ambitions into technical deliverables, Henriksen Studio’s facade and sustainability experience can help you meet the new expectations and deliver a smarter, more circular building – for the benefit of all involved.
