Reuse can make the construction sector more circular

Many industries are grappling with how to adapt their operations to a circular economy. The construction and real estate sector, which is responsible for around a fifth of Sweden's climate impact, is one of them.

However, this is not new to the sector; for example, a higher degree of re-use of building materials has been on the table for some time, but the way to get there has proved to be fraught with challenges.

"It is a question of both market and technical aspects. A fundamental parameter for enabling a transition is that there is demand. Otherwise it will be difficult to motivate investment in supply," says Pernilla Dahlman, Senior Business Advisor and Head of the Circular Business Lab at RISE.

However, there are clear signs that demand is emerging, not least thanks to regulatory drivers.

"For example, in the Climate Calculation Act for Buildings, reuse is becoming an enabler. "If you, as a building owner, use a higher proportion of recycled building products, this results in a lower climate impact in the climate calculation," says Johan Bergström, project manager for construction and real estate at RISE.

Fragmented market

Management and logistics also need to be developed in a more circular construction sector.

Johan Bergström notes that there are digital platforms that individually manage the inventory and sale of building materials.

"But the challenge is that it can be difficult for supply and demand actors to find each other. The market for reuse can be perceived as fragmented.

Another aspect that is obviously very important is the nature of the material itself. Is it really suitable for reuse?

"It can be difficult if the houses were not built with reuse in mind. But the most important thing is to ensure that the material meets the requirements - from chemical content and fire safety to U-values and strength," says Johan Bergström.

Defining quality criteria

Quality assurance therefore becomes an important parameter to increase the chances of reuse.

"When it comes to new products, there are clear rules for what applies, but it is often unclear what applies to reused material.

"It is therefore important to work on establishing standards and quality criteria," says Johan Bergström.

"At RISE, we have many years of experience in everything from material issues to reuse, as well as special expertise in circular business models. So we've managed to build up a good level of expertise on how we need to proceed in order to move forward," he says.

Potential in reuse

Pernilla Dahlman emphasises that there are clear benefits for companies that invest in adapting their operations to increase reuse.

"Those who start early and set up processes for taking back and remanufacturing products, for example, can often also link up with other suppliers' products, securing both access to materials and valuable customer relationships. From a pure brand perspective, this is of course also very beneficial," she says.

Johan Bergström believes that the best thing for a company in the industry is to start small.

"In the current situation, there is great potential to learn from each other, either through various pilot projects or by working together in business networks," he says.

"RISE has taken on the role of bringing together actors who are interested in increasing their focus on reuse," says Pernilla Dahlman.

"We have a rather unique role in this context, also thanks to our interdisciplinary expertise and solid testing activities. Through our various partnerships and cooperation forums, there are good opportunities for business development and exchange of experience," she says.