The future of the construction and real estate industry is called the circular economy
Although the word is on everyone's lips, only about 10 per cent of Swiss companies are involved in the circular economy. But this holds huge potential - especially for Switzerland's largest waste producer, the construction and real estate industry.
The construction industry produces the most waste in Switzerland with a share of 84 percent. This makes it all the more important to establish the so-called circular economy: the materials and products used in construction should be returned to the cycle after the life cycle of a building. The three “R’s” are decisive: reduce, reuse and recycle. In a functioning circular economy, as little waste as possible is produced. However, according to a study by the economic researchers at the Swiss Federal Institute of Technology (KOF) and the Bern University of Applied Sciences (BFH), only 8 to 12 per cent of Swiss companies are involved in the circular economy.
One company that has dedicated itself to precisely this endeavour is Madaster. in 2017, the company was founded in the Netherlands and expanded to Switzerland a year later as its first international location. Madaster sees itself as a cloud platform that enables users to transparently present the data of their construction projects. Users can create a material passport based on a BIM (IFC) or Excel document. This is possible for new buildings as well as for existing properties. Components and materials used are recorded – the system automatically supplements the data with information on recyclability, separability, sustainability as well as financial value, thus creating a valuable data source. Madaster thus enables the planning and use of buildings as raw material storage facilities. In the long term, this should drastically reduce the amount of waste and CO2 emissions during construction.
The industry recognised the added value of this service early on: “More and more builders and their service providers are using the material passport, creating best-practice examples from which the industry can learn. Because those who build circularly build for the future,” explains Marloes Fischer, CEO Madaster Services Switzerland. The company distinguishes between strategic partners, so-called Kennedys, who have supported the development, launch and implementation of the online platform financially and conceptually, and partners that include developers, architects, contractors, consultants, engineers or banks. “11 Kennedys have supported the launch of Madaster in Switzerland. Currently, Madaster has over 30 partners,” Fischer elaborates. In addition to the Federal Office for Energy and the Environment (Bafu), other well-known names such as Eberhard, Mobimo, Pirmin Jung, Integral Baumanagement AG and Swiss Prime Site are listed among Madaster’s partners and Kennedys.
Enormous potential of the circular economy
Holcim Switzerland is also one of Madaster’s well-known partners. By 2050, the company wants to produce exclusively climate-neutral and fully recyclable building materials. To achieve this transformation, Holcim is working with various levers and clearly defined interim targets for 2030. The company sees enormous potential in the circular economy to effectively address challenges such as climate change or resource scarcity. With innovative solutions, Holcim returns waste to the material cycle and reuses concrete again and again.
For example, Holcim produces the world’s first resource-efficient cement called Susteno 4. Industrially processed mixed granulate is used as a grinding material. In addition, a large part of the fossil fuels is replaced by alternative materials, such as waste or sewage sludge. Since its launch in 2018, cement has become the second-largest product in the Holcim portfolio with a share of 10 percent. The sustainable concrete Evopact is also based on Susteno cement and saves 10 percent CO2 compared to standard concrete. Holcim aims to generate a quarter of ready-mixed concrete sales with this by 2025. Bettina Kallenbach, Marketing Manager Holcim Central Europe West, is convinced: “Concrete will be difficult to replace in the near future. But concrete is a building material that makes sustainable construction possible on a wide variety of levels – as long as you face up to the challenges.”
Holcim has been dealing with topics such as the circular economy, decarbonisation and renewable energy for a long time. Kallenbach is convinced: “For net zero, Carbon Capture and Use and Storage (CCUS) will be an important lever. Holcim is working on scalable measures and solutions in this regard.” In addition, Holcim already operates several recycling processing plants throughout Switzerland. Together with partners, the company is thus pursuing the goal of processing high-quality new building materials for the respective local market from regional excavated material, concrete and mixed demolition waste. At the same time, this increases the use of alternative raw materials and fuels in cement production and saves primary resources and landfill space throughout Switzerland.
Holcim cites the renovation of the Aroser tunnel as an example: the large quantity of contaminated excavated material is processed at the Untervaz cement plant and made into cement, which is then used in the 300-metre-long tunnel. This closes the building material cycle. With its subsidiary “Geocycle”, the company also significantly reduces CO2. With “co-processing” in the plants, the company ensures the thermal utilisation of combustible waste and recycles mineral waste into new clinker and cement. This enabled the group to save around 150,000 tonnes of CO2 in 2021 by recycling 160,000 tonnes of combustible industrial waste in cement production.
Thanks to Madaster, building materials in existing buildings are given an identity and a value
The fact that the circular economy has great potential is also shown by the study mentioned above. According to this study, innovative Switzerland has advantages in creating the transformation and generating sustainable competitive advantages. At present, however, the possibilities and knowledge to adapt existing products and services to a circular economy are often still lacking. The parliamentary initiative “Strengthening the Swiss circular economy” aims to create new framework conditions for a modern and environmentally friendly circular economy. The consultation in October 2022 showed that a large majority welcomes the anchoring of resource conservation and the circular economy in the Environmental Protection Act.
In the construction industry, the focus is currently on recycling, one of several possible entries into circular construction. Fischer says: “The business activities of companies are likely to move increasingly in the direction of manufacturing recyclable products, circular tenders and competitions, and documenting materials and components used in buildings.” Madaster offers a sophisticated tool for the latter in particular. Bettina Kallenbach agrees: “A cadastre of installed materials is an important building block with regard to closing cycles. Future generations must have access to data that shows which building materials are used where and in what quality. This gives building materials in the inventory an identity and a value. Madaster provides the central digital platform for this.”
Considering that Switzerland aims to halve greenhouse gas emissions by 2030 and that emissions from transport, buildings and industry must be reduced by up to 90 per cent to achieve climate neutrality in 2050, sustainable and circular working becomes all the more important. The first companies like Holcim are setting a good example. But here the entire real estate and construction industry has the chance to take a pioneering role.
