Towards a circular construction industry: A study of strategies a contractor can implement to lead the transition to circular economy

Abstract

The climate challenges the world is facing are a fact and sustainability is becoming more prioritized in companies’ agenda. A large part of the global emissions is coming from the construction industry. The construction industry uses many resources at the same time as it produces a lot of waste. Hence, there is a need for a transition from the current linear economy to a circular economy. The thesis aims to investigate which strategies contractors in construction can implement to lead the transition to a circular economy and recommend a potential circular business model. It is done by investigating the gap between the current status of where Skanska and the construction industry today and identifying what is needed to change in order to reach a sustainable future. Through the identified gaps strategies are formulated and an analysis of the value chain is conducted to be able to recommend a potential circular business model for the company. The study was conducted using the backcasting methodology to be able to envision the future state and formulate strategies to reach that scenario. Interviews with persons within the company, internal seminars, and literature have been used as support during the backcasting process. The main findings of the thesis were that there are currently several barriers but also opportunities and great potential for circularity at Skanska and in the construction industry. When the current status was assessed, five actions Skanska could take to lead the transition to a circular economy were identified; Implement circular design, Develop competence within circularity, Ensure a circular value chain, Manage circular practices and Track the circular development. From the actions identified, strategies were formulated with the potential to reach the actions and thereby connect the current situation with the future state. Lastly, a potential circular business model was recommended to the company.