Building owners and developers are already making notable progress in leveraging circular building design to achieve climate targets, with an increasing focus on embodied emissions. Through public-private partnerships and leveraging technological advancements, developers can deliver projects that are lower risk and higher quality, while profiting from more climate-resilient and market-adaptable assets.

Businesses that occupy physical space play a crucial role in championing a circular built environment and promoting circular economy awareness more widely. Through their company policies and the way they use their buildings, they can reduce their own impact and drive circular outcomes.

Our report, Building Prosperity, focuses on Europe’s built environment and shows how a targeted set of six circular economy strategies can unlock billions of Euros in economic opportunity for the continent, increasing resilience, competitiveness, and the prosperity of its cities, all while providing widespread benefits to society and nature.

A circular economy approach helps businesses to see new opportunities in existing assets. 

‍By revitalising brownfield sites and vacant commercial assets, businesses can realise EUR 101 billion of annual revenue. This has a positive knock-on effect on surrounding areas, helping to boost footfall, enhance local vibrancy and increase productivity. This can run to a EUR 117 billion increase in annual revenue to city centre shops, restaurants, bars, and cafés.

As of 2023, 8% of European office space is permanently vacant. An ambitious office-to-residential conversion programme could counter the 10–20% Covid-related reduced foot traffic near stores located in downtown metropolitan areas, generating an additional EUR 80 billion for Europe’s brick-and-mortar businesses.

Additionally, increasing tree canopy cover and green spaces in cities can help mitigate the urban heat island effect, leading to improved health, more comfortable working conditions, and lower rates of absenteeism, with an estimated EUR 11 billion in productivity benefits.

Acting now can deliver real returns in the present, while also laying resilient foundations against future challenges. 

From optimising the use of current asset portfolios and opting for low-impact materials, to expanding green spaces around existing buildings, asset owners have huge potential to improve efficiency and capture more value while reducing their material use and climate and nature impacts. These actions boost competitiveness and resource productivity, and increase resilience by reducing dependence on imported critical raw materials. 

This report highlights a set of calls to action specifically for businesses, including asset owners and occupiers.

Asset owners

1. Complete a horizon scan of existing portfolios to seek sites with the greatest potential. 
2. Integrate circular principles into core business strategies. 
3. Play an active role in urban stewardship.

Asset occupiers

1. Establish comprehensive company policies that champion circular leasing and construction practices. 
2. Promote circular economy awareness. 
3. Optimise current building portfolios to reduce the need for new construction and advocate for more green spaces.