Circular Economy: Transforming Facilities Management in 2023

In the world of facilities management, there’s a transformative concept that’s gaining momentum – the Circular Economy. But what exactly is it, and more importantly, how can it revolutionize the way we manage our facilities in 2023 and beyond?

The Circular Economy is a sustainable business model that aims to keep resources in use for as long as possible, extract the maximum value from them while in use, and then recover and regenerate products and materials at the end of each service life. It’s a departure from the traditional ‘take-make-waste’ linear model, offering a more sustainable and efficient way of doing things.

For facilities management professionals, embracing the circular economy could mean significant changes. It could mean rethinking how we design our buildings, how we manage our resources, and even how we engage with our stakeholders. It’s about creating a system that’s not just efficient, but also sustainable and resilient.

In this guide, we’ll delve deep into the concept of the circular economy, explore how it’s transforming facilities management, and provide actionable strategies for implementing it in your own operations.

Let’s dive right in!

Understanding the Circular Economy

The circular economy is a transformative concept that fundamentally challenges our traditional economic model. To fully grasp its significance, let’s first take a look at the conventional approach, often referred to as the linear economy.

The linear economy operates on a ‘take-make-waste’ principle. It begins with the extraction of raw materials, which are then transformed into products. Once these products have served their purpose, they are discarded as waste. This model is inherently unsustainable, as it relies on a continuous supply of resources and results in a significant amount of waste.

In stark contrast, the circular economy proposes a more sustainable and efficient model. It advocates for a system where waste is minimized by keeping resources in use for as long as possible. This is achieved through a variety of strategies, including:

  • Sharing: Instead of every individual or business owning their own assets, resources are shared. This could be as simple as a carpooling service or as complex as shared office space.
  • Leasing: In a circular economy, businesses might lease products instead of selling them. This ensures that the product is returned to the manufacturer at the end of its life, where it can be refurbished or recycled.
  • Reusing: Products are designed and used in a way that extends their life. For example, a glass bottle could be reused multiple times before it needs to be recycled.
  • Repairing: When products break down, they are repaired instead of being replaced. This extends the product’s life and reduces waste.
  • Refurbishing: Products are updated or improved, extending their life and improving their value.
  • Recycling: When a product can no longer be used, its materials are recovered and used to create new products.

The circular economy is akin to nature’s own cycle, where nothing goes to waste. Everything is part of a continuous loop. It’s a system that not only reduces waste and conserves resources but also unlocks new business opportunities and drives economic growth. It’s a win-win scenario for businesses, consumers, and the environment.

Circular Economy & Facilities Management

The circular economy and facilities management may seem like two distinct concepts, but they are intrinsically linked. To understand this connection, let’s first delve into the role of facilities management.

Facilities management is a multidisciplinary field that focuses on the efficient and effective delivery of support services for the organizations it serves. It involves the coordination of space, infrastructure, people, and organization, often associated with the administration of office blocks, arenas, schools, universities, hospitals, hotels, malls, and the like. The goal is to ensure the smooth operation of the built environment, enhancing functionality, comfort, safety, and efficiency.

Now, let’s consider the circular economy’s principles of minimizing waste and maximizing resource use. These principles align perfectly with the objectives of facilities management. After all, an efficiently run facility is one that makes the best use of its resources and generates minimal waste.

So, how does the circular economy fit into facilities management? It provides a sustainable blueprint for managing facilities. This involves strategizing to eliminate waste and pollution, ensuring the prolonged utilization of products and materials, and actively contributing to the restoration of our natural ecosystems. In practical terms, this could mean implementing energy-efficient systems, using sustainable materials in construction and renovations, or setting up robust recycling programs within the facility.

For example, a facilities manager might opt for LED lighting to reduce energy consumption or choose furniture made from recycled or easily recyclable materials. They might also implement a system for collecting and recycling waste generated in the facility, such as paper, plastic, or electronic waste.

In essence, the circular economy offers a way to make facilities management not just efficient, but also sustainable. It’s about doing more with less and ensuring that our facilities contribute to a sustainable future. It’s a shift from a ‘business as usual’ approach to one that considers the entire lifecycle of the facility and its operations.

Implementing Circular Economy in Facilities Management

Transitioning to a circular model in facilities management is a transformative process that requires careful planning and execution. It’s not an overnight change, but a journey that unfolds over time. Here’s a detailed step-by-step process to help you navigate this journey:

  1. Audit: The first step in this journey is to understand your current operations. This involves conducting a thorough audit of your facilities and processes. How much waste do you generate? What resources do you consume? Where are the opportunities to reduce, reuse, or recycle? This audit should cover all aspects of your operations, from energy use and waste generation to procurement and maintenance practices. The goal is to identify areas where you can implement circular economy principles.
  2. Plan: Once you’ve conducted your audit, the next step is to develop a strategy. This strategy should outline how you plan to implement circular economy principles in your facilities management. It could involve choosing more sustainable materials for your buildings, improving energy efficiency with better systems and practices, or implementing robust waste management programs that prioritize reduction, reuse, and recycling. Your plan should be clear, actionable, and aligned with your organization’s overall goals.
  3. Implement: With your plan in place, it’s time to put it into action. This could involve a range of activities, from training staff on new procedures and practices to investing in new technologies or equipment that support your circular economy goals. You might also need to redesign certain processes or systems to make them more efficient and sustainable. Remember, change often takes time and requires buy-in from all stakeholders, so clear communication and engagement are key during this stage.
  4. Review: Implementing a circular economy model is not a one-time task, but an ongoing process. Regularly review your progress against your goals. Are you reducing waste and using resources more efficiently? Are your new systems and processes working as expected? Use these reviews to celebrate successes, identify challenges, and make necessary adjustments. Continuous improvement is at the heart of the circular economy model.

To illustrate this process, let’s consider a real-world example. A company realized during their audit that their traditional lighting systems were consuming a significant amount of energy. They developed a plan to switch to energy-efficient LED lighting across all their facilities. After implementing this change, they not only reduced their energy consumption but also saved on costs in the long run. This is just one example of how the principles of the circular economy can be applied in facilities management. The possibilities are as diverse as the facilities we manage.

Circular Economy Tools & Technologies

In the era of digital transformation, technology plays a pivotal role in the transition to a circular economy. It provides the tools and capabilities needed to monitor, manage, and optimize resource use, making the implementation of circular economy principles more feasible and effective. Here’s a closer look at some of the key technologies that are driving this transition:

  1. Energy Management Software: This type of software allows facilities managers to monitor and control energy use across their buildings. It can identify patterns of energy consumption, highlight areas of inefficiency, and suggest measures to reduce energy use. For instance, it might suggest optimal times to run certain equipment or recommend temperature settings that balance comfort and energy efficiency.
  2. Internet of Things (IoT) Devices: IoT devices, such as smart meters and sensors, can provide real-time data on various aspects of a facility’s operations. This could include data on energy use, water consumption, waste generation, and more. By providing a detailed, real-time picture of resource use, these devices can help facilities managers identify opportunities for improvement and track the impact of their circular economy initiatives.
  3. Building Information Modeling (BIM): BIM is a digital representation of the physical and functional characteristics of a facility. It can be used to optimize the design, construction, and operation of buildings, making them more efficient and sustainable. For instance, BIM could be used to design a building that maximizes natural light, reducing the need for artificial lighting.
  4. Waste Tracking Systems: These systems help facilities managers monitor their waste generation, sorting, and disposal. They can identify trends in waste generation, highlight opportunities for waste reduction or recycling, and ensure compliance with waste management regulations. For example, a waste tracking system might reveal that a large proportion of a facility’s waste is paper, prompting the facility to implement a paper recycling program or a policy to reduce paper use.
  5. Cloud Computing and Data Analytics: Cloud-based platforms and data analytics tools can help facilities managers collect, store, and analyze data from various sources. This can provide valuable insights into resource use and waste generation, guiding decision-making and strategy development.

These technologies are not just tools for implementing the circular economy. They are catalysts for change, driving the transformation of facilities management towards a more sustainable and efficient future. By leveraging these tools, facilities managers can turn the principles of the circular economy into a practical reality.

Legal & Regulatory Considerations

The journey towards a circular economy in facilities management isn’t solely about changing operational practices. It also requires a keen understanding of the legal and regulatory landscape. These laws and regulations can significantly influence your approach to implementing circular economy principles. Here’s what you need to know:

  • Waste Management Regulations: Many jurisdictions have strict regulations around waste disposal. These regulations dictate how different types of waste should be handled, stored, transported, and disposed of. Non-compliance can result in hefty fines and penalties. Therefore, as you plan your transition to a circular economy, it’s crucial to understand these regulations and ensure your waste management practices are compliant.
  • Environmental Laws: Environmental laws aim to protect the environment and promote sustainable practices. They cover a wide range of issues, from air and water pollution to energy use and conservation. As a facilities manager, you need to ensure your operations comply with these laws. This might involve obtaining necessary permits, conducting environmental impact assessments, or implementing measures to reduce your environmental footprint.
  • Incentives and Support: On the flip side, many governments and industry bodies offer incentives and support for businesses that adopt sustainable practices. These could include tax breaks, grants, low-interest loans, or technical assistance. Such incentives can help offset the costs of transitioning to a circular economy and provide a significant boost to your efforts.
  • Industry Standards and Certifications: Industry standards and certifications, such as LEED or BREEAM, provide a framework for implementing sustainable practices in facilities management. While not legally required, these certifications can enhance your reputation and demonstrate your commitment to sustainability.
  • Supply Chain Regulations: If you’re sourcing materials or services from third parties, you need to be aware of any regulations that apply to your supply chain. This could include regulations around the use of certain materials, labor practices, or environmental impacts.

Navigating the legal and regulatory landscape can be complex, but it’s a crucial part of transitioning to a circular economy. By understanding these factors, you can plan your transition more effectively, avoid potential pitfalls, and take full advantage of the opportunities that the circular economy presents.

Impact of Circular Economy on Facilities Management

As we gaze into the future, the year 2023 promises to be a pivotal time for facilities management, with the circular economy at the forefront of this transformation. The impact of the circular economy on facilities management is multi-faceted, bringing about changes in technology, processes, and roles. Here’s what we can anticipate:

  • Technological Advancements: Technology is a key driver of the circular economy. As we move into 2023, we can expect to see an increase in the adoption of technologies that support circular economy principles. This could include advanced energy management systems, IoT devices for real-time resource monitoring, and software for tracking and managing waste. These technologies will not only make it easier to implement circular economy principles but also drive efficiency and cost savings.
  • Process Redesign: The circular economy requires us to rethink our traditional processes. In 2023, facilities management professionals will likely be exploring new ways of doing things that align with circular economy principles. This could involve redesigning waste management processes to prioritize reduction and recycling, or rethinking procurement processes to favor sustainable and recyclable materials.
  • Role Redefinition: The shift to a circular economy will also impact roles within the facilities management team. For instance, facilities managers may need to take on a more strategic role, overseeing the implementation of circular economy principles and driving sustainability initiatives. At the same time, new roles may emerge, such as sustainability coordinators or circular economy specialists.
  • Emphasis on Sustainability: As the circular economy gains traction, sustainability is becoming a key focus area in facilities management. In 2023, facilities management professionals will likely be under increasing pressure to demonstrate their sustainability credentials. This could involve achieving industry certifications, meeting regulatory requirements, or simply showcasing their circular economy initiatives.
  • Opportunities for Innovation: The circular economy is not just about challenges. It’s also about opportunities. As we move into 2023, facilities management professionals have a unique opportunity to innovate and drive change. This could involve developing new services or business models based on circular economy principles, or finding creative ways to reduce waste and resource use.

In essence, the circular economy is reshaping the landscape of facilities management. As we step into 2023, facilities management professionals will need to adapt, innovate, and seize the opportunities that the circular economy presents. It’s a journey that promises to be challenging, exciting, and ultimately rewarding.

Measuring Success in a Circular Economy

Measuring success in a circular economy involves a shift in perspective. It’s not just about financial performance or operational efficiency, but also about sustainability and resource optimization. Here’s how you can measure and track success when implementing circular economy principles in facilities management:

  1. Define Your Goals: The first step in measuring success is to define what success looks like for your organization. This could involve reducing waste, increasing resource efficiency, or improving sustainability. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART).
  2. Identify Key Performance Indicators (KPIs): Once you’ve defined your goals, you need to identify KPIs that will help you track your progress towards these goals. KPIs are quantifiable measures that reflect the performance of your organization in a specific area. In the context of the circular economy, KPIs would include:
    1. Waste Reduction: This could be measured as the percentage reduction in waste generated by your facilities.   
    2. Resource Efficiency: This could be measured as the reduction in resources used per unit of output. For instance, you might measure the amount of energy used per square foot of your facility.   
    3. Recycling Rate: This measures the percentage of waste that is recycled or composted.   
    4. Procurement of Sustainable Materials: This could be measured as the percentage of materials procured that are recycled, recyclable, or sustainably sourced.   
    5. Energy Efficiency: This could be measured as the reduction in energy consumption or the increase in the use of renewable energy.
  3. Track Your Progress: With your KPIs in place, you can start tracking your progress. This involves collecting data on a regular basis and comparing it against your goals. You might choose to track your KPIs on a monthly, quarterly, or annual basis, depending on what makes the most sense for your organization.
  4. Review and Adjust: Measuring success is not a one-time task, but an ongoing process. Regularly review your progress and make adjustments as necessary. If you’re not meeting your goals, you might need to rethink your strategies or invest in new technologies. If you’re exceeding your goals, you might choose to set more ambitious targets.

Remember, the journey towards a circular economy is a marathon, not a sprint. Success is not just about reaching your destination, but also about the progress you make along the way. By defining your goals, identifying KPIs, tracking your progress, and making adjustments as necessary, you can navigate your journey towards a circular economy with confidence and clarity.

Community & Collaboration

The transition to a circular economy is indeed a collective journey. It requires the active participation and collaboration of various stakeholders, each playing a crucial role in driving the shift towards more sustainable practices. Here’s how community and collaboration come into play:

  • Employees: Employees are the backbone of any organization, and their engagement is critical to the success of any circular economy initiative. This could involve training and education programs to instill a culture of sustainability, or employee-led initiatives to reduce waste and improve resource efficiency.
  • Customers: Customers are increasingly conscious of the environmental impact of their consumption choices. By communicating your circular economy initiatives to your customers, you can not only enhance your reputation but also encourage customers to participate. For instance, you could provide recycling facilities for customers or offer incentives for sustainable behaviors.
  • Local Communities: Engaging with local communities can create shared value and foster a sense of collective responsibility towards the environment. This could involve partnering with local schools or community groups on environmental projects, or collaborating with local businesses on shared sustainability initiatives.
  • Competitors: While it may seem counterintuitive, collaborating with competitors can drive progress towards a circular economy. This could involve industry-wide initiatives to standardize sustainable practices, or joint research and development projects to create new circular economy solutions.
  • Government and Regulatory Bodies: Engaging with government and regulatory bodies can help shape policies and regulations that support the circular economy. This could involve participating in policy consultations, or collaborating on pilot projects to demonstrate the feasibility of circular economy practices.

By fostering a culture of collaboration, facilities managers can drive collective action towards a more sustainable future. This not only amplifies the impact of their own circular economy initiatives but also contributes to a broader societal shift towards sustainability. For instance, a facilities management team might collaborate with local businesses to set up a shared recycling program, creating a win-win situation for all. In this way, the transition to a circular economy becomes a shared journey, with each stakeholder playing a part in shaping a more sustainable future.

Embrace the Power of Circular Economy

Navigating the path to a circular economy in facilities management may seem daunting. You might be grappling with questions about cost, feasibility, and the sheer scale of change required. But remember, every journey begins with a single step. And you’re not alone on this journey.

The circular economy isn’t just a trend—it’s a revolution in how we think about and manage our resources. It’s about creating a system that’s not just efficient, but also sustainable, resilient, and beneficial for all stakeholders.

So, are you ready to take that first step? To embrace new ways of doing things, to challenge the status quo, and to drive change in your organization? The benefits are clear: reduced waste, improved efficiency, cost savings, and a stronger reputation for sustainability.

The future of facilities management is circular. And it starts with you. So, why not take that first step today?


To help you continue your journey towards a circular economy, I’ve compiled a list of resources. Whether you’re just starting out or looking to deepen your knowledge, these resources can help you navigate your path.

  1. Ellen MacArthur Foundation – Education and Learning:The Ellen MacArthur Foundation offers a wealth of resources on the circular economy, including educational materials, case studies, and research reports. These resources can help you understand the principles of the circular economy and how to apply them in practice.
  2. U.S. Green Building Council – Courses and Events :The U.S. Green Building Council offers a range of courses and events on green building and sustainability. These include on-demand courses, live events, and exam preparation materials for various green building certifications.
  3. International Facility Management Association (IFMA) – Credentials: IFMA offers several credentials for facility management professionals, including the Facility Management Professional (FMP), Sustainability Facility Professional (SFP), and Certified Facility Manager (CFM). These credentials can help you develop your skills and demonstrate your expertise in sustainable facilities management.

This guide has aimed to provide a comprehensive look at the circular economy, specifically tailored to facilities management professionals. It’s a journey, and like any journey, it starts with a single step. So, why not take that step today? After all, the future of facilities management is not just circular, but also sustainable, efficient, and full of opportunities.

About the author

Shaik Ismail, a seasoned Facilities Management Professional and member of IFMA with 20+ years' expertise in leadership, operations, maintenance, sustainability, and project management .

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