From liabilities to opportunities: five critical insights into the circular economy

How do we meet pressing sustainability targets while balancing economic pressures and resource constraints? The circular economy - where waste is designed out, materials are repurposed, and environmental impacts are minimised - holds the answers, argues Dr. Ashwin Joshi, Senior Carbon Consultant and Alexandra Evans, Associate Circular Economy and Waste Management Consultant.

Circularity is no longer a niche concept. Ambitious climate goals, uncertain supply chains, and changing regulatory expectations mean projects are already under pressure to do more with less. And with new technologies, advanced digital tools, and better governance models, embedding circular principles today is not only achievable but strategically advantageous.

Yet adoption remains inconsistent and established mindsets, perceived complexity, and outdated value frameworks still pose barriers. To realise circularity’s full potential, businesses must understand its benefits, practicality, and opportunities. We’ve summarised these through five critical insights.

Circularity transforms liabilities into valuable resources

Circularity goes beyond repurposing and recycling - it fundamentally shifts how we value resources. Progressive concepts, such as ‘Buildings as Material Banks’ or digital ‘material passports’ reimagine infrastructure as assets to manage for the longer term rather than liabilities to discard.

For instance, when a steel bridge reaches the end of its current operational life, quality-assured components can be refurbished and repurposed into new local infrastructure, such as pedestrian or cycle bridges. This approach shifts economic value from costly consumption of new materials toward conservation of existing assets - saving money, reducing environmental impacts, and promoting more efficient resource use.

The circular economy isn’t just good practice, it’s good economics 

The economic case for the circular economy is increasingly compelling. Disruptions from COVID-19 logistics bottlenecks to fluctuating prices for wood, steel, and rare earth materials underscore the fragility of traditional supply chains.

Circular practices can reduce exposure to this volatility. They also unlock new commercial opportunities. Local authorities or large landowners could use empty spaces to temporarily store materials between transitions, for instance.

Furthermore, circularity helps insulate against indirect costs in a shifting regulatory landscape. Take the EU’s Carbon Border Adjustment Mechanism (CBAM), which comes into effect from 2026. While implementation details may vary, the policy marks a clear direction of travel.

Circularity is complex but achievable

Deploying circular principles isn’t always straightforward. Implementing circularity involves managing complexities around quality, durability, logistics, and storage of repurposed materials. Effective circular projects therefore rely on strategic planning and inter-disciplinary collaboration among designers, engineers, quality assessors, and supply chain experts.

Dedicated expertise will be essential; by investing in capabilities such as material passports, rigorous due diligence, and robust quality assurance, clients and contractors can build the necessary trust and confidence. With thoughtful preparation, what seems complex can become manageable and ultimately an everyday norm.

Circular approaches deliver extensive environmental and social benefits

Circularity directly contributes to wider frameworks for value as traditional construction practices are dependent on finite resources and carbon-intensive processes. From the direct costs of extreme weather events to the productivity impacts of degraded ecosystems, the financial risks of climate change are mounting. By reducing environmental harm and promoting resource efficiency, circular models help mitigate these long-term liabilities.

Moreover, a circular approach strengthens local economies. By reusing materials close to where they’re recovered, it helps retain skills, create local employment, and reduce reliance on external supply chains therefore laying the groundwork for resilient, thriving communities.

Circularity provides a clear competitive edge

Circular economy practices are increasingly mandated, notably through policies like the Greater London Authority’s required Circular Economy statements. But early adopters will gain immediate competitive advantages: stronger ESG credentials, transparent carbon reporting, and future gains through emerging carbon markets.

Proactive organisations will be able to shape - not just react to - the emerging circular economy, positioning them to reduce their risks, define new markets, and capitalise on its many benefits.

Unlocking the opportunity

At AtkinsRéalis, we understand that shifting from consumption to sustainable value creation is an engineering challenge that demands multidisciplinary expertise. Drawing on early experiences on projects like Crossrail where we collaboratively challenged engineering standards to reduce waste and concrete usage, our experts now help organisations adopt circular practices practically and confidently.

This shift will also drive innovation. Cement2Zero, a pioneering UK demonstrator project, exemplifies how creative, circular thinking can transform construction, using construction and demolition waste as a feedstock to substantially reduce emissions from concrete.

While barriers exist, so too do clear, urgent, and increasingly compelling benefits. By embedding circular principles and frameworks across projects, businesses can unlock long-term economic, environmental, and social value. Circularity is a long, ongoing journey, but one where the rewards are well worth the effort.