Construction has one of the largest environmental footprints of any industry. Globally, it accounts for nearly 40 percent of carbon emissions, driven by both operational energy use in buildings and embodied carbon in materials such as steel and cement. These materials require energy-intensive production processes that contribute significantly to emissions.
Beyond carbon, the industry consumes vast quantities of natural resources, including timber, water, minerals, and metals, often resulting in habitat destruction, biodiversity loss, and ecosystem degradation. Construction and demolition activities also generate an estimated 1.3 billion tonnes of solid waste annually, much of which ends up in landfills.
Energy and water consumption further compound these impacts, particularly in regions already facing resource scarcity. Air, water, and soil pollution from construction activities can also pose risks to human health and surrounding environments.
Circular economy principles help address these challenges by reducing waste, conserving resources, and lowering lifecycle emissions. For developers and contractors, circular construction also supports cost efficiency, regulatory compliance, and long-term asset performance.