Building circular supply chains: Practical strategies for more sustainable construction

(Photo credit: Nicholas Knight courtesy of Empire State Development)

Every project begins with a supply chain, and the decisions made long before construction starts have a profound impact on carbon emissions, waste generation, resource consumption and social outcomes.

As our industry works toward a lower-carbon, more resilient future, one principle is becoming increasingly clear: the future of construction is circular. Circularity challenges us to keep materials in use for as long as possible through reuse, repurposing and responsible sourcing. It’s a practical strategy that reduces environmental impacts while often creating economic and community value along the way.

The good news is that this future is already taking shape. Across the construction industry, owners, designers, contractors and suppliers are demonstrating that sustainable supply chains are not only possible, but essential.

Understanding the supply chain

The first step in creating a more sustainable supply chain is understanding that a responsible supply chain extends far beyond carbon. It also considers healthy building materials, ethical labor practices, transparency and social impact.

There are various resources and tools that help evaluate products through a broader lens and allow project teams to make more informed decisions about their supply chain. Organizations such as Mindful MATERIALS, Design for Freedom by Grace Farms and the Supply Chain Sustainability School are helping companies build the knowledge and capabilities needed to drive meaningful change.

Defining success, together

Education alone, however, is not enough.

Success depends on alignment. Sustainability goals must be clearly defined and shared across the entire project team.

When developers establish expectations early, whether around Environmental Product Declarations (EPDs), Health Product Declarations (HPDs) or broader sustainability criteria, owners, designers, contractors and suppliers can collaborate toward common outcomes rather than reacting to requirements late in the process. Clear standards create accountability, improve transparency and enable innovation.

Minimizing waste with circularity practices

Construction generates waste, but many of the materials we discard still retain value. With thoughtful planning and collaboration, existing materials can often serve a second life rather than being sent to landfills.

We've seen remarkable examples of this approach in action.

At Moynihan Train Hall in New York City, roughly 70% of the original stone façade material was salvaged and reused, preserving both resources and historic craftsmanship. At the Kendeda Building for Innovative Sustainable Design in Atlanta, lumber from an old movie set was repurposed into nail-laminated timber panels.

At Portland International Airport, project teams worked with local recyclers to transform wood waste into finished products, while the terminal's iconic mass timber roof utilized locally and regionally sourced wood. And at the University of Portland's Shiley-Marcos Center for Design & Innovation, an adaptive reuse strategy reduced embodied carbon emissions by 42 percent.

These projects demonstrate that circularity is a proven strategy that can reduce waste, conserve resources, and honor the craftsmanship and materials already embedded in our built environment.

Prioritizing transparency and accountability

The industry has made significant progress in developing tools that help teams understand the impacts of materials and procurement decisions.

One powerful example is the Embodied Carbon in Construction Calculator (EC3), which enables project teams to compare material carbon footprints and identify lower-carbon alternatives using publicly available data. At Norton Rose Fulbright Tower in Houston, the tool helped achieve a 34 percent reduction in embodied carbon through material substitutions.

Collaboration across the industry is key

Yet, no single company can transform the supply chain alone.

Systemic change requires collaboration across the entire industry. Educational initiatives and working groups create opportunities to share knowledge, establish common standards and accelerate adoption of best practices.

Efforts such as the General Contractors of America (AGC) Task Force on Decarbonization and Carbon Reporting highlight the importance of collective action in addressing some of our industry's most complex challenges.

Setting a higher standard for our supply chain

The path forward is not about perfection. Sustainable supply chains are built over time through continuous improvement, stronger partnerships and a willingness to rethink established practices.

What gives me optimism is that we already have many of the tools, examples and proven strategies we need. The challenge now is scaling them.

By embracing circularity, demanding greater transparency, aligning stakeholders around clear goals and collaborating across the industry, we can build supply chains that are more resilient, responsible and sustainable.

Learn more about circular supply chain strategies from Skanska at booth #1407 during Greenbuild or visit Skanska's website.