Driving circular procurement in Australia's built environment
A roadmap for property and construction industry participants seeking to embed circular economy principles into procurement practices.
Circular procurement has an important role to play in Australia’s transition to net zero through its ability to reduce the environmental footprint of the built environment. This guide provides tools and knowledge to empower industry professionals to transform their sustainability ambitions into action.
A practical guide to circular procurement
March 2025
A practical guide to circular procurement for new buildings and major refurbishments was developed by the Green Building Council of Australia and GHD with support from the CEFC, Department of Climate Change, Energy, the Environment and Water NSW, Department of Environment, Tourism, Science and Innovation Queensland and Green Industries South Australia.
Read moreProcurement decisions we make today shape the sustainability of buildings and cities of the future. By sourcing materials responsibly, prioritising durability and reusability, and reducing reliance on virgin resources, we can drive long-term environmental and economic benefits.Davina RooneyChief Executive, GBCA
about the industry
Circular procurement opportunities in Australia's construction industry
The construction industry is responsible for 40 to 50 per cent of raw materials globally1 and of this, it’s estimated that only 30 per cent of materials are currently recycled. 2
With a circularity rate of four per cent3, Australia has considerable potential to build its circular economy and foster new industries and technologies to boost Australia’s role in the global economy.
The circular economy transition represents an opportunity to tackle the shared global challenges of decarbonisation, climate change, biodiversity loss and pollution.
By designing out waste leakages, prioritising closing resource loops across the value chain and regenerating natural systems, the circular economy aims to deliver economic and environmental benefits through retaining resource value rather than losing it to landfill.
Materials used in construction are a major source of embodied carbon and resource consumption. By rethinking the selection and sourcing of construction materials, we can significantly cut waste, lower emissions, and enhance building resilience.Michael Di RussoHead of Property, CEFC
1. 2022 Global Status Report for Buildings and Construction, United Nations Environment Program
2. Building a world free from waste and pollution, Ellen Macarthur Foundation
3. Australia’s circular economy comparative and competitive advantages, CSIRO
report findings
A guide that bridges the gap
There is a notable gap between awareness of circular economy principles and project level implementation.
The Practical guide to circular procurement is designed for developers, architects, procurement managers and government agencies to empower them to make informed decisions that minimise waste and pollution, reduce embodied carbon, circulate products at their best value for longer and extend the life cycle of our buildings.
The guide provides:
- An understanding of the context of circularity in Australia today. Building and demolition waste is the largest waste stream in Australia, accounting for 35 per cent of all waste. The built environment can achieve a circular economy by circulating products and services along the supply chain through repair, maintenance, reuse, refurbishment or recycling.
- Key circular design strategies across the building life cycle. From design for disassembly, through to product-as-a-service the guide outlines eight practical ways waste can be reduced throughout a building’s lifecycle and supply chain.
- Examples of brief and contract wording and clauses to drive circular procurement outcomes. Examples cover clauses for the planning, design, tender, construction and use and operation stages.
- Case studies that demonstrate circular procurement in action. Examples include Uniting on Second in Bowden, South Australia, Midtown Centre in Brisbane and First Building – Bradfield City Centre in Western Sydney.
