21 July 2020

Build Back Better: circular shared value creation for Real Estate

Build Back Better is the white paper that summarizes these almost two years collaboration between KPMG Netherlands and EIG. It started with the adaptation of the True Value indicators to the circular building context, in particular, to the Lean2Cradle framework that EIG developed for Construcía. Afterwards, it evolved into the Lean2Cradle® True Value toolkit to enable Circular Shared Value creation for real estate.

During this collaboration, both companies understood the relevance of this work and the impact it might have on the real estate management. The Build Back Better white paper intends to share the background of the L2C True Value approach and the possibilities of value creation when applying systemic thinking.

 

The 5 core principles for Circular Shared Value Creation

The real estate industry is a significant contributor to global wealth and has a significant impact on the world around us and the way we live our lives. The sector is responsible for approximately 40% of material use, 40% of energy consumption and 30% of global GHG emissions and has a great responsibility to keep our planet liveable. Real estate owners and developers need to address urgent and longer term matters caused by exceeding both social and ecological planetary boundaries, such as climate change, resource scarcity and ecosystem decline. The only way to succeed is by embracing the principles of the circular economy and aim for a low carbon, healthy and regenerative built environment that creates shared value through resilient real estate.

We’ve identified 5 core principles to enable circular shared value creation through real estate management:

5 core principles to create shared value

 

Lean2Cradle® True Value toolkit: enabling Circular Shared Value creation for Real Estate

KPMG and EIG have developed the Lean2Cradle® True Value toolkit to create resilient real estate, based on the principles of Lean Management¹, the Cradle to Cradle² philosophy and KPMG’s True Value³ methodology. These approaches have in common that they provide a holistic view on value creation and are most effective when they are translated into a mindset aimed at continuous improvement that runs through the whole organization. When combined they translate to an approach with the circular economy principles at its core.

The Lean2Cradle® True Value toolkit can be applied from material selection and product development to real estate portfolio management. Through smart use of digital applications, circularity can be assessed, improved and monitored throughout the use cycle and beyond. The Lean2Cradle® True Value toolkit provides clear insights in current and future business and societal value of real estate, enabling optimal use of resources before, during and after the intended use cycle of the real estate.

 

1. Womack, J. P., Jones, D. T., & Roos, D. (1990). The Machine that Changed the World.
2. McDonough, W., & Braungart, M. (2009). Cradle to Cradle: Remaking the Way We Make Things.
3. KPMG. (2014). A New Vision of Value: Connecting corporate and societal value creation.

 

Read the full whitepaper here:

Build Back Better – Route to resilient and circular real estate management