Empowering Facility Managers: Actionable Steps to Collaborate with Finance and Procurement for Circular Economy Success

Many facility managers seek greater sustainability, often adopting circular-economy practices to lower future maintenance and repair costs. As a result, many teams now use materials and products that can be easily recycled at the end of their life cycle. However, recyclability is just one component to consider when transitioning from a linear (Take-Make-Use-Waste) to a circular economy model, which has no beginning or end.

The Ellen MacArthur Foundation says the circular economy decouples economic activity from finite resource use, minimizes waste, and creates natural, financial, and social capital for busy facility teams.

1. Work to eliminate waste and pollution from the start, when designing products and choosing materials.
2. Keep using products and materials as long as possible, and plan ahead so they can be reused when a building is taken down.
3. Help natural systems like air, soil, and water recover, so they can be used again in the future without harm.

The biggest challenge for most FM teams in moving their clients to a circular economy model is gaining support from finance and procurement. To help FM teams with this transition process, a recent International Facility Management Association (IFMA) white paper suggests the following proactive steps.

Adopt Sustainable Products and Design Principles 

Performing a supply chain audit will allow organizations to identify sustainability gaps. FM teams can review vendors and supplier criteria. A checklist streamlines the comparison process of materials and identifies areas for improvement, such as reusability, modularity, and recyclability.

Use green building materials, such as steel, aluminum, and copper, for maintenance and renovations. While energy-efficient lighting and water-saving fixtures are common, consider eco-certified cleaning products and biodegradable consumables as well.

Use circular design criteria for new purchases and projects. Prioritize flexible, adaptable materials and assets built for longevity and reuse. Pick products that are durable, easy to repair, and designed for future disassembly and recycling.

For example, low-profile raised access flooring systems, such as the Gridd® Adaptive Cabling Distribution® System, support circular economy goals by enabling reusability, easy adaptation, and long-term durability, delivering measurable value to facility managers.

• Modular parts make installation and changes quicker and easier, without the need for special tools.
• You can rearrange the system many times to fit different tenant needs, without costly construction.
• All parts of the system work with old and future parts, so upgrades are easy, no matter when your system was first installed. 
• The Gridd system can be disassembled and reassembled if your company moves to a new building.
• Gridd is a GreenSpec-listed, BuildingGreen-approved product, and can improve LEED scores for commercial property owners.
• Made from 100% U.S. Steel for superior strength, durability, and simpler recycling processes.

Establish KPIs and Metrics to Measure and Drive Progress

To assist facility managers, finance, and procurement teams with their transition to the circular economy, the IFMA report also recommends the following strategies.

Include broader metrics, such as risk-focused key numbers (e.g., avoiding supply problems or market changes), in your reports. You can use simple tracking tools or Excel to help everyone see goals, progress, and results.

Track financial outcomes with dashboards to control costs and meet life-cycle ROI goals. Use one pilot project to benchmark against traditional ROI and track ESG indicators, such as carbon footprint reduction.

Monitor your supply chain with product or supplier scorecards. For example, aim to prequalify 20% of vendors against circular-economy standards in the first year. Track progress and success through quarterly reviews.

Additional Circular Economy Transition Strategies 

Ongoing collaboration among facility management, finance, and procurement teams is crucial for success in the circular economy transition. 

Facility teams can help bridge existing silos by forming cross-functional teams or holding monthly FM, Finance, and Procurement check-ins. This may require that facility managers push for inclusion in the next budgeting meeting. Preparing a one-page proposal outlining circular economy initiatives and projected financial impacts can assist this process. At the next leadership meeting, potential changes such as integrated procurement strategies, adjusted ESG goals, and your circular-economy transition strategy should be also discussed with other team members.

FM teams should partner with procurement to revise RFPs to include more circular-economy products. Download IFMA samples, customize for your organization, and test them in a small procurement project.

ROI skepticism is another common issue when transitioning to a circular economy business model. Facility managers can assemble case studies from IFMA or other industry peers to demonstrate long-term circular economy benefits to Finance and Procurement divisions.

Obviously, no two properties or tenants are the same. Still, by following these actionable steps, facility managers can transform circular economy goals from concept to reality through strategic collaboration with property owners, organizations, and stakeholders. 

By adopting these principles, facility teams and property owners can

• Conserve resources, water, and energy to reduce operational and maintenance costs, as well as future construction costs.
• Reduce landfill waste by up to 30% while conserving limited natural resources.
• Comply with new green building codes and changing ESG goals for the organization.

For further information about Gridd or transitioning your organization to a circular economy model, contact a Gridd Advisor.

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