MADASTER AND THE CIRCULAR ECONOMY
Author: Vincent Eckert, Head Internal Environmental Management, Swiss Re
Recycling buildings is nothing new. Stone and timber from crumbling Roman villas became medieval castles; redundant castle walls became seventeenth century townhouses. Recycling construction materials was the norm for our ancestors.
We have lost this mindset. A combination of cheaper building materials and more complex constructions now sees decommissioned buildings reduced to rubble, destined for landfill or motorway foundations.
This represents both a waste of resources; and a high carbon footprint required to produce virgin raw materials, such as steel and concrete. How long can we continue this linear waste route considering that resources on the planet are finite?
I had the pleasure of introducing Madaster at the recent 12th Engineering Underwriting Forum. The Madaster movement is ruled by the mantra "waste is material without identity." The first step in improving our reuse of buildings is to provide their composite materials with identity.
CIRCULAR USE BUILDING AND INSURANCE
A detailed knowledge of materials used in construction can considerably increase insurers' ability to assess property risk. If issues emerge around a new construction material, we can quickly model our exposures.
On the asset side, a detailed material inventory could mean the creation of a secondary future trading market in building materials, as it would influence the building's intrinsic value before demolition.
Most importantly, Madaster is an enabler of circular economy and its "cradle to cradle" principle. Construction materials have a significant carbon footprint; in Switzerland 80% of total waste comes from the construction industry. Considering this, a circular approach from the early design and planning stages to proper decommissioning, can ensure that the resources return to the "cradle" and not to the "grave"! Simply put, materials can be re-used instead of being discarded. Reducing CO2 output will help mitigate climate change risk.
We must all be better stewards of our planet; recognise the circular use of raw materials; and seek to reduce risk, which includes our carbon profile. Effective insurance solutions can help manage risk; while helping deploy the Madaster scheme and contribute to sustainability.