Holcim: Construction Buyers Happy to Pay Circularity Premium

Several construction professionals are now willing to pay a premium for circular credentials, according to new research from Holcim UK.

The study suggests a notable change in the industry's priorities, with sustainability moving from a peripheral concern to a central factor in procurement decisions.

In response, Holcim is advocating for the implementation of mandatory verification and third-party certification into circular procurement standards to combat the risk of greenwashing and provide clear, evidence-based credentials.

Holcim UK, a company focused on sustainable building solutions, aims to achieve net-zero emissions by 2050 by embedding decarbonisation and circularity within its operations.

Holcim's latest Circularity Survey gathered insights from 500 UK-based decision-makers, including architects, building contractors and haulier merchants.

The research was designed to help the government and the wider industry understand the barriers preventing the large-scale adoption of circular economy principles.

It also supports Holcim's strategy to establish a closed-loop supply chain, which includes its ECOCycle range that transforms construction demolition materials into new building solutions.

Shifting procurement priorities

The survey data indicate that commitment to the circular economy is increasing across the construction sector, though leaders still face considerable challenges in implementing effective strategies.

The findings highlight that procurement policies within local government, large corporations and housing associations are progressively favouring suppliers that can demonstrate robust circular practices.

“These findings show a clear change in the construction industry: circular credentials are no longer a ‘nice to have’ – they are fast becoming a decisive factor in procurement decisions," explained Kaziwe Siame Kaulule, Managing Director Aggregates & Construction Demolition Materials at Holcim UK.

Kaziwe continued, "Sustainable materials are moving from the margins to the mainstream. At Holcim UK, our ECOCycle range turns waste materials into new building products, embedding circularity at the point of manufacture.

This means decision-makers can rest assured that the materials we provide, and they use, have circularity quite literally built in."

Circularity gaining value

Holcim’s research quantifies the growing importance of circularity, showing it has evolved from an optional extra to a core value proposition.

A large majority, 97% of respondents, now view embracing the circular economy as important, a notable increase from 79% in 2024.

More than half, 58%, stated that circularity is very important, compared to 35% in the previous year. This change is reflected in business strategy, with 57% of businesses now having circularity targets across all operations, a sharp rise from just 21% in 2024.

Other key findings from the report include:

• 94% of respondents consider access to circular products when choosing suppliers, up from 73% in 2024.
• 87% of businesses are willing to pay more for products that have verified circularity.
• 30% of businesses have invested in employee education and awareness, an increase from 21% in 2024.

Overcoming implementation barriers

Despite the growing enthusiasm for circular principles, businesses face barriers to adoption. The greatest challenge identified by 34% of respondents is the high cost associated with disassembling materials.

A further 29% cited the complexity of circularity as their main barrier. To address these issues, 31% of businesses believe more government funding for circularity training is needed.

To hold suppliers accountable and mitigate the risk of greenwashing, the industry requires greater transparency, clearer standards and robust verification processes.

Kaziwe said, "Individual products will not be enough. We need to see government and industry introducing robust verification methods, third-party certification and clear standards to ensure circular credentials are evidence-based and without room for ambiguity.”

Holcim recommends that government and industry bodies collaborate to establish mandatory verification and independent third-party certification within procurement frameworks.

This approach could increase the credibility of circular claims and accelerate the adoption of sustainable procurement across the construction sector.