Material Efficiency: A Central Strategy for a Sustainable Future in Construction and Automotive Sectors

As global efforts to address climate change intensify, the focus has predominantly been on decarbonizing energy systems. However, there is a growing recognition that improving material efficiency—reducing the amount of material used in production, promoting reuse, and enhancing recycling—presents a powerful opportunity to curb greenhouse gas (GHG) emissions. The 2020 United Nations Environment Programme (UNEP) report, "Resource Efficiency and Climate Change: Material Efficiency Strategies for a Low-Carbon Future," brings to the forefront how the construction and automotive industries, two of the most material-intensive sectors, can adopt material efficiency strategies to significantly reduce their carbon footprints. With the publication of ISO 59040 in September 2024, which introduces a standard for Product Circularity Data Sheets (PCDS), material efficiency is now at the heart of the transition toward a circular economy.

The Growing Relevance of Material Efficiency

Between 1995 and 2015, GHG emissions from material production increased from 5 gigatons (Gt) to 11 Gt, representing a significant portion—23%—of global emissions. Construction and the manufacturing of goods, particularly vehicles, account for 40% of these emissions. These industries rely heavily on materials like steel, cement, and plastics, which are energy-intensive to produce and have long-lasting environmental impacts. As the world grapples with the challenges of meeting the Paris Agreement’s goal to limit global warming to 1.5°C, material efficiency has gained importance as a critical strategy to complement energy efficiency and renewable energy transitions.

Material efficiency focuses on reducing the environmental impacts associated with the extraction, processing, and use of materials. This approach is particularly relevant as natural resource depletion accelerates, and the environmental costs of material production become more apparent. By using fewer resources, extending product lifetimes, and improving recycling rates, industries can reduce their GHG emissions while fostering a more sustainable economy. The publication of the ISO 59040 standard is timely, as it provides a structured method for organizations to exchange reliable circular data, ensuring that material flows are managed efficiently across the entire value chain.

Material Efficiency in Construction: Best Practices for Sustainable Buildings

The construction sector is one of the largest contributors to material-related GHG emissions. Traditional building materials, such as cement, steel, and concrete, are responsible for vast quantities of carbon emissions, both during production and throughout a building’s lifecycle. However, by adopting material efficiency strategies, the construction industry can make significant progress toward reducing its environmental impact. The UNEP report highlights several key practices that can lead to a more sustainable construction industry.

1. Lightweight Design and Construction: One of the most effective ways to reduce material-related emissions is by designing buildings that require fewer materials without compromising structural integrity. Lightweight construction methods can reduce the use of high-carbon materials like steel and cement, leading to a reduction in emissions of up to 10% by 2050 in G7 countries. Advanced architectural techniques, such as prefabrication and modular construction, allow for more precise material use, minimizing waste and optimizing the construction process.
2. Material Substitution with Sustainable Alternatives: Replacing traditional materials with low-carbon alternatives, such as wood or engineered timber, can lead to significant reductions in emissions. In regions like China and India, where new construction is expected to grow rapidly, the use of sustainably sourced timber can reduce emissions by up to 8%. This shift not only helps mitigate climate change but also promotes carbon sequestration, as timber stores carbon throughout its lifecycle. However, sustainable sourcing is critical to ensure that deforestation or land-use changes do not offset the environmental benefits of using wood in construction.
3. Increased Recycling and Reuse of Construction Materials: Recycling construction and demolition waste is another key strategy for reducing the need for virgin materials. Currently, recycling saves 15-20% of the emissions associated with primary material production in residential buildings. By improving sorting and processing systems for construction waste, these savings could increase by an additional 14-18%. The implementation of policies that mandate the recycling and reuse of construction materials, such as building codes that allow the use of recycled materials, can further drive material efficiency in the sector.
4. Sustainable Building Certifications and Cradle-to-Cradle Design: Certifications like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) play an essential role in promoting sustainable building practices. These certifications encourage the use of environmentally friendly materials, energy-efficient designs, and waste management strategies. In addition, the cradle-to-cradle (C2C) design framework promotes the idea of designing buildings and products with the intention that they can be fully recycled or reused at the end of their lifecycle. By embedding circularity into building design, cradle-to-cradle ensures that materials remain in the economy for as long as possible, reducing the demand for virgin resources and lowering the environmental footprint of construction projects.
5. Energy Efficiency Through Material Efficiency: More intensive use of homes—such as reducing floor space per capita or encouraging shared living arrangements—can result in significant energy savings. Reducing the size of residential units can lower the demand for heating, cooling, and construction materials. As urban areas become more densely populated, strategies like co-housing and multi-family residences can help reduce both material and energy consumption.

Best Practices in the Automotive and Mobility Sector: Driving Sustainability

Like the construction industry, the automotive sector is a significant contributor to material-related emissions. Vehicles are made from materials like steel, aluminum, plastics, and rubber, all of which require significant energy to produce. The UNEP report identifies several strategies to improve material efficiency in the automotive sector, which can help reduce emissions throughout the vehicle lifecycle—from production to end-of-life disposal.

1. Lightweighting and Material Substitution: One of the most effective ways to reduce emissions in vehicle manufacturing is through lightweighting—reducing the overall weight of vehicles by using materials like aluminum, carbon fiber, and high-strength steel. Lighter vehicles require less fuel to operate, reducing both the energy needed for production and emissions during use. However, some lightweight materials, such as aluminum, have higher emissions during production, so careful consideration of trade-offs is necessary. The shift towards electric vehicles (EVs) adds another layer of complexity, as EVs require lightweight materials to offset the weight of their batteries, which are heavier than traditional internal combustion engines.
2. Vehicle Sharing and Ride-Hailing: Ride-sharing and car-sharing models, such as those offered by companies like Uber, Lyft, and Zipcar, reduce the total number of vehicles on the road, thereby lowering the overall demand for vehicle production. In G7 countries, shifting 25% of vehicle trips to shared rides could reduce material-related emissions by up to 20%. Shared mobility also leads to a more efficient use of vehicles, as cars spend less time parked and more time in use, extending their productive lifespans and reducing the need for additional vehicles.
3. Circular Design and Product Lifetime Extension: As in construction, adopting a cradle-to-cradle approach to vehicle design can help optimize the use of materials and extend the useful life of vehicles. Vehicle components can be designed for easy disassembly, repair, and reuse, making it easier to recover valuable materials at the end of the vehicle’s life. By promoting repairability and reuse, manufacturers can reduce the demand for new materials and minimize waste. The new ISO 59040 standard for Product Circularity Data Sheets (PCDS) offers a structured way to track material flows throughout the automotive supply chain, enabling manufacturers to better manage the circularity of their products and ensure that materials are reused and recycled efficiently.
4. End-of-Life Vehicle Recycling: The automotive industry has made significant progress in recycling materials from end-of-life vehicles, particularly metals like steel and aluminum. However, there is still room for improvement, particularly in the recycling of non-metallic materials such as plastics and glass. Policies that promote closed-loop recycling—where materials from old vehicles are used to manufacture new vehicles—can help reduce emissions from the production of virgin materials. In Europe, the End-of-Life Vehicle Directive mandates recycling and recovery targets for vehicles, encouraging manufacturers to improve the recyclability of their products.

Integrating Material Efficiency into Economic Management

For material efficiency strategies to be effective, they must be integrated into broader economic processes that account for the environmental and social impacts of material use. Many industries fail to fully internalize the negative externalities—such as pollution, habitat destruction, and resource depletion—associated with material extraction and production. To address these issues, material efficiency must become a key consideration in economic decision-making and policy development. Several approaches can help align material efficiency with broader economic management:

1. Circular Economy Models: The transition to a circular economy, as outlined in the ISO 59040 standard, offers a comprehensive framework for reducing resource consumption and environmental impacts. Circular economy models focus on keeping materials in use for as long as possible, reducing waste, and regenerating natural systems. By decoupling economic growth from resource consumption, the circular economy promotes sustainable production and consumption patterns. ISO 59040 provides a standardized method for exchanging circular data across value chains, ensuring that materials are tracked and managed efficiently from production to disposal.
2. Green Public Procurement (GPP): Governments can lead by example by incorporating material efficiency into public procurement policies. Green public procurement encourages the use of products that are resource-efficient, recyclable, and made from recycled materials. By prioritizing sustainable products in public tenders, governments can create demand for material-efficient solutions and incentivize businesses to adopt circular practices.
3. Extended Producer Responsibility (EPR): EPR policies place the responsibility for managing a product’s lifecycle—including its end-of-life disposal—on the manufacturer. This incentivizes companies to design products that are easier to recycle, repair, and reuse. EPR policies can help reduce the environmental impacts of material extraction and production by encouraging manufacturers to minimize waste and maximize the recovery of materials.
4. Material Taxes and Subsidies: Implementing taxes on virgin materials or removing subsidies for environmentally harmful production practices can shift the economic balance towards more efficient material use. By internalizing the environmental costs of resource extraction and waste, material taxes can make sustainable materials more competitive, encouraging industries to adopt circular practices and reduce their material footprints.

Conclusion: A Path Forward for Material Efficiency

The construction and automotive sectors are at the forefront of global efforts to improve material efficiency. By adopting best practices such as lightweight design, material substitution, recycling, and circular design, these industries can significantly reduce their GHG emissions and environmental impacts. The publication of ISO 59040 provides a valuable tool for tracking and managing material flows, ensuring that resources are used efficiently throughout the product lifecycle.

To fully realize the potential of material efficiency, it must be integrated into broader economic policies and decision-making processes. Governments, businesses, and consumers all have a role to play in promoting sustainable material use and supporting the transition to a circular economy. By embracing material efficiency as a core strategy, industries can reduce their environmental footprints, contribute to global climate goals, and build a more sustainable, resilient economy for future generations.

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References:

1. United Nations Environment Programme (UNEP). (2020). Resource Efficiency and Climate Change: Material Efficiency Strategies for a Low-Carbon Future. Nairobi, Kenya: United Nations Environment Programme. https://doi.org/10.5281/zenodo.3542680
2. International Organization for Standardization (ISO). (2024). ISO 59040: Circular economy – Product Circularity Data Sheet. ISO.
3. International Organization for Standardization (ISO). (2024). ISO 59000 family of standards: Answers for the circular economy transition. ISO.