As we conclude our series on the transition to BREEAM Version 7, we move beyond how a building operates to examine what it is actually made of.
In the linear economy, a building is a consumer of resources.
In the circular economy of 2026, a building is a material bank.
With the recent release of the UK Net Zero Carbon Buildings Standard (UKNZCBS) and the upcoming RICS ESG Valuation Standard, circularity has moved from a sustainability buzzword to a critical factor in an asset’s terminal value.
The Rise of the Material Passport
Under BREEAM V7, there is a significantly heavier weighting on Mat 01 Life Cycle Assessment and Wst 01 Construction Waste Management credits. However, the most transformative tool in this category is the Material Passport.
A Material Passport is a digital dataset that catalogues every component of a building, from the chemical composition of the structural steel to the specific fixings used in the raised flooring. This data is vital because it ensures that when a building is eventually refurbished or decommissioned, those materials can be recovered and sold at market value rather than being sent to landfill at a significant cost to the landlord.
Quantifying Embodied Carbon with TM65
While we utilise CIBSE TM54 to predict operational energy, we are increasingly applying CIBSE TM65 to quantify the embodied carbon within mechanical, electrical, and public health (MEP) systems. Building services are often the most frequently replaced elements of a commercial asset, often every fifteen years.
By applying a circular approach to MEP through the selection of modular systems that allow for easy disassembly, we drastically reduce the Whole Life Carbon footprint. This is now a mandatory assessment for any project targeting BREEAM Excellent or Outstanding. It is no longer possible to reach the highest ratings without proving that you have planned for the end of life stage of the building.
The Commercial Edge and Residual Value
The most important shift for our clients this month is the RICS ESG and Sustainability in Commercial Property Valuation (4th Ed), which becomes effective on 30 April 2026. For the first time, valuers have a clear, standardised framework to reflect circularity in an asset’s exit cap rate.
A building with a verified Material Passport and a high circularity score represents a lower risk for future owners. It is inherently easier to dismantle, cheaper to upgrade, and its core materials are indexed as future assets rather than liabilities. This transition helps to secure the net operating income of the property by reducing future capital expenditure requirements.
HollenPlus Final Thoughts
Circularity should be viewed as a value-creation strategy rather than a technical burden.
While BREEAM V7 provides the framework, HollenPlus provides the foresight to ensure your asset remains liquid in a decarbonising market.
We help you catalogue the fabric of your building today to protect its terminal value tomorrow.
In our view, the most sustainable resource is the one you already own.
The most successful developers today are those who have stopped seeing "waste" and started seeing "inventory."
