Data quality as an antecedent for commercial viability of circular economy business models: a case study

Abstract

Abstract Introduction - The aim of this paper is to explore data quality as an antecedent of commercially viable business models within the circular economy. Australian state governments are developing policies to enable a circular economy. However, in the building industry most data systems rely on self-reporting, which has compromised the accuracy, objectivity, transparency and integrity of data reported on raw materials within components and products. Method - This paper uses a case study to demonstrate how digital data systems that independently track, trace and verify the provenance of inputs of raw materials, components and products, can accurately inform the value of circularity in the built environment. Interviews were conducted with an office furniture supplier who developed a digital system to inform circularity. Also interviewed was a sustainability consultant who assisted, and has since prototyped a digital system designed to accurately enable circular value to be identified in the built environment. Feedback on the design and protype of this proposed system was provided by building industry value-chain stakeholders though a series of seminars and design thinking workshops. Results - Commercial viability of a circular economy model was reliant on a framework of data quality that recorded raw materials, traceability and verification to establish trust: 1) data capturing raw materials within components of products (e.g. metals, melamine and plastics), 2) data tracking of products throughout their life-cycle, and 3) data verifying the authenticity of raw materials and products. This framework of data quality was critical to delivering circularity outcomes for reuse of products, repurposing components, recycling and minimising landfill. Conclusion - This study proposes that data quality is integral to the commercial viability of circular economy business models in the built environment. Data quality in a circular economy means having the digital capability to objectively track, trace and verify the integrity and composition of building materials, products and assemblies throughout their lifecycle.