In the conventional model of a linear economy, a large proportion of the resources used are removed from the material cycle as products are discarded at the end of their life cycle. In a circular economy, materials are kept in circulation which reduces the extraction of raw materials overall. 

Teaming with BCG, the Hilti Group has created and applied a Hilti circularity score, leveraging Circelligence, BCG’s new methodology for measuring the implementation of circularity principles in its own operations. The achievements are evaluated by Circelligence and visualised through SAP Business Technology Platform, which provides a user friendly interface for tracking the materials along the entire value chain.

“There is no internationally recognised standard for measuring circularity as opposed to, for example, measuring greenhouse gas emissions. So, we created one for our purposes. Ultimately, we wanted to set an example for the industry, not only the construction industry but the broader landscape of any company that’s embarking on the journey of circularity,” said Caroline Stern, head of circular economy at the Hilti Group. “It’s about keeping materials in use, but also mitigating supply chain risks and being less dependent on volatile international markets for raw materials.” 

Through Circelligence methodology, Hilti thoroughly evaluates the circularity of its entire product portfolio on a yearly basis. The results that are published in the annual sustainability report serve as a basis to calculate the company’s CO2 goals and define its initiatives as part of its science based targets commitment to net zero.

Hilti’s circularity approach consists of the three core areas, namely reduce, reuse and recycle. An important pillar is the ‘product as a service’ offering with Hilti's fleet management, where customers are provided a tool park tailored to their needs. This approach is designed to ensure that no resources are wasted on duplicate, excess or idle tools.