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November 26, 2023

Hilti Group Measures Circularity with SAP Business Technology Platform

SAP SE recently announced that The Hilti Group, a global leader providing innovative hardware, software and services to the construction industry, is using the Circelligence solution to increase the circularity of its resources. Developed by Boston Consulting Group, an SAP global strategic partner, the Circelligence tool, built on SAP Business Technology Platform, uses BCG’s “Circelligence” methodology to help Hilti maximize the value of raw materials and resources.

Despite providing places for people to live, work and play, the construction industry has a large footprint on the environment, using 50% of the world’s mined raw materials. Prioritizing the circular economy and sustainability, Hilti is embedding circularity in its operations, a move that establishes the benchmark for sustainable practices in the construction industry. With Circelligence, Hilti can calculate a qualitative and quantitative circularity score. Leveraging SAP BTP, Hilti can automate updates to BCG’s Circelligence database of materials and track them across the value chain from input to product design, production, business model and usage and end of life with a user-friendly, Web-based interface.

“There is no internationally recognized 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, 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.”

The transparency created by the database has helped define Hilti’s circularity initiatives, such as the creation of remanufacturing operations at its 70 repair centers worldwide. Here, Hilti technicians extract electronics, motors, rotors and other parts from returned equipment, enabling reuse rather than purchasing new parts without compromising on quality, thanks to extensive testing. Additionally, parts that cannot be reused are responsibly recycled by qualified partners, with Hilti providing all information on reuse and recycling to its customers for full transparency.

“Hilti and SAP have a 40-year-long history and today we are writing another chapter by using our cloud solutions to set a new standard for sustainability in the construction industry,” said Scott Russell, member of the Executive Board of SAP SE and lead of Customer Success. “With the help of our partner Boston Consulting Group, Hilti will now be leveraging the power of SAP Business Technology Platform to use more contextual data across their processes to get closer to their vision of helping to create a circular economy.”

Alexander Meyer zum Felde, Global Product Lead Circular Economy, BCG, said: “Working with the Hilti Group and SAP, BCG was able to digitize Circelligence and improve it with a user-friendly Web-app interface. These latest evolutions lay the groundwork for streamlining the process of running and updating circularity assessments and integrating interactive scenario assessments while setting the stage for future automation. We’re proud to see how the Hilti Group has pioneered the development and use of this methodology, and we’re looking forward to seeing how Circelligence can help other organizations improve their circularity initiatives, achieving greater resource efficiency by doing more with less.”

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