Construction Leader Hilti Adopts SAP’s Circular Economy Tool for Resource Optimization

Construction Leader Hilti Adopts SAP’s Circular Economy Tool for Resource Optimization

(IN BRIEF) SAP has revealed that The Hilti Group, a leading provider of hardware, software, and services to the construction industry, is using the Circelligence solution to enhance its resource circularity. Developed with Boston Consulting Group (BCG), the tool is built on SAP Business Technology Platform (SAP BTP) and assists Hilti in optimizing the use of raw materials and resources. The construction industry has a significant environmental footprint, consuming 50% of the world’s mined raw materials. Hilti aims to embed circularity in its operations, setting a sustainability benchmark for the sector. Circelligence enables Hilti to assess both qualitative and quantitative circularity scores, leveraging SAP BTP for automation and transparency. This transparency has guided Hilti’s circularity initiatives, including remanufacturing operations and responsible recycling practices.

(PRESS RELEASE) WALLDORF, 22-Nov-2023 — /EuropaWire/ — SAP SE (NYSE: SAP), a German multinational software company, announced today that The Hilti Group, a global leader in providing innovative hardware, software, and services to the construction industry, has adopted the Circelligence solution to enhance the circularity of its resources. Developed in collaboration with Boston Consulting Group (BCG), an SAP global strategic partner, the Circelligence tool is built on the SAP Business Technology Platform (SAP BTP) and utilizes BCG’s “Circelligence” methodology to help Hilti optimize the utilization of raw materials and resources.

The construction industry, while essential for providing spaces for people to live and work, has a substantial environmental footprint, consuming 50% of the world’s mined raw materials. Prioritizing circular economy principles and sustainability, Hilti is actively integrating circularity into its operations, setting a benchmark for sustainable practices within the construction sector. With Circelligence, Hilti can assess both qualitative and quantitative circularity scores. Leveraging SAP BTP, the company can automate updates to BCG’s Circelligence database of materials and trace them throughout the value chain, from input to product design, production, business models, usage, and end-of-life scenarios, all through a user-friendly web-based interface.

Caroline Stern, Head of Circular Economy at The Hilti Group, emphasized the need for an internationally recognized standard for measuring circularity and stated, “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. 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 facilitated by the database has guided Hilti’s circularity initiatives, including the establishment of remanufacturing operations at its 70 repair centers worldwide. Here, Hilti technicians extract electronics, motors, rotors, and other components from returned equipment, enabling reuse without compromising quality, thanks to rigorous testing. Additionally, parts that cannot be reused are responsibly recycled by qualified partners, with Hilti providing customers with comprehensive information on reuse and recycling for full transparency.

Scott Russell, a member of the Executive Board of SAP SE and head of Customer Success, noted, “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. 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 for Circular Economy at BCG, added, “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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