• Ensure reuse options for tools and components How we measure circularity which meet our high-quality standards Our goal is to lead To advance the measurability of circularity, we were • Increase material recovery in end-of-life recycling the 昀椀rst company worldwide to develop and use the the industry in through close collaboration with recycling partners Circelligence method, together with Boston Consulting Group (BCG). We now evaluate the circularity of our circularity. • Provide our customers with full transparency on their entire product portfolio on a yearly basis in terms of both circular contribution. quality and quantity. For details on the methodology used, please visit our 2020 Sustainability Report. We continue to focus on advancing the measurability of Management approach Organizational anchoring circularity for businesses. In 2023, we continued our collaboration with BCG and SAP on data automatization, We understand circularity as generating maximum The topic of circularity is anchored in our business with a focus on data visualization. This project is now added value with a minimum use of virgin raw units, in production, logistics, our markets and our concluded. Circelligence by BCG, available within materials, a concept that includes much more than aftermarket sales organization, all of which perform the SAP Store, allows companies to create circularity mere recycling. Our circularity strategy, completed initiatives for improvement. A central project team assessments. Hilti has established a sustainability data in 2020, made us one of the 昀椀rst companies to use in our Tool Services Business Unit consolidates, management, steering and reporting program. Amongst a speci昀椀c methodology to quantify and track our challenges and advises operating units on their other things, this program aims at establishing a solid circular progress. The strategy forms the basis for clear activities. Regular steering committees inform Hilti’s software back end, supporting the automation of our priorities that give circularity even more signi昀椀cance: Executive Board directly on the program’s progress circularity data and reporting. and help to set steering priorities. In 2023, the existing Sustainability Management: p. 4 • Institutionalize circularity in supply and design team, consisting of circularity program manager and decisions, from material selection to designing for circularity operations manager, was complemented by The qualitative assessment shows the maturity of the repairability and interchangeability two circularity project managers. One project manager control system regarding the latest 昀椀ndings in the 昀椀eld is responsible for structuring and expanding our reuse of circular economy. Grades range from “A” (circularity • Improve, reduce and reuse packaging of products program, such as spare part reuse and tool reuse. The has been implemented in all business areas) to “F” (the and in the supply chain other project manager works to enable full item reuse activities and instruments for the implementation of as part of our global refurbishment program. circularity have yet to be developed). The qualitative • Further enhance our circular business model of Fleet evaluation helps to assess details of circular economy Management with tool park optimization and lifetime implementation within a company. Drawing on what extension options was learned in measuring aspects of circularity, BCG again adjusted various questions used in determining a company’s qualitative score in 2023.