Introduction

The report examines how industrial goods companies are adopting circular economy practices, defined as systems that close material loops through reducing, reusing and recycling resources. It highlights that no company can achieve full circularity within the current economic system, and that large-scale government action is necessary for systemic change. The study reviews public reporting from around 50 companies, identifying 29 firms with sufficiently detailed disclosures. These companies span diverse geographies and product lines but are concentrated in Europe, Japan and the United States, partly due to stronger regulatory expectations and sustainability reporting cultures.

The report outlines five categories of company action: circular design and production; facilitating product life extension and recycling; collaboration with other companies; standard setting and policy engagement; and public reporting. Examples illustrate practices companies claim to have adopted rather than verified performance. The report emphasises that commercial incentives, regulatory pressures and consumer demand often drive circularity initiatives.

Circular design and production

Circular design focuses on improving product durability, energy efficiency, reparability, ease of refurbishment and recyclability. Companies also aim to reduce material use, increase recycled content and minimise waste.

Examples include Siemens Gamesa’s fully recyclable turbine blade and its target to make entire turbines recyclable by 2040. Eaton is developing second-life battery solutions, repurposing vehicle batteries for household storage. Daikin applies 13 criteria for environmentally conscious design, covering durability, repairability and recyclability. ESAB redesigned a welding wire drum to increase wire capacity by 22 percent and reduce waste. Delta Electronics uses an internal evaluation system to identify circular design opportunities.

Efforts to reduce material intensity include Carrier’s material passports and tracking systems; Mitsubishi Electric’s recycling plant that feeds design improvements and increases plastic recycling rates from 6 percent to 80 percent; and Ansaldo Energia’s requirement that suppliers increase recycled material content, resulting in up to 95 percent recycled steel use. Tata Steel reuses steel slag in construction, while BASF converts plastic waste into pyrolysis oil for feedstock. Several firms commit to zero-waste targets, such as Elgi Equipments’ aim for zero waste to landfill by 2027.

Facilitating life extension and recycling of company products

Companies prolong product life through repair centres, refurbishment programmes, modular replacements and customer trade-in schemes. Fronius and Hilti operate extensive repair networks and facilitate tool reuse. Schneider Electric’s EcoFit upgrades extend product life by about 25 percent and reduce waste by 90 percent compared with full replacement. Ingersoll Rand’s refurbishment programme guarantees 95 percent performance for replacement units. FANUC guarantees lifetime maintenance of all products.

Recycling facilitation includes Daikin’s refrigerant recovery systems across Europe and Japan, Hilti’s global take-back programme and LG’s appliance recycling facility in South Korea. Grundfos’ Take Back programme focuses on rotors but aims to expand to other components.

Collaboration with other companies

Collaboration supports closed-loop processes and innovation beyond the capacity of single firms. Salzgitter and Orsted operate a loop where steel is supplied and later recovered from decommissioned turbines. Tenaris leads a coalition developing smelting technologies for higher residue recovery. Ariston exchanges steel scrap with partners to close material loops. Fronius and Muller-Guttenbrunn co-developed design insights for its inverters, balancing durability with recyclability. Bosch collaborates with 10 companies on a shared battery system, reducing the need for multiple batteries across product lines. Inovance proposes leasing robotics to extend service life through long-term maintenance.

Standard setting and policy engagement

Companies participate in multistakeholder initiatives to advance sector-wide circularity. These include the Ellen MacArthur Foundation network, the European Circular Economy Stakeholder Platform and the Platform for Accelerating the Circular Economy. Synergies with climate frameworks such as the Science Based Targets initiative reinforce circularity actions, particularly in reducing scope 3 emissions.

Some firms actively support policy development. Salzgitter advocates regulations promoting low-carbon steel. Schneider Electric chairs an EU committee developing standards for circular product design under EcoDesign legislation. Bosch discloses detailed lobbying activities and positions, while Siemens Energy engages with sustainable finance policy discussions. The report notes that emerging due diligence laws may further shape responsible policy engagement.

Public reporting

High-quality reporting articulates clear circularity visions, sets detailed goals, uses credible metrics and describes concrete initiatives. Bosch provides extensive metrics and embeds circularity across product lines. Hilti uses the CIRCelligence scoring framework to benchmark progress. ABB is developing KPIs to apply circularity criteria to 80 percent of its products by 2030. Daikin reports performance indicators tied to its circularity criteria, while Grundfos integrates circularity within its broader sustainability strategy.