Our fourth annual survey on carbon emissions found that the overall pace of decarbonization has slowed—but that leaders are realizing significant financial value.
Circelligence by BCG
Lead the Circular Economy
Behind every product are raw materials, but we are using resources faster than nature can regenerate them. Circelligence by BCG helps companies become circular businesses and drive more value from fewer raw material inputs.
The linear economy is a one-way street, and growth may soon hit a dead end; raw materials follow a “take-make-waste” journey—once spent, they’re out of play. In a circular economy, these materials find new life filling needs (not landfills). Circelligence by BCG helps companies master sustainability and the circular economy, sparking efficiency, innovation, and competitive advantage. This transition to the circulate economy has the potential to unlock $4.5 trillion in GDP growth by 2030.
The circular economy sustains growth in a world of finite resources by turning value chains into value circles. Circularity lowers sourcing risks and costs, improves operational efficiencies, and opens the door to new products and market segments. But creating a circular business isn’t simple. A robust circular economy roadmap requires a holistic approach for every phase of a product’s life cycle. The challenge: understanding just how circular your business is and how to focus your efforts to create a circular strategy.
The circular economy sustains growth in a world of finite resources by turning value chains into value circles. Circularity lowers sourcing risks and costs, improves operational efficiencies, and opens the door to new products and market segments. But creating a circular business isn’t simple. A robust circular economy roadmap requires a holistic approach for every phase of a product’s life cycle. The challenge: understanding just how circular your business is and how to focus your efforts to create a circular strategy.
How Circelligence by BCG Works
Developed by BCG X and our circular economy consulting team, in partnership with SAP and battle-tested with BCG’s clients, Circelligence is now available as a standalone circular strategy solution running on SAP BTP. It’s part evaluative, part circular economy framework, providing an end-to-end assessment of a company’s circularity and helping leaders identify initiatives that create—and differentiate—a truly circular business.
Holistic Circular Economy Assessment
Circelligence by BCG calculates the circularity of a company to help clients on their climate change and sustainability journey by embedding circular economy concepts into their overall corporate strategy and enabling management to make informed circular investment decisions. The Circelligence tool is built around five key pillars:
Benefits
A circular economy promotes sustainability, but it also creates business value. Circelligence by BCG helps you realize the full potential of circularity in a variety of ways:
-
Business Model Innovation
A circular mindset can drive the formation of new business models and establish new revenue streams. -
New Growth Opportunities
A circular strategy can spark innovation, opening the door to new products—and new market segments. -
More Efficiency, Less Risk
By reducing dependence on resource extraction, Circelligence by BCG shrinks supply chain risks and boosts operational efficiencies. -
Stronger Customer Relationships
A circular business produces less waste and builds longer-lasting products, helping you meet sustainability goals—and customer expectations. -
Staying Ahead of the Regulatory Curve
Circularity is nascent, but word—and interest—is growing. First movers can play an active role in developing circular economy regulations.
Our Clients’ Success with Circularity
Across sectors and around the globe, BCG has helped companies accelerate their circularity journey. Here are some examples of our work—and results:
Hilti was the first company worldwide to use and codevelop the Circelligence method with BCG. Hilti now evaluates the circularity of its entire product portfolio in terms of both quality and quantity on a yearly basis. Insights from Circelligence supported Hilti in defining a comprehensive circular strategy, leading to the recovery of 120,000 spare parts in 2022 and saving 90 tons of valuable electronic motors and rotors.
90 tons
materials saved
We partnered with a materials industry powerhouse to pilot end-of-life collection, source bio-based and recycled materials, and develop fully circular business models, among other initiatives. In all, circularity efforts have the potential to impact 75% of the business’s volume.
75%
sales volume
"Circelligence helped bring clarity to an extremely complex topic. It supported us in building a database of material use and flows which—beyond allowing us to calculate the circularity score—gave us deep insight into our material use."
Meet Our Circular Economy Consulting Team
By applying levers that reduce both carbon emissions and costs, industrial companies can generate savings to invest in further decarbonization initiatives.
Medical technology companies play a big part in health care’s carbon emissions problem, both at the patient and provider levels. Fortunately, these firms can reduce their footprint affordably.
Through carve-outs, companies can create value, streamline portfolios, and reduce complexity. But the ultimate success of a deal hinges on focused, proactive execution.
Waste reduction alone is an inadequate response to fashion’s impact on the environment. It’s time for brands to double down on advanced recycling solutions.
The atmosphere for climate and sustainability investments in Europe is improving. Private equity and venture capital players need a strong strategy to seize this opportunity.
Policymakers could transform offshore wind into a major source of renewable energy. But this is not a given. Companies need to assess their options and plan accordingly.
Traditional power companies can no longer ignore the popularity of green energy. M&A is the quickest and most effective approach to entering this market.
This vast sustainability ecosystem presents an immense opportunity for information services providers. Here’s how they can find the right niche.
There are substantial returns to gained for those prepared to think beyond linear supply chains.
Unlock new growth, cost efficiencies, and risk mitigation. Capitalize on untapped value pools and sector opportunities with the Nordic circular economy.
Waste reduction alone is an inadequate response to fashion’s impact on the environment. It’s time for brands to double down on advanced recycling solutions.
Regenerative agriculture has the potential to reduce GHG emissions, increase biodiversity, and boost farmers’ profits—if financing and other obstacles can be overcome.
The global food system depends on nature, but it also contributes to its destruction. With a nature-positive approach, companies can preserve the resources necessary to ensure a healthy food supply.
CPG companies will fall short of their net-zero goals unless they move from reengineering existing products services and business models to reimagining them.
Companies can use seaweed to advance decarbonization and create other benefits, including improved marine ecosystem health.
Plastics regeneration technologies such as pyrolysis offer economically viable ways to combat this pressing environmental challenge.
Our Insights into the Circular Economy
Article
Circularity’s Time Has Come
Each year, we throw away nearly $200 billion of material that could be recycled. But companies can flip the script.
Video
Leading the Way on Circularity
Caroline Stern, head of Circular Economy at Hilti Group, discuss the benefits of Circelligence, a solution developed in partnership with BCG and BCG X to measure circular economy performance and help companies make better informed decisions on sustainability initiatives.
Video
The Value of the Circular Economy
Pressure is mounting to find circular solutions, which could unlock $4.5 trillion in GDP growth by 2030.
Article
Why we need a “Paris Agreement” for recycling the Earth’s resources
A new report by BCG and WBCSD calls for a formal global plan for material recycling and the creation of higher circularity through technology.
Article
What’s Holding Back Aluminum Recycling in the US?
Understanding the challenges can help other players in the circular economy.
Slideshow
A Circular Future for Glass
Achieving a 50% recycling rate in the US by the end of the decade is ambitious but possible. Here’s how we can accomplish it.
Report
Circular Metrics for Business
As climate breakdown continues to develop, transitioning to a circular economy—fueled by circular businesses—is a top priority.22
Report
Circelligence by BCG
Circelligence by BCG supports companies on their journey toward a circular economy.
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