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Hilti is a provider of tools, services,

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and software to the construction industry.

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And we've been doing
that for over 80 years

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to over 120 countries around the world.

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From the beginning, acting
responsibly has been a key part

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of how we work as a company.

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But we also understand
that in the last few years,

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the expectation of society
and of our employees

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and of our stakeholders has increased

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with everything related to sustainability.

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We really wanted to take
sustainability to the next level.

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And for us, a very important
part of sustainability

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is the circular economy.

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The construction industry
is a really unique industry

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because on the one hand it
solves a core human need

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for building the buildings
where we all live and work.

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On the other hand, we know
that it's a huge driver

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of some of the environmental
problems that we understand.

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Over 50% of the raw materials
that we use in the world

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go into construction, but still today,

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less than 10% of our resources
are used in a circular way.

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Hilti would like to be

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our customers' partner for sustainability

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and we want to lead the
industry in circularity.

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And that means two things for us:

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offering circular solutions
for our customers,

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but also role modeling
circularity in our own operations.

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It's really about valuing
these raw materials

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which we sometimes don't properly value.

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So it's about keeping
those materials in use,

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but also mitigating supply chain risks

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and being less dependent on
volatile international markets.

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Unlike CO2, there is no global standard

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on how to measure circularity.

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Together with BCG, we created
our Hilti circularity score

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about understanding our
circular performance

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and it's divided into two overall topics.

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The quantitative side
and the qualitative side.

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The very first thing that
CIRCelligence allowed us to do

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was to have a really
comprehensive database

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of the raw materials that
we purchase as a company.

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Like most companies, we were
able to say how much money

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that we spent buying, for example, steel,

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but couldn't have told you easily

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how many tons of steel that meant

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or how much recycled
content was part of that.

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So a very big focus of that initial work

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was understanding what is
actually the material footprint

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of how many materials we're using,

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how does that break down,

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and what is the recycled content
across each material group?

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On top of that,

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we were then able to
build out the methodology

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of measuring circularity
across the value chain.

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So not just on the raw material
and the input footprint,

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but across these five blocks
in the product life cycle.

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And that really holistic picture
allowed us to take a look

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and ultimately start initiatives
that we're working on now.

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And here we've really begun
our journey on remanufacturing.

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We have over 70 repair
centers all over the world.

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Here, we've started extracting components

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from our collected tools and
reusing those in repairs.

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So electronics, motors, rotors.

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These are all things that
we're able able to extract,

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requalify, and reuse instead of shipping,

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transporting new spare parts.

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Anything that we can't reuse

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either internally or externally,

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we take care of the recycling together

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with qualified external partners.

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Last year, we recycled

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over 3,400 tons of
electronic waste responsibly.

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And the key thing about that

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is that we are then able to
provide transparency and details

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on that recycling and that
reuse back to our customers.

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Hilti partnered with BCG, BCGX,

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and also SAP on laying the groundwork

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for how to automate the circularity score.

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And that is to make it more usable

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to have a web-based
interface that allows us

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to really take that
digitalization to the next level.

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Ultimately, we really
wanted to provide a service

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for the industry, not only
the construction industry,

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but the broader landscape of any company

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that's embarking on circularity.

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And we hope that by being
extremely transparent

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in publishing the scores,

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we're also able to spark the conversation

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on what are the most
difficult things to improve

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and what are the things
that really matter the most?