The future of growth and profitability

Companies that prioritize sustainability are positioning themselves for long-term success. In the face of pressing challenges such as climate change, evolving geopolitical regulations and increasing consumer demand for environmentally friendly products, companies must adopt sustainable practices not only to remain relevant, but also to thrive.

With this in mind, we take a look at the trends, innovations and pioneering companies that are shaping the future of sustainability.

The amount of industrial waste is higher than ever before, with only 7.2% of materials used worldwide being recycled in 2023. This presents a huge opportunity for companies to save both costs and resources by switching to a circular economy. The Circularity Gap Report highlights that companies can reduce their_{CO2 emissions} by over 39% by focusing on resource recovery and reuse across the entire product lifecycle, right into supply chains.

The circular economy also helps to address resource scarcity by ensuring the availability of key materials. A circular economy is based on a framework of "R-strategies" that guide circular design and manufacturing to maximize resource use and minimize waste:

• Reducing
• Repairing
• Refurbishing
• Remanufacturing
• Recycling

Digital twin: sustainability right from the start

The transition from a linear economy to a circular economy starts with design, as studies show that 80% of a product's environmental impact is determined in the development and design phase. The digital twin - a digital representation of a physical asset or process based on a powerful physics-based simulation - is a critical tool for developing smarter, more efficient machines, products and processes. It enables engineers to focus on sustainability from the outset, rather than building it in later.

The digital twin helps to define and optimize products and production systems, significantly reducing the need for physical prototypes before investing in physical equipment. At the same time, valuable resources can be saved. Creating a digital twin and using tools such as design and simulation software allows companies to incorporate circular thinking into every stage of the product lifecycle - from design through production and use to the end of the lifecycle. The digital twin is also suitable for understanding cause and effect in the supply chain. By virtually replicating real networks and processes, disruptions and changes can be simulated in advance, their impact assessed using real data and more informed decisions made with greater transparency.

Life cycle analyses, the simulation of R strategies and the linking of designs with supply chains enable companies to optimize their resources and reduce waste. Digital technologies such as the digital twin, artificial intelligence and IT/OT convergence can also improve production efficiency. Automation and predictive maintenance extend the service life of machines, reduce downtime and minimize resource consumption. Once the products are in use, tools such as asset management software ensure optimum resource efficiency. They also enable well-founded maintenance. The battery passport acts as a digital data record for individual batteries and documents their entire life cycle. The spread of such innovations simplifies reuse and recycling.

The circular economy follows the path of a product until the end of its life. Through the use of advanced recycling technologies supported by automation, materials can be recovered for future reuse. Circular alternatives such as biodegradable plastics benefit from flexible production systems that adapt to new processes and drive the zero-waste economy. Implementing the circular economy is a long-term solution that enables companies to achieve more with fewer resources. This protects the environment and improves companies' balance sheets.

Fürth and Spinnova as role models for progress

The Siemens electronics plant in Fürth was recently honored by the World Economic Forum with the Sustainability Lighthouse Award for its pioneering role in the areas of energy efficiency,_{CO2 reduction} and resource conservation. The plant demonstrates how sustainable results lead to a more profitable business. Among other things, the company has achieved the following cost-efficient benefits per throughput: 64% energy savings, 72% less greenhouse gas emissions and 47% less waste. In addition, production throughput has increased by 145%.

These achievements are a direct result of the plant's focus on a circular economy. By tracking products throughout their life cycle, Fürth uses spare parts and repairs to extend the life cycle of the products. This avoids emissions that would otherwise be generated during production, scrapping and recycling. With the long-life repair service, the plant offers an extended service for selected products. At the beginning of 2025, there were already over 300 long-life repairs, and this number is set to rise to 2,000 by 2026. Building on its significant energy savings, Fürth is aiming for_{CO2 neutrality} by 2026. While this goal may seem ambitious, the plant's commitment to sustainable practices and circular economy shows a clear path to making this vision a reality.