Circular Economy

What is a circular economy?

A circular economy is a shift from our current economy, where we take material from the earth, make products, use it, and throw them away as waste – this process is linear. A circular economy is a contrast to a linear economy where, for example, products circulate at their highest value. Resources are used and reused in a loop rather than being extracted, used, and then discarded. This approach gives a more efficient and effective use of available resources, retains a resource’s value for as long as possible, and generates less waste than the “take-make-use-dispose” models.

In a circular economy, there is a number of activities that businesses can adopt to improve circularity:

• Repair – extend the life cycle of the product.
• Reuse – the product is used again for the same purpose in its original form.
• Remanufacturing/refurbishment – established a new, full product life cycle by disassembling and renovating the product into a condition at least quality to a newly manufactured product.
• Recycling – recovering materials.

How are we circular?

At BORG Automotive Group, we are proud of our contribution to a circular economy. The majority of our business comes from our remanufactured spare parts, which means that used parts go through a highly specialized remanufacturing process to make them match OE (Original Equipment Parts) standards.

Our remanufactured products are part of a loop, and our business model ensures an extended lifecycle for auto parts. This maximizes the product's lifetime, leads to better utilization of resources, and thus reduces waste. The environmental impact of our remanufactured products shows a trend for an average of 60% less CO2eq, 42% less energy (MJ), and 70% lower consumption of natural resources (Sb-eq) compared to newly manufactured products.*

^{*The average reduction is calculated based on index 100 for each newly produced product without taking into account differences in production volumes for the 8 remanufactured products. Read more about our LCA results here} 

How do we work with circularity?

BORG Automotive, as a company, is founded on a circular economy, and for more than 40 years, we have worked to deliver the best remanufactured OE-matching automotive parts for the European aftermarket. Circularity is thus a part of our DNA, and it encapsulates the way we work.

Our circular business model is based on sales of remanufactured, high-quality auto spare parts combined with a return system that is the platform for the recirculation of products.