BORG Automotive focuses on life cycle assessments and makes environmental benefits visible
Europe's largest independent automotive parts remanufacturer, BORG Automotive, is now carrying out life cycle assessments for all its product groups. Remanufacturing is an important element within the circular economy, and by producing life cycle assessments, BORG Automotive is showcasing the environmental benefits of using its remanufactured car parts over new ones.
For example, if your car's alternator, starter, or air conditioning compressor breaks down, you can instead install a BORG Automotive remanufactured part when you visit the workshop. This is better for the environment compared to a newly produced spare part, as the material consumption of remanufactured car parts is much lower. Using a remanufactured starter or turbocharger has been found to save 96% of raw materials on average compared to using a newly manufactured part. In this way, BORG Automotive's circular business model contributes to a more responsible use of resources while CO2 emissions are also reduced by 40% and energy consumption by around 38%.
To make BORG Automotive's sustainable solutions for the automotive industry visible, the company is in the process of preparing life cycle assessments for its entire range of product groups. This means that it will be documenting and verifying the difference between using remanufactured parts over new ones. At BORG Automotive, owned by the industrial conglomerate Schouw & Co, it is not just the financial bottom line that matters. The company also works hard to minimize the negative environmental impact of production.
“Thanks to our business model, we have had a strong focus on sustainability and responsibility for many years, as the environmental impact of using our products is far less than using newly produced spare parts. There is a growing demand for remanufactured automotive parts, and we are naturally pleased about this. Once we have completed our life cycle assessments, both ourselves and our partners will have a clear picture of the environmental and climate impact of all our product groups,” says Sten Højland, director of compliance at BORG Automotive.
Return system is the foundation for the circular model
BORG Automotive is Europe's largest independent automotive parts remanufacturing company, and its 2022 turnover is expected to reach DKK 1.6-1.8 billion. BORG Automotive takes back defective spare parts from the distribution chain and gives them new life through remanufacturing. These remanufactured parts are then sold to the distribution chain, which sells them to the garages that work directly on consumers’ cars.
A return system comparable to the bottle deposit system creates the basis for product circulation and, as well as being sustainable, it also results in significant savings for car owners by purchasing a remanufactured part rather than a new one.
Will reduce greenhouse gas emissions from factories
BORG Automotive is working on several fronts to meet its objectives of reducing its environmental impact. The company's circular business model contributes to a significant reduction in CO2 emissions, but BORG Automotive is also working to minimize any negative consequences from its own production processes.
The company aims to reduce CO2 emissions from its factories by 30% by 2030. Among other things, this means that BORG Automotive will use more renewable energy in the coming years, as energy consumption is the primary cause of emissions. In addition, the company is continuously working to optimize production processes and facilities to reduce its environmental impact and improve the working environment.
This is something that has been successfully undertaken at the company's factory in Poland. “For example, we have optimized the cleaning process,” says Sten Højland. “When we receive used automotive spare parts, they have to be thoroughly cleaned. We recently installed a new machine that is more efficient and increases capacity while improving the working environment, reducing the number of chemicals as well lowering water and energy consumption."
In BORG Automotive's ESG (Environment, Social, and Governance) objectives, the company also works purposefully with initiatives in the social field. Employee satisfaction must be increased, and the working environment must be even better. This is achieved, for example, by purchasing new paint booths, improving working postures, and minimizing manual lifting. In addition, the number of accidents per million working hours is to be reduced by 30% by 2025.
BORG Automotives' work with ESG is based on the strategic direction set by the owner, Schouw & Co. Schouw & Co., who make long-term investments in the companies it owns and therefore has an interest in developing a clear direction for its ESG and responsibility work.
“We have a strategic framework for the Group's approach to ESG and corporate responsibility in line with the Group's other objectives of growth, earnings, returns, and dividends. We have ambitious targets towards 2030 and set a clear framework for our businesses. BORG Automotive is a good example of a company where sustainability is thought into the business model itself," says Jens Bjerg Sørensen, CEO of Schouw & Co.