Circular economy - When benefits to business and political goals go hand in hand

Technology Industries of Sweden has approximately 4,500 members who produce products, technical solutions, and services that facilitate the sustainable transition and contribute to a circular economy in various ways across different phases of the value chains. The technology industry has specific conditions due to the fact that high-tech products often have a long lifespan, meet high safety and quality requirements, and consist of advanced and composite materials distributed among a multitude of different components. Therefore, it is not evident that general policy proposals align with the conditions that the Swedish technology industry needs for an effective circular transition.This report examines the technology industry's opportunities and challenges in the circular transition.

Many companies have already developed processes and business models that contribute to the circular economy. However, several obstacles and challenges remain before they can fully realize the potential of the circular economy. The corporate interviews forming the basis of this report reveal that the members of Technology Industries of Sweden view circularity as an essential component of a long-term and sustainable business strategy. Some companies have already started to develop circular strategies and set specific goals and key performance indicators (KPIs) to evaluate their progress. Other companies are in an initial phase, focusing on defining and concretizing the concept of a circular economy within the framework of their operations. The member companies are advocating for uniform legislation that promotes high quality, reuse, and the upgrading of materials and products, as well as regulations that facilitate modular design. 

A central challenge is adapting technical specifications, product requirements, and material handling to circular principles. This involves developing improved solutions for material recycling, traceability, compatibility, and standardization. The circular economy also demands changes in logistics systems and increased presence at the regional level. To maximize the value of materials, companies need to operate closer to the end customer, representing a shift from current global logistics and coordination processes. The member companies also underscore the importance of cooperation and partnerships both within industries and across sectors. Creating sustainable logistics systems, establishing new technical standards, and developing practical knowledge about circular material flows are complex tasks that require effective collaboration and joint competence development.