A new report from ABB Motion, entitled 'Circularity: No Time to Waste', reveals that 94 percent of HVAC businesses are feeling the effects of resource scarcity, prompting 69 percent to increase their investment in circularity initiatives within the next three years.
scarcest resources
Raw materials, energy, and labor are seen as the scarcest resources (all cited by 41 percent, 41 percent, and 38 percent respectively).
This resource scarcity has led to increased costs for 38 percent of HVAC businesses, as well as supply chain disruption for 31 percent and slowdowns in production capacity for 29 percent.
need for energy efficiency
Despite energy being an increasingly scarce resource, 41 percent reported it as their biggest source of waste
Despite energy being an increasingly scarce resource, 41 percent reported it as their biggest source of waste. This highlights an urgent need for greater energy efficiency across the industry, something the International Energy Agency (IEA) says will be a critical lever in meeting Net Zero targets.
The global survey, conducted by Sapio Research in October 2023, gathered responses from 343 HVAC decision-makers across 12 countries.
Identifying challenges
While there is optimism about investing in circularity, the survey also identified obstacles to immediate progress. For example, no single definition of 'circularity' was accepted by the majority of respondents.
Also, only eleven percent see circularity as a company-wide responsibility, but this group experienced the highest level of improvements across key circularity metrics, such as energy consumption, use of recycled materials, and carbon emissions.
Limited circular practices adoption
Encouragingly, 71 percent are using recycled materials in their products to some extent
The survey also reveals limited adoption of many important circular practices amongst HVAC companies, including partnering with waste management companies (45 percent), incorporating energy-efficient technologies (36 percent), and promoting circular principles in the supply chain (38 percent).
Encouragingly, 71 percent are using recycled materials in their products to some extent.
Benefits of circularity
Investing in circularity has already led to measurable benefits, including waste reduction (42 percent) and energy efficiency improvements (51 percent). Although some businesses express concern about the upfront investment required, many anticipate long-term improvements in process efficiency and cost control.
Most respondents (79 percent) agree that the circular economy encourages innovation and drives competitiveness. They also support increased regulation and reporting requirements (76 percent) and want more government support for adopting circular business practices (75 percent).
Enhancing resilience
The pressing need to transition to a circular economy has never been clearer"
Tarak Mehta, President of ABB Motion, commented, "The pressing need to transition to a circular economy has never been clearer."
He adds, "Our current way of life is depleting resources at an unsustainable rate, contributing to emissions and climate change. Embracing circularity is not only essential for safeguarding our environment but also for enhancing business resilience.”
holistic approach
Tarak Mehta continues, “This survey highlights the importance of taking a holistic approach, instilling responsibility at all levels of the organization, and embracing new technologies and collaborations."
He further said, "While there are challenges to overcome, businesses that fully embrace circularity see significant benefits, from cost control to improved reputation. We must act now, to make circularity the norm in global industries. There is no time to waste."
