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In a blog post about a year ago, we highlighted the vast business potential of reuse and refurbishment in HVAC and the building industry. Today, that potential is materialising. Across the sector, circularity has gained momentum and we have deepened our commitment by expanding our expertise to address both ongoing work and future challenges.
Circularity Director, Caroline Jacobsson, shares her perceptions on how to continue to advance circularity in our industry and what lies ahead.
In last year’s blog post, circularity efforts were largely focused on maintenance, repair and spare parts sales. Since then, the industry has made significant strides. Strategic business decisions are now driving ambitious circular initiatives, and traditional linear models where products are made, used and discarded, are increasingly being replaced by sustainable approaches.
Programs that were in pilot stages a year ago have matured into viable business strategies. Yet, challenges remain. Legislative uncertainties, practical limitations and economic complexities still hinder large-scale implementation. So while progress has been steady, these systemic obstacles require time to resolve. However, we see policy shifts supporting the acceleration of circularity.
Policy shifts accelerate the realisation of circularity practices
As mentioned, regulations are evolving, turning circularity from a voluntary effort into a business imperative. Key policy updates include, for example:
- Construction Products Regulation (CPR): Revised to standardise construction product marketing, this regulation introduces digital product passports, enhancing transparency and strengthening market surveillance.
- Eco design for Sustainable Products Regulation (ESPR): Aims to make sustainability the norm in the EU, improving circular material usage and energy efficiency.
- Corporate Sustainability Reporting Directive (CSRD): Requires companies, also those in the building industry, to report on a wide range of environmental, social and governance (ESG) factors. This includes greenhouse gas emissions and environmental impacts, including embodied carbon from construction materials.
In sum, these regulatory shifts send a clear message—embracing circularity is essential for compliance, efficiency, and long-term competitiveness.
Growing demand for circular solutions
The demand for sustainable practices continues to rise, especially in the real estate and building sectors. Over 230 real estate companies in Europe and North America have committed to Science Based Targets (SBTi), with targets like 100% circular material use and net-zero emissions by 2030.
Since heating, cooling and ventilation account for 15–40% of a building’s embodied carbon emissions, circular solutions are no longer optional, they are critical. Recognising that as a fact, we established our RE:3 concept in the beginning of 2024 to gather initiatives and actions for reduced embodied carbon emissions in HVAC.
RE:3 one year later
The past year has brought significant progress to both initiatives and ongoing actions within our RE:3 concept and our three core initiatives, RE:duce, RE:use, and RE:vitalise, are now fully integrated into our daily operations:
- RE:duce: Our signature products, GOLD and CLA, now incorporate a substantial percentage of recycled and renewably produced steel in serial production.
- RE:vitalise: Over 1,000 refurbishment kits have been installed, extending the lifespan of units by approximately 10 years each.
- RE:use: A major milestone - our first Swegon products have returned to factories for cleaning, upgrades and quality verification. They will now be reintroduced to the market for a second life with full warranties and up to 96% lower embodied carbon footprint.
While we are very proud of the advancements made so far, we also realise that challenges remain. We see a clear path forward for scaling up circularity across our operations and we are excited to continue on this path towards a business based on circularity practices.
Circularity through collaboration
Further, we are strengthening partnerships across the industry through RE:create, a collaboration to tackle the shared challenges of reuse, such as logistics, legal frameworks and actual implementation.
"We’re proud to have several leading Swedish real estate companies onboard, all united by a commitment to circularity. Our collective ambition to reduce embodied carbon in buildings is what makes this initiative truly impactful"
Caroline Jacobsson, Circularity Director, Swegon.
Additionally, our ongoing involvement in the Nordic Circularity Piloting Program for Technical Building Solutions, led by Combient Pure, remains crucial. This initiative accelerates circular practices in the Nordic building sector, and we are committed to contributing to its success.
While it is difficult to be entirely objective, we recognise that we have made meaningful progress. We understand that this is part of a longer journey, and we therefore look forward to returning in a year’s time with an additional blog to share the next steps and continued developments. In the meantime, follow our progress and advances on our website.
