Circularity

The companies of the Otto Group are implementing concrete solutions. For example, OTTO and Bonprix have launched "Circular Collections" in collaboration with circular.fashion. These collections are subject to strict requirements regarding recyclability and durability, ensuring that materials can be accurately identified later in textile sorting facilities to prepare them for reuse or high-quality recycling based on the condition of the item.

To promote the integration of circular processes in the supply chain across the industry, the Otto Group, together with Bonprix and OTTO, has participated in the project "Implementing Circularity in the Textile Industry" since early 2024. The project is supported by the German Partnership for Sustainable Textiles, the German Society for International Cooperation (GIZ), and circular.fashion. As part of the project, training sessions were held with suppliers in Bangladesh, and measures to close the textile loop in Germany were tested together with other fashion companies, sorters, and recyclers, based on circular capsule collections with digital product passports.

Functioning take-back systems are essential in the circular economy, which is why OTTO offers customers the opportunity to collect used textiles as part of the non-profit initiative “Platz schaffen mit Herz” (Creating space with heart). The proceeds from selling the second-hand clothes are directed to social projects worldwide, which customers can help choose through a voting process. Since 2024, Bonprix has also introduced a free take-back system for customers in Austria. This allows well-preserved clothing to be reused, while the remainder can be recycled.

In 2024, the Otto Group recycled more than 45,000 tons of used electronic equipment collected from customers. Additionally, more than 236,000 refrigerators and freezers were freed from hazardous components by our "WEEELABEX"-certified disposal partners in Germany and remanufactured into high-quality products. This makes an important contribution to climate protection, as no greenhouse gases such as chlorofluorocarbons (CFCs) and hydrofluorocarbons (HFCs) are released into the environment during the recycling process. This makes the Otto Group one of the few companies in Germany to place such high demands on recycling – a commitment that is also recognized by third parties.

Furthermore, since November 2024, the Otto Group has been supporting the "CiCEL 2.0" program of the Circularity Initiative as a program partner. Given the significant resource consumption and complex waste generation associated with the consumption of electronic products, the project aims to develop solutions for optimizing repairs and recycling of used devices in collaboration with stakeholders across the entire value chain.

The products of our Group company Manufactum are characterized by craftsmanship, thoughtful functionality, and a long lifespan. Care is taken to ensure that individual parts can be replaced and mechanisms repaired. Additionally, the team for special orders, integrated into the company's customer service, supports customers with repairs and the procurement of necessary replacement parts.

As part of its membership in the Fashion for Good initiative, the Otto Group supports the project "Sorting for Circularity," which promotes the use of automated sorting technologies using artificial intelligence (AI). This optimizes the sorting of reusable textiles by large sorting companies, increasing circularity and reducing the burden on waste management in exporting countries. Additionally, in 2025, the project “Closing the Footwear Loop” was launched, focusing on the use of sustainable alternatives for shoe materials, defining circular design criteria, and optimizing take-back logistics for the reuse and recycling of shoes.

Since the success of the circular economy concept requires an industry-wide transformation, we aim to achieve impact beyond the Otto Group with our actions. The study sponsored by the Otto Group in 2023, conducted by the World Wide Fund for Nature (WWF) on a circular economy in Germany ("Modell Deutschland Circular Economy"), has made a significant contribution to the political discourse and has substantially influenced the National Circular Economy Strategy adopted by the federal government in December 2024.