Driving the shift: Why Sustainability in Auto Electronics Matters

The automotive industry is undergoing a transformative shift, driven by regulatory mandates, evolving customer expectations and expanding environmental targets. In the realm of automotive electronics, this shift is as urgent as it is complex.

From power-dense control units and displays to high-voltage battery systems, electronics are central to the performance and functionality of modern vehicles, but as their role expands, so too does their environmental footprint. Ensuring the sustainability of these components is no longer optional, it is a necessity. At Henkel, we're working closely with OEMs and suppliers to help them embed circularity, reduce carbon emissions, and meet their sustainability goals from the design phase all the way through to vehicle end-of-life implementation.

From Linear to Circular, a New Paradigm in Automotive Electronics

The industry consensus is clear that embracing circular economy principles is essential to the future of automotive manufacturing. Regulatory frameworks such as the EU Eco-Design Directive, REACH, and the End-of-Life Vehicles (ELV) Directive are setting ambitious targets, while OEMs and Tier 1 suppliers are demanding greater environmental accountability throughout the supply chain.

While some materials are inherently easier to recover, such as aluminium and copper housings or recyclable polymers like polyamide and PBT, others present challenges. In the past the challenge was that legacy bonding technologies could prevent non-destructive disassembly, as well as create material incompatibilities that contaminate recycling streams. These limitations highlight the urgent need for industry-wide standards in design-for-disassembly practices and component suitability assessment for circularity.

Where sustainability is a key focus, it is increasingly defined by how automotive electronics are designed from the outset. Circular design principles enable manufacturers to address environmental challenges while strengthening economic resilience.

This includes enabling the repair, reuse, rework, and clean dismantling of high-value components such as electronic control units (ECUs), displays, and high-voltage boxes. Our portfolio of re-workable and debonding-on-demand adhesives plays a key role here, facilitating the selective disassembly and recovery of components at end-of-life while reducing production scrap rates.

Leading the way in responsible materials and chemistry

A major driver in responsible transformation is the reduction of Scope 3 emissions, which are a significant contributor to an OEM’s carbon footprint. At Henkel, we support this transition through the development of Low-Emission Raw Materials (LowER), which significantly lower the carbon footprint of adhesives, sealants and coatings used in automotive electronics.

Equally critical is the shift toward safer, more sustainable chemistry. Henkel is actively phasing out hazardous substances, including substances of very high concern (SVHCs) and other problematic materials and no longer develops solutions containing them. The result is adhesives and coatings that enhance health and safety across production, application, and use phases, without compromising performance.

Overcoming Structural Barriers to Circularity

Despite growing momentum, the industry still faces structural hurdles. A key challenge is the absence of established pathways for the circular management of electronic components. There’s currently no consistent, scalable system for recycling complex modules such as ECUs or sensor arrays.

To address this, manufacturers must integrate Design for Circularity principles at the earliest stages of product development. This means treating sustainability as a core design parameter, on par with cost, quality, and performance.

Our work at Henkel focuses on enabling this integration through recyclable bonding technologies, safer material formulations, and clear disassembly guidelines. These tools empower manufacturers to meet their sustainability targets while unlocking cost savings and preserving material value, especially in high-value components.

Science-Based Targets on the Road to Net Zero

While there are clear challenges, our science-based climate initiative targets include a commitment to reducing our absolute Scope 1 and 2 greenhouse gas emissions by 42% by 2030 (vs. 2021), Scope 3 emissions by 30% by 2030, and we aim to achieve a 90% total reduction across Scopes 1, 2, and 3 by 2045.

In order to reach these decarbonisation goals, Henkel is implementing multiple solutions across its business to the benefit of the wider industry. This includes optimising operations with a transition to renewable energy and enhanced efficiency through process optimisation. Meeting LowER targets can be achieved by reducing the carbon footprint of products and at Henkel we are working very closely with our suppliers to support them in their decarbonisation journey to drive effective climate action and carbon reductions.

We are also backing these actions with robust data from cradle to gate. Our standardised Life Cycle Assessments (LCAs) evaluate the environmental impact of each solution from cradle to gate and we can provide OEMs and suppliers with transparency, accountability, and a clear sustainability roadmap. This includes our use phase calculators which can analyse the environmental impact in our customers’ production.

A clear example of where our innovations make a significant difference can be found in our one-step UV-cure epoxy adhesive, which is specifically designed for high resolution automotive camera-module bonding applications, providing up to 30% CO₂ emission savings compared to standard dual core.

A Collaborative Path Forward

The sustainability of automotive electronics cannot be solved in isolation. It requires close collaboration across the value chain, from chemical suppliers and component manufacturers to OEMs and recyclers. At Henkel, we are developing technologies and strategies that make circularity not only possible, but practical.

We’re committed to being a pioneer, helping our customers reduce their environmental footprint, meet their climate goals, achieve ultimate circularity and future-proof their products in an increasingly regulated and sustainability-driven market.

The road to circularity in automotive electronics is complex, but the direction is clear. It is vital to move away from traditional patterns to embed sustainability early in the design phase, prioritise safe materials and enable recyclability. Implementing these pillars of design and production can turn sustainability into a source of resilience and competitive advantage ensuring that collectively we can accelerate the shift toward a cleaner, more circular automotive future.