Circular Economy Case Studies: Where Henkel’s Journey Toward 2030 Begins
Brief Overview of Henkel’s Sustainability Roadmap
Henkel is driving forward its 2030+ Sustainability Ambition Framework to promote a regenerative planet and responsible business practices. With sustainability strategy deeply integrated into corporate strategy, the company is working toward measurable impact across the value chain. It includes emissions reduction, product design, and raw material sourcing.
Circular Economy Sustainability as a Core Pillar of Transformation
A circular economy sits at the heart of Henkel’s transformation strategy. Rather than following traditional linear models of “take, make, dispose” Henkel is building closed-loop systems that prioritize recycling and reuse. From packaging redesign to supplier collaboration, circularity informs how the company creates long-term value.
Key 2024 Milestones (CO₂ Reduction, Recycled Plastic Use, Inclusive Policies)
Henkel achieved several key sustainability milestones in 2024, including:
- Eco-friendly products: A 64% reduction in CO₂ emissions per ton of product (baseline: 2017)
- Sustainable materials: 25% recycled plastic use across global packaging
- A gender-neutral parental leave policy, resulting in a 30% increase in uptake
These outcomes reflect Henkel’s strong momentum toward its 2030 and 2045 sustainability targets.
Company Profile
Henkel: Global Consumer and Industrial Goods Manufacturer
Henkel operates as a multinational leader in both consumer-facing and industrial markets. Its innovations are embedded in everyday products, from household detergents to industrial adhesives used in automotive and electronics.
Sectors: Adhesive Technologies, Beauty Care, Laundry & Home Care
The company’s activities span three business units:
- Adhesive technologies – The global market leader, supporting automotive, construction, and packaging industries
- Beauty care – Offering shampoos, hairstyling products, and coloration
- Laundry & home care – A core unit with brands like Persil and Pril
ESG Ratings and Sustainability Recognitions (e.g., EcoVadis Gold, Global 100 Index)
Henkel holds a gold rating from EcoVadis and ranks in the Global 100 Most Sustainable Corporations Index. These recognitions affirm its leadership in ESG sustainability compliance, reporting, and innovation.
Strategic Objectives in Circular Economy
Sustainable Business Practice: Transition from Linear to Circular Production Models
Henkel is redesigning its value chain to reduce waste and increase circularity. This includes sustainable material sourcing and design for recyclability. The shift aims to decouple business growth from resource consumption.
Key Priorities: Decarbonization, Resource Efficiency, Social Responsibility
Henkel’s circular economy strategy is grounded in three pillars:
- Carbon footprint reduction and decarbonization: Reducing emissions across all scopes
- Resource efficiency: Extending product life and minimizing waste
- Social responsibility: Ensuring human and labour rights throughout the chain
Integration with EU CSRD and ESRS for Transparency
Henkel aligns its sustainability goals with regulatory frameworks like the EU Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), ensuring credible, standardized disclosures.
Climate Action Across the Value Chain
Scope 1, 2 & 3 Emissions Reduction Targets
Henkel reduced CO₂ emissions per ton of product by 64% from 2017 to 2024. It also aims to reach net-zero emissions by 2045, supported by digital tools for emissions tracking.
Carbon Footprint Reduction: 64% Reduction in CO₂ per Ton of Product (2017–2024)
The company’s production processes are increasingly optimized for energy efficiency and powered by cleaner energy sources. Henkel continues to invest in new technologies and low-carbon innovations.
Net Zero Emissions Target by 2045
Henkel’s long-term target includes full decarbonization across Scope 1, 2, and 3 emissions, with a strong focus on emissions from suppliers and end-users.
Green Technology and Use of Renewable Energy: 47% Share by End of 2024
Renewables made up 47% of Henkel’s electricity use globally in 2024, with expansion plans underway to reach 100% by 2030.
Supplier Engagement for Scope 3 Monitoring
Henkel actively collaborates with suppliers to collect and monitor Scope 3 emissions data, which accounts for a major share of its carbon footprint.
Sustainability in Packaging & Recyclability
Recycled Plastic in Packaging
Henkel uses 25% recycled plastic globally across its packaging portfolio. In Europe, some detergent and hair care products already feature 50% recycled content, while certain North American brands have reached 100%.
25% overall, 50% in EU Detergent/Hair Care, 100% in some NA Brands
The company’s regional targets are tailored to reflect market readiness and infrastructure, with Europe and North America leading in circular packaging adoption.
Reuse and Recycle Goal: 100% Recyclable or Reusable Packaging by 2025
Henkel has committed to making 100% of its packaging recyclable or reusable by 2025, investing in design innovation and recycling technologies to meet this ambitious goal.
Packaging Design: Intelligent Material Selection, Recyclability Logos, PVC Phase-out
Henkel applies principles of intelligent design, using mono-materials, simplified labeling, and easily sortable packaging. It is also phasing out PVC across all packaging.
Adhesive Technologies & Circular Design
Bio-Based Adhesives (Technomelt, Aquence)
Henkel’s Technomelt and Aquence adhesives use bio-based raw materials to support low-carbon and renewable manufacturing.
Regenerative Economy: Debonding for Repair and Reuse
Henkel is pioneering debonding-on-demand technologies to make industrial products easier to disassemble, repair, and reuse. These are the key enablers of a circular economy.
Mass Balance Certification (ISCC PLUS)
Through ISCC PLUS certification, Henkel ensures traceability and mass balance validation for renewable and recycled input materials used in adhesives.
Industrial Recyclability of Adhesives & Composite Materials
Henkel is improving the recyclability of complex adhesive-bonded products, like electronics and vehicles, making industrial recycling more viable at scale.
Circular Infrastructure and Partnerships
Waste to Resource: On-Site Waste Separation and Closed-Loop Systems
Henkel is developing circular infrastructure across production sites, including on-site waste segregation and reprocessing systems that feed recycled content back into production.
Collaborations:
- CEFLEX (flexible packaging recyclability)
- Recyclate forum
- U.S. plastics pact
- Ellen MacArthur foundation (new plastics economy)
These partnerships are essential for industry-level coordination and standard-setting, ensuring that Henkel’s circular strategies are scalable and collaborative.
Inclusive Sustainability: People & Equity
Gender-Neutral Parental Leave Policy
Henkel implemented a gender-neutral parental leave policy to foster inclusive family care. This has led to a 30% rise in employees taking parental leave, regardless of gender.
Result: 30% More Employees Taking Leave
This reflects cultural progress toward gender equity and work-life balance.
42% of Leadership Roles are Held by Women
Henkel continues to advance gender diversity, with 42% of leadership positions currently held by women.
Annual Living Wage Benchmark Assessments
Henkel conducts annual reviews of wage structures to ensure every employee earns a living wage, supporting fairness across all global locations.
ESG Reporting & Governance
2024 Sustainability Report Aligned with ESRS
Henkel’s reporting for 2024 aligns with the European Sustainability Reporting Standards, offering transparent insights into emissions and circularity.
Integration of Climate, Circularity, and Social Indicators
The company integrates climate, circular economy solutions, and social metrics into a unified ESG framework, guiding both internal decision-making and stakeholder communication.
Internal Alignment: Sustainability, HR, Infrastructure Governance
Henkel’s ESG governance spans departments, ensuring that sustainability, HR, and infrastructure strategies are coordinated and aligned with overarching goals.
Lessons Learned & Replicable Circular Economy Business Model
Henkel’s Approach to System-Wide Circularity
Henkel shows that system-wide circularity is achievable through business model transformation and design innovation with suppliers.
Importance of Digital Tools, Traceability, and Lifecycle Assessment
Digitalization, such as traceability tools and lifecycle assessments, enables deeper insight into material flows and emissions.
Relevance for Manufacturers Across Sectors
Henkel’s integrated approach can serve as a blueprint for other manufacturers aiming to embed sustainability into operations and long-term growth strategies.
Circular Economy Sustainability: Next Steps
How Henkel’s End-to-End Circular Economy Model Supports EU Green Deal, CSRD, and ESG Leadership
Henkel’s circular economy strategy directly supports the EU Green Deal, CSRD obligations, and ESG leadership ambitions. By addressing climate, material use, and equity together, it’s redefining what sustainable value creation looks like.
The Role of Innovation, Collaboration, and Reporting in Scaling Sustainability
Scaling sustainability requires constant innovation, multi-stakeholder collaboration, and transparent reporting. All of these are cornerstones of Henkel’s approach.
