Bosch: Closing Materials Loops in Manufacturing

Bosch is laser-focused on embedding circularity into its manufacturing processes.

As one of the first global companies to make its Scope 1 and 2 emissions carbon neutral, Bosch is now targeting its value chain to improve its environmental impact and reduce material waste.

With more than 450 locations worldwide, Bosch is focused on upstream and downstream Scope 3 emissions. It achieved carbon neutrality for its direct and purchased energy emissions back in 2020.

This followed substantial efforts to increase energy efficiency, generate its own power from renewable sources and buy green electricity. Carbon credits were used to offset residual emissions as a final measure.

Earlier this year, Bosch earned 54th place in Sustainability Magazine’s Top 250 World’s Most Sustainable Companies 2025.

Reducing scope 3 emissions and material waste

Bosch is aiming for a 30% reduction in its upstream and downstream Scope 3 emissions by 2030, using 2018 as the baseline year. This target is set irrespective of its future growth.

For Bosch, upstream emissions are mostly created by purchased goods, services and logistics. Downstream emissions primarily come from the use of its products.

To address these Scope 3 emissions, the business is seeking to improve the design of its packaging, optimise freight usage and develop new agreements with its suppliers.

Dr Thomas Schulte, Head of Sustainability and EHS at Bosch, explains: “We leverage the innovation potential of Bosch and our partners to protect the climate, save water – especially where it is scarce – and strengthen the circular economy.”

Implementing circular economy principles in production

To minimise its environmental footprint, Bosch is working to improve the sustainability of its products throughout their lifecycle. This circular model begins with the procurement of materials and extends to a product's end-of-life, where materials can be recovered and reused.

A core goal is the efficient use of materials during the manufacturing process, which helps to cut costs and reduce Scope 3 emissions. The intention is to close material and product loops in production, thereby extending the lifecycle of products and their components.

One example of this in practice is the production of wiper blades. As these require regular replacement and specific adapters for fitting, Bosch is giving workshops the option to order the required adapters separately.

This approach reduces the amount of materials used and waste generated in manufacturing. According to Bosch, this change results in 50% less packaging waste in workshops and also achieves a higher packing density during transport.

Bosch is also working to establish recycling processes for materials like steel, aluminium and plastics. Across its portfolio, the average percentage of recycled steel used in Bosch’s manufacturing is 56% and the average for recycled aluminium purchased is 35%.

Arne Michel Mittasch, Head of Sustainable Business and Relations Management at Bosch, says: “By consistently implementing the principle of the circular economy, it is possible to combine climate action, resource conservation and greater resilience for companies and their supply chains.”

Energy efficiency and the path to climate neutrality

Optimising energy use is central to Bosch's climate neutrality strategy. It plans to increase its energy efficiency to achieve potential savings of 1.7TWh by 2030 and will invest €1bn (US$1.17bn) to meet this goal.

Since 2019, Bosch has launched more than 7,000 efficiency projects globally, capturing a savings potential of 1,144GWh – which is 67% of its target.

The organisation also intends to harness new clean power technologies, using solar power in 139 of its owned sites by the end of 2024. By 2030, it aims to source green electricity exclusively.

In 2024, approximately 99.5% of the Bosch Group’s worldwide electricity demand was covered by green electricity – partly by expanding its purchase volume from existing plants.

Dr Stefan Hartung, Chairman of the Board of Management at Bosch, says: “Companies shouldn’t have to choose between being profitable and doing what’s best for the planet.

"If the right path is chosen, both aims go hand in hand.”