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IPC sees more sustainability in board manufacturing

IPC sees more sustainability in board manufacturing

Market news |
By Nick Flaherty



The electronics industry is planning to increase its sustainability programme according to new research.  

A survey across the global electronics manufacturing supply chain by IPC International, which includes Intel and Siemens as members, found that 59% of respondents expect their companies to increase sustainability efforts in 2025. Printed circuit board (PCB) and contract manufacturers anticipate the greatest growth.

“What the industry is telling us is that sustainability is inspiring changes to every aspect of electronics manufacturing: It is a core driver of how the industry is building the future. But one company cannot singlehandedly forge the path forward,” said Dr. John Mitchell, President & CEO of IPC, which develops standards for the PCB industry.

A key driver for 66% of respondents was to comply with regulatory requirements around the world, but companies are also motivated by efficiency gains (58%), technological advancements (56%), and long-term competitive positioning (55%)

Budget constraints, regulatory complexity, and limited expertise are the top three primary barriers to sustainability. Tackling these issues requires greater industry-wide interaction, sharing of best practices, and access to resources.

Sustainability efforts can’t achieve their maximum impact if they exist in silos. The survey findings show the electronics industry needs alignment, knowledge-sharing, and a collective push to accelerate impact says Mitchell.

Responses were dominated by industrial equipment at 56%, followed by automotive suppliers and aerospace and defence (38%), and then healthcare (35%) and consumer (32%). Traditional semiconductor suppliers are just 2% of the survey, which is dominated by contract manufacturers. OEMs and printed circuit board (PCB) makers.

82% of respondents indicated organized engagement including formal sustainability strategies and dedicated teams and integration of sustainability into some business units. Electronics manufacturing services (EMS) and original equipment manufacturers (OEM) companies were most likely to have dedicated sustainability teams and formal sustainability strategies compared with other sub-industries. Only 3% indicated that their companies did not have a formal sustainability strategy in operation.

Most respondents expect their companies’ sustainability efforts to increase in 2025. PCB and contract manufacturers expect the largest growth in their sustainability efforts, while OEMs expect lower growth. Thirty-eight percent stated they do not expect any change and only 3% indicated a decrease in their company’s focus on sustainability. This indicates a growing momentum for sustainability in the industry.

Seventy-eight percent expressed optimism, with 36% of the survey very or extremely optimistic that their companies will achieve their sustainability targets. Ninety-five percent, the overwhelming majority, indicated some level of optimism. PCB and contract manufacturers were the most optimistic of the sub-industries represented in the survey and OEMs were the least optimistic although 10% of OEMs indicated they were not optimistic at all.

 

The biggest challenges to implementing sustainability initiatives are budget constraints, complexity, and uncertainty around regulations and compliance with those regulations. Limited expertise and insufficient customer demand were also ranked as pressing challenges.

“We need guidance on what actually works. Everyone is talking about sustainability, but too often, we’re left figuring things out on our own,” said one respondent.

Overall, respondents said that they need more opportunities to share industry best practices for sustainability, information on emerging regulations, and technical resources to decipher obligations and narrow the focus on aspects with relevance to the electronics supply chain.

“Sustainability isn’t just about compliance—it’s about opportunity. The electronics industry has an unprecedented chance to drive innovation, improve operational efficiency, and meet the growing demand for sustainable products,” said Mitchell.

IPC has launched the Evolve programme for sustainability with resources on standards, intelligence, and opportunities for action.

“Evolve integrates the health of our planet into industry progress. We believe Evolve will bring the industry together to deliver on impactful sustainability goals.”

This includes a Guide to Safer Alternatives in Electronics Manufacturing that identifies safer and more sustainable alternatives for essential chemicals.  This reduces the use of chemicals considered hazardous and requires more awareness in an industry that is largely downstream users of chemicals.

The Double Materiality Assessment Toolkit prepares companies for a process to determine financial and non-financial sustainability impacts. IPC is adding tools to the DMA toolkit this year, including resources that will help complete a context report, and impacts, risks and opportunities (IROs).  

A new Scope 3 greenhouse gas reporting summary supports companies that need to account for direct and indirect emissions from upstream and downstream activities which can be a complex activity.

It also includes insights about circularity challenges and solutions provides details on Ecodesign obligations requiring increased attention to circular product models that increase reclamation, repairability and recycling.

“From automation to augmented reality, simulation, and regionalization — the future of manufacturing is driven by sustainability. I am delighted by IPC’s continuous efforts to support the industry on this path and accelerate progress,” said Paul Baldassari, President of Global Manufacturing Services at Flex. “As the survey findings show, there are real challenges to implementation that we can only solve if the industry works together.” 

 

www.ipc.org

 

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