SUSTAINABILITY SPOTLIGHT | 38 Why does Scope 3 matter? these sectors are likely to require intense cooperation Scope 3 emissions can account for more than 70% of among original equipment manufacturers (OEMs), a business’s carbon footprint, based on data from the consumer brand companies and suppliers. UN Global Compact. Figure 2 highlights that di昀昀erent Based on CDP data, Scope 3 category 1 (purchased industries face di昀昀erent Scope 3 situations and goods and services) and Scope 3 category 11 (use of challenges. 1.1 Why does Scope 3 matter? sold products) combined represent 84% of reported While industries such as cement and concrete, and Scope 3 emissions (see Figure 3). However, reporting is transport services and logistics, have lower Scope 3 often incomplete, with many industries omitting several Scope 3 emissions usually account for more than signi昀椀cant for other industries, including chemicals, 6 Scope 3 categories. As indicated by the CDP, only 16% 70% of a business’s carbon footprint. Figure 2 electronics, automotive and food, and as a result emissions, this category becomes signi昀椀cant for other of organisations were able to share details of their highlights that different industries face different any decarbonization efforts in those sectors are industries, including chemicals, electronics, automotive supply-chain engagement strategy, while only 11% could challenges. While industries such as cement and likely to require intense cooperation among original and food. Consequently, any decarbonisation e昀昀orts in concrete, and metals and mining have relatively equipment manufacturers (OEMs), consumer brand do so for their portfolio of low-carbon products and lower Scope 3 emissions, this category becomes companies and their suppliers. services. FIGURE 2 Scope 3 emissions for selected industries from the CDP Cement and concrete Transport services and logistics Paper and pulp Metals and mining Other materials Chemicals Biotech, healthcare and pharma Food and beverage processing Apparel Construction Light manufacturing Transport OEMs Electric and electronic manufacturing Powered machinery 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Scope 1 Scope 2 Scope 3 Source: Extracted from CDP and Capgemini Invent, From Stroll to Sprint: A Race Against for Corporate Decarbonization, July 2023; CDP, CDP Technical Note: Relevance of Scope 3 Categories by Sector, 2022 According to the CDP report, Scope 3 category categories. Indeed, organizations disproportionately 1 (purchased goods and services) and Scope fail to disclose information about their value-chain 3 category 11 (use of sold products) combined actions.7 Only 16% of organizations were able to represent 84% of reported Scope 3 emissions (see share details of their supply-chain engagement Figure 2. Extracted from World Economic Forum, The “No-Excuse” Opportunities to Figure 3). However, reporting is often incomplete, strategy, while only 11% could do so for their Tackle Scope 3 Emissions in Manufacturing and Value Chains, December 2023. 8 with many industries omitting several Scope 3 portfolio of low-carbon products and services. The “No-Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Chains 9