To reduce Scope 3 emissions from t-shirt, beef, and electronics production, retailers can prioritize actions based on their decarbonization potential and proximity in the value chain.
T-shirt production
T-shirt production
Beef production
Beef production
Electronics production
Electronics production
Hover over each bubble to reveal more
Retailer’s role
% of emissions abatement
A
Lead and scale
B
Convene value chain
C
Collaborate
and catalyze
D
Advocate and
support
Lower-than-average carbon price¹
Abatement levers across the value chain⁵
13
Abatement levers across the value chain⁵
5
Abatement levers across the value chain⁵
Cotton cultivation
Garment manufacturing and logistics
10
Cost neutral³
Abatement levers across the value chain⁵
Garment manufacturing and logistics
5. Regenerative agriculture
Abatement levers across the value chain⁵
12
13. Manufacturing and processing waste reduction
Abatement levers across the value chain⁵
14
Abatement levers across the value chain⁵
Garment manufacturing and logistics
10. Low-liquor dyeing machines
Garment manufacturing and logistics
6
15
Cotton cultivation
Circular materials
12. Geothermal energy
14. Equipment efficiency redesign
6. Organic agriculture
15. Recycled cotton fibers
Abatement levers across the value chain⁵
Average carbon
price
11
Cost relative to
carbon price²
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Garment manufacturing and logistics
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
2
8
Polyester production
3
Abatement levers across the value chain⁵
Polyester production
11. Renewable electricity
Garment manufacturing and logistics
18
Abatement levers across the value chain⁵
Packaging and transportation
17
3. Renewable electricity
Packaging and transportation
2. Biogas for heating
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
8. Biomass boilers
16
Abatement levers across the value chain⁵
Cotton cultivation
18. Switch to recycled cardboard
9
17. Electrification of transport⁶
Circular materials
Polyester production
Garment manufacturing and logistics
Polyester production
7. Switch to biodiesel in farm equipment and machinery
1
7
16. Closed-loop recycled polyester
1. Cracker carbon capture and storage
9. Biogas for heating
4
4. Biobased feedstock
Higher-than-average carbon price
Tier 4+
Tier 3+
Tier 2
Tier 1
Placement in value chain relative to retailer⁴
Note: Based on production for 60% cotton, 40% polyester t-shirt.
¹Using an average global carbon price of 50 $/metric ton (Mt) of CO₂ based on World Bank report that states that Network for Greening the Financial System’s modeling suggests that carbon prices need to be around $50 by 2030 in 2010 terms to achieve a below 2°C outcome (State and trends of carbon pricing, World Bank, May 2023) and based on McKinsey analysis that the required global carbon price in 2020 is ~$40–$80 to limit warming to 1.5ºC.
²Cost relative to carbon price is measured by benchmarking decarbonization costs against global average carbon pricing of $50 as the opportunity cost.
³Cost neutral refers to a reduction cost of $0/MtCO₂ equivalent.
⁴Tiers 1 and 2 represent a retailer’s immediate supplier network (ie, direct suppliers and their direct suppliers); further upstream in the value chain are tier 3 and tier 4+.
⁵Based on marginal abatement cost curve that covers Scope 3 upstream emissions, including raw material extraction, agriculture, processing, manufacturing, packaging, and transportation; excludes retail waste and end-of-life emissions.
⁶Electrification of transport, though it has emissions distributed across whole value chain, is attributed to action taker closest to retailer (tier 1 supplier) because of high level of influence over entire supply chain.
McKinsey & Company
To reduce Scope 3 emissions from t-shirt, beef, and electronics production, retailers can prioritize actions based on their decarbonization potential and proximity in the value chain.
T-shirt production
T-shirt production
Beef production
Beef production
Electronics production
Electronics production
Hover over each bubble to reveal more
Retailer’s role
% of emissions abatement
A
Lead and scale
B
Convene value chain
C
Collaborate
and catalyze
D
Advocate and
support
Lower-than-average carbon price¹
Abatement levers across the value chain⁵
13
Abatement levers across the value chain⁵
5
Abatement levers across the value chain⁵
Cotton cultivation
Garment manufacturing and logistics
10
Cost neutral³
Abatement levers across the value chain⁵
Garment manufacturing and logistics
5. Regenerative agriculture
Abatement levers across the value chain⁵
12
13. Manufacturing and processing waste reduction
Abatement levers across the value chain⁵
14
Abatement levers across the value chain⁵
Garment manufacturing and logistics
10. Low-liquor dyeing machines
Garment manufacturing and logistics
6
15
Cotton cultivation
Circular materials
12. Geothermal energy
14. Equipment efficiency redesign
6. Organic agriculture
15. Recycled cotton fibers
Abatement levers across the value chain⁵
Average carbon
price
11
Cost relative to
carbon price²
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Garment manufacturing and logistics
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
2
8
Polyester production
3
Abatement levers across the value chain⁵
Polyester production
11. Renewable electricity
Garment manufacturing and logistics
18
Abatement levers across the value chain⁵
Packaging and transportation
17
3. Renewable electricity
Packaging and transportation
2. Biogas for heating
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
8. Biomass boilers
16
Abatement levers across the value chain⁵
Cotton cultivation
18. Switch to recycled cardboard
9
17. Electrification of transport⁶
Circular materials
Polyester production
Garment manufacturing and logistics
Polyester production
7. Switch to biodiesel in farm equipment and machinery
1
7
16. Closed-loop recycled polyester
1. Cracker carbon capture and storage
9. Biogas for heating
4
4. Biobased feedstock
Higher-than-average carbon price
Tier 4+
Tier 3+
Tier 2
Tier 1
Placement in value chain relative to retailer⁴
Note: Based on production for 60% cotton, 40% polyester t-shirt.
¹Using an average global carbon price of 50 $/metric ton (Mt) of CO₂ based on World Bank report that states that Network for Greening the Financial System’s modeling suggests that carbon prices need to be around $50 by 2030 in 2010 terms to achieve a below 2°C outcome (State and trends of carbon pricing, World Bank, May 2023) and based on McKinsey analysis that the required global carbon price in 2020 is ~$40–$80 to limit warming to 1.5ºC.
²Cost relative to carbon price is measured by benchmarking decarbonization costs against global average carbon pricing of $50 as the opportunity cost.
³Cost neutral refers to a reduction cost of $0/MtCO₂ equivalent.
⁴Tiers 1 and 2 represent a retailer’s immediate supplier network (ie, direct suppliers and their direct suppliers); further upstream in the value chain are tier 3 and tier 4+.
⁵Based on marginal abatement cost curve that covers Scope 3 upstream emissions, including raw material extraction, agriculture, processing, manufacturing, packaging, and transportation; excludes retail waste and end-of-life emissions.
⁶Electrification of transport, though it has emissions distributed across whole value chain, is attributed to action taker closest to retailer (tier 1 supplier) because of high level of influence over entire supply chain.
