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
Abatement levers across the value chain⁵
Lower-than-average carbon price¹
Battery
8
8. Yield improvement and scrap recycling
Cost neutral³
Abatement levers across the value chain⁵
15
Materials
15. Switch magnesium to aluminum
Abatement levers across the value chain⁵
14
Abatement levers across the value chain⁵
7
Abatement levers across the value chain⁵
Average carbon
price
Abatement levers across the value chain⁵
Cost relative to
carbon price²
Abatement levers across the value chain⁵
Battery
Abatement levers across the value chain⁵
1
Abatement levers across the value chain⁵
Materials
Materials
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
10
Materials
Printed circuit board
7. Recycled battery materials
4
Abatement levers across the value chain⁵
Battery
9
Printed circuit board
5
Abatement levers across the value chain⁵
14. Glass: increased recycled content
10. Steel: low CO₂ sourcing for steel (eg, hydrogen direct reduced iron, recycled)
Printed circuit board
Battery
Packaging and transportation
2
9. Aluminum: electrification and renewable electricity
1. Renewable electricity in production
6
Abatement levers across the value chain⁵
18
Abatement levers across the value chain⁵
Printed circuit board
5. Renewable electricity in manufacturing
3
4. Take-back scheme
17
Packaging and transportation
2. Perfluorocarbons gas best practice abatement
6. Biogas for heating
18. Switch to recycled cardboard
Packaging and transportation
Materials
3. Low-greenhouse-gas chemicals in fab production
16
Abatement levers across the value chain⁵
13
17. Electrification of transport⁶
Abatement levers across the value chain⁵
16. Substitution of plastics with cardboard
13. Aluminum: low CO₂ process tech
Materials
12
Materials
11
12. Plastic: low CO₂ sourcing
Higher-than-average carbon price
11. Glass: biogas for heating
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
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Lower-than-average carbon price¹
2
3
Abatement levers across the value chain⁵
Animal feed
Animal feed
Abatement levers across the value chain⁵
Animal feed
2. Variable-rate fertilization
3. Low or no tillage
Cost neutral³
7
Transportation and packaging
17
7. Cover crops
17. Optimized packaging design
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
13
9
Beef farming
8
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Average carbon
price
Beef farming
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Cost relative to
carbon price²
23
10
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
14
16
13. Animal health monitoring and illness prevention
Abatement levers across the value chain⁵
Beef farming
Beef farming
20
5
Processing
Abatement levers across the value chain⁵
9. Efficiency-focused breeding
Beef farming
Beef farming
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Animal feed
Processing
21
1
Ecosystem
Abatement levers across the value chain⁵
8. Anaerobic manure digestion
16. Minimized time in feedlots
Abatement levers across the value chain⁵
20. Renewable electricity in value chain (part cycle)
Transportation and packaging
24
14. Nitrogen inhibitors on pasture
10. Feed processing for improved digestibility
Animal feed
Abatement levers across the value chain⁵
19
Ecosystem
5. Use of green ammonia in fertilizer production
21. Renewable electricity in value chain (full cycle)⁶
12
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
Abatement levers across the value chain⁵
23. Management intensive grazing
Beef farming
18
Transportation and packaging
19. Switch to recyclable plastics
4
Abatement levers across the value chain⁵
1. Controlled-release and stabilized fertilizers
Animal feed
11
24. Regenerative silvopastures
22
Beef farming
Beef farming
Processing
15. Fat supplements in feed mix
18. Electrification of transport⁶
Animal feed
4. Conversion from flood to drip or sprinkler irrigation
11. Ionophores (monensin)
12. Fat supplements in feed mix
22. Electrification of meat plants
6
6. Biodiesel for on-farm machinery and equipment (feed farm)
15
Higher-than-average carbon price
Tier 5+
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