Up to about 17 percent of retailers’ Scope 3 emission reductions could be

enabled by applying cost saving or neutral levers.

Reduction potential,¹ %

Highlighted levers in Chapter 4

Cost saving or neutral²

Cost saving or neutral²

Cost prohibitive

A

B

Lead and scale,

$0/metric ton 

(Mt) in tiers 1 

and 2,³ %

Convene value chain, $0/Mt 

in tiers 3+, %

Reduction theme

Reduction potential

Transitioning to

clean and renewable

energy

16.7

0.2

1.4

Reducing farming

emissions from

livestock management

<0.1

2.7

16.2

Adopting regenerative

practices in plant
basedagricultural

inputs

8.9

<0.1

5.0

Increasing circularity

and recycling

7.5

0.1

0.1

Reducing waste and

increasing process

efficiency

6.0

0.6

4.5

Reducing emissions

in transportation

1.7

0.3

<0.1

Switching from

animal proteins to

plant alternatives

(feed or product)⁴

1.3

<0.1

<0.1

Total reduction

potential

55–65%

1–2%

11–15%

¹Based on baseline emissions, reduction potentials, and costs of levers only for packaged products as received by retail store; does not include losses, consumer,or end-of-life emissions and levers.

²Cost neutral is defined as break-even ($0/Mt CO₂ abated).

³Calculated based on levers that sit within retailers’ tiers 1 and 2 supply network and levers that are “in the money” as well as cost neutral (ie, break-even).

⁴Reduction potential for the theme. Switching from animal protein to plant alternatives is calculated using beef category as proxy, assuming 4% adoption rate 
of alternative meat by 2030 and assuming an emission reduction potential of ~80–85% in beef.

McKinsey & Company

Powered by Ceros

McKinsey & Company

Up to about 17 percent of retailers’ Scope 3 emission reductions could be

Highlighted levers in Chapter 4

¹Based on baseline emissions, reduction potentials, and costs of levers only for packaged products as received by retail store; does not include losses, consumer,or end-of-life emissions and levers.

Cost saving or neutral²

Cost prohibitive

Cost saving or neutral²

Cost prohibitive

Cost saving or neutral²

Cost prohibitive

Switching from

Reducing emissions

Reducing waste and

Increasing circularity

Adopting regenerative

Reducing farming

Transitioning to

16.7

16.2

8.9

7.5

6.0

1.7

1.3

55–65%

Total reduction

0.2

<0.1

<0.1

0.1

0.6

0.3

<0.1

1.4

2.7

5.0

0.1

4.5

<0.1

<0.1

A

B

1–2%

11–15%

7.7

9.1

0.1

2.7

0.1

<0.1

1.3

7.4

4.4

3.8

4.6

0.8

1.4

<0.1

C

D

19–23%

20–24%

Reduction theme

Reduction potential

Reduction potential,¹ %

Lead and scale,

Convene value chain, $0/Mt 

Collaborate and catalyze, $0–$50/Mt 

Advocate and support, >$0/Mt