Reducing Scope 3 Emissions: The Key Levers for Industrial Manufacturers

Key points at a glance

• For industrial manufacturers, most emissions arise in the supply chain and in the use of sold products, i.e. in Scope 3.
• The biggest levers are usually purchased goods (3.1) and, for energy-using products, the use phase (3.11).
• Reduction requires measurability: if you only account for purchased goods by purchasing volume in euros, successes such as switching to low-carbon steel cannot show up in your footprint.
• Expect your Scope 3 figures to rise at first when you switch to more accurate data. That is not a step backwards but better transparency.

Creating a carbon footprint is the first step. The second is harder: actually reducing emissions. In Scope 1 and 2, the measures are in your own hands – more efficient equipment, green electricity, an electrified fleet. In Scope 3, they depend on suppliers, materials and customers. This article shows where the biggest levers are and how to proceed in a structured way.

Why Scope 3 is the biggest lever

In manufacturing companies, Scope 3 emissions usually account for the largest share of the total footprint. An analysis by Arthur D. Little puts upstream emissions alone at up to 90% of the carbon footprint in asset-intensive industries. If you only reduce Scope 1 and 2, you often move only a small part.

On top of that comes external pressure: customers ask about reduction targets and progress, and the Science Based Targets initiative requires many companies to set their own Scope 3 targets. The Corporate Net-Zero Standard 2.0, published in June 2026, focuses these on the Scope 3 categories that each account for more than 5% of Scope 3 emissions.

Step 1: Find the hotspots

Before planning measures, you need to know where the emissions arise. A corporate carbon footprint (CCF) shows the distribution across the Scope 3 categories. For reduction, however, that is not enough: you need to see which materials, suppliers and products account for the largest share.

Typical hotspots for industrial manufacturers:

• steel, aluminium and copper in housings, frames and drives
• plastics and electronic components
• energy-intensive purchased parts such as castings and forgings
• for machines and appliances: energy consumption during use

Emissions are often concentrated in relatively few material groups and suppliers. That is where it pays to start.

Step 2: Build the right data foundation

Many Scope 3 footprints rely on the spend-based method for purchased goods: purchasing volume in euros times an industry average. That is fine for a first overview, but not for reduction, because the footprint reacts to prices, not materials:

• You switch to low-carbon steel, which is more expensive → spend-based, your footprint rises.
• Raw material prices fall → spend-based, your footprint falls without you having done anything.

Only an activity-based footprint by material and weight makes your measures visible: if the emission factor per kilogram falls, the footprint falls. It becomes even more accurate with product carbon footprints from your suppliers.

Expect one effect: when you switch from estimates to supplier-specific data, reported Scope 3 emissions may rise at first. This reflects reality more accurately and should be explained openly to management and stakeholders – ideally with a recalculation of the base year.

Step 3: The key levers in the supply chain

1. Engage suppliers

• Request PCFs for the most important purchased parts, with clear requirements on standard and system boundary (see PCFs under Catena-X, TfS or PACT).
• Ask suppliers about their own climate targets and reduction plans.
• Agree joint reduction projects with your largest suppliers, for example on electricity sourcing or processes.

2. Switch materials

• Low-carbon steel, aluminium with high recycled content, recycled instead of virgin plastics.
• Important: only a footprint by material and weight shows this switch as a reduction.

3. Design products differently

• Lightweight design and material efficiency: less material for the same function.
• Modularity and reparability extend the service life.
• The EU Ecodesign Regulation reinforces this approach.

4. Steer purchasing

• Include carbon criteria in tenders and supplier evaluation.
• For comparable offers, prefer the supplier with the lower PCF.

5. Optimise transport

• Shift from air to sea or rail freight, better load factors, regional sourcing.

Step 4: Levers in the use phase

For energy-using products such as machines, motors or pumps, a large share of emissions often occurs during use at the customer’s site (category 3.11). More efficient drives, intelligent controls or lower standby consumption then reduce not only your Scope 3 emissions but also your customers’ operating costs – a strong sales argument.

Step 5: Set targets and measure progress

• Define a base year and a target, for example under the Science Based Targets initiative.
• Define indicators: e.g. emissions per kilogram of purchased material, share of purchasing emissions covered by supplier PCFs or share of suppliers with their own climate targets.
• Account annually using the same methodology, so that progress can be demonstrated.
• Bundle measures in a plan: in Germany, a transformation plan combines footprint, target pathway and measures and is eligible for up to 70% funding under the BAFA programme Module 5.

Telusio’s view

Scope 3 reduction rarely fails for lack of will, but for lack of measurability. As long as purchased goods are only accounted for in euros, material switches and supplier projects remain invisible in the footprint – and therefore also to customers, banks and ratings.

The path to reduction therefore starts with a footprint that reflects materials, weights and suppliers. How we assess purchased goods by material and weight and make hotspots visible by material, supplier and site is shown on our corporate carbon footprint (CCF) page. For individual products, see product carbon footprint.