Key Takeaways
Decarbonization starts with renewable energy but only reaches real impact by addressing Scope 3 emissions.
Globally, Scope 3 emissions comprise 75% of total greenhouse gas (GHG) emissions — sometimes over 90% in some industries.
Upstream value chains, including materials and packaging, account for 70–75% of these Scope 3 emissions, representing approximately half of all GHG emissions.
Innovation in materials and switching to low-carbon biomaterials are crucial for reducing emissions.
Mottainai 5.0 provides actionable solutions to decarbonize materials and supply chains, focusing on cutting Scope 3 emissions.

Innovating with Biomaterials Reduces Scope 3 Emissions
Introduction: Scope 3 Emissions Are the Real Challenge
Global climate action is accelerating. Businesses face growing pressure to reduce their carbon footprints. Many have already tackled direct (Scope 1) and energy-related (Scope 2) emissions by using renewable energy or improving operations. But these efforts often only scratch the surface.
The real challenge lies in Scope 3 emissions, which comprise over 75% of a company’s carbon footprint - sometimes as much as 90%.
Mars, a U.S. company known for its confectionery, pet care, and food products, reported in 2023 that 96% of its carbon footprint - around 29 million metric tons - came from supplier activities, all falling under Scope 3. These emissions stretch across the value chain, from raw material extraction to product disposal. Tackling them is a critical target for the company.
What Are Scope 1, 2, and 3 Emissions?
Scope 1: Direct emissions from company-owned operations, like fuel combustion or company vehicles. (~10% of total emissions globally).
Scope 2: Indirect emissions from purchased energy, such as electricity or heating (~15% globally).
Scope 3: Indirect emissions across the entire value chain, including raw materials, transportation, and product disposal (~75% globally).
For instance, the plastics industry has a significant impact at every stage of its lifecycle, with Scope 3 emissions alone accounting for more than 77%:
Scope 1 Direct emissions from polymer manufacturing processes, including polymerization (~8% of total emissions).
Scope 2 Indirect emissions from energy use during production, such as electricity for machinery or heating for processing (~15% of total emissions).
Scope 3 Cradle-to-grave impacts, spanning raw material extraction (oil and natural gas for traditional fossil-based plastics), transportation of materials and products, and end-of-life disposal like landfilling, incineration, or recycling (~77% of total emissions).
Scope 1, 2, and 3 Emissions Compared
Many companies are falling behind on decarbonization. This isn’t just detrimental to the climate — it’s a missed business opportunity. Decarbonization can reduce costs, increase market share, and foster innovation.
The figure below compares Scope 1, 2, and 3 emissions across industries, including progress made in reducing them over the last 10 years:

Scope 1, 2, and 3 Emissions in Different Industries
Current and 10-Year Reduction Trends
While reductions have been made in Scope 1 and Scope 2 emissions, Scope 3, where the greatest reduction potential lies, remains the biggest challenge.
Why is it so hard to tackle Scope 3 emissions?
Lack of Expertise: Many companies don’t know how to measure or reduce Scope 3 emissions.
Innovation Costs and Risks: Decarbonization often requires new materials or product redesigns. Brands are frequently hesitant to adopt new, unfamiliar materials due to a lack of understanding of regulatory requirements and concerns about long-term durability and quality.
Supplier Dependencies: These emissions fall outside direct control, requiring new collaboration models with suppliers.
Limited Resources: Low-carbon materials are not widely available, which hinders their adoption. Although they often seem to be more expensive than traditional materials, decarbonized biomaterials can reduce overall costs when managed effectively with the right business models.
In summary, you can install wind turbines, solar panels, or energy-efficient dryers- but these efforts alone won’t achieve the necessary scale. Even reducing total Scope 1 and 2 emissions to zero is insufficient. Decarbonizing materials, which contribute approximately 50% of all GHG emissions, is essential for meeting ESG targets and staying competitive.
Strategies for Tackling Scope 3 Emissions
There are several strategies to support the reduction of Scope 3 emissions. Depending on the industry, a key priority is switching to decarbonized biomaterials through close collaboration with suppliers.
Engage Suppliers:
Work closely and partner with suppliers, especially materials suppliers, to cut emissions.
Prioritize raw materials, packaging, and ingredients - they drive up to 75% of Scope 3 emissions and often up to 50% of the total GHG emissions.
Move beyond just requesting expensive certifications. Instead, co-develop and implement decarbonization strategies with suppliers.
Innovate with Biomaterials:
Switch to low-carbon materials, such as biomaterials made from up-cycled agricultural residues or similar waste streams. Mottainai 5.0 is a proven business model that valorizes internal waste streams into sustainable products.
Nespresso, a Swiss company known for its premium coffee, espresso machines, and coffee utensils, uses more than 30 w.% coffee husks in one product line, reducing emissions while storing biogenic carbon. A great approach that also helps their coffee farmers valorize their residues.
Emphasize Transparency:
Implement systems to track and disclose, particularly, Scope 3 emissions.
Transparency aligns with stakeholder expectations and regulatory demands.
Mottainai 5.0: Decarbonizing Scope 3
Mottainai 5.0 offers a clear, practical roadmap to reduce Scope 3 emissions. It simplifies supply chain decarbonization with actionable strategies, helping companies:
Reduce GHG emissions at scale.
Valorize residues, implement decarbonized biomaterials, and cut costs.
Collaborate with new partners and access new markets.
Drive innovation, new products, and brand awareness.
Achieve consistently measurable sustainability goals.
Conclusion
Scope 3 emissions represent the toughest challenge - and the greatest opportunity - in the fight against climate change and to consistently meet ESG targets. By transforming supply chains through residue valorization, innovation, and collaboration, businesses can dramatically reduce their carbon footprint, cut costs, and create value.
By focusing on materials - from residues to new products - Mottainai 5.0 bridges the gap between ambition and action, cuts costs, and makes decarbonization achievable at scale. Achieving measurable results in a short time is not only possible, but it is a proven outcome, allowing you to see tangible progress quickly and with minimal disruption.
Ready to lead the way in supply chain decarbonization? Contact us, and explore our programs, online courses, and memberships. Let’s turn challenges into opportunities and build a sustainable future together.
Mottainai 5.0 is a groundbreaking business model that transforms residues into valuable resources, driving sustainable innovation, empowering organizations to reduce Scope 3 emissions, cut costs, and lead the transition to a circular economy. It works — and it works for all industries, globally.
Get in touch with us for more information. Contact us and stay informed.
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