Reducing Scope 3 Emissions in Manufacturing

The journey towards reducing Scope 3 emissions in manufacturing has become one of the most critical steps in achieving genuine net zero commitments. While many organisations focus on direct emissions from energy use (Scope 1) or purchased electricity (Scope 2), it is the indirect emissions, those embedded across the value chain, that often account for the majority of a manufacturer’s carbon footprint. 

According to the CDP (2024), supply chain emissions are on average 11.4 times higher than operational emissions for manufacturing firms, accounting for up to 90% of total corporate emissions. This means that without addressing Scope 3 emissions, most manufacturers will fall short of their net zero manufacturing goals. In addressing this, Life Cycle Assessment (LCA) has become the principal framework, underpinning derivative methodologies such as Product Carbon Footprints (PCF / CFP). It provides a data-driven method to evaluate the entire environmental impact of a product or process, from raw material extraction to end-of-life disposal, making it central to managing Scope 3 emissions effectively. 

Understanding Scope 3 Emissions in Manufacturing 

Scope 3 emissions are all indirect greenhouse gas (GHG) emissions that occur across a company’s value chain but are not directly controlled by the organisation. For manufacturers, this includes everything from the extraction of raw materials and supplier processes to product transportation, customer use and eventual disposal. 

In the manufacturing sector, these emissions can be grouped into three primary categories: 

• Upstream emissions: raw materials, supplier manufacturing, logistics and business travel. 

• Operational emissions: waste generated during production or packaging. 

• Downstream emissions: product use, maintenance, shipping / logistics, end-of-life (recycling or landfill impact). 

The Scope 3 category is particularly pronounced in sectors such as automotive, electronics and metals, where material sourcing and logistics dominate the carbon balance. Understanding this landscape is the first step towards reducing Scope 3 emissions in manufacturing, enabling companies to pinpoint where their biggest impacts lie and where interventions will yield the highest returns. 

Why Scope 3 Matters for Risk, Regulation and Reputation

For many years, Scope 3 emissions were often treated as an external to company’s operation. However, as more organisations prioritise full sustainability, that is rapidly changing.  

Three major pressures are driving manufacturers to take action: 

• Regulatory Requirements: The EUs Corporate Sustainability Reporting Directive (CSRD) mandates disclosure of value chain emissions, including Scope 3. Similarly, the Science Based Targets initiative (SBTi) requires companies to set Scope 3 targets if they represent more than 40% of total emissions. 

• Investor and Customer Demand: Original equipment manufacturers (OEMs) that operate in regions with mandatory sustainability requirements alongside some major retailers now require suppliers to provide verified emissions data before contracts are renewed. 

• Operational Risk: Resource scarcity, price volatility and reputational damage all escalate when supply chains are not decarbonised. 

According to Supply Chain Brain (2024), less than 20% of global supply chains currently track Scope 3 emissions with high confidence. This gap represents both a compliance risk and a missed opportunity for leadership in manufacturing sustainability. 

The Role of Life Cycle Assessment (LCA) 

Life cycle assessment (LCA) has become the industry standard analytical method for evaluating the environmental performance of specific products. 

An LCA quantifies broad environmental impacts and resource use across all stages of a product’s life, from raw material extraction to end-of-life treatment. It follows the internationally recognised ISO 14040 and ISO 14044 standards, ensuring consistent and transparent results. Moreover, there are specific LCA frameworks which focus exclusively on GHG emissions (often called Product Carbon Footprints) such as ISO 14067.  

In the context of reducing Scope 3 emissions in manufacturing, LCAs help to: 

• Identify hotspots across supply chains and production processes. 

• Quantify embodied carbon in materials and components. 

• Compare design options based on environmental performance. 

• Support data-driven procurement and supplier selection. 

Modern LCA software enables manufacturers to model emissions rapidly and align data outputs with SBTi targets or CSRD disclosures. Many organisations also prefer to employ the services of expert third-party sustainability consultants who are better equipped to analyse the data and translate it into actionable strategies that contribute to reducing Scope 3 emissions in manufacturing.  

Applying LCA to Identify Scope 3 Hotspots in Manufacturing 

A well-executed LCA provides the foundation for reducing Scope 3 emissions in manufacturing effectively. By mapping emissions across every phase of production and use, it allows organisations to visualise where the majority of their carbon is being generated. 

Typical LCA findings for manufacturing include: 

• Raw Material Extraction: For metals, polymers and composites, raw materials can contribute a significant amount of total embodied carbon. 

• Production and Assembly: Energy mix, process efficiency and waste handling play major roles in total footprint. 

• Distribution and Logistics: Transport choices , air, sea or road, can contribute to carbon intensity. 

• Use Phase: Product energy consumption often dominates downstream emissions for electrical goods. 

• End-of-Life: Recycling, incineration, and landfill all carry differing emissions burdens. 

By pinpointing the most carbon-intensive stages, LCAs enable companies to prioritise interventions where they matter most, replacing high-impact materials, switching to renewable energy or redesigning components to use less material overall. 

Integrating LCA in the Supply Chain 

While LCAs provide visibility, collaboration ensures results. Reducing Scope 3 emissions in manufacturing depends on the engagement and cooperation of suppliers, logistics providers and distributors. 

Manufacturers are adopting several best practices to strengthen collaboration: 

• Data Sharing Agreements: Encouraging transparency through shared emissions data and performance benchmarks. 

• Supplier Training: Building capacity among smaller suppliers to measure and report emissions consistently. 

• Tiered Assessments: Conducting targeted LCAs for Tier 1 suppliers and simplified screening for lower-tier partners. 

Our LCA methodology at Tunley Environmental supports this collaborative approach by combining science-based carbon data with supplier engagement frameworks.  

Learn More: Life Cycle Assessment in Manufacturing 

The Bottom Line

Reducing Scope 3 emissions in manufacturing is essential for long-term competitiveness and compliance. As supply chain emissions continue to dominate the carbon balance sheet, manufacturers must look beyond operational efficiency and adopt comprehensive, science-based approaches. A Life Cycle Assessment (LCA) offers that pathway; a structured, evidence-based methodology for quantifying, managing and ultimately reducing emissions across the full product life cycle. By integrating LCAs into procurement, design and reporting frameworks, manufacturers can transform sustainability from a cost centre into a source of innovation and value creation. Learn more about conducting an LCA for your business here