Ranked: The Most Carbon-Intensive Sectors in the World
News from Web 08-Nov-2023
Ranked: The Most Carbon-Intensive Sectors in the World
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Ever wonder which sectors contribute the most to CO2 emissions around the world?
In this graphic, we explore the answers to that question by comparing average Scope 1 emission intensities by sector, according to an analysis done by S&P Global Inc.
Defining Scope 1 Emissions
Before diving into the data, it may be useful to understand what Scope 1 emissions entail.
Scope 1 emissions are direct greenhouse gas emissions from sources that are owned or controlled by a company, such as their facilities and vehicles.
Scope 1 emissions can do a good job of highlighting a company’s environmental footprint because they represent the direct emissions related to manufacturing or creating a company’s products, whether they are tangible goods, digital software, or services.
Scope 2 and 3 emissions, on the other hand, encompass the indirect emissions associated with a company’s activities, including those from a company’s purchased electricity, leased assets, or investments.
Ranking the Carbon Giants
According to S&P Global’s analysis of 2019-2020 average emissions intensity by sector, utilities is the most carbon-intensive sector in the world, emitting a staggering 2,634 tonnes of CO2 per $1 million of revenue.
Materials and energy sectors follow behind, with 918 tonnes and 571 tonnes of CO2 emitted, respectively.
| Sector | Sector Explanation | Scope 1 CO2 emissions per $1M of revenue, 2019-2020 |
| Utilities | Electric, gas, and water utilities and independent producers | 2,634 tonnes |
| Materials | Chemicals, construction materials, packaging, metals, and mining | 918 tonnes |
| Energy | Oil and gas exploration/production and energy equipment | 571 tonnes |
| Industrials | Capital goods, commercial services, and transportation | 194 tonnes |
| Consumer staples | Food, household goods, and personal products | 90 tonnes |
| Consumer discretionary | Automobiles, consumer durables, apparel, and retailing | 33 tonnes |
| Real estate | Real estate and real estate management | 31 tonnes |
| Information technology | Software, technology hardware, and semiconductors | 24 tonnes |
| Financials | Banks, insurance, and diversified financials | 19 tonnes |
| Communication services | Telecommunication, media, and entertainment | 9 tonnes |
| Health care | Health care equipment, pharmaceuticals, biotechnology, and life sciences | 7 tonnes |
S&P Global also reveals some interesting insights when it comes to various industries within the materials sector, including:
- Cement manufacturing exhibits an extremely high level of Scope 1 emissions, emitting more than double the emissions from the utilities sector (5,415 tonnes of CO2 per $1M of revenue)
- Aluminum and steel production are also quite emission-intensive, emitting 1,421 and 1,390 tonnes respectively in 2019-2020
- Relatively lower-emission materials such as gold, glass, metals and paper products bring down the average emissions of the materials sector
Given these trends, a closer look at emission-intensive industries and sectors is necessary for our urgent need to decarbonize the global economy.
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