By the early 1990s, many leading carmakers had begun to recognize that the majority of a vehicle’s lifetime emissions came from its use phase, as early life cycle assessments suggested. However, decarbonization efforts at the time were largely focused on cleaner factories and greener electricity – Scope 1 and 2 emissions that were more visible and easier to control. These categories dominated early environmental disclosures, long before comprehensive sustainability reporting became standard practice
Then came the wake-up call. Analysts began tracing carbon beyond company walls into materials, suppliers, logistics, and vehicle lifetimes. What they found changed everything: up to 95 % of a car’s total emissions come from the value chain. That’s Scope 3.
Invisible, complex, often underestimated, Scope 3 has become the new frontier of climate action. It exposes how deeply interwoven our industries are and how climate responsibility no longer stops at the factory gate.
The concept of “scopes” dates back to the late 1990s, when the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) created the Greenhouse Gas Protocol, the global standard for carbon accounting.
First came Scope 1 (direct emissions) and Scope 2(purchased energy).
Then, in 2011, the Scope 3 Standard [1]expanded the picture to everything happening upstream and downstream, from raw materials to end-of-life.
It was a revolution in accountability and a headache for industry! Measuring what you don’t control is hard. But it’s also where most emissions hide.
Few industries are as intertwined as automotive. A single car brings together thousands of parts, hundreds of suppliers, and hundreds of materials , each with its own carbon story. Recent studies[2] show that over 90 % of automotive emissions fall under Scope 3.
Even the switch to electric mobility doesn’t solve it: while EVs remove tailpipe emissions, they push the carbon burden upstream, through mining, refining, and battery production. The ICCT[3] estimates that producing a battery can emit between 60 and 100 kg CO₂ per kWh, depending on the energy mix. That’s why Scope 3 is now the decisive lever for credible climate strategy.
Scope 3 is the ultimate systems challenge:
· Data gaps across Tier-2 and Tier-3 suppliers
· Double counting between partners
· Inconsistent methodologies
· Limited leverage to change supplier practices
Yet regulation is catching up fast.
The EU Corporate Sustainability Reporting Directive (CSRD)[4] now requires large companies to disclose value-chain emissions. Investors are demanding more transparency. The pressure is turning into progress.
A modern passenger vehicle contains on average 128 kg of plastics. Around 74 kg are used in interior and structural applications exactly where material choices can directly influence Scope 3 emissions.
Plastics sit at the intersection of multiple Scope 3 categories: purchased goods and services, use-phase energy consumption driven by vehicle weight, and end-of-life treatment. Acting on plastics means acting on several Scope 3 levers at once.
This is why material strategy is no longer a technical detail. It’s a decarbonization decision.
Every part of the automotive value chain holds a lever:
· Supplier engagement from BMW to Stellantis, OEMs now require carbon data from suppliers.
· Low-carbon materials: recycled aluminum and steel, biobased compounds, recycled polymers.
· Circular design: end-of-life plastics re-injected into new parts.
· Digital modeling: AI and LCA tools to predict the carbon impact of design choices.
Bain & Company [5] estimates that upstream decarbonization alone could cut 1 gigaton of CO₂ per year by 2035, equivalent to Japan’s annual emissions.
At MATERI’ACT, Scope 3 isn’t a reporting metric: it’s our playground.
We act where carbon hides: in the chemistry of materials, in the flow of circular feedstocks, in the design of the compounds that shape tomorrow’s cars.
By developing biobased and recycled material, supported by precise life-cycle assessments, we help OEMs reduce embedded carbon from the start of the value chain.
Together with partners, from agricultural cooperatives to automotive design teams, we turn ambition into measurable impact: lighter parts, lower footprints, and truly circular production models.
Because only when you can measure your material impact, can you truly manage it.
Scope 3 is redefining the rules of the game. It’s no longer just about emissions, it’s about collaboration, data, and design. The next competitive edge won’t come from faster cars, but from cleaner materials and smarter value chains. For those ready to act beyond their own walls, Scope 3 isn’t a constraint, it’s an invitation to reimagine what we make, how we make it, and who we make it with.
[2] https://www.eeer.org/journal/view.php?doi=10.4491%2Feer.2023.583&
[5] https://www.bain.com/insights/capturing-value-by-decarbonizing-the-automotive-supply-chain/