Ranked: The Most Carbon-Intensive Sectors in the World

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.

Source: U.S. Environmental Protection Agency

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.