Moving from linear to circular for value chain sustainability 3.3 Why the value chain matters – scope 3 emissions for selected industries FIGURE 17 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Cement and concrete Transport s ervices and logistics Paper and pulp Metals and mining Other materials Chemicals Biotech, heal thcar e and pharma Food and beverage processi ng Apparel Construction Light manufactur ing Transport OE Ms Electric and electronic manufactur ing Powered machinery Scope 1 Scope 2 Scope 3 In an era where industrial activities contribute to 30% of global greenhouse gas (GHG) emissions, the urgency to bridge the gap between sustainability commitment and action has never been more important.58 Despite 77% of the top industrial emitters pledging to achieve net zero by 2050 or sooner, just 3% have fully outlined the strategies and actions necessary to meet these ambitious goals.59 The top few emitting sectors contribute the lion’s share of total scopes 1 and 2 emissions. For all others, the need to focus on value chains for scope 3 emissions is critical, as these sources often make up the majority of an organization’s total carbon footprint. In consumer goods, for instance, up to 90% of emissions can be attributed to scope 3 sources, including upstream activities such as raw material extraction and downstream activities such as product use and disposal.60 Over the past few years, most Sustainability Lighthouses have focused on scopes 1 and 2 emissions, targeting eco-efficiency through facilities, asset and process optimizations on site. More recently, reflecting an industry-wide push to reduce scope 3, some Lighthouses are introducing more circular approaches, beginning with on-site circular processes such as closed-loop water and waste systems. From there, they are looking beyond technology, such as through collaborations with suppliers and customers, to start closing loops across the value chain and progress towards net zero goals. Reducing site emissions and resource consumption with controls for local circularity Together, integrated IT/OT architectures, accurate carbon accounting and real-time process control provide Lighthouses the foundations to close loops on site and reduce scope 1 and 2 emissions. With integrated facilities and production systems capable of nano-second real-time control, they are achieving optimizations from new recycled packaging to facilitating the transfer of heat and energy, traditionally a leading source of loss. Despite 77% of the top industrial emitters pledging to achieve net zero by 2050 or sooner, just 3% have fully outlined the strategies and actions necessary to meet these ambitious goals.Source: World Economic Forum.57 Global Lighthouse Network: The Mindset Shifts Driving Impact and Scale in Digital Transformation 30

Global Lighthouse Network 2025