Metals, cement, batteries, glass, plastics, and more account for nearly 20 percent of global greenhouse gas emissions. To arrest the rise in global temperatures, the materials sector must radically decarbonize.
Meeting this moment requires the value chain to cooperate as never before and solve a complex chicken-egg problem. For example, if upstream producers, such as steel suppliers, don’t decarbonize, then downstream producers, such as car manufacturers, won’t have the low-carbon materials they need to reach their sustainability targets. At the same time, however, upstream producers can’t decarbonize without clear downstream demand for sustainable materials.
McKinsey’s Sustainable Materials Hub aims to help solve this problem and accelerate the materials transition. The new initiative offers an approach that combines upstream and downstream perspectives to find joint solutions for materials sustainability—and create value while doing so. In fact, we estimate that nearly $9 to 12 trillion will reside in new sustainable val
