New report: Emissions 20 times higher outside the factory

The manufacturing industry is reducing its emissions, but not at a pace sufficient to reach net zero by 2040. The largest share of climate impact also occurs outside companies’ own operations, according to a new report from Net Zero Industry.

– Swedish manufacturing shows that it is possible to combine competitiveness with reduced emissions. However, the pace of the transition needs to increase, and we must focus more on the value chain and the use phase beyond the factory—this is where the greatest climate impact occurs, says Sofia Wieselfors, Program Director of Net Zero Industry.

The new report Manufacturing Outlook 2026 provides a comprehensive overview of the Swedish manufacturing industry’s economic development, employment, and greenhouse gas emissions, and is the first in an annual report series.

The report shows that industry has long combined growth with reduced emissions. Emissions per unit of revenue have more than halved since 2008, while both profitability and value added have increased significantly.

At the same time, the report highlights that the majority of industry’s climate impact occurs in other parts of the value chain—materials, energy, transport, and suppliers. These emissions are approximately 20 times greater than direct emissions from companies’ own operations, and most occur outside Sweden.

– This challenges how many view industrial emissions. If we focus only on our own production, we risk overlooking the largest share of climate impact, says Klas Cullbrand, Innovation Strategist at Net Zero Industry.

The programme initiated the report to enable more targeted actions towards its mission of a competitive and resilient manufacturing industry with net zero greenhouse gas emissions by 2040.

The report presents several clear conclusions. To reach net zero by 2040, the pace of emission reductions must increase substantially—particularly in materials, energy, and transport. It also highlights the significant opportunity for industry to influence emissions far beyond its own operations, through measures such as material choices, product design, supplier requirements, and the development of circular business models.

– Being at the forefront of the transition is not just a climate issue—it is a matter of competitiveness. The companies that transition fastest will strengthen their position, says Sofia Wieselfors.

Facts: Manufacturing Outlook 2026

• Swedish manufacturing accounts for approximately 30% of Sweden’s exports of goods and services
• Value added represents just over 8% of GDP
• Emissions per unit of revenue have more than halved since 2008
• Value chain emissions (outside the factory) are around 20 times greater than those from companies’ own operations
• More than 80% of value chain emissions occur outside Sweden

About the report
Manufacturing Outlook 2026 is the first in a planned annual report series from Net Zero Industry. It is based on statistics from Statistics Sweden and analyses the economic development, structure, and greenhouse gas emissions of Sweden’s discrete manufacturing industry over time. To gain access to microdata, please contact Tillväxtverket.