Published February 9, 2026
By NZero
Hard-to-abate industries sit at the center of the global decarbonization challenge. Manufacturing, logistics, and heavy industrial sectors underpin modern economies, yet their operations depend on energy-intensive processes that are difficult to transform quickly. While long-term solutions such as alternative fuels, new materials, and industrial electrification continue to develop, many companies are focusing on the most immediate and controllable part of their emissions footprint today: energy use and Scope 2 emissions.
Manufacturers and logistics operators face structural constraints that make rapid emissions reductions more complex than in other sectors. Automotive plants, food and beverage facilities, steel mills, chemical production sites, warehouses, and distribution hubs operate around the clock and require reliable, high-volume energy inputs.
External pressures are increasing. Energy prices have become more volatile, grid congestion is growing in many industrial regions, and customers and investors are demanding clearer emissions data and reduction strategies. Electrification of fleets and alternative fuels remain unevenly available, while energy demand from warehouses and cold storage facilities continues to rise. These realities make it difficult to wait for perfect solutions.
Scope 2 emissions, which cover purchased electricity and energy, often represent a significant portion of total emissions for manufacturing and logistics companies. Unlike many Scope 1 sources, electricity use is measurable, continuous, and directly linked to operational decisions.
Energy consumption data is already embedded in day-to-day operations. Facilities track usage for billing, reliability, and compliance reasons, which makes Scope 2 emissions easier to quantify and manage than other parts of the emissions inventory. Improvements in energy efficiency, load management, and procurement can deliver near-term emissions reductions without requiring fundamental changes to core production processes.
Focusing on Scope 2 also allows companies to address cost and resilience concerns alongside sustainability goals. Managing electricity demand helps reduce exposure to peak pricing, demand charges, and grid disruptions, creating operational benefits that extend beyond emissions reporting.
Effective Scope 2 management goes beyond static reporting. It requires continuous visibility into how, when, and where energy is used across facilities and operations.
For manufacturers, this means understanding how production schedules, equipment startup and shutdown cycles, and environmental controls drive electricity demand. For logistics operators, it includes monitoring warehouse loads, refrigeration systems, charging infrastructure, and backup power assets.
With granular energy data, companies can identify inefficiencies, reduce unnecessary consumption, and optimize load profiles to better align with grid conditions and on-site resources. Integrating renewable energy, energy storage, and existing backup systems becomes more effective when supported by accurate, real-time insights.
Equally important, energy data must be usable across teams. Operations, sustainability, and finance groups increasingly rely on the same datasets to inform decisions, manage costs, and support emissions disclosures. A unified view of energy use helps translate technical metrics into business-relevant outcomes.
Managing Scope 2 emissions is not an end point. It is a foundation. Companies that gain control over their energy use are better positioned to pursue deeper decarbonization over time.
Lower and more predictable electricity demand reduces the cost and complexity of future electrification projects. Improved load flexibility supports greater use of renewable energy and prepares facilities for evolving grid requirements. High-quality energy data also strengthens emissions baselines, making future reductions more credible and measurable.
Over time, this same energy intelligence can inform capital planning by revealing how assets perform under real operating conditions, helping organizations evaluate future upgrades or system changes with greater confidence and less risk.
As regulations, customer expectations, and supply chain requirements evolve, companies with strong energy management capabilities will be able to respond more quickly and with less disruption. Incremental progress on Scope 2 builds internal confidence and demonstrates tangible action in sectors where change is often perceived as slow.
For hard-to-abate industries, decarbonization is a long-term transformation shaped by technology, infrastructure, and policy. While many emissions sources remain difficult to address today, energy use is a lever companies can act on immediately. By prioritizing Scope 2 emissions through smarter energy management, manufacturers and logistics operators can reduce risk, control costs, and make meaningful progress toward their climate goals while laying the groundwork for deeper emissions reductions in the years ahead.
