Equipment manufacturers: key cogs to drive transition

• The transport, energy, building and industry equipment suppliers and manufacturers sector (TEBISM^[1]) cuts across the entire economy. The diversity of the players involved means that their emissions profiles and contributions to the transition are very different.
• Companies in the sector face several transition risks, which are notably linked to increasingly demanding and geographically fragmented regulations, as well as increased competition for the supply of critical raw materials needed for electrification.
• Thinking about how equipment and products are used is the key to a coherent, company-wide decarbonization strategy. Consequently, the sector's transition depends on the contribution of all players in the value chain, from upstream equipment suppliers to downstream automakers.
• The main source of emissions, which comes from the use of the equipment sold, is reported very unevenly by the different sectors. Among them, automakers and equipment manufacturers in the transport and energy sectors have significantly increased their transparency. On the other hand, most industrial equipment manufacturers still do not report sufficiently on emissions linked to the use of their products.
• Players have two main levers for decarbonization: developing low-carbon products and favoring customers with a low-carbon activity and/or an ambitious transition strategy. Geographically, companies in the sector are also dependent on the action of public authorities to implement their transition, particularly in terms of regulations and the development of infrastructures promoting the use of low-carbon equipment.

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