Material Economics is a leading sustainability consultancy firm based in Stockholm, Sweden. Together, we help clients in the public and private sectors answer complex questions about sustainability and resource strategy, bringing specialized expertise and assets in the area of circularity to help companies transform on their paths to net zero.

McKinsey acquired Material Economics in 2021.

Client Impact

Developed a climate mitigation approach for global tech company

By creating marginal abatement cost curves and prioritizing levers and case studies based on proprietary data and analytics capabilities, we were able to identify five initiatives that would allow for up to 50 percent carbon dioxide reduction. Combined with several other disruptive initiatives, the client now has the potential to reach 80 percent carbon dioxide reduction for their core materials by 2030.

Created circularity strategy for automotive OEM

By performing an in-depth diagnostic on each product in the client’s portfolio, we identified the most impactful circularity opportunities from an EBIT, carbon dioxide and materials perspective. Based on analysis, we developed an at-scale program to reduce emissions from materials and increase circularity, resulting in significant cost reductions for the client.

Developed end-to-end sustainability strategy for leading food retailer

Developed sustainability criteria for major food categories at a leading European grocer and created a tool for automatic assessment of products against sustainability criteria. By reviewing existing purchasing requirements and developing a governance plan for sustainability, the client will be able to offer the most sustainable range of food products by end of 2022.

Related Practice


Learn how we work with private- and public-sector institutions on challenges created by growing pressure on resource systems and increasing environmental risk.