Sectoral
patterns in gas-mix divergence
Using
the EPA v1.3 dataset, Sakib computes Sakib numbers for 454 NAICS-6 commodities
and reports ten purely data-based figures [1]. Figure 1 in his paper shows a
histogram of supply-chain CO2e factors with margins Fi across all
1,016 commodities, revealing that most sectors have intensities below 0.5 kg CO2e
per USD, with a long tail of more intensive sectors dominated by livestock and
extractive industries [1] (Figure 1).
Table
1 of Sakib (2025) summarizes the ten sectors with the highest Sakib numbers and
their values [1]. The Sakib numbers Si (in nats) for these sectors are:
Nine
of the top ten sectors are animal agriculture; the remaining one is limestone
mining, where process emissions dominate production while margins are largely
CO2 [1]. These underscores that high Sakib numbers flag sectors in
which the composition of GHGs changes qualitatively between phases, not merely
sectors with high CO2e intensity (Table 1).
Relative
divergence: Sakib numbers vs Sakib constant
Dividing
each top-sector Sakib number by the Sakib constant CS highlights how extreme
these divergences are relative to the economy-wide mean. Using CS ? 0.0206
nats, [1] the ratios Si/CS range from about 1.69 to
12.22. Figure 2 shows these ratios.
Aggregating
over the 454 sectors with complete gas-by-gas data, the total sum of Sakib
numbers is approximately 454 × 0.0206 ? 9.35 nats. The top ten sectors in Table
1 contribute about 0.84 nats in total, or roughly 9% of the overall divergence
[1]. This is visualized in (Figure 2,3).
From
a business standpoint, these results suggest a prioritisation strategy: sectors
with Sakib numbers more than, say, twice CS are strong candidates
for targeted interventions in margins (logistics, retail, wholesale agreements)
because composition shifts there are substantial.
Distributional
properties and quantiles
Figure
10 in Sakib (2025) presents an empirical cumulative distribution function (CDF)
of Sakib numbers across the 454 sectors [1]. Half of the sectors have Sakib
numbers below ap- proximately 0.0107 nats, and 90% have values below about
0.0299 nats [1]. The Sakib constant CS ? 0.0206 lies between the
80th and 90th percentiles, suggesting that a relatively small set of
high-divergence sectors pulls the mean upward. Figure 4 depicts these quantiles
and the maximum Sakib number on a single horizontal axis. Complementing this,
we can highlight the contrast between the highest and one of the
lowest-divergence sectors: NAICS 112120 (beef cattle ranching and farming) with
Si ? 0.2518 nats, and NAICS 512240 (sound recording studios) with Si
? 0.00035 nats [1]. Figure 5 shows their Sakib numbers side by side (Figure
4,5).
Business
interpretation and supply-chain strategy
For
firms and buyers, the Sakib number provides a diagnostic complement to CO2e
intensity:
- A
sector can be high in CO2e intensity but have small Sakib numbers if
gas composition is similar between production and margins. In such cases,
margins scale emissions without qualitatively changing their mix.
- Conversely, sectors with moderate CO2e
intensity but high Sakib numbers are situations where margins shift emissions
from methane-dominated production to CO2-dominated downstream
activities (or vice versa), which matters for near-term warming and policy
exposure [6].
This
connects naturally to the GHG value indicator framework of von Kalckreuth, [9]
which proposes product-level GHG tags analogous to prices. A firm’s or
product’s Sakib number could be reported alongside a GHG value, indicating
whether margin activities alter the gas mixture significantly relative to
upstream production.
Figure
6 illustrates the decomposition of supply-chain emission factors for a single
NAICS example (office furniture, except wood) using values reported in EPA
documentation [3] (Figure 6).
In
procurement and supplier engagement, sectors or commodities with Si
substantially above CS can be classified as “gas-mix sensitive”:
margin-related interventions (e.g., changing logistics providers, revising
incoterms, reconfiguring warehousing) may alter not only total emissions but
also the balance between short- and long-lived gases. This is particularly
relevant in sectors dominated by methane and nitrous oxide in production
(livestock, some fertilizers) but with fossil CO2-dominated margins.
Aggregation
by sector groups
Aggregating
Sakib numbers by NAICS-2 sector groups, Sakib finds that agriculture, forestry,
fishing and hunting (NAICS 11) has the highest median Sakib number, followed by
mining, quarrying, and oil and gas extraction (NAICS 21), while manufacturing
and service sectors tend to have lower typical divergences [1].
Using
just the top ten sectors from Table 1, we can form a simple average Sakib
number for the nine agriculture-related sectors (NAICS 11) and the one mining
sector (NAICS 21). The average over the nine agricultural sectors is
approximately 0.0895 nats, while the mining sector has 0.0348 nats. Figure 7
presents this comparison.
These
patterns resonate with sectoral methane studies, such as Oberdabernig, which
document that economic growth and structural change interact with
methane-intensity reductions in heterogeneous ways across sectors [10]. The
Sakib number offers a concise measure of how much margin activities reshape
multi-gas composition in those sectors (Figure 7).