FAQ: Product Carbon Footprint (PCF)

This FAQ provides a comprehensive insight into the topic of product carbon footprint. It clarifies basic terms, explains the methodology for calculating the PCF and lists strategies on how companies can reduce their carbon footprint.

A product carbon footprint is the total amount of greenhouse gas emissions generated throughout the entire life cycle of a specific product. It is typically measured in carbon dioxide equivalents (CO2e) and provides a comprehensive view of the climate impact associated with producing, using, and disposing of a particular item.

The product carbon footprint encompasses emissions from:

• Raw material extraction and processing
• Manufacturing and production
• Transportation and distribution
• Use phase
• End-of-life disposal or recycling

A product carbon footprint calculation typically includes all major greenhouse gases (GHGs) as defined by the Kyoto Protocol and subsequent international climate agreements. These gases are:

• Carbon dioxide (CO2)
• Methane (CH4)
• Nitrous oxide (N2O)
• Hydrofluorocarbons (HFCs)
• Perfluorocarbons (PFCs)
• Sulfur hexafluoride (SF6)
• Nitrogen trifluoride (NF3)

While carbon dioxide is often the most significant contributor, other gases are included because they can have potent warming effects. To standardise the measurement, all these gases are converted to carbon dioxide equivalents (CO2e) based on their global warming potential (GWP) over a 100-year time horizon. This allows for a single, comprehensive figure that represents the total climate impact of the product.

In the context of product carbon footprints, Scope 1, 2, and 3 emissions refer to different categories of greenhouse gas emissions associated with the product's life cycle. These categories help companies to better understand and manage their emissions more effectively:

• Scope 1 emissions: Direct emissions from sources owned or controlled by the company producing the product. Examples include on-site fuel combustion, company-owned vehicles, and manufacturing processes.
• Scope 2 emissions: Indirect emissions from purchased electricity, steam, heating, and cooling consumed by the company during the product's manufacture. These emissions occur at the facility where the energy is generated.
• Scope 3 emissions: All other indirect emissions that occur in the product's value chain. These are typically the largest source of emissions for most products. Examples include, among others, upstream activities (e.g. raw material extraction, transportation of materials to the manufacturing site, employee commuting) and downstream activities (e.g. distribution, product use, end-of-life management).

For a comprehensive product carbon footprint, all three scopes should be considered to capture the full range of emissions associated with the product throughout its life cycle. Scope 3 emissions are particularly important for product carbon footprints as they often account for a significant portion of a product's total carbon impact.

Measuring the product carbon footprint is important for several reasons:

• Raising awareness of environmental impacts: This provides a clear picture of a product's contribution to climate change, helping businesses and consumers understand the environmental consequences of production and consumption.
• Identifying hotspots: Carbon footprint analysis helps companies pinpoint the stages or processes in a product's life cycle that contribute most significantly to emissions, allowing for targeted improvements.
• Decision making: With accurate carbon footprint data, companies can make more environmentally conscious decisions about product design, material sourcing, and manufacturing processes.
• Meeting consumer demands: As environmental awareness grows, consumers increasingly seek products with lower carbon footprints. Measuring and communicating this information can be a competitive advantage.
• Regulatory compliance: Carbon disclosure regulations are being implemented or considered in many regions, making compliance measurements essential.
• Supporting sustainability goals: Product carbon footprint measurement is often a key component of a company's broader sustainability strategies and can help track progress towards emissions reduction goals.
• Promoting innovation: The process of measuring and reducing carbon footprints can encourage innovation in product design, materials, and production methods.
• Engagement in the supply chain: It encourages companies to work with their suppliers to reduce emissions throughout the value chain.
• Risk management: Understanding carbon footprints helps companies anticipate and mitigate risks associated with future carbon pricing or regulations.

A product carbon footprint is calculated by assessing the greenhouse gas emissions associated with the entire life cycle of a product. This process typically involves the following steps:

1. Define the product and its functional unit
2. Map the product's life cycle stages
3. Collect data on energy and material inputs, as well as waste outputs for each stage
4. Convert this data into greenhouse gas emissions using emission factors
5. Sum up the emissions from all stages to get the total product carbon footprint

To ensure consistency and comparability, standardised methods and tools such as life cycle assessment software (LCA) are often used for the calculation. It is important that the calculation takes into account both direct emissions from the production and use of the product and indirect emissions from the supply chain and disposal at the end of the product's life.

A comprehensive product carbon footprint assessment usually involves the following steps:

1. Raw material extraction: This includes the emissions associated with extracting and processing the raw materials used in the product.
2. Manufacturing: Emissions from the production process, including energy use in factories, chemical processes, and any waste generated during manufacturing.
3. Packaging: While sometimes considered part of the manufacturing stage, packaging often has its own significant carbon footprint and may be assessed separately.
4. Distribution and storage: This covers the emissions from transporting the product from the factory to warehouses and then to retailers or end consumers, including any refrigeration or special storage requirements.
5. Use phase: For products that consume energy or resources during their use (e.g., appliances, vehicles), this step accounts for the emissions associated with the product's operation over its lifetime.
6. Maintenance and repair: For products that require regular maintenance or occasional repair, the emissions associated with these activities are also considered.
7. End-of-Life: This includes emissions from the disposal, recycling, or reuse of the product after its useful life has ended.

Several internationally recognised standards and methodologies are used for product carbon footprint assessments. The most ones used include:

• GHG Protocol Product Standard: Developed by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD), this standard provides requirements and guidance for companies and organisations to quantify and publicly report an inventory of greenhouse gas emissions associated with a specific product.
• ISO 14067: This International Organisation for Standardisation (ISO) standard specifies principles, requirements, and guidelines for the quantification and reporting of the carbon footprint of a product.
• PAS 2050: Developed by the British Standards Institution (BSI), this Publicly Available Specification provides a method for assessing the life cycle GHG emissions of goods and services.
• Product Environmental Footprint (PEF): This European Commission initiative aims to develop a harmonised methodology for calculating the environmental footprint of products, including their carbon footprint.
• PEFCR (Product Environmental Footprint Category Rules): These are specific guidelines for calculating the environmental footprint of products within a particular category, ensuring consistency and comparability.

Life Cycle Assessment (LCA) is essential in determining a product's carbon footprint. It is a comprehensive approach that evaluates the environmental impacts of a product throughout its entire life cycle. The role of LCA includes:

• Holistic approach: LCA considers all stages of a product's life cycle, from raw material extraction to end-of-life and disposal, ensuring a complete picture of the product's carbon impact.
• Data collection and analysis: LCA provides a structured method for collecting and analysing data on energy use, material inputs (usage), and emissions across the product's life cycle.
• Identification of hotspots: By examining each life cycle stage, LCA helps to identify the areas where the product has the highest carbon impact, allowing for targeted improvement efforts.
• Scenario analysis: LCA allows for the comparison of different production scenarios or product designs to determine the most carbon-efficient options.
• Standardisation: Many product carbon footprint standards, such as ISO 14067, are based on LCA principles, ensuring a consistent and scientifically sound approach.
• Avoiding burden shifting: By considering the entire life cycle, LCA helps to prevent the shifting of environmental burdens from one life cycle stage to another when making product improvements.
• Multi-impact assessment: While the carbon footprint focuses on greenhouse gas emissions, a full LCA can provide insights into other environmental impacts, thus offering a more comprehensive view of a product's sustainability.

In essence, LCA provides the methodological backbone for product carbon footprint assessments, ensuring that all relevant emissions sources are accounted for, and that the assessment is conducted in a systematic and comprehensive manner.

Accurately measuring product carbon footprint presents several challenges:

• Data availability and quality: Obtaining comprehensive and reliable data across the entire supply chain can be difficult, especially for complex products with multiple components and suppliers.
• Setting boundaries: Determining the appropriate scope and boundaries for the assessment can be challenging, as it's not always clear where to draw the line in terms of included processes and emissions sources.
• Allocation of emissions: When multiple products share production processes or facilities, it can be challenging to accurately allocate emissions to a specific product.
• Variability in production: Products may have different carbon footprints depending on factors like production location, energy sources, and seasonal variations, making it difficult to provide a single, representative figure.
• Methodological differences: Various calculation methods and standards exist, which can lead to inconsistencies in results and make comparisons between products challenging.
• Temporal aspects: Carbon footprints can change over time due to improvements in technology or changes in the supply chain, requiring regular reassessments to be conducted.
• Indirect emissions: Accounting for Scope 3 emissions, which include indirect emissions throughout the value chain, can be particularly complex and data intensive.
• Lack of standardisation: While there are some established methodologies, there's still a lack of universal standards for measuring and reporting product carbon footprints across all industries.

Product carbon footprints should be reassessed regularly to ensure accuracy and to track progress in reduction efforts. The frequency of reassessment can depend on several factors:

• Industry standards: Some industries or certification bodies may have specific requirements regarding the frequency of reassessment.
• Product lifecycle: Products with shorter lifecycles may require more frequent reassessments.
• Changes in production: Significant changes in production processes, suppliers, or materials should trigger a reassessment.
• Technological advancements: Improvements in calculation methodologies or data availability may warrant reassessment.
• Regulatory requirements: New regulations may necessitate more frequent updates.

As a general guideline, many companies choose to reassess their product carbon footprints annually or every two years. However, for products in rapidly changing industries or those undergoing frequent modifications, more frequent reassessments (e.g., every six months) might be necessary.

Regular reassessments help companies stay up to date with the environmental impact of their products, to recognise new opportunities for reduction and to maintain the credibility of their carbon footprint claims.

Companies can employ various strategies to reduce their product carbon footprint:

• Design for sustainability: Incorporate eco-design principles to create products that are more energy-efficient, use fewer materials, or are easier to recycle.
• Material selection: Choose low-carbon or recycled materials where possible. Consider the embodied carbon of materials in the selection process.
• Energy efficiency: Improve energy efficiency in manufacturing processes and facilities. This could involve upgrading to more efficient equipment or optimising production schedules.
• Renewable energy: Switch to renewable energy sources for manufacturing and other related operations.
• Supply chain optimisation: Work with suppliers to reduce emissions in the supply chain. This might involve selecting local suppliers to reduce transportation emissions or helping suppliers to improve their own processes.
• Transportation efficiency: Optimise logistics and transportation routes. Consider using electric vehicles or lower-emission transportation methods.
• Packaging reduction: Minimise packaging or switch to more sustainable packaging materials.
• Improving product durability: Develop products that last longer and need to be replaced less often.
• Enable circular economy: Design products for easy repair, refurbishment, or recycling at end-of-life.
• Carbon offsetting: While not a direct reduction, offsetting can be used to compensate for unavoidable emissions.
• Consumer education: Provide consumers with information on how to use and dispose of products in a way that minimises emissions.
• Innovation and R&D: Invest in research and development to find new, low-carbon technologies or processes.

It is important to note that the most effective strategies for reducing emissions depend on the product and industry in question.

Transportation can significantly affect the product carbon footprint in several ways:

• Direct emissions: The burning of fossil fuels in vehicles (trucks, ships, planes, trains) during product transportation releases CO2 and other greenhouse gases directly into the atmosphere.
• Mode of transport: Different transportation methods have varying levels of carbon intensity. Generally, the hierarchy from most to least carbon-intensive is:
  • Air freight (highest emissions)
  • Road transport
  • Rail transport
  • Sea freight (lowest emissions for long distances and large transport volumes)
• Distance travelled: The longer the distance a product travels, the higher its transportation-related carbon footprint will be.
• Efficiency and load factors: The efficiency of vehicle use (e.g., fully loaded trucks vs. partially empty ones) can significantly impact the carbon footprint per unit of product transported.
• Packaging: The type and amount of packaging required for safe transportation can add to the overall carbon footprint.
• Intermediate storage: Multiple stops or storage locations in the supply chain can increase the carbon footprint due to additional handling and potential energy use in warehouses.
• Return logistics: For products with significant return rates (e.g., some e-commerce goods), the carbon footprint of reverse logistics needs to be considered.
• Infrastructure: The quality and efficiency of the transportation infrastructure can affect fuel consumption and emissions.
• Type of fuel: The use of alternative fuels or electric vehicles in transport can potentially reduce the carbon footprint compared to conventional fossil fuels.