2022-11-23

CLIMATE Reporting Standards

Product carbon footprint: 3 standards, 3 areas of application.

The economy is moving towards climate neutrality and more and more products are being produced in a CO2-neutral way, but what exactly does it take?

In order to make products climate-neutral, the CO2 emissions of the product must first be determined along the value chain. This is done by means of a product carbon footprint analysis. This is carried out on the basis of standards. However, three different standards are currently used. Each one has different advantages, procedures and leads to different results in the analysis of product carbon footprints (PCF). So which standard is suitable for which product?

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These standards currently exist

PAS 2050: Publicly Available Specification (PAS)

PAS 2050 has existed since 2008 and was published by the British Standards Institute. The standard was revised in 2011 in order to standardize it and create an international basis for determining the carbon footprint of products and services.

GHG Product

The GHG Product based on the GHG Protocol is a further development of the product standard of the PAS 2050 method published in 2008. This standard is the most comprehensive and was published in 2011. It contains requirements for the determination of greenhouse gas inventories and the public reporting of these.

ISO 14067

ISO 14067 is probably currently the most widely used standard for the preparation of PCFs. Work on this standard is ongoing and an update was only published in 2018. It defines boundaries in which only climate change is considered as an impact category. This standard is applicable to all products and is intended to promote transparent communication of the results.

Differences in the standards

The standards regulate this differently:

  • PAS 2050 does not include the following points: Capital goods, human energy inputs in processes and consumer transportation. In addition, it is possible here to neglect 5% of total emissions, provided that the emissions in question do not account for more than 1% of the total impact.

  • According to the GHG Protocol, only the 6 greenhouse gases defined in the Kyoto Protocol must be included: Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), halogenated hydrofluorocarbons (HFCs), hydrofluorocarbons (HFCs) and sulphur hexafluoride (SF6). The listing of other relevant emissions is recommended but not mandatory.

  • ISO 14067 places great emphasis on the specific use of green electricity, but otherwise offers the greatest scope for interpretation.

Which standard is suitable for which product category?

This question cannot be answered uniformly, as the manufacture of products in the same category cannot be generalized. Each product is individual, but the following 3 steps can make the selection easier.

Step 1: Get an overview

In order to classify the product, it is important to gain an overview and acquire knowledge of the topic. This can be done, for example, on the basis of desk studies and internal (and external) knowledge. The following questions should be clarified: What are players in the sector already doing? Are there initiatives in the sector that help? What developments are taking place in the relevant markets? How does this fit in with the internal strategy and the wishes of stakeholders?

The next step is to draw up a plan and set priorities.

Step 2: Identify stakeholders

For further steps, it is advisable to identify internal and external stakeholders, as well as the strengths and weaknesses of product manufacturing. Depending on the priorities, meetings with representatives of relevant organizations, industry associations or experts can also be helpful.

This will help to obtain different perspectives on the PCF.

Step 3: Roadmap and measures

A roadmap should now be drawn up that contains ambitions and clear measures. To do this, the current situation should be assessed, as should the long-term goals. These goals should be broken down into smaller, measurable actions. This is the only way to find out what works for the company and what does not. The objectives and measures can then be compared with the standards.

Conclusion

The various standards provide a scope for action, they form a framework and not a uniform guideline for action. Each standard offers its own scope for interpretation - ISO 14067 offers the greatest scope. It is therefore applicable to most product categories.

In order to select a standard, it should first be determined what is to be achieved by the PCF. Only then can a well-founded decision be made.

Does your company want to effectively reduce emissions and minimize its carbon footprint in the long term? Find out more about how the Scope 3 Action Group can support your company in taking the first steps towards climate transformation in the supply chain and positioning itself for the future.

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