Carbon accounting is an evolving field, and there are an increasing number of standards companies can adopt to understand their carbon footprint. In this blog, we address the questions around selecting the right standards when it comes to product carbon footprint
The product carbon footprint is a measure of the total greenhouse gas emissions associated with the entire lifecycle of a product, from the extraction of raw materials to manufacturing, distribution, use, and disposal. In an era where sustainability is becoming increasingly crucial, the concept of product carbon footprint has gained significant attention. The chemical industry, being one of the largest contributors to greenhouse gas emissions, has a crucial role to play in reducing its environmental impact.
There are over 6 standards that are recommended for enterprises for calculating product carbon footprints, depending on industry, scope, and relevance. The abundance of standards adds complexity and confusion for companies attempting to navigate the carbon footprint landscape. Different standards may have varying levels of complexity, requiring companies to invest time and resources in understanding and complying with each one. This complexity can be overwhelming, particularly for small and medium-sized enterprises that may lack dedicated sustainability teams.
Industry groups are aligning calculation methodologies, system boundaries, and reporting requirements to establish a unified and consistent approach. One such example in this context is Together for Sustainability or TfS which is a consortium of chemical industry companies. It recently announced a uniform guideline for PCF calculation that is aligned with ISO 14067 and GHG Protocol Product standards.
This development of sector-specific guidelines within broader frameworks is addressing industry-specific challenges while maintaining overall consistency. The guideline has also simplified reporting by conducting training programs, workshops, and information-sharing sessions to help raise awareness and equip stakeholders with the necessary knowledge.
ISO 14067 is an international standard developed by the International Organization for Standardization (ISO) that provides guidance on the quantification and communication of the carbon footprint of products. It is specifically focused on addressing the challenges and complexities associated with measuring and reporting the carbon footprint of goods and services.
ISO 14067 was first published in 2018 and is part of the ISO 14000 series, which provides a set of standards related to environmental management. This particular standard complements other ISO standards, such as ISO 14040 and ISO 14044, which provide guidelines for conducting life cycle assessments (LCAs) to assess the environmental impact of products.
This is a chemical sector-focused guideline aligned with the ISO and GHG Protocol product standards. Due to a lack of specificity for key aspects in the chemical industry, a sector-specific guideline such as the TfS PCF Guideline helps chemical companies be transparent with their customers. The aim of the TfS PCF guideline is to improve the quality, consistency, and comparability of PCF data to help companies decarbonize their value chains. TfS PCF Guideline are compliant with ISO 14067 and GHG Protocol guidelines, and hence calculations done using TfS Guidelines are also ISO compliant.
TfS PCF guideline also encourages companies to embed supplier PCF data in downstream PCF calculations for more accurate calculations
WBCSD’s PACT, compared to other standards above, is not a calculation standard or a guideline. It is a data sharing format to help companies share product-level carbon footprint data in a standardized and consistent manner. With every customer sharing product carbon footprint data request in a different format, it becomes a resource-intensive activity for companies to meet customer demands.
With initiatives such as PACT, companies can follow a uniform data format to share data, and also automate Scope 3 related calculations for faster accounting.
In this blog, we will compare three widely recognised standards: WBCSD PACT, TfS PCF Guideline and ISO 14067, understanding the similarities and differences between these standards can aid businesses in choosing the most appropriate framework for their sustainability goals.
For chemical enterprises, there is a growing adoption of the TfS PCF Guidelines to help companies calculate and share the product carbon footprint of sold goods. Such standards are yet to be introduced by other sector-specific industry organizations, and hence it is best practice to align the PCF calculations with ISO 14067 or the GHG Protocol standard as per stakeholder expectations.
There are a growing number of requests from customers for PCF data, and to communicate your information consistently, WBCSD’s PACT data format has become crucial to align all stakeholders with a consistent data format. Being an industry-agnostic PCF data sharing format, aligning with WBCSD PACT’s data sharing format will help you meet cross-industry stakeholder requirements and mitigate the risks of non-compliance.
No, enterprises can continue following the previous process and identify data gaps to meet the compliance requirements of the TfS Guidelines or PACT. Solutions such as Carboledger have developed innovative technologies to help organisations manage the evolving landscape of PCF standards to help them stay relevant and enhance customer relationships
Carboledger is a PACT-conformant enterprise network that helps you securely share and collect supplier-specific product carbon footprint data. Our advanced solutions help you automate Scope 3 emissions calculations and enhance customer relationships by efficiently meeting customer’s PCF data requirements. Without the need to deploy any new solutions, Carboledger integrates with your existing IT systems and processes to meet the needs of your customers.
Learn more about our solutions and schedule a demo today!
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