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    What is a product carbon footprint?

    A product carbon footprint (PCF for short) is a CO2 balance sheet that includes all emissions that are emitted during the life cycle of a specific product. It is to be distinguished from the corporate carbon footprint (CCF). The PCF includes all direct and indirect emissions associated with the product, from raw material extraction to disposal, and is intended to serve as a metric to improve comparability between products.

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    Why do you need a PCF?

    As already mentioned, the PCF (Product Carbon Footprint) is intended to ensure better comparability between products. However, there are many other reasons why a PCF is helpful. In addition to sustainability management, climate protection and supply chain management, the following are the most important arguments for a PCF

    Of course, legislation is one of the biggest drivers of this development. To counteract the ever-increasing risks of climate change, 195 countries committed to reducing greenhouse gases at the 2015 World Climate Conference. In order to first record and then reduce these, extensive guidelines were adopted that now apply to companies.

    As the entire supply chain is considered when balancing a PCF, companies are increasingly paying attention to the balance sheet of the products they purchase. The closer these companies are to the end consumer, the more pressure is passed on to suppliers along the value chain. Sooner or later, every company will be confronted with this issue.

    As the carbon footprint is becoming a customer requirement, this can be a decisive competitive advantage for companies. Good sustainability and supply chain management can therefore lead to a special and consolidated market position.

    For the majority of employees, sustainability aspects are an important criterion when choosing a potential employer. With the current shortage of skilled workers, an assessment in the context of a sustainability strategy (also known as a transformation concept) can therefore be a decisive advantage.

    What is the difference to life cycle assessment?

    At first glance, there are many similarities between life cycle assessment and product-specific carbon footprinting, which is why it is important to point out the differences between the two methods at this point. Product carbon footprinting can be seen as a simplification or subset of life cycle assessment. While a product carbon footprint focuses specifically on greenhouse gas emissions, the life cycle assessment also includes other environmental impacts. What both methodologies have in common is that the entire life cycle of the product is considered.

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    How is PCF calculated?

    In order to make the PCF of different products comparable, a reference value, the so-called "functional unit", must be defined before balancing, according to which all subsequent quantifications are aligned.

    In addition, the so-called reference flow must be defined. This is the quantity of a material or product that is required to provide the benefit defined by the functional unit.

    With the help of a so-called system flow diagram, the product system to be balanced, including the associated influences, can be represented graphically. All process modules that belong to the life cycle of the respective product are represented by boxes. Arrows connect the individual modules according to their input and output flows.

    The system boundaries are used to define which product life cycle phases are taken into account in the life cycle assessment. The main question here is whether the distribution, use and disposal of a product should be included or neglected. If all life cycle phases including distribution, use and disposal are accounted for, the so-called "cradle-to-grave" approach is used. This approach is typically used for end consumer products. In contrast, industrial products are often only accounted for using the cradle-to-gate approach, i.e. only up to the boundary of their own value chain. The reason for this approach is that it is often not possible to determine exactly which further processes the respective product will subsequently undergo.
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    At ENIT, we base the creation of a PCF on the individual conditions and objectives in your company and context. We also take into account industry-specific standards, if these apply to you, and check customer-specific requirements.

    When preparing a PCF, it is important to note that the informative value of any balance sheet is heavily dependent on the quality of the data. The better the data basis, the more accurate the balance sheet can be prepared and can be used as a reliable basis for decision-making. In the case of product balancing, detailed energy data is therefore particularly important.

    If you would like to know how high-resolution energy data can help you not only with the creation of a CO2 balance, but also with energy efficiency and cost reduction, then take a look at our energy management system.

    What norms and standards are there for the PCF?

    In addition to the calculation methods, there are of course also norms and standards that a product-specificCO2 balance or product carbon footprint (PCF) should comply with. The most relevant are the following:

    ISO 14040 and 14044 - these international standards set out basic requirements for how life cycle assessments should be prepared in general. They provide a framework for the systematic collection, assessment and communication of information on environmental impacts along the entire life cycle of a product or service. The standards specify how the environmental impacts should be quantified and ensure that the results are comparable, transparent and reliable.

    ISO 14067 - in contrast to ISO 14040, ISO 14067 sets out specific requirements and guidelines for quantifying and communicating the product carbon footprint (PCF) of products, services and organizations. It also defines methods for recording, calculating and communicating emissions.

    What are the advantages of accounting at product level?

    In addition to meeting various government and market requirements, a PCF also offers a number of advantages.

    Environmental responsibility allows companies to demonstrate their commitment to sustainability issues. This is increasingly important to consumers and stakeholders and can be a decisive argument when choosing products. This can result in competitive advantages that strengthen your market position against the competition. Investors are also often interested in the environmental footprint of the companies they want to invest in. A good balance sheet can therefore not only be attractive to customers, but also to investors.

    A PCF can also be used to identify various optimization potentials in the area of energy and resource efficiency in order to reduce unnecessary costs. Costs arising from rising CO2 certificate prices can also be averted.

    As the entire product life cycle is considered when creating the PCF and therefore also focuses on the supply chain, measures can be developed to minimize delivery failures and risks. This makes particular sense for global supply chains.

    Quality features and providers for Product Carbon Footprint?

    The quality characteristics of a product carbon footprint (PCF) include the accuracy of the data and measurements as well as the reporting of emissions over the entire life cycle of a product. A high-quality PCF is therefore characterized by high data quality, valid methods and reliable data sources. In order to ensure the desired trust and the necessary comparability, the quantification should be transparent, consistent and comprehensible.

    Choose a trustworthy partner company with expertise in energy and CO2 management to prepare such a balance sheet.

    In addition to high data quality and precision, our offer is characterized by close and personal cooperation with you and extensive training to raise awareness among your employees. Take the opportunity to convince yourself of our services in our various webinars on these topics or download a sample balance sheet now to gain a deeper insight.

    Through various collaborations with leading research institutions and innovation drivers in this field, we are constantly improving our range of services so that your company can grow with the environment.

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