Introduction
How much greenhouse gas (GHG) emissions are associated with a product’s life cycle? What is contributing the most and how can I trace it? These are some of the questions that can be answered by conducting a Product Carbon Footprint (PCF) to an item or even an inventory, providing a full comprehensive view of the whole bundle.
A PCF is a crucial metric in environmental sustainability and climate change mitigation. It represents the total amount of greenhouse gas emissions such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), emitted throughout the lifecycle of a product, from raw material extraction to disposal or recycling. The carbon footprint is typically measured in units of carbon dioxide equivalents (CO₂e), which allows for different gases to be compared based on their global warming potential.
Understanding and measuring PCFs is becoming increasingly important for businesses, consumers, and policymakers alike. It provides valuable insights into the environmental impact of products and helps identify areas where emissions can be reduced, ultimately contributing to global efforts to halt climate change.
In this page, we'll explore the concept of Product Carbon Footprint in depth, discussing its components, calculation methods, importance, and the role it plays in shaping sustainable business practices and consumer choices.
How to calculate a PCF?
Framework
The ISO 14067 standard serves as the key guideline for conducting a Product Carbon Footprint (PCF). It provides a detailed framework for quantifying the carbon footprint of a product, focusing specifically on greenhouse gas (GHG) emissions throughout a product's lifecycle. The ISO 14067 is based on the principles of Life Cycle Assessment (LCA), as outlined in related standards such as ISO 14040 and ISO 14044. This means that companies must assess emissions across all stages of the product's life cycle - from raw material extraction to production, distribution, use, and disposal (cradle-to-grave).
The framework also provides specific guidelines for identifying, calculating, and reporting greenhouse gas (GHG) emissions, allowing for a standardized comparison across different types of gases based on their Global Warming Potential (GWP).
System Boundaries and Scope:
A key part of ISO 14067 is defining the system boundaries of the PCF. This means establishing the scope of the assessment - what processes and emissions are included and excluded. This flexibility allows businesses to adapt the PCF assessment to specific goals, whether they are focusing on the entire life cycle or only specific phases such as production or transportation. The following scopes can be considered in a PCF assessment:
Cradle-to-Gate: Includes all emissions from raw material extraction (cradle) through to the product's manufacturing and its release from the factory (gate). Excludes emissions from product use and disposal. This analysis is typically conducted when there is no possibility of knowing the downstream activity, whereas the focus is more on the upstream value chain.
Cradle-to-Grave: Covers emissions from raw material extraction through to the end-of-life of the product (grave), including its use, disposal, and any recycling processes. In the end, it provides a full life cycle perspective, encompassing all product stages.
Cradle-to-Cradle: Assesses the product from raw material extraction to end-of-life, including recycling or re-use, essentially closing the loop for a circular economy. This approach studies the way upcycling can benefit the product’s footprint, creating an interlinked network of processes and material flow.
Gate-to-Gate: Focuses only on the emissions during the product's manufacturing process, from the point it enters the factory (gate) to when it leaves as a finished product. It excludes raw material extraction, use, and disposal phases. This view is commonly used when the goal is to analyze and optimize the manufacturing process.
Communication
One of the biggest challenges faced by outsourced consultancies, and even in-house sustainability teams, is ensuring clear and transparent communication throughout the process. Full understanding and alignment between all parties involved are essential. Miscommunication often slows down the process, which leads to delays, misunderstandings, and misaligned expectations. When clarity is lacking regarding what information is needed, how it should be provided, and when it must be delivered, it can significantly halt the progress and accuracy of the PCF assessment.
Data quality
Additionally, data gathering can turn into a lengthy and often complex process that requires active engagement and cooperation from all stakeholders. From raw material suppliers to manufacturing teams and across logistics, everyone involved must be aligned and committed to providing accurate and timely information.
One other crucial aspect is data management. Data should be centralized, well-organized, regularly updated, and consistently monitored to avoid outdated or incomplete information. Poorly managed or disjointed data can lead to inaccuracies, making it difficult to trace decision-making processes and reducing the reliability of the results. A centralized system ensures consistency, accuracy, and transparency, helping businesses maintain the integrity of their PCF assessments and smooth the path of implementing more effective strategies.
“What database is the correct one?”. Sometimes, choosing your sources for your study can be an overwhelming process. Data sourcing is the foundation of any accurate PCF calculation. Data reliability and the quality of the sources used are crucial for ensuring that the calculations are sound and trustworthy, where using incorrect emission factors, unreliable databases, or employing a flawed methodology with gaps or shortcuts can compromise the integrity of the entire assessment.
Choosing the "easy path" - such as using generic or outdated data - may seem convenient, but it weakens the credibility and accuracy of the results. Reliable databases, such as Ecoinvent, EPA, BEIS, or even Exiobase (a spend base database), provide validated emission factors and comprehensive datasets, ensuring that the information used is robust and industry-standard.
Documentation
Maintaining a transparent and well-documented methodology is essential to prevent any perception of inaccuracy or "shadiness." A fully explained, clear methodology allows the entire process to be easily tracked, understood, and verified.
Establishing limitations and making assumptions is a standard practice when conducting a PCF assessment. Let's face it: achieving 100% accuracy in analyzing a product's entire life cycle is nearly impossible, especially in complex value chains.
There will always be gaps in data, often involving less critical information that may not significantly impact the final outcome.
To address these gaps, reliable proxy values can serve as effective substitutes, complementing the available data without consuming excessive time and resources. By leveraging these proxy values, organizations can maintain the integrity of their analysis while ensuring that the assessment remains practical and actionable, enabling a streamlined process and allowing for a more efficient focus on critical areas that genuinely drive emissions reduction efforts.
Key Benefits of ISO 14067
Consistency: Provides a uniform approach for calculating and reporting the PCF, enabling comparability across industries.
Credibility: Ensures transparency, accuracy, and thorough documentation, which builds trust with stakeholders.
Actionable Insights: Helps businesses identify carbon hotspots and develop strategies to reduce their emissions.
Compliance: Supports compliance with national and international regulations on carbon reporting and emissions reduction targets.
Why does PCF matter for companies?
Upcoming Legislation
Priorities may vary from company to company. Sustainability is a growing subject on businesses’ cornerstones, not just due to market and stakeholder pressure, but also because it will become a requirement in the coming years. The European Green Deal brought many compliance, such as the CSRD, which sets that companies will be obligated to properly communicate their GHG emissions
Priorities regarding sustainability may vary from company to company, but it is becoming an increasingly critical component of business strategy across industries. This shift is not only driven by market demands and stakeholder pressure but also by the recognition that future regulations will mandate greater accountability and transparency in environmental practices.
One of the key drivers behind this growing emphasis on sustainability is the European Green Deal, aimed at making the European Union climate-neutral by 2050. A crucial part of this initiative is the Corporate Sustainability Reporting Directive (CSRD), where companies - especially large corporations operating in Europe - will be required to report in detail on their GHG emissions, including both direct and indirect emissions. This directive will also require businesses to explain how they are mitigating their carbon footprint and aligning with broader sustainability goals.
In the end, it will be a legal requirement for companies operating within the European market and beyond, and businesses that fail to adapt to these emerging regulations risk penalties, reputational damage, and losing the confidence of consumers, investors, and regulators. Companies that take proactive steps to measure, report, and reduce their GHG emissions will be better positioned to comply with future regulations, remain competitive, and build a sustainable future.
Identifying Operational Efficiencies
By analyzing emissions at each stage of the product lifecycle, businesses can identify high-impact areas where material usage, energy consumption and waste can be reduced. Optimizing manufacturing processes, types of material used throughout the process or improving supply chain logistics can lead to significant cost savings while also reducing overall emissions, creating a win-win scenario.
Enhancing Brand Reputation and Competitive Advantage
A company's commitment to sustainability significantly influences its brand perception, and in a market where consumers are increasingly inclined to support brands that demonstrate environmental responsibility, it is a crucial area to bet.
Measuring and reducing their PCF allows companies to communicate their efforts to lower greenhouse gas emissions, transparently. Putting sustainability in a company’s core values and mission not only builds trust with existing customers but also attracts eco-conscious consumers who prioritize sustainability in their purchasing decisions. Embracing transparency in companies’ priorities, such as carbon footprint reporting, positions themselves as leaders in corporate social responsibility, ultimately enhancing their brand reputation and customer loyalty.
Not to mention that by having a clear sustainability strategy can differentiate a company from its competitors. Actively managing and conducting PCF allows businesses to develop low-carbon products and services that meet the growing demand for sustainable options, capturing new market segments and strengthening their position in the eyes of investors and partners who set sustainability first, positioning themselves as innovators in a world that increasingly values environmental stewardship and, ultimately, gaining a competitive edge.
These conscious investors are increasingly integrating environmental, social, and governance (ESG) criteria into their decision-making processes. A well-managed carbon footprint demonstrates a commitment to sustainability and responsible business practices, making it more attractive and potentially leading to increased funding and support for future initiatives.
How to reduce a PCF?
We developed some starter points where any company can start its sustainability and low-carbon journey. The point is not to provide a roadmap, since each company has different priorities and capabilities, but some highlights where and how it can begin.
Understand PCF Baseline
Conduct an LCA to evaluate the carbon footprint across the product's entire lifecycle and identify key emission hotspots (e.g., raw materials, manufacturing, logistics) to target high-impact areas for reduction.
Optimize Material Sourcing
Prioritize low-carbon, renewable, or recycled materials for production (e.g., recycled metals and bio-based plastics).
Implement sustainable sourcing policies, ensuring suppliers follow environmentally and socially friendly practices. It’s not just about the materials, but how and who produces them.
Start from the top: engage in supplier partnerships to align goals and drive down the carbon footprint of the materials used, ultimately having a full and transparent view of your supply chain.
Implement circular practices from the origin, focusing on waste reduction, reuse, and recycling within the production cycle.
Energy Efficiency in Manufacturing
Invest in energy-efficient technologies and machinery to reduce energy consumption during production.
Transition manufacturing facilities to renewable energy sources (solar, wind, hydro) to decrease reliance on fossil fuels.
Product Design for Sustainability
Redesign products to use fewer materials and to be more energy-efficient during use (e.g., electronics with lower energy consumption).
Emphasize modular design for easy repair, maintenance, and recycling at the end of the product’s life.
Consider lightweighting strategies to reduce material use without sacrificing product quality or performance.
Reduce Emissions in Transportation
Optimize the logistics network to minimize transportation distances and the use of carbon-intensive modes of transport.
Shift to electric or hybrid vehicles in supply chains and distribution fleets.
Collaborate with logistics partners who prioritize carbon-neutral shipping solutions.
Packaging Reduction
Use minimal, recyclable, or compostable packaging materials to reduce waste and the energy required for packaging production.
Explore biodegradable alternatives to traditional plastics.
Implement returnable and reusable packaging systems to eliminate single-use packaging waste.
Adopt a Circular Economy Approach
Design products for durability, reparability, and recyclability to extend their lifespan and reduce the need for new resources.
Create take-back or product recycling programs to encourage customers to return used products for responsible disposal or recycling.
Promote refurbishment or remanufacturing to reduce waste and lower the carbon emissions associated with producing new products.
Waste Reduction
Implement zero-waste policies in production processes, aiming to reduce, reuse, and recycle materials at every stage.
Collaborate in an industrial symbiosis, where waste from one production process is used as input for another, thereby reducing the need for virgin materials.
Offsetting Carbon Emissions
Invest in carbon offset projects (e.g., reforestation, forest management, renewable energy) to neutralize unavoidable emissions. There are also other more disruptive initiatives to support, like carbon capture and storage (CCS) technologies to reduce atmospheric CO2.
Engage Employees and Stakeholders
Educate employees on carbon reduction strategies and engage them in implementing eco-friendly practices at every level.
Set clear carbon reduction targets and report progress regularly to stakeholders and consumers to maintain transparency.
Leverage Technology for Monitoring
Digital tools and AI allow you to track energy usage, emissions, and resource consumption in real time, enabling more effective reductions.
Invest in blockchain technology for supply chain transparency, ensuring that emissions reductions efforts are verifiable and accountable.
Consumer Engagement
Encourage consumers to adopt low-carbon behaviors through product features and educational campaigns.
Provide eco-labeling to highlight the reduced carbon footprint of products, making it easier for consumers to make informed choices.
The Times Ahead
Compliance is a huge trigger when it comes to sustainability implementation. Market demands are increasing by the second, and companies are seeing themselves surrounded by players with better and more refined technology, choking their businesses and their brands’ reputations in the end.
Sustainability shouldn’t be seen as a task, but rather as leverage. Inevitably, it will become a fundamental business driver. As climate change continues to challenge industries, reducing emissions will become a competitive necessity, shaping consumer preferences, regulatory environments, and investor expectations.
Those who master Product Carbon Footprint and implement a solid business plan focused on sustainable practices thrive in a way that other players don’t. It’s like skipping the line… but in a good way!
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