Introducing Product Carbon Footprints (PCFs): the essentials
As the urgency of climate change mitigation grows, companies are facing increasing pressure to track, report and reduce emissions across their value chains. While the field of carbon accounting has progressed remarkably, calculating Scope 3 upstream emissions – usually the biggest share of a company’s emissions – remains a significant challenge. These emissions are outside a company’s direct control, so they typically rely on industry average emissions factors to estimate emissions. The inherent uncertainty in this method and the lack of granularity leaves much to be desired for ambitious companies leading Scope 3 emissions reduction efforts. The Partnership for Carbon Transparency’s (PACT’s) approach to Product Carbon Footprints (PCFs) presents a strategy for Scope 3 accounting that is accurate, granular, and comparable down to the product level. PCFs have many benefits and are gaining momentum in private sector emissions accounting. So, what are PCFs?
What is a product carbon footprint (PCF)?
A Product Carbon Footprint, or PCF, is a measure of the greenhouse gas (GHG) emissions generated during the life cycle of one unit of a product. Measured in kilograms CO2 equivalent (kg CO2e), it can be calculated for any product – for example, a kilogram of chocolate or a kilowatt-hour of electricity. PCFs can be calculated using a combination of secondary data, such as industry averages, and primary data collected directly from a manufacturer’s process. When PCFs are calculated by a supplier using primary data from their process – the method promoted by PACT – the resulting quantity of emissions is directly associated with producing that specific product during a specific period. This granularity allows buyers to know the emissions associated with their purchases with much more accuracy.
A PCF includes emissions generated during various life cycle stages of a product, depending on the methodology applied. This is a similar process to a Life Cycle Assessment (LCA), but PCFs focus only on GHG emissions, leaving out other LCA metrics. In many cases, PCF calculations can be derived directly from LCA data for a product, depending on methodology and boundary used.
The PCF journey
While supplier-specific PCFs have many benefits, product-level emissions accounting can be a challenge. Companies can have large product portfolios, limited resources to support calculations, and may not be collecting all the primary data required. Upstream suppliers may face the same primary data collection issues, creating additional data gaps for downstream companies. That’s why a strategic, collaborative, and incremental process – and getting started early – is essential.
PACT recommends an 8-step approach in our How-to Guide:
- Select a product
- Choose a calculation basis
- Understand your data needs
- Collect data
- Calculate your PCF
- Assess data reliability
- Verify your PCF
- Exchange your data
When you are ready to calculate your PCF, there are tools available to help, ranging from basic online calculators to sophisticated Life Cycle Assessment (LCA) software. You are welcome to explore the software solutions compatible with PACT in our Solutions Catalog.
PCFs and Value Chain Carbon Transparency
Once a product has a PCF – a great achievement! – it can be shared with the product’s buyer to fulfill the goal of emissions transparency. For this to work at scale, a few additional pieces are required:
- Suppliers need to calculate PCFs in a consistent way so that the results are comparable. This is why PACT created the PACT Methodology – an industry-agnostic methodology for calculating supplier-specific PCFs.
- Companies need to be able to seamlessly share and receive PCFs without introducing extra work. There is a network of digital solutions available that are PACT-conformant and up to the task, made possible by PACT’s open-source tech specs.
- Companies up and down the value chain need a space for collaboration and iteration. Decarbonization through supplier-specific PCFs means engaging with other companies and working together to reach milestones. PACT supports this by organizing annual Implementation Program cohorts where members share best practices, learn from experts, and collaborate to make progress on the PCF journey.
At PACT, we believe that supplier-specific PCFs are crucial to accelerating decarbonization in the private sector, and we are committed to supporting companies integrating them into their supply chains. Join us to get started on your company’s PCF journey.
For any questions or additional information on PCF calculation or PACT, please contact us!
