As sustainability increasingly appears on the radar of more individuals, companies, and governments, the concepts in this field deserve to be understood more deeply. One of those concepts is the "product carbon footprint".
At the heart of measuring the environmental impact of an everyday product, this metric means far more than a simple number. So what does the concept actually mean, why is it important, and how is it calculated?
In this article, we'll take a detailed look at everything you need to know about the product carbon footprint, viewed through the lens of sustainability.
What Is a Product Carbon Footprint?
The product carbon footprint (PCF) represents the total greenhouse gas emissions from every process a product goes through "from raw material to disposal or back to raw material," in other words a cradle-to-grave view. Some authorities also call this the "cradle-to-grave carbon footprint." It is typically expressed in "kg CO2e / unit of product."
A 'life cycle' approach is used when calculating a product's carbon footprint. This approach is most often associated with "Life Cycle Assessment (LCA)" processes. The product carbon footprint concept is also evaluated within this same approach.
It's important to note that while LCA and product carbon footprint share the same methodology, they differ in scope and focus.
LCA vs. Product Carbon Footprint: Differences and Similarities
A Product's Life Cycle
At its simplest, a life cycle covers every process a product goes through "from raw material extraction to waste disposal." The analysis is categorized based on which parts of this life cycle are in scope.
- Cradle to Gate: Covers the process from a product's raw material stage to the point it leaves the production facility.
- Cradle to Grave: As the name suggests, this covers a product from raw material extraction all the way to waste disposal.
- Cradle to Cradle: From a circular economy perspective, this covers a product from its raw material stage through use, end-of-life, and back to raw material via recycling.
Why Conduct a Product Carbon Footprint Analysis?
Product carbon footprint calculations are typically planned and carried out to meet one of four main goals (or variations of them):
Corporate Sustainability
One of the most detailed and complex components of 'corporate carbon footprint' data calculated and reported under ISO 14064 is the supply chain emissions examined under 'Scope 3.'
The carbon footprints of products a company manufactures are counted within these supply chain emissions. A standards-compliant corporate carbon footprint declaration requires product carbon footprint calculations to be carried out rigorously.
Regulatory Compliance
While there is currently no direct global regulation specific to product carbon footprints, various variations such as CBAM are already regulated.
In this sense, product carbon footprint calculations go hand in hand with compliance for regulations like CBAM.
Going forward, it is all but certain that fully product-focused emissions regulations will emerge.
Alignment with Consumer Behavior
As both global production capacity and sustainability awareness continue to grow, consumer preferences may shift toward lower-carbon products.
Carbon Pricing
Due to a range of regulations expected to come into force in the future, products with high carbon footprints may become significantly more expensive over time.
For example, while CBAM regulations do not directly raise the price of a product, they can create additional financial burden for producers through 'carbon taxes.'
How Is a Product Carbon Footprint Calculated?
Several reference standards are used when calculating a product carbon footprint:
- ISO 14067 (Product Carbon Footprint Standard)
- ISO 14040 and ISO 14044 (LCA Methodology)
- PAS 2050 (Primarily used for agriculture and food)
Of these, ISO 14067 is developed specifically for the product carbon footprint and is the most popular and trusted standard in this area.
ISO 14067
ISO 14067 provides both calculation and reporting standards for the product carbon footprint. It is directly rooted in ISO 14044, the LCA methodology.
ISO defines 14067 as "a product carbon footprint assessment methodology based on ISO 14044:2006 that covers only global warming potential (GWP)."
LCA and ISO 14044 cover a product's environmental impact across multiple categories. The product carbon footprint and ISO 14067, on the other hand, offer deeper and more detailed analysis specifically of emissions, compared to LCA.
Under ISO 14067, product carbon footprint calculations follow four steps:
- Goal and Scope Definition
- Inventory Analysis (LCI - Life Cycle Inventory)
- Impact Assessment (LCIA - Life Cycle Impact Assessment)
- Interpretation
While the process is usually presented in sequence, the 'interpretation' phase doesn't have to come at the very end of a PCF calculation. As the scope of calculations expands and grows more detailed, continuously interpreting the outputs and findings can deliver more reliable and efficient results.
- Goal and Scope Definition
As the name suggests, this is the stage where the project's goal and progress strategy are defined. The product or service to be analyzed is identified here. It is then decided which parts of the product and which stages of its life cycle will be analyzed.
2. Inventory Analysis (LCI)
This is the data collection and cataloging stage. After deciding what data to collect in the previous stage, the data is gathered and cataloged here.
This cataloging is done in what is known as a 'resource flow' format. Every stage a product passes through over its life cycle is listed as a flow and broken down in detail.
During this analysis, inputs such as raw material use and energy consumption are captured, along with outputs such as emission data.
Because this is the most complex and error-prone part of the process, companies often choose to use a platform or work with a consultant for this stage.
3. Impact Assessment (LCIA)
In stage 1, what needed to be learned and how was determined. In stage 2, data was collected and cataloged in a specific structure. At this stage, the collected emission data is converted into CO2e. Then, the emissions generated at each stage of the product are reviewed.
4. Interpretation
As noted earlier, interpretation should actually be carried out in parallel with every stage rather than only at the very end. That said, it would be wrong to describe this stage only as a 'summary.' At this point, the methods used across all previous stages are rechecked, and all the data used is validated.
At this stage, the most emission-intensive processes are identified. Those processes are then reviewed to discuss where improvements can be made.
Use Cases After a Product Carbon Footprint Analysis
After carrying out a study aligned with ISO 14067, there are typically three levels of use for companies. Depending on the requirements, each of these may call for third-party verification.
Internal Use
This is when companies use the analyses they have conducted for their own internal evaluation. While the reliability of the calculations is important for building an action plan, verification is not required because no external statement is made.
By using product carbon footprint analyses, companies can:
- Optimize production processes.
- Analyze supply chain processes in depth.
- Develop emission reduction initiatives.
Use for Transparency and Communication
This is when companies share their analyses with customers and stakeholders for various purposes. Because this involves public statements, third-party verification is required.
- Consumer-Facing Labeling: Printing a product's unit carbon footprint on its packaging.
- Communication to Corporate Stakeholders: Product carbon footprint analyses can be included in stakeholder reports.
- Publication on Websites and in Catalogs: For similar reasons to the above, companies may publish product carbon footprint analyses on various platforms to strengthen their reputation.
Declarations for Regulations
Companies may carry out and publish product carbon footprint analyses to comply with various regulations. Because this involves declarations to official authorities, third-party verification is usually required — though some regulations may not require it.
- CBAM (Carbon Border Adjustment Mechanism): Although CBAM has a narrower scope than the product carbon footprint, a PCF analysis already contains all the data CBAM requires.
- Eco-Label or EPD (Environmental Product Declaration) labeling programs may also be pursued.
The Future of the Product Carbon Footprint
Up to this point, we have covered what product carbon footprint calculations are, why they are done, how the process works, and how the results are used.
So where will the product carbon footprint go next? What should companies do to keep up with this rising environmental sustainability trend?
As mentioned earlier, while there is currently no regulation specifically on product carbon footprints, various variations are already regulated. CBAM is one of the most prominent examples. Going forward, far more comprehensive and complex regulations could arrive on companies' doorsteps.
- Labeling requirements: Some governments and corporate frameworks are already recommending that carbon emission labels be applied to products. As product carbon footprint management becomes easier, it is not a distant scenario that official regulations on carbon labeling will emerge.
- Supply chain management: Today, supply chain emissions are the largest source of emissions for most companies. These emissions, categorized under Scope 3 in ISO 14064-1, are often underestimated in calculations due to insufficient data and complex processes. Authorities are now discussing a product-carbon-footprint-based regulation to bring greater transparency and reliability to supply chain emissions.
CarbonSmart and the Product Carbon Footprint
We discussed earlier how difficult and complex product carbon footprint calculations can be.
With the CarbonSmart "Product Carbon Footprint Management Module," calculating product carbon footprints is now much easier!
With the product carbon footprint management module, you can calculate, analyze, and report on the emissions of your products. On the platform, you can either manually build 'flows' or pull automatic 'flow' data by integrating with your ERP systems.
To boost your brand's reputation and prepare for potential future regulations, get in touch, talk to our experts, and step into the digital world of sustainability.
