Manufacturing firms are facing increasing pressure to provide accurate carbon-related product data to their customers and to take meaningful steps toward product decarbonization. However, these efforts are often time- and resource-intensive, requiring skilled teams to dedicate significant effort to data collection and footprint calculation – especially across large product portfolios. As we highlighted in a previous Climate Innovation Network article, many organizations continue to struggle with key challenges in this area. To build a solid foundation for effective product-level decarbonization, decision-makers should focus on:
- Data collection across the value chain.
Reliance on top-down estimates or outdated secondary data undermines accuracy. Since product carbon footprints (PCFs) are mainly influenced by upstream activities – such as raw material extraction and supplier operations – firms must prioritize engaging with suppliers to obtain primary data, like energy use and material inputs. However, supplier fatigue and limited sustainability expertise remain major barriers in this area.
- Standardized, industry-specific methodologies.
Inconsistent methodologies lead to unreliable PCF results. The approach for consumer goods may not apply to chemicals or automotive sectors. Industry initiatives like Together for Sustainability (TfS) for chemicals and the Catena-X Product Carbon Footprint Rulebook for automotive are addressing this gap by developing sector-specific guidelines for more accurate calculations.
- Integrating PCF with business decisions.
Decarbonizing product emissions requires cross-department collaboration. While sustainability teams handle PCF calculations, procurement, R&D and product design must work together to identify carbon hotspots and drive changes in product design and supplier selection.
Software solutions can enhance product carbon data collection and management by streamlining supplier engagement and automating calculations, enabling firms to scale PCF across entire portfolios in compliance with multiple frameworks and standards. Recent innovations include integrations with data exchanges, allowing suppliers to submit standardized data once and share it seamlessly across multiple customers. Additionally, software providers are expanding capabilities to evaluate alternative product designs that reduce emissions.
For more on software innovation in product carbon footprinting, who the main providers are and how to choose a solution, read the Verdantix report Smart Innovators: Product Carbon Footprinting or join the related webinar on May 20th.
