Deep Dive: Product Carbon Footprint
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Deep Dive: Product Carbon Footprint How to measure, reduce and offset the emissions of your products 5th August 2021 Tom Sadan – Sustainability Engagement Manager Jessica Benghiat – Sustainability Consultant
Transcript of Deep Dive: Product Carbon Footprint
Deep Dive: Product Carbon Footprint
How to measure, reduce and offset the emissions of your products
5th August 2021Tom Sadan – Sustainability Engagement ManagerJessica Benghiat – Sustainability Consultant
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Agenda
About ClimatePartner
Communicating Carbon Neutrality
Reducing Product Carbon Footprints
Carbon Neutral Products
Product Carbon Footprinting Methods
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• In order to achieve the Paris Agreement
targets, a massive acceleration of
the reduction of absolute emissions is
indispensable
• The remaining carbon budget to limit
global warming below 1.5°C will be
used up in less than 8 years
Climate change is humankind’s most urgent challenge
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Carbon Neutral Companies, Products and Services
Software as a Service (SaaS)
> 35 countries
> 200 employees
Since 2006
> 3,000 corporate customers
> 100 carbon offset projects
Climate action consulting services
International team from 15 countries
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Expansion 2021: France, Spain, Sweden and USA
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Some of our 3,000+ corporate customers
Retail 100+ Food 400+
Industry 100+
Cosmetics 250+Non Food 400+ Services 500+ SME 500+
Packaging 600+
Businesses across all sectors are heavily engaged in climate action
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Empowering consumers to make better choices
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• Consumer goods companies increasingly decide to communicate product environmental impact to consumers on a carbon footprint product label (ICIS, London)
• 58% of respondents said they want to increase their consumption of plant-based foods (Forbes)
• QR codes have become commonplace
• Imperfect foods and hyperlocal foods in 2021 (Selfridges)
Consumer Trends during Covid-19
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• Consumers attribute largest impact
on environment to manufacturers
(GfK, 40%)
• A significant amount of consumers
change their purchase preference
(79%) due to sustainability
concerns (Capgemini)
Source: Capgemini-study
Consumers are increasingly voting with their wallets
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Corporate Carbon Footprint
Product Carbon Footprints
Avoid and reduce Offsetting Communication
A holistic climate action strategy for companies consists of five steps
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Operational system boundaries: According to the GHG Protocol, CO2 emissions are divided into Scopes
Scope 1Self-regulatedemissions (direct)
Scope 2Purchased energy(indirect)
Scope 3Upstream and downstream emissions (indirect)
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Example of operational system boundaries for a manufacturing company
Less relevant categories for most companies
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Majority of emissions are related to value chains for hard-productcompanies
[CO2e tonnes]
[%]
Scope 1
Heat Generation 151.0 2.3 %
Company Vehicles 72.1 1.1 %
Refrigerants 10.5 0.2 %
Scope 1 Total 233.6 3.6 %
Scope 2Electricity Usage 301.8 4.7 %
Scope 2 Total 301.8 4.7 %
Scope 3
Raw Materials 4,070.0 63.0 %
Packaging materials 604.0 9.4 %
Logistics 597.6 9.2 %
Employee commuting 271.4 4.2 %
Business Travel 113.0 1.7 %
Upstream Energy related emissions 98.9 1.6 %
Waste / Disposal 74.5 1.2 %
Other 93.7 1.5 %
Total Scope 3 5,923.1 91.7 %
TOTAL 6,458.5 100.0 %
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Source: McKinsey, Sustainability in supply chains (2016)
In depth product carbon footprint analysis is necessary to drive change
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Corporate Carbon Footprint
Product Carbon Footprints
Avoid and reduce Offsetting Communication
How are the CO2 emissions of products calculated?
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• Life cycle analysis vs. Product carbon footprints
• Multi-criterion vs. Carbon
• Carbon as an indicator for other environmental impacts
Source: Sustainable Waste Manager Hi4CSR
What is Life Cycle Thinking?
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Standards for measuring Product Carbon Footprints
• Greenhouse Gas Protocol
• ISO Standard 14067
• PAS 2050
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There are several ways to go about product carbon footprinting
OPTION 2OPTION 1OPTION 3
Service Company
Preferred Option
• Corporate Carbon Footprint (Scope 1-3)
Goal is to...
• Derive reduction potentials at company level
• Achieve carbon neutrality of the company
Preferred OptionCorporate carbon footprint (excluding product-specific emissions)
Goal is to...
• Derive reduction potentials at product level
• Achieve carbon neutrality ofthe product
Preferred Option
• Product Carbon Footprint
Goal is to...
• Derive reduction potentialsat company level
• Achieve carbon neutrality ofthe company & all products
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System boundaries: all CO2 emissions in a product’s value chain should be considered
Raw Materials
Production Transport End-of-lifeUse
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Raw materials Logistics Production Logistics
• Production materials
• Packaging materials
•Auxiliary materials and consumables
•Truck
•Train
•Ship
• Plane
•Electricity
• Process heat
•Administration
•Business travel
•Employee commuting
•Truck
•Train
•Ship
• Plane
Waste
• Landfill
•Recycling
• Incineration
A holistic Cradle-to-Grave analysis is preferred
Usage
•Heat used for cooking
•Electricity
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• Data you collect from
your company and
suppliers
• Emission factors
from suppliers
• Use of scientific
databases
• Estimations &
assumptions for data
gaps
ResultSecondary dataPrimary data
• Corporate
Carbon
Footprint
• Product
Carbon
Footprint
Improving data quality (primary > secondary) is a journey
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Calculation of emissions based on consumption data and emission factors
Consumption data Emission factors
• Quantification of relevant activities
• Example: consumption of 100 litres of diesel
• Figures for greenhouse gas emissions per unit of activity
• Diesel example: 2.64 kg CO2e / litre
x
Emissions in CO2e
=
Diesel example: 264 kg CO2e
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What sits behind an emission factor?
Example: the emission factor for basmati rice is 3.23 Kg CO2e / Kg Rice.
It’s one of the only plant-based foods to generate methane due to bacteria in flooded patties.
Image credit: IPCC
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Our easy-to-use software solution simplifies the calculation process
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Example Product Carbon Footprints
Glovesapprox. 3 kg CO2
Wine bottleapprox. 1.7 kg CO2
Folded box per kgapprox. 2.1 kg CO2
E-scooterapprox. 1,500 kg CO2
Frozen pizza (3 Pack/ 1.1kg)
approx. 3 kg CO2
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82%
3%
13%
1%1%
Material Logistics
Manufacturing Packaging
End of Life
Challenge
• Complex and global supply chain
• Data collection from suppliers and usage of
primary data
Insights gained
• Energy-intensive fabric production is the
main driver of emissions
• Collaboration with the suppy chain is key for
reduction
~17 kg CO2
The carbon footprint of textiles and clothing is determined by thechoice of materials
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10%
51%
23%
16%
Production & logistics Paper consumption
Electricity consumption Others
~4,800 kg CO2
(5 years)
Challenge
• Production emissions of a complex technical
device
• Development of suitable usage scenarios
Insights gained
• Relevant data can already be at hand
• 90% of the emissions occur during the use
phase and correlate with paper consumption
Consideration of manufacturing emissions and emissions from a service life of several years
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A comprehensive climate action strategy consists of avoiding, reducing and compensating
Compensation
Going Carbon Neutral
2020 2021 2022 2025 2030 2050
Reducible
Unavoidable
The amount of CO2 to be offset will be consistently reduced
CO2
time
*Source: https://unfccc.int/climate-action/climate-neutral-now
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• Avoid all types of air freight
• Prioritise circularity by using:• Raw materials containing recycled
or bio-based content• Recyclable, bio-based or
biodegradable packaging• Fewer materials (remove the outer
packaging if possible)
• Optimise your logistics
• Choose carbon neutral providers
• Regenerative farming
How to reduce your carbon emissions
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25%
11%
22%
42%
Bee keeping Logistics
Production Packaging
Challenge
• Complex logistics through worldwide
procurement
• Emission factor "generation“
Insights gained
• Local vs global supply chain
• Impact of packaging on the footprint
~0.4 kg CO2
In the consumer goods sector, packaging can have a significant influence on emissions
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CO
2
Reduction
Climate action will only be possible with consumer behaviourchange and acceptance
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Wiegand Glass achieved over 30% reduction at product level
Weinflasche Eco2Bottle
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LEON Restaurants: Carbon Neutral Burgers
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How do I choose the right carbon offset project?
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Our interactive climate map helps you filter by technology & SDG
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Clean electricity from hydropower helps securepeace and preserve Africa‘s oldest national parkwww.climatepartner.com/1072
Carbon savings through hydropower, Virunga (DR Congo)
• 13.3 MW, run-of-river, supplies local population via micro-grid
• Co-developed by ClimatePartner, broad media coverage
Promotion of sustainable development
• Electricity allows for economic development & secures peace
• Jobs in new SMEs help counteract illegal charcoal trade
• Virunga NP is home to 1/3 of the last mountain gorillas
General information
• Verified Carbon Standard
• Savings: 46,000 t CO2 per year
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Corporate Carbon Footprint
Product Carbon Footprints
Avoid and reduce Offsetting Communication
How can you communicate your efforts transparently?
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Category QR-CodeID Tracking
✓ Available in several languages
Details about your company
Climate action strategy
Reduction measures
Downloadable certification
Details about the offset order
Details about the offset project• Project standard / auditor• Project description• Sustainable Development Goals• Picture (and videos) of the project
✓
✓
✓
✓
✓
✓
Our label provides full transparency
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The ClimatePartner label verifies carbon neutrality and provides transparencyLeon carbon neutral burger range
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Case Study: Minor FiguresBritish Carbon Neutral Oat M*lk
• Challenger British oat drink and coffee brand, seeing triple digit YoY growth
• Working with ClimatePartner since 2019 for carbon measurement, reduction & offsetting
• Offset all historical emissions since inception due to desire to truly take responsibility for their impact
• Implemented circular packaging initiatives such as ‘refillable oat drink stations’ across the UK
• Reducing emissions through supply chain engagement and exploring creative logistics concepts such as using cargo sailing ships
• Irreverent marketing designed to engage and educate their customers on a technical topic
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Case Study: Nectar SleepDriving carbon reductions through innovation
• Online US and UK mattress & furniture company seeing very rapid YoY growth
• Working with ClimatePartner since 2019 for carbon measurement, reduction & offsetting
• Offset all lifecycle emissions associated with their mattresses
• End-of-life re-use and recycling scheme for returned mattresses substantially reducing associated emissions
• ClimatePartner is working on raw material emission factor research to help them reduce the climate impact as close to zero as possible
• ClimatePartner is supporting the team to set a science based target
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Online Academy (150min) in DE/EN/NL
• Climate Action for companies
Online Deep Dives (90min) in DE/EN
• Product Carbon Footprint
• Supply Chain Engagement
• Carbon Offset Projects
• Science Based Targets & Net Zero
Register at www.climatepartner.com/academy
Headquarters ClimatePartner GmbH
St.-Martin-Str. 59
81669 Munich, Germany
Tel +49 89 1222875-0
ClimatePartner UK Ltd.
Sustainable Workspaces, Riverside Building, County Hall (3rd Floor), Westminster Bridge Road
London SE1 7PB
United Kingdom
Jessica [email protected]
