What are the 3 Pillars of Corporate Sustainability?
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In this article, we'll explore what the 3 pillars of corporate responsibility are, why they're important, and how businesses can turn them into practical action.
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Understanding a Product Carbon Footprint (PCF)
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Consumers and regulators alike are putting businesses under increasing pressure to reduce their environmental impact - but that's left many wondering, "Where do you even start?"
Understanding the carbon footprint of a product, from raw materials to disposal, is a crucial first step. That’s where Product Carbon Footprints (PCFs) come in. By measuring the emissions linked to every stage of a product’s lifecycle, PCFs give businesses the data they need to make informed decisions about sustainability. But how do they work, and why are they quickly becoming essential in today’s market?
In this article, we'll:
Define what a Product Carbon Footprint (PCF) is
Explain why PCFs matter for businesses
Outline the key steps involved in calculating a PCF
Show how PCFs help companies reduce emissions and improve sustainability
What is a product carbon footprint (PCF)?
You've probably heard the term carbon footprint before (or corporate carbon footprint) - it's a measure of the amount of carbon dioxide (or carbon dioxide equivalent - CO2e) released into the atmosphere as a result of an individual, or a company's activities. But you might not have heard the term used in the context of a product, so what exactly is a product carbon footprint (PCF)?
A Product carbon footprint (PCF) is the total greenhouse gas (GHG) emissions created by a product over the entirety of its life cycle. This encompasses GHG emissions created from the extraction of raw materials used to make the product, right through to emissions associated with the product's end of life (and every stage in between).
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What is the difference between a PCF, an LCA, and a corporate carbon footprint?
While these terms are often used interchangeably, they measure environmental impact at very different levels. Understanding the distinction helps companies choose the right approach depending on whether they want insight at the product, environmental, or organizational level.
🧾 Product carbon footprint (PCF)
Measures total greenhouse gas emissions for a single product across its life cycle.
Focuses exclusively on climate impact (CO₂e).
Used to understand, compare, and reduce emissions at product level.
🌿 Life cycle assessment (LCA)
Assesses a broader range of environmental impacts across a product’s life cycle.
Can include water use, resource depletion, toxicity, and land use (as well as GHG emissions).
More comprehensive — and typically more complex — than a PCF.
🏢 Corporate carbon footprint
Measures greenhouse gas emissions for an entire organization (not a single product).
Typically covers Scope 1, 2, and 3 emissions.
Used for reporting, strategy-setting, and regulatory disclosure.
Why are Product Carbon Footprints important?
A product carbon footprint (PCF) helps companies quantify the GHG emissions produced or consumed during the life cycle of a product. This allows them to frame an action plan to mitigate carbon emissions and deliver efficiency savings.
Why is this important? Climate change is the defining issue of our time. Centuries of unabated use of fossil fuels have disrupted the Earth's natural carbon cycle, resulting in a cascade of negative impacts. Global warming is not only upending weather patterns worldwide, it's also making extreme weather much more likely - heatwaves, droughts, flooding, and more intense and extreme storms are sadly becoming part of the norm.
The only way to prevent the situation from worsening further is to cut back on emissions generated. This is why calculating our carbon footprint is so important.
“By calculating our carbon footprint, we're better able to see what activities result in emissions, thereby allowing us to take targeted and effective action to reduce these emissions. ”
The situation is no different when it comes to products. The products that we consume and buy all have their own carbon footprint, and it's only by calculating these emissions that companies are effectively able to reduce the environmental impact of their products - and ultimately create more sustainable goods and business models.
So what exactly is involved with a PCF? Let's find out…
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How to carry out a Product Carbon Footprint
Calculating a Product Carbon Footprint (PCF) is a structured process that helps businesses understand and reduce the environmental impact of their products. Here we outlined the key actions involved, from setting objectives to communicating results.
Establish the PCF objective
Define the goals and objectives of the PCF, taking into account company values, market demand, regulatory compliance, and efficiency gains.
Determine the scope
Decide whether the PCF follows a cradle-to-gate (B2B) or cradle-to-grave (B2C) approach, and select key products based on visibility, environmental impact, and data availability.
Create a product process map
Map the product life cycle, including raw materials, manufacturing, distribution, use, and end-of-life disposal, to identify data collection needs.
Source the data
Collect primary and secondary data from internal records and external sources, supplementing gaps with industry averages where necessary.
PCF calculation
Multiply activity data by relevant emission factors to calculate the product’s total carbon footprint, expressed in CO₂ equivalents.
Analysis and action
Analyze results to identify carbon hotspots and implement reduction strategies such as material changes, efficiency improvements, and waste reduction.
Communication
Communicate PCF findings through sustainability reporting and marketing to improve transparency and differentiate the brand.
Step 1: Establish the PCF objective
PCFs allow companies to better understand the climate impact of their products by calculating the emissions generated. Generally speaking, this enables organizations to:
Spot hotspots
Analyze the different aspects of their production system and identify the biggest carbon hotspots.
Cut emissions
Reduce greenhouse gas emissions and work towards climate goals.
Increase transparency
Increase transparency around the climate impact of their products.
However, companies will have their own specific business reasons for undertaking a PCF. Some of the most common motivations include:
Company values
A company may want to use PCF results to analyse and ultimately reduce its harmful impacts on the environment.
🎯
Company strategy & ethos
The company’s climate strategy may push for sustainability, with a Product Carbon Footprint forming a core part of this approach.
👥
Employee satisfaction
Employees increasingly care about working for an ethical company, and a PCF demonstrates commitment to sustainability and transparency.
💬
Internal communication
Sharing PCF results internally can motivate staff and inspire further sustainability initiatives across the organization.
Market demand
Consumers increasingly care about sustainability, which is why a PCF can be a useful marketing tool.
📋
Client requirements
Retailers and other clients may require suppliers to provide climate and emissions data, making PCFs increasingly necessary.
🏆
Competitive advantage
Consumers are often willing to pay more for sustainable products, allowing PCFs to act as a clear brand differentiator.
🛡️
Reputation
A PCF helps identify potential reputational risks early, giving companies time to address issues before they escalate.
Legislation
Regulatory requirements are increasing with every passing year when it comes to the climate impact of a company.
⚖️
Regulatory compliance
Even if a company is not currently covered by climate regulations, this is likely to change. Product Carbon Footprints also support Scope 3 emissions calculations, which often represent the largest share of a company’s total emissions.
Efficiency
Inflation is high, and everything from the raw materials a company uses to the energy it consumes is at an all-time high. PCFs can help companies to identify where efficiencies can be implemented and costs cut.
💰
Cost saving
High emissions are usually linked to high operational costs. By identifying where energy consumption is at its highest, a company can implement actions to reduce this, thereby lowering costs (and benefiting the environment at the same time).
🔗
Mitigating resource risks
PCFs can help to identify if any of a product's key materials hold potential supply chain risks.
It's important to set clear goals and boundaries for the PCF. Companies should take into account the business goals and aims, as well as the opinions of staff and stakeholders.
Step 2: Determine the scope
Once the goals of the product carbon footprint have been established, the next step is to determine the scope of the analysis. There are two different approaches for calculating the impact of a product: cradle-to-gate and cradle-to-grave.
Let's take a close look at how they differentiate from one another.
🏭 Cradle-to-gate
Primarily used for B2B (business-to-business) products.
Measures greenhouse gas emissions from raw material extraction through to manufacturing.
Covers all emissions associated with the product until it reaches the factory gate.
Excludes downstream stages such as product use and end-of-life.
🔄 Cradle-to-grave
Mainly used for B2C (business-to-consumer) products.
Measures emissions across the entire product life cycle.
Includes raw materials, manufacturing, distribution and retail.
Also accounts for product use, disposal, and recycling.
Additional considerations include which product or products will be part of the PCF. Because performing a PCF can be time-consuming and use up valuable resources, a company may not be willing or able to include the entirety of its product portfolio. In this case, they may wish to select one or more products.
Useful criteria for selecting which product to include are considerations such as:
👁️
Product visibility
Select key products with high sales numbers and strong brand recognition.
🌍
Environmental impact
Focus on products likely to have the biggest environmental impact and the greatest potential for improvement through a PCF.
📊
Availability of data
Choose products where reliable data is available to ensure an accurate and effective Product Carbon Footprint.
Step 3: Create a product process map
Step 3 is the creation of a process map. A process map is a really useful tool as it enables a company to clearly define the different processes involved in a product's life cycle. It also helps to identify the different data that will need to be collected as part of the PCF.
A typical product process map will include the following considerations:
🪨 Raw materials
What raw materials are used in manufacturing the product?
What is the weight of raw materials and packaging?
What waste is produced at this stage?
Are waste management processes in place for materials and packaging?
How are materials transported (mode, distance, packaging)?
🏭 Manufacturing
Which manufacturing processes are involved?
What types of energy are used?
What waste arises and how is it managed?
🚚 Distribution
How is the finished product stored (warehouse type, lighting, climate control)?
How is the product transported (provider, storage conditions, distance)?
Does waste occur during storage or distribution?
⚡ Use
Is the product sold directly or used as an input for another company?
What additional energy or materials are required during use?
♻️ End of life
How is the product disposed of?
Are there specific requirements such as recycling or recovery?
Step 4: Source the data
This step is usually the most complex and time-consuming. Depending on the scope of the PCF, a large variety of different data may need to be collected. And given that a PCF involves the entire supply chain of a product, this often means obtaining data from multiple third-party sources.
Data can essentially be split into primary and secondary sources:
🗂️ Primary sources
Data collected directly from within the company.
Typically the easiest data to obtain and verify.
Includes internal records such as energy use, production data, and procurement information.
🌐 Secondary sources
Data sourced from outside the company, such as suppliers or external databases.
Can be more difficult to obtain or incomplete.
Often supplemented with industry averages or estimates where primary data is unavailable.
Accounting and records vs physical data:
Another key distinction is that data can either be based on accounting and records or on physical information gathered. Data based on accounting and records is the easiest information to obtain, as a company will be able to consult its own financial records, utility bills, or procurement specifications to obtain this information. Data based on physical information, on the other hand, can be much trickier as it involves things such as distances travelled, weight of materials, etc.
Step 5: PCF calculation
The carbon footprint calculation can be a complex process. This is because it often involves a whole host of different data sources, each of which will need to be multiplied by specific emissions factors, allowing for the calculation of the quantity of greenhouse gas emissions for each activity. The results are summed up to provide a total figure, which is expressed in equivalent units of carbon dioxide, representing the product's overall carbon footprint.
Sounds complicated? Well, that's because it is. The whole process of conducting a PCF is time-consuming and complex. And in order to do it properly, companies need to dedicate time and personnel to the task. This is why many companies choose to employ a third-party expert.
“As a carbon accounting company, Greenly specialises in helping businesses navigate these complex processes. We don't just offer a service; we provide expertise in conducting detailed and accurate product life cycle assessments, making the whole process as pain-free as possible. If you're interested in finding out more about how Greenly can help you, head over to our website. ”
There are various standards that have been created to help quantify the CO2 balance of products and services. The most widely recognised and respected standards include:
- PSA 2050: Publicly Available Specification (PAS)
- GHG Protocol: Product Life Cycle Accounting and Reporting Standard
- ISO 14067
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Step 6: Analysis and action
Once a company has calculated a product's carbon footprint, the next step is to analyze the results and implement actions that will help the company meet its goals and objectives established in Step 1.
PCFs are highly effective in identifying emissions hotspots relating to the product's life cycle. These will, generally speaking, be the activities that the company will target in an effort to reduce emissions, improve efficiency, and minimise operational costs.
There are many different emissions reductions actions that a company can take following a PCF to improve the sustainability of a certain product.
The list below is non-exhaustive but should give you a bit of an idea as to what these might be:
🪨
Substituting raw materials for more sustainable alternatives.
⚙️
Replacing machinery and production equipment with more efficient models to reduce energy consumption.
⚡
Switching energy supplier or tariff to one that includes more renewable electricity sources.
🚚
Investing in a fleet of electric vehicles (EVs) for product distribution.
♻️
Implementing waste reduction practices and recycling processes to minimize manufacturing waste.
📦
Redesigning the product or packaging to make it more sustainable.
Step 7: Communication
After all this hard work, it's likely that a company will want to communicate its emissions reduction efforts with stakeholders - this includes employees, customers, clients, suppliers, investors, etc.
Communication of a PCF, the results, and the resulting sustainability action help to drive deeper engagement with stakeholders and foster an environment of transparency.
From a marketing perspective, it can also be a highly effective means for increasing a company's customer base, attracting investors, and differentiating the company's brand from that of competitors.
The results of the PCF can also be used by a company as part of their sustainability reporting.
Product Carbon Footprint FAQs:
Are product carbon footprints (PCFs) required in the US?
PCFs are not generally mandatory at the federal level in the US, but they are becoming more relevant due to state-level climate rules, supply chain disclosure requests, and Scope 3 reporting expectations. US companies often use PCFs to meet customer requirements, align with international standards, and prepare for emerging climate regulations.
How long does it take to calculate a PCF?
The timeline depends on product complexity and data availability. A simple PCF can take a few weeks, while more complex products with global supply chains may take several months, especially where primary supplier data is required.
Which standards are used for Product Carbon Footprints?
Commonly recognised standards include ISO 14067, the GHG Protocol Product Life Cycle Accounting and Reporting Standard, and PAS 2050. Aligning with these standards ensures credibility, comparability, and acceptance by regulators and customers.
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