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Product Carbon Footprint and CSRD
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Why is Product Carbon Footprint closely linked to EU initiatives like the Corporate Sustainability Reporting Directive (CSRD), and why will most larger companies request this data soon?
One of the major challenges many companies see with the implementation of CSRD is the requirement for companies to report Scope 3 or supply-chain emissions. Most of these companies have used the fast spend-based method this year, where financial spending is linked to emission factors and then calculated in specific categories.
One of the major challenges many companies see with the implementation of CSRD is the requirement for companies to report Scope 3 or supply-chain emissions. Most of these companies have used the fast spend-based method this year, where financial spending is linked to emission factors and then calculated in specific categories.
This spend-based method has the advantage of being fast and easy, as financial spend is already an important KPI for companies. However, what it has in speed, it lacks in quality and data granularity. If your spending increases, so do your emissions - Why should companies buying longer-lasting products with a high price be penalized?
Implementing a PCF method using existing methods and standards is a good first step, and the second should be having a sustainability partner platform where your suppliers can make their calculations and share them with you digitally.
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