TfS Product Carbon Footprint Guide A new era of transparency in chemical products

Mondo Finance Updated on 2024-03-05

Recently, TFS officially released the Product Carbon Footprint Guidance (hereinafter referred to as the "Guidance"), which provides specific instructions for calculating the "cradle-to-gate" emissions of chemicals. The Guidelines unify the calculation of the product carbon footprint of the entire industry and apply to the vast majority of chemical products.

The release of the Guidelines marks the beginning of a new era of transparency in chemical products, providing an authoritative and practical tool for product carbon footprint management in the chemical industry. This article will introduce the main content and value of the Guidelines from the following aspects:

The chemical industry is one of the largest industrial sectors in the world and a major source of greenhouse gas emissions. In 2018, the chemical industry emitted about 15 gigatonnes of carbon dioxide equivalent, accounting for 15% of global industrial emissionsIf indirect emissions are added, the total emissions are about 35 gigatonnes of carbon dioxide equivalent, accounting for 30% of global industrial emissionsThe emissions are mainly due to the production and use of chemicals. According to this, the greenhouse gas emissions of the chemical industry can be divided into three scopes:

Scope 1:Direct emissions from chemical enterprises themselves, that is, emissions generated by chemical enterprises within their own control, such as emissions generated during chemical reactions, or emissions generated by the fuels used by chemical enterprises themselves.

Scope 2:The indirect emissions of the chemical enterprise itself, that is, the emissions generated by the external energy required by the chemical enterprise for its own operation, such as the emissions generated by the electricity purchased by the chemical enterprise from the power grid, or the emissions generated by the chemical enterprise purchased from external suppliers, such as steam and hot water.

Scope 3:The upstream and downstream emissions of chemical enterprises, that is, the emissions of chemical enterprises outside the scope of their control, such as the emissions of raw materials and products of chemical enterprises in the ** chain and value chain, or the emissions generated by the travel of employees and customers of chemical enterprises.

In order to manage and measure greenhouse gas emissions from the chemical industry, the carbon footprint of chemical products needs to be calculated and reported. The product carbon footprint refers to the greenhouse gas emissions of a product over its life cycle, expressed in carbon dioxide equivalent. This helps enterprises and businesses understand their own carbon emission levels, set emission reduction targets, and improve carbon emission management capabilities. At the same time, it also makes it easier for companies to provide carbon emission information of their products to stakeholders, increase transparency, enhance competitiveness, and meet market demand.

However, there are some challenges and difficulties in the calculation and reporting of the carbon footprint of chemical products, mainly the following:

There is a lack of uniform standards and methods

At present, although there are some international and national standards and methods, such as ISO14067, PAS2050, GHGprotocol, etc., which are used to guide the calculation and reporting of product carbon footprints, these standards and methods are not specific to the characteristics and needs of chemical products, but are applicable to various types of products.

Therefore, there is a lack of unified standards and methods for the calculation and reporting of the carbon footprint of chemical products, which leads to the possibility that different chemical companies and manufacturers may adopt different assumptions and parameters, resulting in inconsistent, incomparable, and untrustworthy results of product carbon footprints.

Lack of complete data and information

The calculation and reporting of the carbon footprint of chemical products need to cover the entire life cycle of the product, that is, from the collection, processing, and transportation of raw materials to the synthesis, separation, and purification of chemicals, to the use, consumption, and disposal of chemicals. These processes involve multiple upstream and downstream participants, such as raw material suppliers, energy suppliers, logistics suppliers, intermediate product suppliers, end customers, etc.

Therefore, the calculation and reporting of the carbon footprint of chemical products requires the collection and integration of large amounts of data and information that may be scattered among different actors, or not exist, or difficult to obtain, or lack quality and reliability.

Lack of effective tools and platforms

The calculation and reporting of the carbon footprint of chemical products requires the use of professional and reliable tools and platforms to guarantee the accuracy and efficiency of data processing and analysis, as well as the convenience and visibility of the presentation and delivery of results. However, the current lack of professional and reliable tools and platforms for the carbon footprint of chemical products in the market has led to the need for chemical companies and companies to spend a lot of time and resources when calculating and reporting the carbon footprint, or need to rely on external consulting and service agencies, thus increasing costs and risks.

The application and benefits of the Guidelines are mainly reflected in the following aspects:

It provides a unified and authoritative tool for chemical companies and manufacturers to calculate and report their product carbon footprint, help chemical companies and manufacturers accurately measure and manage their own product carbon footprint, and improve their carbon footprint management capabilities and levels.

It provides a transparent and credible platform for chemical companies and manufacturers to provide product carbon footprint information to stakeholders, such as customers, investors, regulators, etc., so as to improve the transparency of product carbon footprint, enhance the competitiveness of product carbon footprint, and meet the carbon footprint needs of the market.

It provides an opportunity for chemical companies and companies to innovate and optimize their product carbon footprint reduction, and helps them identify and implement product carbon footprint reduction goals and measures based on the results of their product carbon footprint, such as developing new products and services, adopting new technologies and processes, optimizing new organizations and management, exploring new markets and collaborations, and so on.

It provides a benchmark and demonstration for the chemical industry's product carbon footprint management, helps the chemical industry increase its influence and contribution to the global sustainable development agenda, supports the United Nations Sustainable Development Goals (SDGs), and maintains partnerships with other international organizations and initiatives, such as the United Nations Environment Programme (UNEP), the World Business Council for Sustainable Development (WBCSD), the Global Reporting Initiative (GRI), etc.

Product Carbon Footprint Certification

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