The move towards developing more sustainable products and supply chains is being propelled by economic, societal, consumer, and regulatory forces. This shift demands proactive navigation of the challenges and premium opportunities at stake. A key tool in this transition is the Product Carbon Footprint (PCF), a critical metric that quantifies the greenhouse gas emissions associated with a product throughout its entire life cycle, from raw material extraction to end-of-life disposal.
This overview draws on insights from a recent ERMCVS webinar to examine the business value of PCFs and explores how they serve as a cornerstone for building customer trust, ensuring regulatory compliance, and unlocking competitive advantage in today’s rapidly evolving landscape.
What is a Product Carbon Footprint (PCF)?
A PCF accounts for emissions contributing to climate change across the life cycle of a product, or service, from the production and processing of raw materials, through manufacture, use and material management at end of life. This includes emissions from upstream suppliers, manufacturing processes, logistics, product use, and disposal. A PCF is based on Life Cycle Assessment (LCA), but with a focus on climate change impacts only, rather than a broader range of environmental impacts.
By quantifying these emissions, companies gain visibility into hot spots within the product life cycle and can target emission reduction activities more effectively.
Unlike broad ESG metrics, PCFs provide product-level granularity, making them highly actionable and credible in both customer conversations and regulatory filings.
Why PCFs Matter in Today's Market
1. Investor Pressure and Capital Access
There is a growing body of evidence linking strong ESG performance to enhanced long-term value. Financial institutions and private equity firms are increasingly incorporating carbon metrics into risk assessments. Companies that measure and actively reduce their PCFs are better positioned to access capital and attract investors
2. Societal and Consumer Expectations
Transparent disclosure of product-level emissions not only meets rising consumer expectations but also builds brand loyalty and customer trust. Businesses that can communicate credible carbon data have a clear edge in reputation and sales in the longer run.
3. Regulatory Momentum
The regulatory environment is becoming more complex and fast-moving. In regions such as the EU, PCF disclosures are becoming embedded into policies like the Corporate Sustainability Reporting Directive (CSRD) and the Ecodesign for Sustainable Products Regulation (ESPR). Failure to comply can lead to limited market access or regulatory, reputational and financial risk. Companies that proactively invest in PCF transparency will be better equipped to respond to future regulations and avoid costly last-minute adjustments.
4. Decarbonization Across the Supply Chain
Net-zero and science-based targets (SBTi) are no longer aspirational or optional, they are now baseline expectations. To meet these commitments, businesses must account for and reduce Scope 3 emissions, largely originated by supply chain activities. This makes PCFs an essential component of any decarbonization strategy for your organisation.
5. Competitive and Commercial Advantages
We are seeing increased demand for PCF data across B2B relationships, as suppliers that provide robust and transparent carbon data are becoming preferred partners. Additionally, PCFs open the door to sustainable product innovation, premium branding, and differentiated market positionings.
6. Guarding Against Greenwashing
New regulations, such as the EU Green Claims Directive, are raising the bar on sustainability marketing. Vague, unverified claims not only carry legal and financial consequences but also huge reputational risks. Critically reviewed or verified PCFs, calculated according to recognized standards (e.g., ISO 14067, GHG Protocol), offer credible, science-based evidence to substantiate environmental claims and build trust.
The Standards behind PCFs
PCFs are grounded in internationally recognized standards, including:
- ISO 14067: Guidelines for quantifying and reporting product carbon footprints.
- ISO 14040/14044: Frameworks for conducting LCAs.
- GHG Protocol Product Life Cycle Accounting and Reporting Standard: A widely used methodology for product-level emissions.
These standards ensure consistency, transparency, and credibility in PCF reporting.
How to Start Your PCF Journey
The webinar outlined a four-step roadmap for organizations looking to implement PCFs:
1. Identify Business Objectives
Understand why PCFs matter to your business. Are you aiming to reduce emissions, respond to customer requests, meet regulatory requirements, or gain a competitive edge?
2. Calculate the PCF
Define the scope and boundaries, gather data (preferably primary), and apply robust methodologies to account for co-products and recycling.
3. Implement a Systematic Approach
Establish governance, assign roles, and integrate PCFs into product development and performance tracking.
4. Seek Assurance – key to PCF credibility
Transparency is no longer optional, it’s expected. As companies increasingly rely on PCFs to meet investor expectations, regulatory demands, and customer trust, the assurance of PCF data becomes critical. Verification or certification by an independent body enhances credibility and builds stakeholder trust.
Independent verification ensures that carbon footprint calculations are accurate, consistent, and aligned with recognized standards such as ISO 14067 or the GHG Protocol.
ERM CVS assures that the PCF methodology used by organizations focuses on the appropriateness of assumptions and emission factors as well as any allocations and cut-off criteria. We also evaluate the overall approach employed to calculate PCFs. Our experts can perform critical reviews of life cycle assessments to validate the integrity of the processes used and the reliability of the results achieved.
The Trust Dividend
PCFs are more than a compliance tool, they’re a trust-building mechanism. Verified carbon footprints signal transparency, accountability, and a genuine commitment to sustainability. In a market where greenwashing is under increasing scrutiny, PCFs offer a way to stand out for the right reasons.
Interested in learning more?
Head over to our Product Claims Assurance page, or for further information contact us on post@ermcvs.com
Turn sustainability into a competitive advantage, starting with the footprint of your products.