Presentation on theme: "Carbon Footprint of Products"— Presentation transcript:
1Carbon Footprint of Products DRAFTAnalyzing ISO 14067, PAS 2050 and Product StandardsTod Delaney, Ph.D, P.E.PresidentFirst Environment Inc.
2Role of Carbon Footprint Refers to the calculation of the amount of GHG emissions associated with a company, event, activity, or the lifecycle of a good/service;Enables to ascertain and manage GHG emissions along the supply chain;Safeguards the survival of companies in the changing regulatory and economic business landscape;Furthers the understanding of the risk and opportunities in the supply chain;Allows to focus effort in response to new regulatory, shareholder, and consumer pressures.Klaus Radunsky
4Various Product Standards PAS 2050The WRI/WBCSD GHG Protocol Product StandardISO 14067: International (global) StandardStandards are broadly consistent in their quantificationmethods, but their differing purpose and standard developmentprocesses has lead to different documents.Key methodological rules underpinning quantification in are consistent. In particular, key topics that have been brought into alignment include consistent approaches to:Sector or product rulesInclusion of biogenic carbonRecyclingLand use changeDelayed emissions
5PAS 2050 PAS 2050: Publicly Available Specification (PAS) Issued by British Standards Institute (BSI)Published first in 2008, revised in was introduced in 2008 (revised in 2011) with the aim of providing a consistent internationally applicable method for quantifying product carbon footprints.PAS 2050 drew upon lessons learned during the Product Standard’s development process in its 2011 revision.
6GHG Protocol Product Standard The WRI/WBCSD GHG Protocol Product StandardThe GHG Protocol built on the initial PAS 2050 method in development of its Product Standard.Was released in 2011 and provides requirements to quantify the GHG inventories of products as well as for public reporting.
7ISO 14067 ISO 14067: International (global) Standard FDIS Failed (Technical Specification)Still an on-going processTo be accepted by majority of participating countriesIf PAS contradicts to ISO, PAS takes precedence
8Areas of Consistent Approaches Across Standards Consistent approaches - no need for harmonizationBoundary and AllocationBoth Cradle-to-grave and cradle-to-gate approaches are allowedData and Data QualityPrimary data requirement - Primary data shall be collected for all individual processes under the financial and operations controlOffsetsNot allowed for inclusion
9Differing Principles Principle PAS 2050 vs. Product Standard vs. ISO minor differences in definitionsCompletenessPer PAS 2050, an inventory is considered complete if all material emissions are included (processes or sources contributing >1% to total emissions are considered material).The Product Standard allows insignificant emissions to be excluded, with the reporting organization determining the exclusion threshold based on the business goals for the inventory.ISO emphasizes comprehensiveness and significance.ConsistencyUnder PAS 2050, consistency is required to “enable meaningful comparisons in GHG related information.”The Product Standard defines consistency more narrowly as the ability to compare inventory results for a single product over time.ISO emphasizes consistency, but comparative assertions are not supportedAccuracyPAS 2050 states bias and uncertainties should be reduced as far as practicable. The Product Standard is more prescriptive, requiring inventories with no systematic bias. However, it also states practitioners should “achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the reliability of the reported information.” In practice, it seems the Product Standard requires a level of accuracy sufficient to meet the intended business goals for the inventory.ISO emphasizes avoidance of double counting, comprehensiveness, and significance.
10Goal, Scope, and Principles Product Sector RulesPotential DifferencesPAS 2050 review has introduced ‘supplementary requirements’ (SRs) that include sector guidance/rules /Product Category Rules (CPR)ISO uses CPR when available and applicable.The Product Standard refers to ‘product rules’ to enable comparisons.All documents require sector approaches to be consistent with the overarching standard.A potential for differences exists in the supplementary requirements’ (SRs) and/or product rules used. But the expectation is that the same rules should apply to any standard.
11Goal, Scope, and Principles Product Category Rules (PCRs)Potential DifferencesPAS 2050: the ISO compliant PCRs: (1) Shall be used in boundary setting when the system boundary in the PCR does not conflict with the system boundary established in PAS 2050 clause 6, (2)As the first preferenceThe Product Standard: encourages users to look to sector specific guidance and product rules when available and in conformance with the product standard. Provides guidance on additional specifications needed for comparisons that can be addressed in product rules.ISO 14067: Part 1: PCRs shall be used when they: (a)Exist, Are in accordance with ISO 14025, (b)Comply with the requirements of this standard, (c) Are considered proper.Part 2: The CF communication to consumers shall fulfill specific product group requirements as defined by the PGR developed in accordance with the standard.GHGP does not require PCRs to be followed (for quantification or public reporting) but also is more flexible beyondPCR usage under ISO part 1 and PAS is required but it’s not clear how users might interpret “considered proper” or “does not conflict” and whether that interpretation will be consistent. ISO part 2 requires PGRs but not program operators for public reporting
12Goal, Scope, and Principles Product ComparisonPotential DifferencesPAS 2050: intended to support comparison of GHG emissions between products, and to provide a common basis for communication of this information. However this PAS does not specify requirements for communication (except use profile).The Product Standard: supports performance tracking of a product over time. For product labeling, performance claims by third parties, consumer and business decision making based on comparison of two products, and other types of product comparison, additional specifications are needed. Comparative assertions are not supported.ISO 14067: Comparative assertions are not supported.There are different specifications for communication of comparisons.
13Treatment of Specific Emissions & Removals Aircraft emissionsPotential DifferencesNone of the standards require the use of a multiplier or other correction to emissions from aircraft transport.The Product Standard allows the use of a multiplier in the inventory results, but if so the multiplier must also be disclosed in the inventory report.If a multiplier is used for PAS 2050, it needs to be recorded separately from the main inventory result.Minor chance - the inclusion of amultiplier is optional in the Product Standard but if included would cause different results for air travel emissions.
14Treatment of Specific Emissions & Removals Time period for assessmentPotential DifferencesPAS 2050 specifies 100 year assessment period, unless otherwise provided for insupplementary requirements.The Product Standard allows companies to specify the appropriate time-frame.ISO 14040/14044, there is no time limitation.But if known science, sector guidance, or product rules do not exist, the Product Standard suggests companies should assume a minimum time period of 100 years including the end-of-life stage.Minor chance – If a longer timeperiod is used following the Product Standard. However, both standards allow flexibility for certain products/sectors.
15Treatment of Specific Emissions & Removals Stored CarbonPotential DifferencesIn PSA 2050 and Protocol Standard, carbon stored beyond the assessment period is treated as stored carbon. In the Product Standard, stored carbon is also reported separately.PAS 2050 time period for biogenic carbon storage is within 100-years period)ISO doesn’t require a time period. Data on the timing of carbon storage & sequestration shall be collected and reported separatelyMinor chance - if time /assessment period is different.PAS explicitly recognizes the impact of carbon storage.ISO: Unclear what “reported separately” means.Protocol Standard : Embedded carbon reported but impact not included in product footprint
16System Boundary System Boundary Potential Differences PAS 2050 sets certain specific inclusions and exclusions for the system boundary as a default unless provided for in supplementary requirements (e.g., excludes capital goods). 95% minimum coverageThe Product Standard –requires all “attributable” processes to be included in the boundary. “Non-attributable” processes (i.e. not directly connected to the studied product like capital goods) are not required to be included (and if included must be disclosed).ISO – one criterion: significant contribution to CFP; there are cut-off rules (mass, energy, environmentalimpact).Inclusion or exclusion of either attributable or non-attributable processes can be disclosed and justified.The default for both is to exclude processes that are not typically relevant to a product’s life cycle.Differences may result where different assumptions or product rules/supplementary guidance are used. Use of the same SRs/product rules should bring consistency here.
17System Boundary Materiality / Cut-off Potential Differences Where a data gap exists, exclusions are allowed by the Product Standard on the basis of significance (a 1% insignificance threshold is given as a rule of thumb but not required).Justification and disclosure of exclusions from the assessment is required in the inventory report. PAS 2050 allows exclusions on the basis of materiality (<1%) but at least 95% of complete product life must be included.Revision has moved towards alignment with the Product Standard by removing requirements to apply the 95% rule to remaining sources where a single source is >50%, and not requiring scale up to account for 100%.Some chance – if assessment under the Product Standard results in greater than a 5 % of total emissions excluded, this will cause different results than PAS 2050.Use of SRs / product rules may bring consistency here.
18Allocation Allocation Potential Differences After avoiding allocation, the hierarchy within the Product Standard is physical allocation and then economic allocation.PAS step 2 “physical relationships” does not applyISO requires a 3 step procedureFor PAS 2050, the hierarchy is supplementary requirements (SRs) and then economic allocation as the default approach except in some cases where specific requirements are given (i.e., transport/energy recovery/energy production using CHP).Some chance - without SRsavailable it’s possible that physical allocation is used for Product Standard & economic used for PAS Use of same SRs / product rules may bring consistency here.
19Land Use Impacts Land Use Impacts Potential Differences PAS 2050 defines a direct land use change as “the conversion of non-agricultural land to agricultural land as a consequence of producing an agricultural product or input to a product on that land.”The Product Standard defines a direct land use change less narrowly. It allows other methods to be used, as long as the reference is reported.ISO : When significant, the GHG emissions and removals occurring as a result of direct land use change shall be assessed in accordance with the goal and scope of the study and in accordance with internationally recognized methods such as the IPCC Guidelines for National Greenhouse Gas Inventories.The Product Standard PAS 2050 do not include indirect land use changes.Differences in definition scope can alter results.
20Calculating Emissions Potential DifferencesPAS 2050 requires total emissions be scaled up to account for any immaterial excluded emissions, while the Product Standard allows processes or inputs with missing data to be excluded, if a worst case emissions estimate indicates they are insignificant.PAS 2050 requires use of the latest IPCC Global Warming Potentials (GWPs) to convert all GHGs inventoried to CO2e units, while the Product Standard doesn’t explicitly require use of IPCC GWPs.While PAS 2050 allows weighting of delayed emissions over time, the Product Standard does not allow weighting of emissions when estimating the main inventory results. However, if organizations want to also report the impact of delayed emissions separately, they may do so.Different quantification may lead to differing results.The addition of the weighting of emissions in PAS 2050 may lead to differing results.
21Inventoried GHGs GHGs Potential Differences The Product Standard and ISO requires the six Kyoto GHGs (CO2, CH4, N2O, SF6, perfluorocarbons (PFCs), and hydrofluorocarbons (HFCs)) be included in the inventory, but recommends other GHGs significant or relevant to the product being inventoried be included as well.In addition to the six Kyoto gases, PAS 2050 requires inclusion of substances controlled by the MontrealProtocol and listed in the latest IPCC guidance. PAS 2050 has a more inclusive list, so in cases where additional substances beyond those listed in the Product Standard are included, this should be noted in reporting.The inclusion of Different GHGs may lead to differing results. This also changes the scope of the quantification.
22Assurance/Verification Potential DifferencesPAS 2050 provides for three types of conformityassessment for product inventories: (1)independent third party certification; (2) other party verification (non-accredited third parties); and (3) self-verification.PAS 2050 “highly encourages” independent thirdparty certification when communicating inventory results publicly.ISO: requires third party certification. Some types of communication (labels) are a detailed publicly available reportProduct Standard: must be assured by a first or third party.Mandatory verification can lead to different results than without it.
23Reporting Reporting Potential Differences PAS 2050 does not specify any requirements for communicating a product-level carbon footprint. However, it does require that data supporting the GHG emission calculations, including but notlimited to, product and process boundaries, materials, emission factors, etc.The Product Standard lists specific elements which must be included in public reporting of product-level inventories in Chapter 14. According to the Standard, a public GHG inventory report must follow the key accounting principles (Relevance, Accuracy, Completeness, Consistency, and Transparency) and include: general information, scope, boundaries, allocation, recycling, data information, inventory results, methodological choices, inventory changes over time, assurance, and use of results.Differing requirements can lead to different results
24Reporting Reporting Potential Differences ISO – Addresses quantification and communication of carbon footprints. It supports linkage to more specific rules (e.g., PCRs under ISO 14025, sector specific standards, internationally agreed sector-specific guidance documents, CFP-PCR) Supports Comparisons of CFP if linked to more specific rules (e.g., CFP-PCR) but limited by Annex.Differing requirements can lead to different results
25ConclusionsMore harmonization is needed to facilitate comparability of carbon footprints for similar products.Transparency in reporting, including clear identification of guidelines followed, unit of analysis, boundaries, assumptions, and limitations, will be essential for increasing utility of product-level emission inventories for both reporting organizations and the public.As further sector specific rules are developed, we hope that the same rules may be applied to either standard to bring further consistency in product carbon assessments internationally.
28ISO – Key Features (1)Carbon footprint of products – Requirements and guidelines for quantificationand communicationIntroductionScopeNormative referencesTerms and definitionsApplicationPrinciplesMethodology for CFP quantification6.1 General6.2 Use of CFP-PCR6.3 Goal and scope of the CFP quantification6.4 Life cycle inventory analysis for the CFP6.5 Life cycle impact assessment6.6 Life cycle interpretationCFP study reportKlaus Radunsky
29ISO 14067 – Key Features (2) Publicly available CFP communication 8.1 General8.2 CFP disclosure reportCFP communication9.1 Options for CFP communication9.2 CFP communication intended to be available to the public9.3 CFP communication not intended to be available to the public9.4 CFP communication programme9.5 Creation of CFP-PCR9.6 Additional aspects for CFP communicationAnnex A (normative) The 100-year GWPAnnex B (normative) Limitations of the carbon footprint of a productAnnex C (informative) Possible procedure for the treatment of recycling CFPstudiesAnnex D (normative) Comparisons of CFPsKlaus Radunsky
31ISO 14067 – Key Features (3) 4 Application As with all ISO International Standards, this International Standard is not intended to create barriers to trade or to contradict any WTO requirements.The CFP study shall not be used for a communication on overall environmental superiority because a CFP study covers only a single impact category.Comparisons based on the CFP of different products shall not be made public unless the requirements of Annex D are fulfilled, because of the inherent limitations of the CFP approach (see also Annex B).Klaus Radunsky
32ISO – Key Features (4)Consistency (terminology, principles, requirements)With existing ISO standards (e.g., ISO 14040, 14044, 14020, 14025)With PAS 2050With GHG Protocol Product StandardSupports four options for communication of CFPDeclarationLabelReportPerformance tracking report(CFP claim: see ISO 14021)Klaus Radunsky