Calculating the carbon footprint of a product

What are the benefits of calculating the carbon footprint for a product?

As a result of the carbon footprint calculation for a product, the business receives valuable data. Based on this data the business can target cost-effective emission reduction measures for each stage of the product’s life cycle. It is often the case that when these emissions are identified and reduced, also product manufacturing becomes more cost-effective, for example, due to reduced energy consumption. More and more consumers and business clients pay attention to a product’s carbon footprint, thus calculating the carbon footprint and engaging in emission reduction measures can advance sales as well.

A business that can demonstrate the calculation of its product’s carbon footprint can have an edge in, for example, public sector procurement processes. Businesses and the products participating in tenders are often scored by environmental aspects as well. In addition, calculating the carbon footprint of products that are meant as components or materials for another product can offer a considerable advantage when choosing a supplier. While environmental laws and regulations are constantly emerging and ever-tightening, companies and products with carbon footprint calculations have an edge over companies that are not geared up for the changing operating environment.

How is the carbon footprint of a product calculated in practice?

The carbon footprint calculation for a product is always carried out based on the customer’s needs and mutual discussions. We at Istutapuita.fi make the calculations following the GHG Protocol’s Product Life Cycle Accounting and Reporting Standard guidelines. The GHG Protocol standards are widely used enabling the comparison of carbon footprint calculations in, for example, procurement processes.

The measurable life cycle of the product and its parts always depends on the product in question. The life cycle can be expressed, for example, cradle-to-gate or cradle-to-grave. Cradle-to-gate refers to the carbon impact of a product from the moment it’s produced to the moment it enters the store. Cradle-to-grave, on the other hand, covers everything from the acquisition of materials to the final disposal of the product after use. Once the stages of a product’s life cycle have been recognised, it is important to identify in detail all related processes that generate greenhouse gas emissions. The data gathered from these processes is converted into CO2e emissions using emission factors. The entire process is accurately reported, after which the outlining of emission reduction measures can begin.