Momentum continues to grow for product-level carbon footprinting
Arhold Delhaize announces transition to PCF as researchers find way to model SME emissions more accurately than current estimates
Arhold Delhaize announced on Tuesday that it is transitioning from industry-average emissions data to product-level carbon foot-printing (PCF).
It’s a move the European supermarket group says will provide it with a “clearer, more decision-useful view” of its value-chain emissions, and help shape future purchasing decisions.
“Instead of estimating emissions based on broad categories or spend-based factors, PCF helps us understand the climate impact of specific ingredients, production methods, and supply chains as much as possible,” said Arhold Delhaize in a statement.
Industry averages, it added, “do not show where risks concentrate, where suppliers are making real progress, or where the biggest opportunities lie”.
Meanwhile, researchers from the University of Groningen in the Netherlands have been exploring whether PCF models can be used to estimate the emissions of companies that don’t disclose their entity-level carbon footprints at all.
Using third-party data, Anne Schoenauer and Tilman Trompke calculated the emissions of 10,000 German SMEs based on the products they sell.
The results provide a more nuanced picture of the carbon profiles of businesses operating within the same sectors, which can be used by banks, investors and regulators to distinguish between greener and more polluting peers.
The authors also used the results to identify the most impactful levers each firm could pull to reduce its emissions.
Partnerships grow
Arhold Delhaize has partnered with software and research provider HowGood on its project, and will work directly with its suppliers to gather data and encourage decarbonisation efforts.
It’s also working with existing initiatives from the World Business Council on Sustainable Development and the Global Sustainability Transition Alliance to promote PCF methods.
But the two most influential initiatives may only just have started.
On Thursday, the GHG Protocol announced the founding members of an advisory group that will help it develop product-level emissions accounting standards in partnership with the International Organisation for Standardisation (ISO).
The new body includes specialists from Unilever, Amazon, Volkswagen and BMW.
Its creation comes just weeks after Carbon Measures announced the latest batch of experts advising it on a parallel product-level accounting framework, in partnership with the International Chamber of Commerce.
That group includes specialists from Shell and BASF. The project is also supported by Exxon and Bayer.
In a recent interview with Real Economy Progress, Carbon Measures’ CEO Amy Brachio said the ultimate objective was to create an internationally-accepted framework that could underpin new product-level emissions intensity standards from governments.
In a statement published this week, GHG Protocol and ISO said their efforts would “promote credible decarbonisation strategies, enhance market transparency, and enable implementation of mechanisms such as Carbon Border Adjustment Mechanisms, which rely on robust, product‑level emissions accounting”.
They will host a webinar on April 24th to discuss the role of product-level accounting, recent developments in the space, and progress so far on their Product Standard.