While the Corporate Carbon Footprint (CCF) measures a company’s total carbon footprint, the Product Carbon Footprint (PCF) goes into more detail. It answers a question that customers, investors, and regulators are asking more and more loudly: What is the climate impact of this specific product—from raw material extraction to disposal?
The PCF has long been more than just a nice marketing metric. It is the data basis for eco-design, supply chain transparency, and compliance with upcoming EU regulations (such as the Digital Product Passport).
What is the Product Carbon Footprint?
The Product Carbon Footprint adds up all greenhouse gas emissions (converted into CO₂ equivalents) that a product causes over its entire life cycle.
There are two different approaches:
1. Cradle-to-gate
This approach measures emissions from raw material extraction and transport to the finished product leaving the factory.
- Area of application: Typical for B2B (business-to-business) relationships, as the manufacturer often has no influence on the end customer’s usage phase.
2. Cradle-to-grave
This approach considers the entire life cycle: raw materials -> production -> transport -> use -> disposal/recycling.
- Area of application: Typically used for B2C products where use (e.g., electricity consumption of a television) or disposal accounts for a large proportion of emissions.
How is the PCF calculated? (Methodology)
To ensure comparability, companies follow international standards such as ISO 14067 or the GHG Protocol Product Standard. The calculation is usually carried out in four steps:
- Define the objective and scope: Which product is being analyzed? Which system boundaries apply (cradle-to-gate vs. cradle-to-grave)?
- Create a life cycle inventory (LCI): Record all material and energy flows (input: raw materials, electricity, water / output: product, waste, emissions).
- Impact assessment: Convert consumption into CO₂ equivalents using emission factors (e.g., “1 kWh of German electricity = X kg CO₂”).
- Interpretation: Where are the hotspots? Is it the transport of raw materials or energy consumption in manufacturing?
The challenge: Primary vs. secondary data
- Primary data: Data measured in-house (e.g., electricity meters on your own machines). This is the most accurate data.
- Secondary data: Average values from databases (e.g., for the CO₂ value of purchased steel) if no supplier data is available.
Why PCF is crucial for companies
Calculating PCF is complex, but it offers strategic advantages:
1. Transparency in the supply chain (Scope 3)
Often, 80–90% of a product’s emissions do not originate in the company’s own factory, but in the upstream supply chain (Scope 3 Upstream). The PCF forces companies to take a closer look and choose suppliers or materials with lower emissions.
2. Competitive advantage & customer requirements
Large purchasers (e.g., in the automotive industry) are increasingly demanding PCF data for each component from their suppliers. Those who cannot provide data lose orders. End consumers are also increasingly opting for products with transparent climate labels.
3. Preparation for regulation (ESRS & product passport)
Under the CSRD (ESRS E1), companies must disclose their climate strategy. PCF data is an essential building block for formulating credible reduction targets. In addition, the EU’s upcoming Digital Product Passport (DPP) is expected to make CO₂ information mandatory for many product groups.
4. Cost reduction through efficiency
Those who know where CO₂ is generated often also know where energy or materials are being wasted. PCF analyses reveal inefficiencies and help to reduce costs (e.g., through material savings or optimized logistics).
Data is the key
The Product Carbon Footprint is changing from a voluntary option to a requirement. Companies should start building the necessary data infrastructure now. Because in the future, the rule will be: no CO₂ price tag, no business.