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Product Life Cycle Accounting and Reporting Standardcherryho2023-09-12T16:05:35+08:00
Product Life Cycle Accounting and Reporting Standard
As climate change has become a pressing concern while climate-related impacts are accelerating, investors and customers are calling for more transparency on companies’ environmental issues, such as greenhouse gas (GHG) emissions. Therefore, a representative GHG inventory is of great importance for companies to develop a competitive advantage. Recently, companies have moved their focus beyond their operations to account for GHG emissions along their value chains and product portfolios, striving to conduct a more comprehensive and thorough analysis.
Purpose of the Product Life Cycle Accounting and Reporting Standard
The GHG Protocol Product Life Cycle Accounting and Reporting Standard (referred to as the Product Standard) provides requirements and guidance for companies to quantify a product’s GHG emission and removal capability, acting as a framework for companies to reduce greenhouse gas emissions from the products (goods or services) they design, manufacture, sell, purchase, or use.
The Product Standard builds on the ISO LCA standards (14040:2006 – Life Cycle Assessment: Principles and Framework and 14044:2006 – Life Cycle Assessment: Requirements and Guidelines) and PAS 2050, with the intent of providing additional specifications and guidance to facilitate the consistent quantification and public reporting of product life cycle GHG inventories.
Companies conduct the accounting and reporting because
Achieve competitive advantage by pursuing GHG reduction opportunities and cost savings to create a low-emitting product
Strengthen brand image regarding GHG performance
Companies shall define the studied product and account for carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, perfluorocarbons, and hydrofluorocarbons emissions to, and removals from, the atmosphere.
For final products, companies shall define the unit of analysis as a functional unit, including the function (service) a product fulfills, the duration or service life (amount of time needed to perform the function), and the expected quality level. For intermediate products where the eventual function is unknown, companies shall define the unit of analysis as the reference flow.
Companies shall identify the attributable processes along the life cycle that are directly connected to the studied product and group them into life cycle stages. Then, companies shall identify the service, material, and energy flows needed for each attributable process. In general, attributable processes include material acquisition and preprocessing, product production, product distribution and storage, product use, and end-of-life treatment.
Companies shall apply a 100-year global warming potential (GWP) factor to GHG emission and removal data to calculate the inventory results in units of CO2 equivalent (CO2e) , quantifying the total inventory results.
Companies shall conduct assurance either by themselves or engage a third party, ensuring the inventory results are complete, accurate, consistent, transparent, relevant, and without material misstatements.
What GreenCo can do for you
At GreenCo, we acknowledge the increasing focus on product lifecycle GHG accounting and reporting and understand the challenges involved in the process. We can provide comprehensive GHG emissions reporting services that help companies identify, account for, report and assure their products’ life cycle GHG emissions. We use the latest methodologies and tools to ensure reliable GHG emissions reporting, including the GHG Protocol, ISO 14064, and other recognised standards and frameworks.
Our team of experts has extensive experience in GHG emissions accounting and reporting, and can help clients navigate the complexities of the reporting process, meet regulatory requirements, and enhance their reputation as responsible and sustainable companies. Contact us to learn more about how we can help your company achieve product GHG emission accounting and comply with reporting standards.