Together for Sustainability (TfS) is driving decarbonization in the chemical sector and setting the standard for sustainable supply chains. To support this, we’ve developed the Product Carbon Footprint (PCF) Guideline and PCF Exchange solution – tools that will enable chemical companies to accurately calculate the carbon footprint of products and services and exchange data in real-time across their supply chains.
Shaping sustainable supply chains: decarbonizing the chemical sector
Chemicals are vital in all areas of life and business – from automotive manufacturing to construction and pharmaceutical development. As such, the chemical industry is uniquely placed to catalyze emissions reductions across multiple sectors. However, it is also responsible for contributing to global emissions and chemical corporations have a key role to play in accelerating decarbonization. As Scope 3 accounts for an estimated 80% of corporate carbon footprints, supply chains are an important area to focus on.
While tracking emissions can be a fragmented and unreliable process due to the complexity of supply chains and inconsistent data, value chains also offer the greatest opportunity to achieve substantial emissions reductions.
Driving decarbonization through innovation and collaboration
A lack of standardized tools and clear guidelines means many companies are still estimating their Scope 3 emissions using generic data or assumptions, slowing vital progress toward the goals of the Paris Agreement. Under current processes, companies must rely on suppliers self-reporting their emissions, an approach that can lead to varying degrees of completeness in datasets. To drive meaningful climate action across the chemical industry, more transparent and product-specific emissions data is required.
Innovation and collaboration are key to overcoming data collection and calculation challenges. TfS – a member-led initiative committed to improving sustainability standards within the chemical sector – is at the forefront of this effort. By fostering collaboration across the chemical industry and its value chains, TfS aims to standardize Scope 3 measurement, enabling companies to accurately track their carbon footprint, identify reduction opportunities and drive industry decarbonization.
TfS tools for decarbonizing supply chains
TfS is developing solutions to the industry’s most urgent challenges and removing barriers to decarbonization. This includes the recently updated Product Carbon Footprint (PCF) Guideline. Tailored specifically to the chemical industry, the PCF Guideline is a step-by-step guide to calculating the “cradle-to-gate” carbon footprint of products and services, increasing accuracy and regulatory compliance. It offers a standardized method for companies to identify areas with the highest concentration of emissions and collaborate with suppliers on reduction measures. Building on existing international greenhouse gas (GHG) accounting standards and validated by a leading standardization body, the PCF Guideline harmonizes calculation approaches and aligns with the International Organization for Standardization (ISO) and the GHG Protocol. The latest update benefits from improved usability and responds to industry-specific challenges such as waste material definitions and data quality.
Rapid decarbonization requires real-time, standardized emissions data. Building on the success of the PCF Guideline, TfS launched the PCF Exchange solution, an innovative tool that enables companies to request, exchange and compare product-level emissions data with their suppliers at scale. It uses Siemens’ SiGREEN technology to facilitate fast, secure data exchange, streamlining carbon footprint calculations and increasing the accuracy of supply chain emissions reporting.
By combining robust guidelines with innovative digital solutions, TfS is helping companies achieve real progress in reducing supply chain emissions.
Empowering action for sustainable supply chains
Decarbonizing supply chains is no longer optional – it is essential. As reduction targets approach and mandatory regulations are introduced, companies that do not act now risk falling behind and facing reputational and legal risks.
TfS offers tools and guidance to help the chemical industry decarbonize at pace, using supply chains as powerful enablers of emissions reduction. For procurement and supply chain professionals, adopting these tools is a critical step toward future-proofing businesses and progressing toward sustainability goals. Leveraging the PCF Guideline and PCF Exchange solution allows companies to gain greater visibility and control over supply chain emissions. Through collaboration and knowledge exchange, the chemical industry can lead the charge on Scope 3 emissions reduction.
Visit the TfS website to find out more about how the PCF Guideline and PCF Exchange solution can help lead the way toward a more sustainable, decarbonized supply chain.
