Product Carbon Footprint

Product Carbon Footprint

Driving sustainability and reducing the environmental impact

In today's dynamic business landscape, sustainability has become a strategic imperative. Companies are under growing pressure to reduce and measure their product carbon footprint, meeting both regulatory mandates (e.g. EU taxonomy, corporate sustainability reporting directive) and the rising expectations of environmentally conscious consumers. This involves embracing sustainable practices, eco-friendly sourcing, and transparent reporting on their products’ carbon footprints.

A Product Carbon Footprint (PCF) is the result of measuring, managing, and communicating greenhouse gas emissions related to a product’s life cycle. The methodology used for calculating carbon footprints are life cycle assessments which analyze a product’s impact on climate change by analyzing CO2 emissions and CO2 emission equivalents (CO2e) over all life cycle stages.
(DIN EN ISO 14067 | Carbon footprint of product)

Challenges & complexity

Calculating the product carbon footprint for manufacturing companies can be a complex task, and several challenges are commonly encountered in the process. Some of the most common challenges include:

  1. Data collection, availability, and quality 
    Manufacturers may face outdated or incomplete data on raw materials, energy consumption, and other relevant factors. The absence of standardized formats further impedes comparability of carbon footprint calculations.
  2. Supply chain complexity 
    Global supply chains with multiple tiers of suppliers pose challenges in tracing material origins and accurately quantifying environmental impact. 
  3. Scope 3 emissions
    Scope 3 emissions encompass upstream and downstream emissions, contributing up to 90% of a product's CO2 value. However, companies often lack control over these emissions given their complex supply chains, making it challenging to include them in the calculation.
  4. Technology and methodology: 
    Selecting suitable tools and methodologies for carbon footprint calculations proves challenging, as different approaches can yield varying results. Staying updated on all evolving measurement standards, methodologies, and new technologies requires continuous effort.
  5. Regulatory compliance & reporting: 
    Meeting varying regional regulations and reporting standards further complicates carbon footprint calculations.

Leverage Siemens' state-of-the-art PCF solutions

Siemens’ PCF ecosystem addresses the challenges of product-level carbon footprint calculations. Leveraging state-of-the-art technologies, we offer comprehensive solutions that go beyond compliance, fostering strategic sustainability positioning, and targeted PCF optimization along the entire value chain. 

With its unparalleled expertise and industry-based approach, Siemens is the sole provider that possesses the domain know-how needed to tackle this pressing environmental challenge. By leveraging three PCF building blocks, empowered by Siemens-specific software tools and Siemens Advanta’s holistic consulting offering, we are driving the transformation towards a greener and more sustainable future. 

Block 1: PCF Calculation – GreenDigitalTwin GDT (limited access)
Siemens’ GreenDigitalTwin (GDT) software is a powerful tool for businesses, offering accurate PCF calculations and a holistic understanding of environmental impact over the entire product lifecycle. Beyond PCF, Siemens' GDT enables comprehensive Life Cycle Assessments (LCAs) and the creation of Environmental Product Declarations (EPDs). Siemens' GreenDigitalTwin GDT is recognized as best-in-class, providing the necessary tools for informed decision-making and guiding companies towards sustainability goals by minimizing their carbon footprint.

Block 2: PCF aggregation along the supply chain – SiGREEN
At Siemens, we understand that true sustainability cannot be achieved in isolation. That is why Siemens developed SiGREEN, a software designed to securely aggregate emission data along the entire supply chain to generate dynamic PCFs based on true values. This means businesses can now gain insights into the environmental impact of their product lifecycle, including raw materials, manufacturing processes, transportation, and more. By visualizing the supply chain's carbon footprint, SiGREEN facilitates smarter decision-making and fosters collaboration between all stakeholders, driving the adoption of more sustainable practices across the board. 

Block 3: PCF Governance – DigitalProductPass DPP
The final building block of Siemens’ PCF management approach is the DigitalProductPass DPP software. This innovative tool supports businesses in implementing a robust governance framework to ensure PCF compliance and transparency. The DigitalProductPass DPP enables companies not only to track, validate, and certify the PCF of their products, but it will also be a bullet-prove basis for future requirements like PCF-based taxation or the upcoming EU regulation. 

Solutions: Driving sustainability through holistic Product Carbon Footprints

Siemens Advanta leads the way with cutting-edge solutions for product carbon footprints offering comprehensive consulting expertise. We empower businesses to quantify and manage their environmental impact and are your enabler for achieving PCF transparency and offers a wide range of tailored solutions:

Regulatory compliance guidance 

Navigate environmental regulations with Siemens Advanta’s expertise, ensuring compliance and readiness for future standards. Furthermore, Siemens Advanta assists you in achieving official certifications for your PCFs, further increasing trust and transparency towards customers. 

Carbon footprint capability

Empower clients to independently calculate product carbon footprints by providing and integrating state-of-the-art tools as well as providing comprehensive training. 

Siemens Advanta provides you with the capabilities to accurately calculate your products’ carbon footprints.

Customized carbon reduction strategies

Develop tailored strategies to optimize supply chains, processes, reduce energy consumption, and minimize waste, surpassing compliance standards. Siemens Advanta is experienced in successfully leading decarbonization projects covering scope 1-3 emissions.

Green lean digital factory

Boost productivity, flexibility, and sustainability in production facilities. Our approach facilitates the transition to a streamlined, digital, and green "Factory of the Future" through scalable digital solutions, easing the transformation of people, processes, and technologies. 

Product carbon footprint calculation (Scope 1-3) 

Calculate your products’ carbon footprint, encompassing direct (Scope 1), indirect (Scope 2), supply chain, use-phase, and end-of-life (Scope 3) emissions by leveraging Siemens Advanta’s experts and PCF solution suite.

Life Cycle Assessment (LCA) & Standardized Environmental Product Declaration (EPD) 

Conduct extensive LCAs to provide you with even more insights regarding your product’s sustainability impact (e.g. water usage, energy consumption, biodiversity impact) and obtain third-party verified EPDs for your products to increase transparency towards consumers.

Siemens Advanta as your leader in a constantly evolving PCF environment

With its unique and comprehensive approach, Siemens Advanta revolutionizes the management of Product Carbon Footprints. By combining domain know-how, Siemens-specific software tools, and the expertise of Advanta, businesses can embark on a journey towards sustainability. From concept development to a full-blown implementation of customized solutions, Siemens Advanta's three PCF building blocks - PCF Calculation, PCF Aggregation, and PCF Governance - empower companies to make informed decisions based on real data, reduce their environmental impact, and contribute to a greener future. With Siemens Advanta, sustainability is no longer a distant goal but an achievable reality. 

Industry experts

Please reach out to our experts for more information.
Christian Neumann
Christian Neumann
Global Consulting Head Sustainability Business
Thomas Holzner
Thomas Holzner
Global Consulting Expert Sustainability